Profit booking saps spot rubber
May 11, 2021
Lockdown curbs restrict demand and recovery process
The domestic rubber futures lost marginally on profit booking at higher levels following a sharp decline in Bangkok spot and shanghai rubber futures on Tuesday.
“Technically, rubber is expected to remain bullish as it has already broken a double top formation made earlier,” said B Rajashekharan, Managing Director, Shonima Investments. “However, the gains may be limited as lockdown restrictions can put cap on the demand growth as well as the recovery process,” he added.
The front month May delivery was down 0.41 per cent from Monday’s settlement price to close at ₹173.40 per kg with a volume of 22 lots on the Multi Commodity Exchange (MCX).
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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.