Spot rubber price improves further

Global rally to reduce rubber importsSpot rubber resumed the upward journey on Monday. RSS 4 improved further to Rs.135.50 (133.50) per kg according to traders. It firmed up to Rs.135.00 (133.50) and Rs.131.00 (129.50) per kg respectively according to the Rubber Board and Dealers. The trend continued to remain mixed as Latex closed unchanged on extremely low demand. Sentiments were catalysed by rumours that the tyre companies would join the buyers queue in the days ahead. "We expect sheet rubber to hit Rs.140.00 a kg soon", a trader said.

According to reports, the rubber industry expects the rally in global natural rubber prices to further reduce its imports . Rubber imports fell 18% year-on year in April-October 2019, as per Rubber Board data.

In futures, the January contracts improved to Rs. 139.50 (138.34) and February to Rs. 141.55 (139.57), March to Rs.144.71 (141.25) and April to Rs.144.47 (140.27) per kg on the Indian Commodity Exchange (ICEX). The near month January was up by 0.84% with a volume of 16 lots and a total trade value of 22.32 Lakh.

RSS 3 (spot) weakened to Rs.115.98 (116.33) per kg at Bangkok. The Tokyo Commodity Exchange (TOCOM) remained closed on account of the 'Coming-of-Age Day'.

Spot rubber rates (Rs/kg) were:

RSS-4: 135.50 (133.50)

RSS-5: 130.50 (128.00)

ISNR 20: 115.50 (114.00)

and Latex (60% drc): 85.50 (85.50)