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KUALA LUMPUR The resurgence of COVID-19, particularly in India, and the Thai government s reported move to sell natural rubber through local tenders impacted markets in April, according to a recent report by the Association of Natural Rubber Producing Countries.
Markets, both in futures and the physical markets, moved without exhibiting a clear trend during April 2021.
The prices did move down for a few days in the first half of April mainly due to the second wave of COVID-19 in India, ANRPC said in a May 7 market analysis report.
In addition, the government of Thailand reportedly sold 104,000 metric tons of NR from state inventories by inviting tenders from interested local buyers, a move which ANRPC said impacted prices.
Supply woes, rising crude oil prices and US dollar could aid trend, says ANRPC
Natural rubber prices in the global market are expected to see marginal improvement in the short term fuelled by higher demand, supply constraints, rising crude oil prices and the US dollar, the Association of Natural Rubber Producing Countries (ANRPC) has said.
However, the second wave of the Covid-19 pandemic in India, along with the slow progress of the vaccination drive, could limit the demand growth as well as recovery in prices. The anticipated rise in supply, starting from June, can also cap prices, said ANRPC’s Rubber Market Intelligence Report.
Covid-19 second wave leaves rubber trading houses to remain closed
Aravindan
Kottayam 10 May |
Updated on
May 11, 2021
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The world supply during May 2021 is likely to remain low, however, it is expected to improve in June 2021
Spot rubber prices were not available on Monday as the local trading houses remained closed due to the total lockdown implemented by the Government of Kerala to prevent the rapid surge of Covid-19 cases in the State.
According to the Association of Natural Rubber Producing Countries (ANRPC), NR prices has the potential to improve in the short term , at least marginally, driven by the improved outlook on the demand and supply constraints. However, the continuing Covid-19 infections in India along with the slow progress of the vaccination drive can put cap on the demand growth as well as the recovery process.
Spot rubber prices remain steady
Aravindan
Kottayam |
Updated on
RSS4 was quoted unchanged at ₹169 per kg Spot rubber ended the week on a steady note on Friday. The market lost its direction as sentiments remained under pressure following the Government’s decision to impose a total lockdown from May 8 to May 16 in view of the rapid surge of Covid-19 cases in the state. The trading activities were in an extremely low key.
As per the Rubber Market Intelligence Report released by the Association of Natural Rubber Producing Countries (ANRPC), the second wave of Covid-19 has trimmed the outlook on the demand for NR from India. However, the lower NR demand from India could be offset by the higher consumption expected in China, US, and Europe ridden by the rapid economic recovery following the excellent progress achieved in the vaccination drive.