Natural Rubber Markets Rebound on Tokyo Commodity Exchange

Weak trends continue to persist in natural rubber markets despite a rebound witnessed on Monday at Tokyo Commodity Exchange. Spot prices in Kottayam and Kochi markets have fallen close to 4% this month at Rs 18750 per 100 kg, according to Rubber Board of India data.

On Tuesday morning, key TOCOM rubber futures fell 3.7% as details of the Euro Zone agreement reached over the weekend to lend Spain emerged.

The most-active Tokyo Commodity Exchange rubber contract for November delivery fell as much as 3.7 percent to 235.5 yen per kilogram. It was changing hands at 237.1 yen, down 7.4 yen, or 3 percent, per kg at 0016 GMT.
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Fundamentals in Indian market continue to support rubber although slowing of GDP growth to 5.3% in Q42011-12, rise in petrol prices have caused concerns on demand for rubber from automotive sector. Natural rubber production has declined by 3 per cent to 58,000 tonnes in May 2012, compared to 59,700 tonnes in the same month last year, according to Rubber Board data. The consumption of the commodity rose by 4 per cent to 83,000 tonnes in May this year as against 80,120 tonnes in the corresponding period of last year, Rubber Board data said.

At National Multi Commodity Exchange of India (NMCE), June contract has fallen 6.6% so far this month trading at Rs 18210 per 100 kg on Tuesday morning trade while July contract has fallen 6.80% to Rs 18400 levels.

Imports of natural rubber rose by 13 per cent to 18,419 tonnes last month from 16,293 tonnes in the year—ago period, whereas exports fell by 63 per cent to 1,131 tonnes against 3,031 tonnes in the same period last year, the data said. The stock of natural rubber in the country at the end of May 2012 stood at 2.22 lakh tonnes.

In 2012—13 fiscal, India’s natural rubber production declined by 5 per cent to 1.10 lakh tonnes in the April—May period from 1.16 lakh tonnes in the same period of the 2011—12 fiscal.

Natural rubber consumption grew marginally by 1 per cent at 1.63 lakh tonnes in the April—May period of 2012—13 against 1.61 lakh tonnes in the 2011—12 financial year.