Commodity Weekly Insights : Natural Rubber Market Wrap By Geojit Financial Services
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MARKET NEWS & UPDATES
* Under pressure from easing concerns over weather, expectation of rise in production and geopolitical tensions, natural rubber prices posted losses in the week gone by. Weak oil prices along with concerns over China's economic growth is weighing on as well. Osaka rubber futures declined and have retreated from the 13-year highs and is set to post losses for the first time in three months. Similar moves are seen in SHFE rubber futures as well.
* RSS4 grade rubber in the Indian market is poised to post losses for the second consecutive month, weighed down by weak cues from the overseas market, imports and on expectation of rise in production. The peak production phase has commenced, and output is seen rising with price realisation being relatively higher compared to last year. The commodity has retreated over 25 per cent from the all-time highs hit in August this year.
* As of 25 Oct 2024, rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 0.4 per cent from a week earlier to 268979 tonnes, according to the data from the exchange.
* Aimed at making the country self-sufficient in natural rubber production, the Rubber Board has initiated a campaign -- ‘Replant and Reap rewards’ -- in the traditional growing areas and the northeast. M Vasanthagesan, Executive Director, Rubber Board, launched the campaign, which will be continued up to February 15, 2025.
* The Association of Natural Rubber Producing Countries (ANRPC) has lowered its forecast for the supply of natural rubber in 2024 from 14.54 million tonnes to 14.50 million tonnes due to unfavourable climatic conditions as the El Nino phase transitions into La Nina, along with a widespread leaf fall disease negatively impacting both yield and quality of rubber latex. Meanwhile, ANRPC has revised its forecast for global rubber demand this year from 15.67 million tonnes to 15.75 million tonnes.
* Malaysia's natural rubber production increased by 27 percent to 37,960 tons in July from 29,881 tons in June, official data showed. A year-on-year comparison showed that natural rubber production jumped 33 percent from 28,533 tons a year ago. Total stocks of natural rubber in July decreased by 7.6 percent month on month to 148,096 tons. Exports of Malaysia's natural rubber amounted to 48,199 tons in July, up 21.1 percent month on month. China remained the main destination for natural rubber exports, which accounted for 30 percent of total exports in July.
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