The Hindu Business Line : Rubber prices seen range-bound

THE rubber market opened on a weak note on Monday. Traders began to unfold their stocks as the arrivals improved on favourable climatic conditions and unfavourable world market reports. But the real nervousness hit the market on Tuesday.

Prices melted on panic selling from growers and traders following a steep fall in world markets. Anyhow the rates regained, wiping out the losses partially on moderate buying from the covering groups towards the weekend.

The Bangkok market which opened at Rs 63.28 on Monday closed at Rs 59.96 on Friday after hitting a low of Rs 57.69 on Wednesday. The rise in production put pressure on international rubber prices halting the bull-run with TOCOM ending down and SICOM losing a maximum of 10 per cent on Monday. The resumption of Chinese purchases could further strengthen the internationalprices.

In the domestic scenario, major makers have cut down the production that would proportionately reduce their purchase orders

Therefore, the buying pressure might ease further towards immediate future.

However, the spot prices are likely to be range bound as the market got support at Rs 52 level after forming a lower top at Rs 55.50. Anyhow, a close below Rs 52 would not be favourable to the growers while a close above Rs 56 is essential to confirm the strength of the market.

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