- In the week gone by, NMCE rubber futures recuperated from theseven week low, ending more than one per cent high from theprevious week’s close. Towards the close of the week a rebound wasseen in the spot market too, with quotes on RSS4 edging higher fromits lowest since mid-March. While lacklustre demand from the majorrubber consuming industries and concerns over the quality ofproduct available in the market weighed on the sentiments, thindifference between quotes prevailing the local and the internationalmarket and depreciating rupee provided cushion to the fallingprices. However, with the ‘wintering’ to end soon production mayresume its rise.
- Consecutive holidays in the major natural rubber market thisweek may keep the activities subdued in the international market.
- China was seen chasing tyre grades from Southeast Asia in theprevious week, to replenish its dwindling domestic inventories.However, abundant supply in Indonesia kept SIR20 prices at itslowest in three month.
- Rubber stocks in the warehouse monitored by SHFE dropped 5.2per cent to 17018 tonnes in the previous week.
- According to ANRPC, natural rubber production among itsmember countries declined 9.5 per cent in the Q1 of 2012 to 2.12million tonnes. Also, the Association revised down the global naturalrubber production forecast for the present year to 10.297 milliontonnes from 10.42 million tonnes.
- Natural rubber exports from Ivory Coast, Africa’s leading naturalrubber producer, rose 22 per cent in Jan-Mar 2012 to 68140 tonnes.
- MRF starts production at its Rs.900 crore plant in TN which willmanufacture a full range of tyres including truck tyres and radials.
- According to Bridgestone, the biggest tyre maker in the world, tyredemand from China is growing at a slower pace than the last year asthe nation’s economic expansion is decelerating.
RUBBER nmce May
The successful attempts to sustain above 19250 saw prices rising to19400 region as anticipated. Now, the candlestick formation in theweekly chart indicates the continuation of the positive sentiments.For the day expect, prices to extend the gains towards 19660initially. However this requires sustaining the same for furtherupside towards 19900 levels or more. Inability to break above19660 may see a brief correction towards 19300-19180 and fallbelow 19180 may strengthen the weakness.
Source: Geojit Comtrade
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