Rubber remains in lower range

TOKYO (Commodity online): Rubber prices remained volatile on Friday as Tocom August contract closed at 432.6 yen per kilogram.
Rubber prices fell significantly after the earthquake in Japan as the country is home to the world market for rubber of the first order, the TOCOM and also home to leading automotive world. Prices fell as low as 335 yen on March 15.
Enjoyed relatively high rubber prices worldwide because the booming sector car two-thirds of consumption. Not because of any impact on the sector could be reflected in rubber prices as well.
The most recent incident is the earthquake that hit Japan in the automotive sector in the country, one of the largest in the world, and subsequently led to a decline in rubber prices due to lack of demand.
The auto giant factories like Toyota, Honda, Suzuki and Nissan have yet to recover from the devastation caused by the earthquake and tsunami.
Rubber prices was affected by the impact of the earthquake and also the lack of demand from China as the country is in the process to combat rising inflation.
Prices in exchange for the country's top fell again on Friday September delivery of natural rubber trade was seen below the $ 5,500 mark. It was at $ 5422 a tonne at the close of trade during the week.
Prices are not expected to rise soon as the China's largest rubber harvest season begins later this month, analysts said.
The TOCOM rubber prices remained at lower ranks the contracts in August was 432.6 yen per kg at the close of trading Friday.
However, analysts said prices could return in strict market interventions. Three major rubber producing countries of Thailand, Indonesia and Malaysia have agreed in principle to delay exports if prices fell.
Another major consumer of rubber in India is expected to increase the purchase of rubber next fiscal year as the country's rubber demand is expected to grow by 6 percent.
Global demand for natural and synthetic rubber is expected to increase to 26.1 million tonnes in 2011.

(Source: http://www.commodityonline.com/news/Rubber-remains-in-lower-range-37578-3-1.html)