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India Rubber: At 7-week low on tepid demand; largely steady on TOCOM

Informist, Tuesday, Apr 20, 2021

 

By Rahul Dhuri

 

MUMBAI – Natural rubber prices in key markets of Kerala hit a seven-week low as the resurgence in COVID-19 cases impacted demand from bulk buyers, market participants said.

 

* Transport, manufacture, and trade operations have been hit in Kerala, the largest rubber grower, said Thaha Mohamed, the owner of Sara Traders in Kottayam.

 

* Demand from domestic stockists and tyre makers has been adversely affected as a rapid increase in the number of COVID-19 cases affected sentiment among customers and is keeping them away from high-ticket purchases, said Joy Alencherry, the owner of Maria Rubber Links in Kottayam.

 

* Benchmark rubber contracts on Tokyo Commodity Exchange erased early gains and ended flat as a likely increase in global production negated gains due to a rise in crude oil contracts on the New York Mercantile Exchange, analysts said.

 

* Global rubber production in March is likely to have risen 1.3% on year to 910,000 tn, the Association of Natural Rubber Producing Countries said.

 

* Crude oil prices may remain firm as global demand recovers steadily with the fall in inventories across the world, the International Energy Agency said. 

 

* Rubber prices take cues from crude oil as it is used to manufacture synthetic rubber. 


* Following are highlights of today's trade:

–The widely traded RSS-4 variety in Kochi and Kottayam was at 164-165 rupees per kg today, down 1-2 rupees from Saturday.

–The most active September contract on TOCOM ended flat at 234.9 yen (about 162.63 rupees) per kg.  End

 

Edited by Snigdha Kuttikat

 

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