Spot rubber resumed its downtrend on Tuesday. The market opened flat but closed in the red on buyer resistance coupled with profit bookings at higher levels.
According to some sources, some dealers were unwinding their stocks fearing a further drop in prices. “We expect the product to reach ₹175 per kg soon,” they said.
The recent surge in natural rubber prices has been capped mainly by reduced automotive production due to the severe shortage of chip semiconductors that is wreaking havoc on the global automotive industry, the Association of Producing Countries said. of natural rubber (ANRPC). In addition to being impacted by supply constraints, inventory at dealerships is also squeezed by the fast-spreading virus variants. In India, August passenger car sales fell 15.3% in August compared to July 2021, largely due to the shortage of chips.
RSS-4 weakened to ₹178 from ₹178.50 and ₹179 per kg, according to traders and the Rubber Board. The rating fell to ₹173.50 (174) per kg, according to dealers.
In futures, the most active September delivery fell 1.61% from Monday’s settlement price to close at ₹175.28 per kg with a volume of 42 lots on the Multi Commodity Exchange (MCX ).
The natural rubber contract for September delivery rose 0.04% from the previous day’s settlement price to close at 12.92 yuan (₹146.16) per kg, with a volume of 1,155 lots in day trading on Shanghai Futures Exchange (ShFE).
RSS-3 (spot) dropped to ₹133.80 (135.56) per kg in Bangkok. The SMR20 slipped to ₹120.07 (120.59), while the Latex improved to ₹90.05 (89.48) per kg in Kuala Lumpur.
September delivery was down 0.52% from last day’s settlement price to close at ¥192.50 (₹128.11) per kg with a volume of 36 lots on the Osaka Stock Exchange, in Japan.
Spot rubber rates (₹/kg) were: RSS-4:178 (178.50); RSS-5: 176 (177); ISNR20: 167.50 (168.50) and Latex (60% drc): 128.50 (128.50).
Growers can contact the Rubber Board call center for information on science-based rubber fertilizer recommendations, including the Fertilizer Recommendation Online (RubSIS). Annie Philip, Senior Scientist, Rubber Research Institute of India, will answer questions about this on September 8 from 10 a.m. to 1 p.m. The call center number is 0481-2576622.