Spot rubber prices showed mixed trend on Tuesday . RSS 4 was quoted steady at Rs. 132.50 per kg by traders. According to observers, sentiment remained neutral during the latter half of the session following a moderate recovery in domestic futures. RSS 4 weakened further to Rs. 132.50 (133.00) and Rs.128.50 (129.00) per kg respectively as reported by the Rubber Board and Dealers. Meanwhile RSS 5 and ISNR 20 lost further amidst low volumes.

In futures, the February contracts improved to Rs. 131.91 (128.73), March to Rs. 133.75 (130.04) and April to Rs. 136.67 (133.30) per kg on the Indian Commodity Exchange (ICEX). The near month February contracts were up by 2.47% with a volume of 329 lots and total trade value of 429.40 lakh.

RSS 3 (spot) declined to Rs. 106.61 (108.18) per kg at Bangkok. The February futures slid to Rs. 91.73 (100.02), March to Rs. 107.87 (109.23) and April to Rs.112.44 (112.53) per kg on the Tokyo Commodity Exchange (TOCOM).

The year 2019 has witnessed more than half a million hectare of yielding rubber trees getting affected by a new fungal disease and the world output falling by 0.7% due to the disease, unfavourable prices and climatic factors, according to Mr. R. B. Premadasa, Secretary-General, Association of Natural Rubber Producing Countries (ANRPC). On the other hand , economic slowdown, crisis in the auto sector, trade uncertainties, and geopolitical factors have translated into a 1.0% fall in the world consumption in 2019.

Although the new year had initially brought cheer to the sector in the form of the signing of the U.S.-China trade deals on January 15 that renewed hopes on demand from China, the outbreak of novel coronavirus has clouded the expectation at least for Q1 2020. It is early to gauge the implications of the outbreak of coronavirus on the demand prospects of NR.

Spot rubber rates (Rs/kg) were:

RSS-4: 132.50 (132.50)

RSS-5: 126.00 (127.00)

ISNR 20: 114.50 (115.50)

and

Latex (60% drc): 84.50 (84.50)

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