MARKET COMMENTARY
In this first trading session of this week, natural rubber in the overseas market are seen stretching losses. TOCOM rubber futures declined, stretching the previous week’s losses probably tracking decline in crude oil prices. However, weak yen against the US dollar lend firm support. SHFE rubber futures declined as well. In the Indian market, last week, the commodity stayed under pressure on poor local demand and surging imports though tight supplies to the market restricted sharp declines, keeping prices varying in tight ranges.
MARKET NEWS
Natural rubber imports by China declined 13.54 per cent to 218919 tonned in April.
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 falling 0.2 per cent last week to 128016tonnes.
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.
