MUMBAI – Rubber contracts on the Indian Commodity Exchange ended lower today, tracking a fall in the benchmark contracts on Tokyo Commodity Exchange, traders said.
The most active May contract on ICEX ended at 11,307 rupees per 100 kg, down 2.8% from the previous close.
Rubber futures on TOCOM were marginally lower today as the coronavirus pandemic has led to concerns over demand for the commodity, analysts said. Global natural rubber consumption is seen lower due to a shutdown of most industrial activity across the world, including China and India, following containment measures to curb the spread of coronavirus, the Association of Natural Rubber Producing Countries said in a release.
The most active October contract of natural rubber on the Japanese bourse was at 150.6 yen (about 107.02 rupees) per kg, down 0.5% from the previous close.
The price of the RSS-3 variety in Thailand fell by 73 cents to $136.90 per 100 kg, data from the Rubber Board showed. In Malaysia, the price of the SMR-20 variety was at $107.60 per 100 kg, down $2.51.
The overall sentiment remains bearish as trade in key markets of Kerala has been hit as the nationwide lockdown has been extended till May 3, due to a spike in coronavirus cases. Confirmed cases of COVID-19 in India have crossed 31,700 and the death toll has risen to over 1,000.
Demand from tyre makers, the key buyers of the commodity, has been severely hit during the lockdown. Overall operations are at a standstill, creating bearish sentiment for rubber, said John Joseph, the owner of J.J. Trading Company in Kerala.
Source Cogencis