Spot rubber rises as sellers keep away

Print this page Posted on : 11-26-2008 by recycleinme.com

The rubber prices showed a better mood on Tuesday. According to observers, the market ruled firm in the absence of quantity sellers though there has been no fresh buying orders from any major consuming industries.Sheet rubber RSS 4 improved to Rs 67 from Rs 66 a kg but latex 60% continued its decline on extremely low demand. The trend was mixed.

The present downtrend in rubber prices are the outcome of a series of reflections of the global economic recession and the fluctuation is based on the falling oil prices said Prof K.K. Abraham, a spokesman of the small holding community and President of the Pala Marketing Cooperative Society Ltd.

On the whole, rubber consumption has drastically come down. Tata Automobiles have cut down their production. As a follow up action to this, tyre companies also reduced their output. As part of the recession, rubber export has been paralysed. The consignments for export against the orders of R1 International and Tong Teik have been already supplied and no new orders are coming up.

Futures down

RSS-3 moved down at its December futures to ¥122.7 (Rs 63.87) from ¥129, January to ¥124.5 (¥131.5), February to ¥127.3 (¥134.6), March to ¥128.4(¥136.6), April to ¥131.2 (¥138) and May to ¥132.8 (¥148) a kg at TOCOM. The grade slipped by 29 paise to Rs 78.94 (79.23) a kg at Bangkok.

The spot rubber rates a kg were: RSS-4: 67 (66); RSS-5: 64 (63); Ungraded: 62 (61); ISNR 20: 63.50 (63.50) and Latex 60 per cent: 51 (52).

Source : Business Line