Spot rubber drops to Rs 65/kg

Print this page Posted on : 11-21-2008 by recycleinme.com

Kottayam, Nov. 20

Rubber prices lost heavily on Thursday. Panic selling from dealers and growers put further pressure on the prices as the international indices made yet another sharp decline during the day.

Sheet rubber RSS 4 nosedived Rs 65 from to Rs 70 a kg and the market made all-round declines on buyer resistance. The off take by the consuming industry has come down considerably. Consequently there is very low demand for rubber now, Mr. K. Jacob Thomas, Member, Rubber Board and MD, Vaniampara Rubber Company Ltd told Business Line.

Yet another reason for the falling prices is the import. There has been a general feeling that the prices would settle at Rs 70-75 a kg. But the prices have run down further now ruling at Rs 65 a kg for sheet rubber. The situation would improve shortly, he hoped.

Futures slip

The rubber futures on the Tokyo Commodity Exchange came under heavy bout of selling on Thursday. RSS 3 fell deeper into minus territory at its November contract to ¥127.2 (Rs 66.95) from ¥149, December to ¥131.8 (147.5), January to ¥133.6 (149.6) and February to ¥135.5 (151.5) a kg at TOCOM. RSS 3 (spot) weakened to Rs 86.98 (88.81) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 65 (70); RSS-5: 62.50 (68); ungraded: 60 (64); ISNR 20: 63 (68) and latex 60 per cent: 55 (56).

Source : Business Line