Spot rubber sinks on panic sales
|
|
|
Physical rubber prices made heavy losses on Tuesday. The prices declined as major consuming industries withdrew from the market letting the prices to fall freely on an almost panic selling from dealers and growers.
Sheet rubber RSS 4 closed extremely weak at Rs 75.50 a kg against Rs 79 a kg and the market made all-round declines amidst moderate volumes. A sizeable portion of the NR produced in India is consumed by the automobile industry.
Any weakness to this industry will have adverse effect to the rubber sector as a whole, said Mr Sibi J Monippally General Secretary, Indian Rubber Growers' Association. The global economic recession will have its own impact on the rubber market coupled with the peak production season. But the slow down visible in the market is only a temporary phenomenon, he said.
Futures drop
The November contract for RSS 3 moved down to ¥156.2 (Rs 80.45) from ¥158, December to ¥157.3 (162), January to ¥161.5 (166), February to ¥164.9 (169.4), March to ¥166.6 (171.6) and April to ¥168.5 (174.3) a kg at TOCOM. The grade (spot) closed weak at Rs 88.62 (89.85) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 75.50 (79); RSS-5: 73.50 (76); ungraded: 69.50 (72); ISNR 20: 74 (76.50) and latex 60 per cent: 56.50 (57).
|
|
|
|
Source : Business Line |
|
|
|
|
|
RecycleINme.com. All Rights Reserved
