Spot rubber closed unchanged on Tuesday. The market is likely to remain range-bound in the short term since it is driven by the prevailing weather conditions, an observer said.

According to weather predictions, intensified rains are expected to resume within a couple of days. This may put further pressure on production and supplies and take prices to further highs. On the flip side, a favourable change in weather will put more pressure on prices.

RSS-4 was quoted steady at ₹179 per kg by traders and the Rubber Board. The grade finished flat at ₹174, according to dealers. The volumes continued to remain low.

As per reports, the Indian non-tyre sector has been experiencing a pre-lockdown decline in business due to disruption of supply chains, a stagnant economy and low demand. The pandemic's impact came on top of that and the abrupt cessation of incoming cash flows and the migration of workers at all skill levels caused even more distress. Later when the pandemic restrictions were eased, the market was cash-strapped following in a sharp fall in income while the overhead and fixed costs had to be met, uncompromised.

In futures, the most active November delivery was up 0.09 per cent from Monday's settlement price to close at ₹179.84 per kg with a volume of 36 lots on the Multi Commodity Exchange (MCX).

RSS-3 (spot) dropped to ₹138.52 (138.62) per kg at Bangkok. SMR20 declined to ₹125.88 (127.14) while Latex firmed up to ₹98.02 (97.48) per kg at Kuala Lumpur.

The natural rubber contract for the January 2022 delivery was up 0.14 per cent from previous day’s settlement price to close at 13.93 Yuan (₹161.33) per kg with a volume of 199,890 lots in day time trading on Shanghai Futures Exchange (ShFE).

Spot rubber rates (₹/kg) were: RSS-4:179 (179), RSS-5: 177 (177), ISNR20: 167(167) and Latex (60% drc): 131 (131).

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