India rubber may ease on imports, global cues

Thursday, 5 May 2011 00:00 -     - {{hitsCtrl.values.hits}}

MUMBAI (Reuters): Natural rubber prices in India are likely to ease this week on rising imports, rainfall in growing areas and as overseas markets correct, dealers said on Tuesday.

“Lower grade rubber is cheaper in the overseas markets. Tyre makers have signed import deals and a few are still contracting imports. We can see higher imports in May and June,” said George Valy, president of the Indian Rubber Dealers Federation. India, the world’s fourth biggest producer, imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam. Some parts of southern state of Kerala, the biggest producer, were receiving rains and it may lift production in coming weeks, Valy said.

The benchmark June rubber contract on India’s National Multi-Commodity Exchange (NMCE) provisionally closed 0.4 per cent higher at 23,685 rupees per 100 kg.

On Tuesday, spot price of the most traded RSS-4 rubber (ribbed, smoked sheet) eased by 100 rupees to 23,350 rupees per 100 kg in the Kottayam market in Kerala.

Asian physical rubber prices were slightly lower on Tuesday due to weaker futures prices on the Tokyo Commodity Exchange and rising supply, dealers said. India’s natural rubber production in March rose 7.4 per cent on year to 54,400 tonnes, the state-run Rubber Board said in a statement on Tuesday, as record high prices prompted farmers to increase tapping.