Spot rubber concluded the week on a positive note. The market resumed the upward journey hitting an intra-day high of ₹180.50 a kg for RSS-4 driven by the persistent shortage of the raw material.

Meanwhile, the domestic futures continued to remain closed on the Multi Commodity Exchange (MCX) on account of Diwali.

RSS-4 improved to ₹180 (179) and ₹179 (178) a kg respectively, according to traders and the Rubber Board. The grade firmed up to ₹174 (173) per kg as per dealers. The volumes were meagre.

Production stagnant

Despite the removal of almost all Covid-related restrictions in the major producing countries and a recent marked recovery in NR prices, the world production of NR is expected to remain almost unchanged in November and December 2021 compared to the previous two months, said the Association of Natural Rubber Producing Countries (ANRPC).

On the flip side, the demand for NR from the European Union, the US, India and Japan is anticipated to get a boost in the short-term due to the pent-up momentum resulting from further lifting of Covid-related restrictions, revival of transportation and other economic activities.

RSS-3 (spot) slid to ₹139.86 (139.98) per kg at Bangkok. SMR20 declined to ₹125.57 (129.04) and Latex to ₹96.03 (97.74) per kg at Kuala Lumpur.

The natural rubber contract for the November delivery was down 0.69 per cent from previous day’s settlement price to close at 12.89 Yuan (₹149.70) per kg with a volume of 815 lots in day time trading on Shanghai Futures Exchange (ShFE).

Spot rubber rates (₹/kg) were: RSS-4:180 (179), RSS-5: 176 (175), ISNR20: 167 (166) and Latex (60% drc): 132.50 (132.50).

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