Commodities

Spot rubber prices slip on weak overseas market cues

Aravindan Kottayam | Updated on January 11, 2021

Spot rubber lost ground reacting closely to an increase in arrivals and declines in overseas markets on Monday. RSS 4 weakened to ₹151 (152) per kg, according to traders and the Rubber Board. The trend continued to remain mixed as ISNR20 finished flat on dull demand and latex improved sharply on enquiries from the general rubber goods sector.

In futures, the natural rubber contracts for January delivery declined by 1.11 per cent to ₹152.50 (154.21) per kg on the Multi Commodity Exchange (MCX).

According to the Association of Natural Rubber producing Countries (ANRPC), the average NR prices of RSS-3 in Bangkok and RSS-4 in Kottayam posted 1.2 and 2.5 per cent growth in December, while comparing to November respectively, despite uncertainty and unprecedented events happened in 2020. A weaker US dollar and uptrend in brent crude prices were most favourable to NR market.

A vaccine-led economy will be a game changer in 2021 to sustain the recovery from pandemic-hit economy globally. The World Bank recently released its forecast growth for the world economy to expand by 4 per cent in 2021, recover from a contraction of 4.3 per cent in 2020.

RSS 3 (spot) surrendered to ₹160.29 (165.14) per kg at Bangkok. SMR 20 dropped to ₹114.62 (117.31) while Latex firmed up to ₹102.99 (102.67) per kg at Kualalumpur.

The NR contract for January delivery was down by 240 Yuan (₹2,719.65) to close at 14,360 Yuan (₹162,725.51) a tonne on Shanghai Futures Exchange (ShFE).

Spot rubber rates (Rs/kg) were: RSS4:151.00 (152.00); RSS5: 141.00(142.00); ISNR20: 125.00 (125.00) and Latex (60% drc): 108.00 (105.00).

Published on January 11, 2021

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