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Thursday, March 24, 2011

Natural Rubber prices rise 23% in a week

George Joseph / Kochi March 24, 2011, 0:17 IST

Natural rubber (NR) prices, both in domestic and international markets, are in a come back mode after the damage last week due to an earthquake in Japan.

The domestic market quoted Rs 228 a kg for benchmark grade RSS-4 which had plummeted to Rs 185 a kg on March 14, the lowest this year.

In Tokyo, TOCOM yesterday quoted ¥411 a kg for RSS-4, up ¥29 from the closing rate on Monday. It had dropped to ¥375 a kg on March 16. Likewise, Bangkok market on Wednesday quoted Rs 251 a kg , up by Rs 50 from the Rs 201 on March 15. A bunch of other allied factors also indicate a fundamentally strong market for the next 10-12 weeks.

The market foresees a bullish mode as there would be a decline in production in the coming months due to heat and supplies would be low till the next monsoon. The lean season in the rubber production is March to May. So, according to experts, the global NR prices are now rising after declining sharply last week.

The total domestic production in March-May 2010 was 160,550 tonnes while it was 109,000 tonnes in December alone. The average monthly production in India is 70,000 tonnes while this was reduced to 53,500 tonnes in March-May. The heat during these months reduces the output.

Rubber price jumped after Thailand, the largest producer, asked exporters to halt shipments and as tyre plants in Japan resumed production after the earthquake.

source - www.business-standard.com