Natural rubber futures in Tokyo commodity exchange rose three percent on Friday as rebound oil prices encouraged bargain-hunting. Yesterday Tokyo rubber futures fell as low as 159.3 yen, the lowest since july 2005 and more than 40% below the benchmark contract a month earlier, as plunging stocks, tightening credit and job cuts worldwide dimmed the outlook for car sales. Rubber is the main raw material for tires.
The global market for natural rubber is facing turbulence on reports of decreasing crude prices and global economic crisis, the Bangok market today quoted Rs 84.45 (-367) for the RSS 3 grade.
Chinese buyers have defaulted on more than 10,000 tonnes of rubber from south-east Asia after prices lost more than 30% in the past month on fears of global recession.
The out look of demand remains gloomy given slumping car sales around the globe. But main producing countries – Thailand, Indonesia and Malaysia are set to announce the results of their two-day meeting in Bangok to counter a collapse inprices later in the day.
Today’s business standard reports that the kerala’s economy is set to lose around Rs 1,600 crore due to recent erosion in prices of natural rubber. To read more…
Tokyo Commodity Exchange:
Rubber for March 2009 delivery traded at 164.1 yen per kilogram, 2 yen up.
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