Informist, Wednesday, Mar 9, 2022

By Rahul Dhuri

MUMBAI – Prices of natural rubber in the key markets of Kerala rose today due to improved demand from domestic stockists. Concerns about supply as the peak tapping season has ended further supported prices, traders said.

* Lean production season has started in Kerala, the country's largest rubber producer, and is likely to continue till May. The jump in crude oil prices further supported rubber prices, said Raju Varghese, owner of Kottayam-based Polachirayil Traders.

* However, dwindling demand from domestic tyre makers capped sharp gains in rubber prices. Demand has been hit as domestic sales of passenger vehicles in February are expected to fall. The stagnant demand for two-wheelers is also a major concern, industry experts said.

* In the global market, benchmark rubber contracts on the Tokyo Commodity Exchange erased early gains and ended marginally lower, as investors booked profits after prices rose over 10 yen in early trade, analysts said.

* Rubber prices on the TOCOM rose in early trade, tracking sharp gains in crude oil prices on the New York Mercantile Exchange and because of concerns about supply, analysts said.

* Crude oil prices remained firm amid concerns about global oil supply after US President Joe Biden announced a ban on import of Russian energy products, said Ajay Kedia, managing director and head of research, Kedia Comtrade.

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

Following are the highlights of today's trade:

--The widely-traded RSS-4 variety was sold at 165-166 rupees per kg, up 1 rupee from the previous day.

--The August contract on the TOCOM ended at 246.9 yen (163.29 rupees) per kg, down 0.6 yen from previous close.  End 

Edited by Tanima Banerjee

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