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MARKET COMMENTARY
?In this first trading of this week, sentiments seems to be muddled in the international natural rubber market. TOCOM rubber futures are swinging between positive and negative turf and so is SHFE rubber futures. While gains in crude oil prices are supporting the sentiments, worries over economic growth in China pondered upon the overall market sentiments.
?In the Indian markets last week, RSS4 stayed under pressure with prices hitting mid-December in the physical market. In the futures segment too, the grade posted losses for the second consecutive week, slipping to its weakest since January this year. Subdued off-take and weakness in the major overseas market continued to drag lower the prices.
MARKET NEWS
?Thai government has kicked off a soft-loan programme to help rubber companies but more domestic raw materials to help to absorb oversupply and boost the price of the commodity.
?Vietnam has agreed to join the International Tripartite Rubber Council, which groups the world’s three largest producers of natural rubber-Thailand, Indonesia and Malaysia.
?NMCE to launch forward trading in Indian from 23 April 2015.
? The demand to include rubber in the central government’s “Make in India” scheme is gathering momentum. This would help solve the problems faced by rubber planters and rubber product manufacturers, said the National Federation of Rubber Producers’ Societies.
?China 1Q GDP at 7.0 per cent, its slowest pace in six years.
?India government is in the process of formulating a national rubber policy and insurance based scheme to address the issues pertaining to the sector and boost the production of the plantation crop.
? China’s rubber imports (natural and synthetic) rose 33.3 per cent on MoM basis to 360000 in March while it registered a 12.2 per cent fall on YoY basis.
?Malaysia’s natural rubber production rose 1.4 percent in February to 74469 tonnes on year on year basis.
?With rubber prices witnessing a sharp decline, Kerala Finance Minister KM Mani has asked the Centre to initiate steps to mitigate the distress of rubber cultivators, including immediately freezing block rubber imports.
?An international rubber group forecasts that both natural rubber and synthetic rubber will have an abundant supply in the years to come. Stephen Evans, secretary general of International Rubber Study Group says that by the year 2020, there will be a surplus of 1 million tons of natural rubber and 3 million tons of synthetic rubber.
Source: Geofin Comtrade