Spot rubber drops Rs 5/kg on lack of buyers.

Kottayam, April 30 The rubber market continued its downward journey on Friday. In spot, the prices fell discounting all the favourable factors lacking genuine buyers on any grade to stabilise the market mood.

Heavy losses in the May futures on TOCOM catalysed the domestic bear spell and certain dealers were panic sellers on sheet rubber. The grade moved down to Rs 162 from Rs 167 a kg on buyer resistance. It is rumoured that the tyre manufacturers were buyers in the futures but according to an analyst, RSS 4 is expected to fall further in the short term.

Futures weak

The May futures moved down to Rs 157.48 (164.04), June to Rs 160.12 (166.79), July to Rs 158.53 (165.13) and August to Rs 156.40 (162.82) a kg for RSS 4 on National Multi Commodity Exchange.

RSS 3 declined sharply with May futures slipping to ¥395/Rs 185.51 (¥428), June to ¥350.2 (¥362), July to ¥320.5 (¥335) and August to a kg during the day session on Tokyo Commodity Exchange. RSS 3 slipped to Rs 175.53 (175.85) a kg on Singapore Commodity Exchange (SICOM). RSS 3 (spot) weakened to Rs 178.91 (179.20) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 162 (167); RSS-5: 160 (165); ungraded: 158 (162.50); ISNR 20: 156 (159) and latex 60 per cent: 105 (106).

Source : Business Line