Agri Business

Spot rubber remain unchanged

Aravindan Kottayam | Updated on June 22, 2021

The grade finished flat at ₹164.00 per kg

Spot rubber closed unchanged on Tuesday. RSS4 was quoted steady at ₹169.00 per kg by traders and the Rubber Board.

The grade finished flat at ₹164.00 per kg according to dealers. The trend was mixed as RSS5 and latex lost further on buyer resistance while the overall volumes continued to remain meagre.

In fact, the news that the Government of Kerala will cautiously ease the lockdown restrictions further, as the Test Positivity Rate (TPR) has dipped below 10 for the first time after April 9, failed to make any immediate impact on local sentiments.

The resurgence of Covid-19 has badly impacted the country’s auto sector which had showed strong signs of recovery at the beginning of 2021, reports ANRPC (Association of Natural Rubber producing Countries). The four-wheeler sales in India plummeted 59.0 per cent in May 2021; from 2,08,900 units in April 2021 to 85,700 units. The two-wheeler sales too witnessed a steep drop of 52.5 per cent in May 2021 compared to April 2021. These developments have badly impacted both on the demand for auto-tyres from the OE sector as well as the replacement sector.

In futures, the front month June delivery was down 0.10 per cent from Monday’s settlement price to close at ₹165.75 per kg with a volume of 28 lots on the Multi Commodity Exchange (MCX).

RSS 3 (spot) declined to ₹152.70 (153.97) per kg at Bangkok. SMR 20 dropped to ₹118.98 (119.56) and latex to ₹98.31 (99.45) per kg at Kualalumpur.

The natural rubber contract for the September delivery lost 75 Yuan (₹861.09) from previous day’s settlement price to close at 12,670 Yuan (₹145,456.58) a tonne with a volume of 308,745 lots in day time trading on Shanghai Futures Exchange (ShFE).

The most active November delivery improved 0.52 per cent to close at 232.9 Yen (₹156.82) per kg with a volume of 199 lots on the Osaka Exchange, Japan.

Spot rubber rates (₹/kg) were: RSS4:169.00 (169.00); RSS5: 166.50 (167.00); ISNR20: 156.50 (156.50) and Latex (60 per cent drc): 119.50 (120.00).

Published on June 22, 2021

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