India rubber prices rally

By Sajeev Nair | 13 Sep 2003

Mumbai: The prices of natural rubber on the Kottayam bourse rallied during the week ended 12 September on a fall in arrivals, even as the bourse opened on a lethargic note on Tuesday, say traders.

The bourse, which opened at Rs 47.25 on Tuesday, rallied through out the week and posted Rs 48.25 on Friday. The spot bourse was closed on Monday, the normal opening day of the bourse, due to the south Indian festival of Onam.

But the futures bourse in Kochi exhibited a mixed trend during the week, with the exchange posting gains during the opening of the week and loses by the later part of the week. Traders and market sources attribute the rise in prices to a fall in supplies from the village procuring areas, as tapping and procuring activities were yet to gather pace after the Onam holidays.

Planters and sellers had exhausted their supplies during the previous week, as the prices had firmed on increased demands. The sellers had disposed of even their buffer stocks, in a bid to cash in on the increased offtake and an expected price rally.

The major buyers at the bourse, tyre and tube manufacturers were active during the week, resulting in a price rally of the key market indicator, RSS-4. The offtake of the variety had also posted increased gains during the week, with exporters and industrial rubber-makers also showing increased interests in offtake.

The prices of sheet rubber RSS-5 also rallied during the week to post Rs 46.75 from Rs 45.75 registered during the opening of the week. The offtake of the variety also posted gains during the week, with sellers, especially north Indian industrial rubber-makers, contributing mainly to the offtake.

The northbound journey was also witnessed by block rubber variety, ISNR-20, with its prices closing at Rs 44.50 on Friday, up by Rs 0.25 from the opening prices of Rs 44.25. Ungraded also posted Rs 0.50 gains to close at Rs 46.50 on Friday, even though Latex 60% DRC stagnated at Rs 34.75 during the week.

Forecast: The prices are expected to stabilise next week, as arrivals from the major procuring areas might strengthen on the backdrop of an increase in procuring activities, say traders.