Demand and supply woes lift spot rubber

Our Bureau Updated - August 17, 2021 at 09:35 PM.

ISNR20 extended gains on sustained demand from major consuming industries

Palakkad, Kerala, 20/04/2017: A farm worker drying rubber sheets inside of the rubber plantation at Malampuzha in Palakkad. Production of natural rubber (NR) in India rose 20.7 per cent on year during December 2016 to 70,000 tonne from 58,000 tonne during December 2015. The total output during the first three quarters of the fiscal year (April to December 2016) also increased by 14.1 per cent to 502,000 tonne from the same period a year ago. The production preliminarily estimated for January 2017 is 66,000 tonne up 26.9 per cent from 52,000 tonne produced during the same month a year ago. According to Statistics from Rubber Board. Natural rubber (NR) exports from India registered a quantum leap during last fiscal, with 20,030 tonnes leaving the country. By contrast, in 2015-16, exports were just 865 tonnes. NR exports stood at 30,594 tonnes in 2012-13. But thereafter, owing to the relatively low price of NR in the international market, exports showed a declining trend.Photo: K. K. Mustafah.

Spot rubber regained strength on Tuesday. “There was no improvement in arrivals as expected earlier though the government eased the Covid-19 restrictions but there has been a steady rise in domestic demand since then,” an observer told BusinessLine . “Certain companies are willing to give even better rates to quantity sellers now,” he added.

RSS-4 closed firm at ₹178.50 (178) per kg after hitting an intraday high of ₹179 as per traders. The grade firmed up to ₹178 (177.50) and ₹173 (172.50) respectively, according to the Rubber Board and dealers. Meanwhile, ISNR20 extended the gains on sustained demand from major consuming industries.

The most active August delivery was up 0.49 per cent from Monday’s settlement price to close at ₹181.20 per kg with a volume of 30 lots on the Multi Commodity Exchange (MCX).

The natural rubber contract for the September delivery was up 0.95 per cent from previous day’s settlement price to close at 13,740 Yuan (₹157,683.23) a tonne with a volume of 47,660 lots in day time trading on Shanghai Futures Exchange (ShFE).

RSS-3 (spot) improved to ₹142.45 (141.09) per kg at Bangkok. SMR 20 firmed up to ₹132.77 (131.10) and Latex to ₹95.17 (94.05) per kg at Kuala Lumpur.

The forward January 2022 delivery improved 0.27 per cent from last day’s settlement price to close at ¥224.6 (₹152.82) per kg with a volume of 118 lots on the Osaka Exchange, Japan.

Spot rubber rates (₹/kg) were: RSS-4:178.50 (178); RSS-5: 176 (176); ISNR20: 165.50 (164.50) and Latex (60% drc): 130 (130).

The National Institute for Rubber Training (NIRT) of the Rubber Board is organising an online training programme in good agricultural practices for sustainable rubber production on August 24 and 25. The training will be from 10.00 am to 1.00 pm. For further details, contact 0481- 2353127 or WhatsApp 7994650941.

Published on August 17, 2021 16:05