- Natural rubber prices are bound south in the Indian market. On Tuesday, NMCE rubber futures plunged with the most active September rubber futures dropping to its lowest since early October 2012. However, activities in the spot market continued to remain sluggish and declines were limited compared to the fall seen in the futures market. Weakness in natural rubber prices in the international market and uncertain global economic outlook is likely to keep market under pressure.
- On Wednesday, natural rubber is trading in negative turf in the international market. Weaker demand outlook for the commodity weighed on prices. Tocom rubber futures inched lower, dropping more than one per cent after trading mostly flat earlier today while fall was more pronounced in AFET rubber futures.
- According to International Rubber Study Group, global demand for both natural and synthetic rubber is seen rising four per cent to 27.7 million tonnes in 2013 on a year on year basis. However, the Group revised down the demand estimates for 2012 to 26.6 million tonnes from earlier estimates of 26.8 million tonnes.
- Indonesia’s first-half rubber exports fell 8 percent from a year earlier to 1.2 million tons as the debt crisis in Europe cut demand, Asril Sutan Amir, chairman of the nation’s rubber association.
- Crude rubber stockpiles held at Japanese warehouses fell 9.4 percent to 9,308 metric tons on July 31, according to data from the Rubber Trade Association of Japan.
- Rubber inventories in the warehouses monitored by the Shanghai Futures Exchange declined 2.2 per cent to 19140 tonnes last week.
- Tyre grade rubber in Southeast Asia was trading at its lowest in at least four years and China is likely to step up purchases to exploit the low prices.
- JK Tyre and Industries considering acquiring small rubber plantations probably in South-East Asia to securitize its natural rubber supplies.
RUBBER Sep NMCE
In the previous session, the direct fall below 17380 had ushered the selling momentum which is likely to continue towards 17100-16900 region or more in the near term. However, pullbacks extending beyond 17400-17530 must be viewed with caution and such rallies will have the potential to test 17700-17900 region.
Source: Geojit Comtrade
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