Spot rubber finished lower on Thursday. According to sources, the market slipped in tune with declines on the National Multi Commodity Exchange (NMCE). There was no fresh demand from major consuming sectors and the commodity remained under pressure on scattered selling from dealers. The volumes were comparatively low.

Natural rubber market has showed signs of correction beginning from mid-April largely on concerns about the global economy, Japanese yen's appreciation, and a marginal drop in crude oil prices according to the Association of Natural Rubber Producing Countries. However, the extent of the decline has been marginal following a rise in China's demand and sharp fall in dollar.

New concerns about the supply caused by unseasonal rains during March in Thailand and during April in Malaysia have also cushioned the price fall. The natural rubber market is appeared to have gained from a recent rebound of hedge funds in Asia-Pacific markets and their inflationary pressure on commodity prices.

According to traders, sheet rubber closed weak at Rs 236.50 (237.50) a kg on buyer resistance. The grade dropped to Rs 237.50 (238.50) a kg, as quoted by the Rubber Board.

The May series weakened to Rs 234.91 (237.00), June to Rs 239.28 (241.11), July to Rs 239 (241.74), August to Rs 234.60 (234.65) and September to Rs 229.75 (230.83) a kg for RSS 4 on the NMCE.

RSS 3 recovered at its May futures to ¥439 (Rs 238.80) from ¥429.8 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange. The grade (spot) slipped to Rs 250.41 (250.95) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 236.50 (237.50); RSS-5: 233 (234); ungraded: 229 (230); ISNR 20: 230 (231.50) and latex 60 per cent: 145 (146).

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