Spot rubber was quoted steady with an upward bias, despite the sharp declines in overseas markets on Tuesday. RSS4 closed unchanged at ₹170.50 per kg after hitting an intraday high of ₹171.00, according to traders. The grade finished flat at ₹170.00 a kg as per the Rubber Board.
“There was no improvement in arrivals yet and it may take another two or three weeks for the supplies to strengthen”, a dealer told BusinessLine .
The optimism on the demand sector has improved in India as several states have lifted or eased the Covid-19 related restrictions, according to the Association of Natural Rubber producing Countries (ANRPC). The country’s auto sector is also showing signs of recovery.
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Even though the sales in Apr-June 2021 is much lower than that of the same quarter in 2019 (6.085 million units), the recovery towards the pre-pandemic level has been a positive news to the domestic market.
In futures, July delivery was down 1.26 percent from Monday’s settlement price to close at ₹172.50 per kg with a volume of 28 lots on the Multi Commodity Exchange (MCX). RSS 3 (spot) surrendered to ₹131.75 (136.03) per kg at Bangkok.
The natural rubber contract for the September delivery was down 5.03 percent from previous day’s settlement price to close at 12,920 Yuan (₹1,48,821.56) a tonne with a volume of 5,74,567 lots in day time trading on Shanghai Futures Exchange (ShFE).
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The most active December delivery was down 0.29 per cent from last days settlement price to close at 206.1 Yen (₹140.54) per kg with a volume of 202 lots on the Osaka Exchange, Japan.
Spot rubber rates (₹/kg) were: RSS4:170.50 (170.50); RSS5: 167.50 (167.50); ISNR20: 155.00 (154.00) and Latex (60 per cent drc): 129.00 (129.50).