The Hindu Business Line : Rubber prices firm up on supply crunch

PHYSICAL rubber rates firmed up on Tuesday. Covering groups were chasing sheet rubber, as they have to fulfil their commitments to major manufacturers even at a loss.

The grade appeared strong amid low arrivals. Ungraded rubber and ISNR 20 recovered partially from early losses, as the purchases from the north Indian sector were moderate.

According to market players, the current uptrend was mainly attributed to the supply crunch though the market is still at the peak season.

The rubber futures were almost steady at NMCE. The January delivery was quoted at Rs 54.10 (53.07), February delivery at Rs 55.20 (55.26), March delivery at Rs 56.30 (56.36) and April delivery at RS 57.60 (57.66) per kg for RSS 4. The transactions were low.

At TOCOM, the January futures for RSS 3 declined further to 123.5 yen from 124.2 yen a kg, while the same grade closed weak at Rs 52.08 against Rs 52.58 a kg on Monday at Bangkok.

Spot market rates (a kg) were - RSS 4: Rs 52.75 (52.50); RSS 5: 50 (49.50); ungraded 48.50 (48.25); ISNR 20: 50.50 (50); latex 60 per cent: 40 (40).