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MARKET COMMENTARY
Sentiments are muddled as the week’s session culminates. On Friday, TOCOM rubber futures pared initial gains and moved to a negative turf, falling nearly one per cent while SHFE rubber futures was swinging between positive and negative turfs as investors are probably awaiting fresh cues for further directional moves. In the Indian market, the commodity traded firm on Thursday. Even as lackluster demand weighed on, limited supplies and positive moves in natural rubber in the major overseas market lend support.
MARKET NEWS
Kerala State Chief Minister informed the Assembly that government would ensure that small-scale rubber growers with two hectares of land or less will get an assured price of Rs.150 a kg. A total of Rs 300 crore has been earmarked in the state budget for ensuring fair price for rubber which will be utilized for this new scheme. Rubber inventories in the warehouses monitored by SHFE rose 4.1 per cent on weekly basis to 146329 tonnes. Rubber Board has clarified that Kerala and Kanyakumari dist. Of Tamil Nadu would continue to receive subsidy for planting and replanting rubber. Malaysia plans to use 10 per cent of its rubber supply in roads from 2016 as it looks to eat into excess supplies and shore up rubber prices.
Raising concern over the fall in rubber production for the third consecutive year, the tyre and rubber industries have sought urgent government intervention to stem the slide in domestic production.
Kerala will constitute a subcommittee to look into various issues related to rubber farmers. The committee’s aim is to see that the financial assistance provided by the Government reaches the farmers effectively.
Kerala FM says the central government has assured that the state has not been excluded from the rubber subsidy scheme and also added that the state has sought Rs.500 crore for the rubber procurement scheme announced by the state budget.
The United States imposed duties on certain automobile and light truck tires imported from China after finding they were being dumped at below-market value and unfairly subsidized by Beijing.
Source: Geofin Comtrade