Spot rubber ended in a weak note on Wednesday. There were no fresh enquiries from the industrial sectors as most of them preferred to sideline a falling market. Covering purchases were almost over and the prices fell back once again on buyer resistance. RSS-4 dropped to ₹169 (170) and ₹170 (171) per kg respectively, according to traders and the Rubber Board.

“I expect rubber to touch ₹165 a kg soon unless there is a sharp improvement in demand to absorb the rising supplies” a dealer told BusinessLine.

In futures, the most active December contracts were down 0.01 per cent from Tuesday’s settlement price to close at ₹165 per kg with a volume of 13 lots on the Multi Commodity Exchange (MCX).

As per reports, import of NR from China is expected to be higher during December 2021 and January 2022 on account of the pre-Lunar New Year demand. In view of the seasonal supply shortage coinciding with the annual wintering of rubber trees in major producing countries, Chinese manufacturing companies are expected to build up NR inventory ahead of the week-long holiday for the Lunar New Year on February 1. China is expected consume around 500,000 tonnes each during December 2021 and January 2022.

RSS-3 (spot) declined to ₹142.29 (143.16) per kg at Bangkok. SMR20 improved to ₹128.17 (127.62), while Latex slid to ₹93.39 (94) per kg at Kuala Lumpur.

The natural rubber contract for the January 2022 delivery was up 1.02 per cent from previous day’s settlement price to close at 14.19 Yuan (₹168.23) per kg with a volume of 4,616 lots in daytime trading on Shanghai Futures Exchange (ShFE).

The most active May 2022 delivery was up 0.09 per cent from its last settlement price to close at ¥230 (₹152.02) per kg with a volume of 26 lots on the Osaka Exchange (OSE), Japan.

Spot rubber rates (₹/kg) were: RSS-4:169 (170), RSS-5: 164 (164), ISNR20: 156 (158) and Latex (60% drc): 130 (131).

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