Commodities

Short-covering lifts spot rubber

Our Bureau | | Updated on: Dec 07, 2021
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Commodity to weaken further after a couple of sessions

Spot rubber recovered marginally on Tuesday. The market opened steady but regained strength later on short-covering as certain tyre-makers insisted on immediate delivery, sources said. RSS-4 improved to ₹185 (184) per kg, according to traders. The grade was quoted steady at ₹185 and ₹180 by the Rubber Board and dealers.

“The commodity may sustain around these levels for a couple of sessions but it is likely to weaken further once the covering purchases are over,” an observer told BusinessLine . “Certain companies from the tyre and non tyre sectors have reduced their production by 20 to 30 per cent. So there may be also a drop in demand, at least in the next few months”.

In futures, the most active December contracts were up 0.29 per cent from Monday’s settlement price to close at ₹184 per kg with a volume of 22 lots on the Multi Commodity Exchange (MCX).

RSS-3 was down 1.61 per cent from last day’s settlement price at its January delivery to close at ¥220.5 (₹146.39) per kg with a volume of 5 lots on the Osaka Exchange (OSE), Japan.

RSS-3 (spot) declined to ₹145.65 (147.26) per kg at Bangkok. SMR20 firmed up to ₹130.53 (128.86) and Latex to ₹105.02 (104.35) per kg at Kuala Lumpur.

The natural rubber contract for the front month January 2022 delivery was down 0.74 per cent from previous day’s settlement price to close at 14.29 Yuan (₹169.29) per kg with a volume of 25,948 lots in daytime trading on Shanghai Futures Exchange (ShFE).

Spot rubber rates (₹/kg): RSS-4:185 (184), RSS-5: 182 (181), ISNR20: 171 (171) and Latex (60% drc): 138.50 (137.50).

Published on December 07, 2021

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