Spot rubber stays steady on Covid fears

Spot rubber was quoted steady despite a firm closing in domestic futures and overseas markets on Monday. The increasing number of Covid-19 cases in the State continued to weigh on sentiments and most traders were hesitant to enlarge their commitments.

RSS 4 closed unchanged at ₹153 per kg, according to traders. The grade slid to ₹152.50 (153) as quoted by the Rubber Board.

In futures, the front month January delivery bounced back to ₹155.50 (152.64) per kg on the Multi Commodity Exchange (MCX).

As per reports, glove-makers are set to continue recording stronger earnings in 2021 on the back of higher average selling prices, increase in production capacity and better economies of scale. Demand for rubber gloves will be strong mainly due to the impact of Covid-19 pandemic and distribution of vaccines across globe.

Natural rubber futures closed higher in day time trading on Shanghai Futures Exchange (ShFE) on Monday. The most active NR contract for May delivery was up by 445 Yuan (₹5029.28) to close at 14245 Yuan (₹160,993.34) a tonne.

RSS 3 (spot) firmed up ₹157.80 (157.35) per kg at Bangkok. SMR 20 improved to ₹113.50 (108.47) and Latex to ₹104.23 (102.72) per kg at Kuala Lumpur.

Spot rubber rates (₹/kg): RSS-4:153 (153); RSS-5: 142 (142); ISNR20: 125(125) and Latex (60% drc): 105 (105).