Natural rubber trended steady to weak in the week gone by and is expected to show similar sentiments in the week ahead as well - Geojit Financial
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NATURAL RUBBER
MARKET NEWS & UPDATES
Natural rubber trended steady to weak in the week gone by and is expected to show similar sentiments in the week ahead as well. RSS4 grade in the Indian market was held in tight ranges in the futures market, while it inched down in spot market in lacklustre trades. Japan’s Osaka rubber futures and SHFE rubber futures too ended down. Covid-19 pandemic and related developments continued swaying the overall market sentiments in the natural rubber market.
According to ANRPC, based on the preliminary estimates up to May 2021, the world production of natural rubber (NR) in 2021 is anticipated to grow at 5.8%, year-on-year, to 13.812 million tonnes; while world demand of NR is estimated at 6.7% growth to 13.679 million tonnes in the same reference period.
Kerala government extended the state-wide lockdown to June 15.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose by 0.2 per cent to 181575 tonnes on week on week basis according to the data released by the exchange last Friday.
According to IMD's center at Thiruvananthapuram, Kerala, southwest monsoons in for the period June 1 to June 9 was excess (+20% to +59%) for Pathanamthitta dist, normal (+19% to -19%) for Idduki and Kottayam, deficient (-20% to -59%) for Alappuzha, Ernakulam, Kasaragod, Kollam, Malappuram, Thiruvananthapuram & Thrissur and large deficient (-60% or less) Kannur, Kozhikode, Palakkad & Wayanad districts and Mahe.
According to the Rubber Board, natural rubber production increased to 7.15 lakh tonnes (lt) compared with 7.12 lt in 2019-20. The rise came after the production in the first quarter dropped by 41,000 tonnes to 82,000 tonnes (1.23 lakh tonnes). Natural rubber consumption declined to 10.96 lt against 11.34 lt in 2019-20.
Cambodia exported $99.87 million of natural rubber from January to April this year, according to the country’s Ministry of Agriculture, Forestry and Fisheries. In total, 61,056 tonnes of natural rubber were exported over the four months. Rubber export revenues increased by 2.5 percent over the same period in 2020 ($97.43 million) according to the ministry.
The Malaysian Rubber Council (MRC) said the Malaysian rubber industry's exports increased by 169.6% in the first quarter of 2021 (1Q21) to RM21.84 million from RM8.1 million a year earlier.
Ivory Coast exported 351719 tonnes of natural rubber from January to April, down nine per cent on year on year from the same period in 2020.
The Arunachal Pradesh government has urged the Rubber Board to make subsidies available to farmers and increase activities in plantations by conducting workshops in an effort to revive rubber crop in the state. In a meeting with Rubber Board Executive Director K.N. Raghavan, the government asked the Board to actively take part in transforming the state into the rubber bowl of the Northeast and help boost its economy.
OUTLOOK
A range bound move inside 220-265 expected. A breakout from either the sides accompanied by substantial volume may lend fresh directions.
A movement inside 17400-16800 expected and a breakout from either the sides could lend fresh directions.
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