Tuesday, December 3, 2019

Lots of hope on back of slowdown

The Reserve Bank of India (RBI) may cut interest rates for the sixth straight time on 5th December to support growth that has continued to slip to more than six-year low on slump in manufacturing. RBI has cut interest rates on every single occasion the multi-member monetary policy committee (MPC) has met.

GDP growth slowed sharply to a pace of 4.5% in the July-September 2019, hit by a slump in manufacturing output, which contracted by 1.0%.

United States sparking off a trade war with Brazil and Argentina, amid an ongoing dispute with China. U.S. President Donald Trump on Monday said he would impose tariffs on steel and aluminium imports from Brazil and Argentina, taking the trade war to new pastures even as the United States looks to sign a trade deal with China.

The benchmark RSS4 grade rubber closed at `.130.50 a kg at Kottayam, while RSS3 grade closed at `.110.63 a kg at Bangkok and Malaysian SMR20 closed at `.102.17 a kg. On Monday, ICEX December 2019, the futures closed at `.133.07 a kg, January 2020 at `.134.35, February at `.136.97, March at `.133.49, April at `.134.82 and May closed at `.136.16 a kg. Today, Tokyo Commodity Exchange December 2019 futures series closed at ¥169.0 a kg, January 2020 at ¥168.2, February at ¥171.3, March at ¥177.4, April at ¥184.2 and the contract for delivery in May 2020 closed at ¥189.0 a kg.

To read Rubber4U – 1st December 2019 issue: http://rubber4u.com/Public/Abcd.pdf
For National Rubber Policy: http://rubber4u.com/Public/NRP2019.pdf