Domestic rubber prices declined further on Thursday. In the spot market, prices dropped tracking sharp losses on the National Multi Commodity Exchange (NMCE). Sentiments were also affected by the fall in stocks and commodities around the globe, though the local markets still experienced short supplies.
Sheet rubber weakened to Rs 207 (210) a kg, as quoted by the traders. The grade surrendered to Rs 207.50 (209.50) a kg both at Kottayam and Kochi, according to the Rubber Board.
Natural rubber prices falling below $4 a kg in the international market have raised fears over to a default by China. Chinese buyers wanted to renegotiate contracts with Thai sellers following the price fall. It was earlier reported that China had asked to delay as much as 10,000 tonnes of rubber shipments from South-East Asia.
In futures, the November series declined to Rs 206.50 (211.28), December to Rs 204.25 (209.49), January to Rs 204.99 (210.36), February to Rs 206 (210.90), March to Rs 209 (212.89) and April to Rs 209.10 (215.30) a kg on the NMCE. RSS 3 (spot) slipped to Rs 186.69 (186.92) a kg at Bangkok. The Tokyo Commodity Exchange remained closed on account of ‘National Culture Day'.
Spot rates were: RSS-4: 207 (210); RSS-5: 205 (208); ungraded: 197 (200); ISNR 20: 196 (198) and latex 60 per cent: 126.50 (128).