Spot rubber closed unchanged with an upward bias on Tuesday. The commodity managed to sustain at the prevailing levels on short covering coupled with bargain hunting at lower levels. RSS4 was quoted steady at ₹170 per kg by traders. The grade declined to ₹171 (173) per kg according to the Rubber Board. “The market may remain range-bound in the immediate near term since it is slowly moving in to a holiday mood prior to Christmas” a dealer said.

The world rubber economy during the year 2021 is likely to end with a deficit of around 200,000 tonnes (world supply: 13.882 million tonnes and world demand: 14.076 million tonnes), as per the Association of Natural Rubber Producing Countries (ANRPC). Although the anticipated deficit is not large compared to the size of the global market, the lopsided supply-demand balance can support the market.

Also read: Spot rubber skids as arrivals rise steadily

In futures, the December contracts were down 2.32 percent from Monday’s settlement price to close at ₹164.50 per kg with a volume of 20 lots on the Multi Commodity Exchange (MCX).

RSS3 (spot) dropped to ₹143.16 (144.45) per kg at Bangkok. SMR20 weakened to ₹127.62 (128.54) and Latex to ₹94.00 (94.67) per kg at Kualalumpur.

The natural rubber contract for the January 2022 delivery was down 0.78 percent from previous day’s settlement price to close at 14.07 Yuan (₹166.95) per kg with a volume of 5,922 lots in daytime trading on Shanghai Futures Exchange (ShFE).

The most active May 2022 delivery was up 0.4 percent from its last settlement price to close at 228.6 Yen (₹151.98) per kg with a volume of 103 lots on the Osaka Exchange (OSE), Japan.

Spot rubber rates (₹/kg) were: RSS4:170.00 (170.00), RSS5: 164.00(164.00), ISNR20: 158.00 (158.00) and Latex (60% drc): 131.00 (131.00).

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