NR prices flat as producers prepare to set up exchange market

Bangkok – Natural rubber (NR) futures and physical rubber markets in Asia remained in a narrow range ranges in the week of 23-27 March. Prices reflected weak market sentiment and investors' confidence amid supply tightness in the dry wintering season.

NR declined on 27 March in TOCOM and Shanghai future markets, shedding nearly two percent, as crude oil declined about two per cent on NYMEX.

Commodities traders Geofin, meanwhile, reported “thin ranges” of fluctuation in the Indian market for the same period.

“In extremely low volume trades, the near month April rubber futures ended in green [positive territory], probably buoyed by gains in the overseas market and limited supplies, said the India-based firm.

However, Geofin added that “high stocks and poor demand from the tire sector weighed on the overall market sentiments, pruning off the advances.”

According to International Rubber Consortium (IRCo), senior officials from Thailand, Indonesia, and Malaysia will meet on 1 April in Thailand to discuss ways to establish a Regional Rubber Market (RRM) in the near future in order to achieve NR price recovery in the long term.

Cambodia, Lao PDR, Myanmar, and Vietnam (CLMV) are invited to jointly discuss with the three IRCo countries about the establishment of the RRM after the meeting.

The International Rubber Study Group (IRSG) reported last month that global NR production in 2015 was anticipated to see a rise to 12.2 million tonnes from 11.9 million tonnes in 2014.