Informist, Tuesday, Aug 30, 2022

By Rahul Dhuri

MUMBAI - Prices of natural rubber in the key markets of Kerala slipped to a fresh six-month low today as sentiment remains weak on expectations of a rise in supply in the domestic market, experts said.

* Weak demand from domestic bulk buyers and a fall in the global market further weighed on rubber prices in the domestic market, said Raju Varghese, the owner of Kottayam-based Polachirayil Traders.

* Domestic buyers are likely to be away from the market as trade is likely to be subdued due to the festival of Onam. 

* Supply of raw material is expected to improve on the back of current favourable weather conditions as there have been no heavy rains.  However, the supply side will completely depend on the weather, said Joy Alencherry, the owner of J&J Trade Links in Kottayam. 

* The futures contracts of natural rubber ended in the red as demand for the commodity may be hit by the likely economic recession. A likely rise in global supply amid lukewarm demand from major buyers across the globe further weighed on rubber prices, analysts said.

* Demand from China, the largest buyer of rubber, is likely to remain impacted as the continuing COVID-related restrictions imply that China can take a longer time to return to a normal growth track, experts said.

* Parts of China's western provinces are reportedly hit by power shortages and forced power cuts caused by heat waves and severe drought, thereby, hitting operations.

Following are the highlights of today's trade:

--In Kerala, which accounts for nearly 70% of India's natural rubber output, the widely traded RSS-4 variety was sold at 156-157 rupees per kg, down 1 rupee from the previous day. 

--The most-active January contract of rubber on the Japanese bourse was down 0.5 yen at 224.4 yen (128.95 rupees) per kg.

End

US$1 = 79.45 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Sushmita Mukherjee

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