Commodities

Spot rubber hits 9-year high

Our Correspondent Kottayam | Updated on November 23, 2021

Disrupted supplies due to rains and revival in demand are the positives

Spot rubber created yet another nine-year high on Tuesday. “There were quantity buyers in the market during late trading hours but none to sell”, an observer said. “I expect rubber to hit ₹200 a kg in December”, he added.

RSS-4 closed firm at ₹190 (188) per kg after hitting an intra-day high of ₹192, according to traders. The grade firmed up to ₹188 (186) and ₹183 (181), respectively as quoted by the Rubber Board and dealers.

The front month November contracts were up 3.63 per cent from Monday’s settlement price to close at ₹193.50 per kg with a volume of 46 lots on the Multi Commodity Exchange (MCX).

Supply-demand outlook

Global supply of NR has remained tight largely due to unseasonal torrential depression rains and floods that affected major rubber-growing regions in India, Thailand and Malaysia, said the Association of Natural Rubber Producing Countries (ANRPC). Thailand and parts of Malaysia have reportedly experienced extended rainy season due to La Nina.

On the flip side, further relaxation of Covid-related restrictions, reopening of international borders by several countries, and wider resumption of economic activities have significantly contributed to revival of transport sector and the demand outlook for NR.

RSS-3 (spot) firmed up to ₹148.70 (146.65) per kg at Bangkok. SMR20 weakened to ₹135.23 (135.41), while Latex improved to ₹101.56 (100.41) at Kuala Lumpur.

The most active natural rubber contract for the January 2022 delivery was up 0.26 per cent from previous day’s settlement price to close at 153.15 Yuan (₹178.46) per kg with a volume of 205.688 lots in daytime trading on Shanghai Futures Exchange (ShFE).

Spot rubber rates (₹/kg) were: RSS-4:190 (188), RSS-5: 187 (185), ISNR20: 171 (170) and Latex (60% drc): 135 (133.50).

Published on November 23, 2021

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