Spot rubber rules firm

The physical rubber prices finished almost unchanged on Wednesday. The market sustained at current levels on supply concerns though the reports from the domestic and international futures were not favourable. Sheet rubber, the only loser of the day slipped marginally by 25 paise to Rs 98.75 a kg on buyer resistance.

Rubber booked the biggest monthly gain since December 2006 on renewed optimism that the world economy is recovering, spurring demand for the raw material.

Futures in Tokyo increased 21 percent this month after commodities jumped the most in more than four months yesterday on speculation that the worst of the global recession has passed and consumption of fuel, food and metals will rebound. Crude oil jumped 6.2 percent yesterday.

Rubber has gained 44 percent this year as global equities rallied and natural rubber exporters curbed shipments.

Due to forward trading of rubber, prices of raw rubber has witnessed frequent fluctuation and steep hike in its prices, Jalandhar Rubber Goods Manufacturers Association President B B Jyoti said, adding that players in the commodity market have made it extremely difficult for the rubber industry.

The three producing countries will cut shipments by as much as 48,000 tons a month in the second half. The trio reduced exports by 540,000 tons in the first five months of the year, more than the 414,000-ton reduction planned for the first half.