Rising demand from China to drive rubber prices further
Spot rubber closed unchanged on Wednesday. Most traders preferred to wait and watch as the market took a breather after piercing through the long term resistance of 170, the minimum support price for rubber in the state. As per reports, the domestic prices are expected to strengthen further since the current rally in the global natural rubber market is mainly driven by the rising demand from China.
RSS-4 finished steady at ₹171 a kg, according to traders and the Rubber Board. The trend was partially mixed as Latex improved further on sustained demand from the general rubber goods sector.
In futures, the March delivery closed unchanged at ₹172 a kg against Tuesday's settlement price on the Multi Commodity Exchange (MCX).
RSS 3 (spot) improved to ₹172 (171.58) per kg at Bangkok. SMR 20 firmed up to ₹131.20 (130.72) while Latex slid to ₹124.02 (124.25) per kg at Kuala Lumpur.The most active natural rubber contract for May delivery was up 110 Yuan (₹1,227.31) from previous day's settlement price to close at 15,300 Yuan (₹170,681.32) a tonne in day time trading on Shanghai Futures Exchange (ShFE).
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