Rubber market moves in a narrow range
WEEKLY RUBBER MARKET REVIEW
Rubber market in India moved in a narrow range in thin trade as traders and consumer buyers were rather inactive in the market during the week 30 April/4 May 2012. The spot market was taking cue from the futures quotations in the National Multi Commodity Exchange, where the trade was trapped in very narrow movement. Though the rubber industry projected import of 10% more NR in 2012/13 than 205,050 tonnes in 2011/12, the Rubber Board estimated 64,000 tonnes as shortfall between demand and supply in the current fiscal, which could be met by entitlement of duty free import on the strength of rubber products already exported. These conflicting views did not give a firm direction to the market.
Latex price firms up
Prices of dry grades ruled more or less steady in the spot market around Rs.196 a kg for RSS 4 and Rs.194.50 a kg for block rubber ISNR 20. However, price of latex 60% firmed up from Rs.123.15 a kg at the beginning of the week to Rs.126.30 at the end as supply was limited on account of the copious summer showers in the rubber growing tracts disrupting tapping of rubber trees. The Indian rupee depreciated against the Greenback to Rs.53.50 giving scope for enhancing NR exports, but thin margin between the domestic and the international prices made less room for the exporters to swing into action.
Rubber markets in the Asian region also moved in a narrow range. Though economic data emerging out of the US held prospects of improved demand for automobiles and auto rubber components, the continuing economic woes in the European Union and lack of thrust in Chinese buying forced the NR market to move within very narrow limits, despite improved Chinese manufacturing data in April compared to March 2012. Flow of NR from Thailand and Malaysia was limited despite the dry wintering season coming to an end, but availability from Indonesia was better and the market did not get buoyant.
Vietnam has cut its rubber export forecast by 0.6% to 930,593 tonnes in 2012, but robust export of 68,140 tonnes of NR in March 2012 from Cote de Ivoire, Africa’s leading NR producer, forebodes better supply from the dark continent, though its share in the world supply is only around 3%.
Price of RSS 3 was fluctuating around $ 3.92 a kg in the Bangkok market during the week, while block rubber SMR 20 slightly slipped from $ 3.66 to $3.62 a kg. Nevertheless, latex 60% ruled steady around $ 2.48 a kg in the Kuala Lumpur market.