MARKET COMMENTARY
A bounce back is being witnessed in natural rubber in the international market on Thursday after the deep dive in last day. TOCOM rubber futures rose about a per cent buoyed by a weaker yen and firming crude oil prices. SHFE rubber futures rose as well. Anticipation of more economic stimulus from China following a weak PMI manufacturing data may too have improved the sentiments. In the Indian market, meanwhile, RSS4 grade rubber traded rather steady in the spot market and on NMCE the commodity culminated the session on a negative note in lacklusture trades.
MARKET NEWS
China Rubber Industry Association has released self-disciplinary standards for “environmental protective” reclaimed rubber used in tires, according to a CRIA. The standards, made in reference to European Union regulations, aim to eliminate high-polluting processes and the use of hazardous materials such as coal tar.
Weekly data from SHFE showed rubber inventories in the warehouses monitored by the exchange rising 0.8 per cent last week to 128214 tonnes.
Vietnam rubber exports in April declined by 19 per cent on MoM basis to 52517 tonnes according to the country’s customs department.
Crude rubber inventories in the Japanese ports stood at 11825 tonnes as of April 30, up 6.5 per cent from the last inventory date (April 20), according to Rubber Trade Association of Japan.
Indonesia is aiming to boost domestic rubber consumption toaround 1.24 million tonne in five years from the current level of 558,000 tn per annum according to Industry Minister SalehHusin.
Natural rubber production in Indian declined 11.8 per cent in April to 45000 tonnes on year on year basis while imports surged by 28 per cent to 37250 tonnes.
The Stock Exchange of Thailand plans to team up with the Shanghai Futures Exchange (SHFE), China’s main futures market, to trade Thai rubber futures in a bid to increase the trading liquidity of Thai farm commodity futures. SET president KesaraManchusree said agricultural commodity futures would be traded on the Thailand Futures Market (TFEX) in the second half of this year after the Agricultural Futures Exchange of Thailand (AFET) finishes merging with TFEX.
Finance Minister ArunJaitly says the Center soon to raise the import duty on natural rubber to 25 per cent from the present 20 per cent.
