Spot rubber prices improve

Print this page Posted on : 12-08-2009 by recycleinme.com

Kottayam, Dec. 7

The physical rubber market improved on Monday. The prices strengthened in the absence of sellers following the early gains on NMCE, but its late weakness failed to make any substantial impact on RSS 4.

The grade firmed up further to Rs 133 from Rs 132 a kg mainly on covering purchases.

According to market circles there were no enquiries from the tyre sector above Rs 123 a kg for sheet rubber. It is an unprecedented situation for the rubber sector as a whole, said Mr George Waly, President, Indian Rubber Dealers Federation (IRDF).

According to Rubber Board, there is a stock of 2.21 lakh tonnes of rubber and the stock being held by the growers alone comes to 1.75 lakh tonnes. But industry is facing acute shortage as a result of the poor inflow. As against Rs 59 a kg during the same period last year, the price has now shot up to Rs 135 while the international price is now ruling below at Rs 130 a kg. The peak production period has thus turned to be the hardest time quite unhealthy for the rubber sector, he added.

The December futures for RSS 4 finished at Rs 134 (133.46), January at Rs 134.44 (134.76), February at Rs 135.75 (136.70) and March at Rs.137.55 (138.71) a kg on National Multi Commodity Exchange (NMCE). On Tokyo Commodity Exchange (TOCOM), the December futures for RSS 3 closed at ¥249.8 (¥250) (Rs 129.23), January at ¥252.5 (¥252.3), February at ¥253.8 (¥254.2), March at ¥255 (¥256.2), April at ¥258.3 (¥259.7) and May at ¥261.3 (¥262.5) a kg during the day session. The December futures concluded at ¥250.5, February at ¥254.2, March at ¥253.7, April at ¥257 and May at ¥259.7 a kg while the January futures remained inactive during the night session. RSS 3 slipped to Rs 130.77 (130.93) a kg on Singapore Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 133 (132); RSS-5: 131 (128); ungraded: 129 (127); ISNR 20: 130 (126) and latex 60 per cent: 82 (80)

Source : Business Line