Spot rubber unchanged in dull trade

Kottayam, Dec. 24

Physical rubber prices finished unchanged on Friday. Sheet rubber closed unchanged at Rs 206.50 a kg, according to dealers. Transactions were low.

India has cut import duty on natural rubber to 7 per cent for shipments up to 40,000 tonnes until March 31. India imports natural rubber mainly from Thailand, Malaysia and Indonesia. But the tyre makers have stopped signing new import deals as they get the raw material more than 15 per cent cheaper in the local market.

Global supply of natural rubber (NR) is anticipated to fall 6.3 per cent in the fourth quarter (October-December) this year according to the revised estimates officially reported on December 16 by member countries of the ANRPC which account for 92 per cent of the commodity's global supply. This further downward revision from the previously expected 3.8 per cent fall during the quarter originates from Thailand (revised down from -28.4 per cent to -33.4 per cent), India (revised down from -1.8 per cent to - 4.6 per cent) and Vietnam (revised down from +3.8 per cent to - 2.8 per cent).

In futures, the January series increased to Rs 212.80 (210.13), February to Rs 217.50 (215.19), March to Rs 222.25 (219.98) and April to Rs 227.20 (225.09) a kg on National Multi Commodity Exchange (NMCE).

The volumes totalled 5,230 lots and open interest 8,105 lots. The turnover was Rs 112.64 crores.

RSS 3 (spot) closed at Rs 222.82 (222.58) a kg at Bangkok. The January futures for the grade improved to ¥ 407.0 (Rs 221.47) from ¥ 404.9 during the day session and then to ¥ 409.0 (Rs 222.57) per kg in the night session on Tokyo Commodity Exchange (TOCOM).

The spot rubber rates per kg were: RSS-4: Rs 206.50 (206.50), RSS-5: Rs 200.00 (200.00), Ungraded: Rs 195.00 (195.00), ISNR 20: Rs 204.00 (204.00) and Latex 60 per cent: Rs 137.00 (137.00).

(Source: http://www.blonnet.com/2010/12/25/stories/2010122552441600.htm)