The Hindu Business Line : Spot rubber drops below Rs 60 a kg

Kottayam, Dec. 5 The domestic spot rubber closed weak falling below the critical Rs 60 level on Friday. Sheet rubber RSS 4 declined to Rs 59 from Rs 60 a kg on moderate selling from dealers and growers. The grade hit an intra-day low at Rs 58 a kg on early trades but regained the losses partially as certain major manufacturers joined the buyers queue on late trades.

The low demand of the rubber world over is a major factor for the current downtrends visible in rubber prices according to Mr N. Radhakrishnan, President, Cochin Rubber Merchants Association. “India is no exception to this. The poor off take by the automobile industry and its ancillary groups which form around 65 per cent of the total consumption aggravates the situation,” he said.

Output cut

In the circumstances naturally there will be drastic cuts in production leading to very low demand in rubber. The December futures for RSS 3 closed at ¥95 (Rs 51.07) against ¥99, January at ¥97 (99.8), February at ¥100.7 (101.9), March at ¥103 (102.8), April at ¥105.2 (105.8) and May at ¥108.6 (108.3) a kg at TOCOM.

Spot prices wee (Rs/kg): RSS-4: 59 (60); RSS-5: 57 (58); ungraded: 54 (55); ISNR 20: 56.50 (56.50) and Latex 60 per cent: 43 (43).

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