Informist, Thursday, Mar 3, 2022

By Rahul Dhuri

MUMBAI – Prices of natural rubber extended Wednesday's gain today and hit a fresh three-week high in the key markets of Kerala as the sentiment remains firm due to rising demand from stockists and low supply as peak tapping season has ended, traders said.

* However, lukewarm demand from tyremakers capped the gains in prices of rubber, said C.J. Augustine, the owner of Chettiparambil Traders based in Idukki, Kerala. The state accounts for the bulk of rubber production in India.

* Domestic sales of vehicles in February does not indicate an overall positive trend. The stagnant demand for two-wheelers is a major concern, industry experts said.

* In the global market, rubber contracts on the Tokyo Commodity Exchange wiped early gains and ended in the red as investors booked profits after the recent surge in prices, analysts said.

* Rubber prices rose on TOCOM in the early trade due to strong demand from bulk buyers amid concerns about supply. In China, activities in the services sector grew at a faster pace in February. China represents around 43% of the global demand for natural rubber.

* China's manufacturing activity unexpectedly rose during February. The manufacturing Purchasing Managers' Index rose to 50.2 in February as against 49.9 expected and 50.1 recorded in January. 

* Higher raw material prices, seasonal low supply of natural rubber, supply disruptions caused by the floods in south Thailand and East-Coast Malaysia have raised output concerns. Thailand and Malaysia are amongst the major rubber producers across the globe.   

Following are the highlights of today's trade:

--The widely-traded RSS-4 variety was sold at 165-167 rupees per kg, up 1 rupee from the previous day.

--The August contract on the TOCOM ended at 257.2 yen (168.67 rupees) per kg, down 2.8 yen from the previous close.  End 

Edited by Maheswaran Parameswaran

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