Spot rubber improves on short supply

Print this page Posted on : 04-23-2009 by recycleinme.com

The domestic rubber prices flared up on Wednesday. In spot, the market discounted the heavy losses in Japanese rubber futures and moved up sharply ridden by acute short supply.

The news on rubber imports failed to hammer the domestic sentiments as the inflow and production of the raw material hit the bottom lines, an observer said. The market appeared to be moving under the grip of speculators but the rumours on low stocks with the producing community have triggered an almost panic buying in the main marketing centres. There were no fresh quotes from the major manufacturers, sources confirmed.

Futures gain

The May futures for RSS 4 flared up to Rs 96.70 (93.97), June to Rs 95.12 (93.12), July to Rs 92.05 (90.70) and August to Rs 90 (89.45) a kg on National Multi Commodity Exchange (NMCE). The April futures for RSS 3 fell further to ¥145.3 (153.5) (Rs. 74.73), May to ¥148.6 (155), June to ¥149.4 (154.7), July to ¥151.3 (156.1), August to ¥151.9 (157.6) and September to ¥153 (158.1) a kg on Tokyo Commodity Exchange (TOCOM). RSS 3 improved to Rs 80.03 (79.17) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) slipped to Rs 82.14 from Rs 82.20 a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 95 (92.25); RSS-5: 92.50 (90); ungraded: 90 (88); ISNR 20: 91 (89) and latex 60 per cent: 70 (70).

Source : Business Line