Spot rubber stays flat amid supply concerns

Our Correspondent Kottayam | Updated on October 11, 2021

Inflow of the raw material drops due to untimely rains

Spot rubber ended in a steady note with an upward bias on Monday. RSS-4 finished flat at ₹170 per kg, according to traders and the Rubber Board. The grade was quoted unchanged at ₹165 per kg by dealers.

The market managed to sustain at the prevailing levels on supply concerns as the inflow of the raw material dropped following untimely rains during the last couple of weeks.

“Actually we are inside the peak production season but the unfavourable weather is slowing down the whole process. Growers could not tap trees regularly even three days in a week and if the situation persists, there may be a sharp drop in production by around 40-50 per cent than anticipated earlier,” said George Valy, President, Indian Rubber Dealers Federation.

In futures, the most active October delivery was up 0.29 per cent from previous day’s settlement price to close at ₹170 per kg with a volume of 21 lots on the Multi Commodity Exchange (MCX).

RSS-3 (spot) firmed up to ₹137.45 (134.46) per kg at Bangkok. SMR20 improved to ₹131.20 (129.70) and Latex to ₹93.42 (92.11) per kg at Kuala Lumpur.

The natural rubber contract for the October delivery was up 2.49 per cent from Friday’s settlement price to close at 13.65 Yuan (₹159.53) per kg with a volume of 238 lots in day time trading on Shanghai Futures Exchange (ShFE).

Spot rubber rates (₹/kg) were: RSS-4:170 (170), RSS-5: 168 (168), ISNR20: 158 (158) and Latex (60% drc): 121 (122).

Published on October 11, 2021

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