RESEARCH firm Geojit Comtrade stated in its report on rubber that the commodity prices are expected to decline towards Rs 16400-16200.
Rubber inventories in the warehouses monitored by the Shanghai Futures Exchange (SHFE) increased to 0.2% to 122137 tonnes.
Thailand’s rubber production has increased by 5.2% to 3.86 million tonnes in 2013 compared to 3.67 million tonnes produced last year. The Thai government has no immediate plan to sell rubber from stockpiles, saying it will push prices of the commodity lower.
In this light, the government is ceasing irs measures in curbing rubber exports upon their expiry on May 31 as they have failed to lift prices.
In Japan, crude rubber stockpiles held at its warehouses rose 2% to 15,976 metric tonnes on April 20, according to data from the Rubber Trade Association of Japan.
Meanwhile,in India, the Union Commerce and Industry Minister Anand Sharma said that import duty on natural rubber is expected to be increased soon, although currently, this a hike has been ruled out by the Minister of State for Finance.