Spot rubber continued to remain neutral on Friday. RSS4 closed unchanged at ₹160 per kg, according to traders and the Rubber Board. The trend was partially mixed as Latex edged lower amidst dull volumes. As per reports, the market is expected to recover in tandem with a sharp recovery in global trend setters and a steady rise in domestic demand, next week.
A leading tyre-maker bought RSS4 at ₹159.50 per kg during late trading hours on Thursday but they could not procure the desired quantity owing to short supplies. “We build up a stockpile expecting a moderate recovery in the market but we may end up at a loss since our average purchase rates are much above the current market price” a dealer told BusinessLine. “Some of us are in a severe financial crisis” he added.
In futures, the February contracts were up 0.13 percent from Thursday’s settlement price to close at ₹162.20 per kg with a volume of 6 lots on the Multi Commodity Exchange (MCX).
RSS3 (spot) improved to ₹165.03 (162.85) per kg at Bangkok. SMR20 firmed up to ₹135.34 (132.41) and Latex to ₹126.13 (122.46) per kg at Kuala Lumpur.
The natural rubber contract for the May 2022 delivery was up 1.26 percent from previous day’s settlement price to close at 14.31 Yuan (₹168.80) per kg with a volume of 207,812 lots in daytime trading on Shanghai Futures Exchange (ShFE).
Spot rubber rates (₹/kg) were: RSS4: 160.00 (160.00), RSS5: 158.00 (158.00), ISNR20: 157.00 (157.00) and Latex (60% drc): 125.00 (126.00)
February 18, 2022