8 October 2022 01:06 am Views - 351
The local rubber market remained bearish, with the local industries and exporters indicating lesser interest for the commodity, due to the lacklustre demand prevalent in the regional commodity markets, stated Forbes and Walker Commodity Brokers in its monthly update.
The No. 3s improved firmly during the latter part of the month, settling at around Rs.675 per kilo. The prices of the No. 4s declined from Rs.518 to Rs.480.
The Scrap Crepes weakened by approximately Rs.100. The popular grade 3x browns eased off from Rs.478 to Rs.408 during this period. Better volumes of sheet rubber (RSS) were offered at the auctions this month. The price of RSS 1 eased off by Rs.70 per kilo, which settled at around Rs.610 by end-September. Poor demand was evident for lower grades of sheet rubber. In the global context, rubber futures fell throughout the month of September, due to the weaker demand in the key commodity markets, fuelled by continuous concerns over a global economic slowdown.
The natural rubber market is hindered by weaker oil prices, as manufacturers emphasised more towards purchasing synthetic rubber. On the supply side, excess supply was evident in the South Asian region whilst tapping operations were somewhat disturbed by the rainy weather in Southeast Asia towards the latter part of the month.
Meanwhile, the rubber glove manufacturers in Malaysia have come down hard from their pandemic highs, as the industry struggles to adjust to a drop-off in COVID-19-related demand on top of the rising energy costs. According to Forbes and Walkers Commodity Brokers, the main problem for the glove industry was a steady slide in sales, in terms of quantity as well as prices. The sales volume sank 25 percent last fiscal year, as the deluge of orders for medical gloves spurred by the pandemic abated, with declines in nearly every region, including a 43 percent drop in Asia, its biggest market.