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Wednesday, 13 July 2011 00:47 - - {{hitsCtrl.values.hits}}
Reuters: Natural rubber prices in India are likely to ease this week following a drop in the international market, but lower supplies because of a fall in tapping in June may limit the downside, analysts and dealers said on Tuesday.
Tokyo rubber futures fell to a one-week low on Tuesday, tracking falls in oil prices, with concern about the euro debt crisis adding to the downward pressure on prices, dealers said.
“Arrivals in physical market have decreased due to falling prices. Production in June was lower than last year because of excessive rains,” said George Valy, president of the Indian Rubber Dealers Federation.
“Many farmers were not willing to sell below 22,000 rupees.”.jpg)
On Tuesday, price of the most traded RSS-4 rubber (ribbed, smoked sheet) in the key Kottayam market in Kerala closed down 150 rupees at 21,250 rupees per 100 kg.
The benchmark August rubber contract on India’s National Multi-Commodity Exchange (NMCE) provisionally closed 1.2 percent higher at 21,559 rupees per 100 kg.
Analysts said higher stocks with farmers and traders were also putting pressure on prices.
At the end of May, stocks in India stood at 249,470 tonnes, compared with 187,750 tonnes a year ago, data with the Rubber Board showed.
“Demand is weak because of imports. Tyre makers have raised imports in June,” Valy said.
India, the world’s fourth biggest producer, imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam.
Global natural rubber production was forecast to rise to 9.936 million tonnes in 2011, lower than a previous estimate of 10.025 million tonnes, due to output revisions in Indonesia and the Philippines, industry group ANRPC said last month.
India’s production for the current financial year is estimated at 902,000 tonnes and consumption at 977,000 tonnes.
