Agri Business

Speculative buying boosts spot rubber

Our Correspondent Kottayam | Updated on October 20, 2021

Higher inventory, imports have forced tyre companies away from the market

Spot rubber continued to remain bullish on Wednesday. There were no visible enquiries from the tyre sector but certain speculative buyers were willing to give quantity sellers even up to ₹172.50 a kg for RSS-4 during late trading hours.

RSS-4 firmed up to ₹172 (171.50) per kg, according to traders. The grade improved to ₹171.50 (171) and ₹166.50 (166) per kg, respectively, according to the Rubber Board and dealers.

As per reports, rising concerns over potential energy shortage, slack demand for manufactured tyres, high tyre inventory and relatively higher import of NR have kept auto-tyre companies less active in the domestic market. India imported 46,000 tonnes of NR during September against 40,500 tonnes in August. A total quantity of around 20,000 tonnes is estimated to have landed in the country during the first half of October, said the Association of the Natural rubber Producing Countries (ANRPC).

In futures, the most active October delivery was down 0.29 per cent from Tuesday’s settlement price to close at ₹174.50 per kg with a volume of 29 lots on the Multi Commodity Exchange (MCX).

RSS-3 (spot) improved to ₹142.16 (140.52) per kg at Bangkok. SMR20 flared up to ₹135.77 (131.44) and Latex to ₹96.87 (95.91) per kg at Kuala Lumpur.

The natural rubber contract for the November delivery was up 0.49 per cent from previous day’s settlement price to close at 14.06 Yuan (₹164.71) per kg with a volume of 3,258 lots in day time trading on Shanghai Futures Exchange (ShFE).

Spot rubber rates (₹/kg): RSS-4:172 (171.50), RSS-5: 169 (169), ISNR20: 161 (159) and Latex (60% drc): 122 (122).

Published on October 20, 2021

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