Sheet rubber improves on short covering

Sheet rubber improves on short covering
Kottayam: Spot rubber prices improved on Friday. The market opened steady and continued to remain flat on early trades but the bounce back in the domestic and international rubber futures catalysed the sentiments during late trading hours. Sheet rubber firmed up to Rs 140 (138.50) a kg on fresh buying and short covering. There were no fresh quotes from the tyre sector.

Futures gain

The January futures for RSS 4 flared up to Rs 142.76 (137.68), February to Rs 144.75 (139.46), March to Rs 146.15 (141.51) and April to Rs 148.09 (143.43) a kg on National Multi Commodity Exchange (NMCE). RSS 3 declined with the December futures slipping to ¥257 (¥261) (Rs.133.03), January to ¥260.4 (¥263.1), February to ¥262.5 (¥265.2) and March to ¥263.9 (¥266.8) a kg during the day session on Tokyo Commodity Exchange. RSS 3 moved up to Rs 134.54 (133.04) a kg at Bangkok. The grade closed firm at Rs 134.10 (132.47) a kg on Singapore Commodity Exchange (SICOM). (BL)
http://www.thehindubusinessline.com/2009/12/19/stories/2009121952981600.htm
India may emerge 2nd in rubber offtake soon
Kochi: In 2008, India overtook Japan and emerged as the third largest natural rubber consumer in the world. Now, India is projected by several international agencies to become the second-largest global consumer in the near future, Mr Toms Joseph, Economist at the Rubber Board, has said.

The elevation of India into the third place in rubber consumption comes at a time when Indian production is poised to dip sharply in 2009-10. But the country is not likely to confront any shortage in the domestic market as the opening stock was relatively very high at 2,00,013 tonnes compared with 1,64,280 tonnes last year, Mr Joseph said.

Rubber production in India was down 5.38 lakh tonnes (5.76 lakh tonnes) during the first eight months of the current year. This was even as consumption grew by 3.5 per cent to 6.15 lakh tonnes (5.94 lakh tonnes). And going by the current trends, the demand-supply mismatch is poised to aggravate further as the year progresses. By cleverly reducing its exports and increasing imports, India has been able to build on the stock available and raise it to 2.47 lakh tonnes by November-end.

However, Mr Rajiv Budhiraja, Director-General of the Automotive Tyre Manufacturers Association cautions that: “There has been a growing imbalance between production and consumption in the country since the beginning of this financial year. As in earlier years, the industry had anticipated that with the onset of the peak season in October the situation will improve. However, notwithstanding the peak season, the tyre industry is facing an acute shortage of rubber in the market, seriously impacting the manufacturing schedules of tyre majors.” (BL)
http://www.thehindubusinessline.com/2009/12/19/stories/2009121952871600.htm
Tyre makers blame futures for rubber price rise
Kochi: Expressing concern at rising prices of natural rubber, the Automotive Tyre Manufacturers Association (ATMA) has alleged that speculation and manipulation in the rubber futures is causing distortion in spot prices of natural rubber.

According to the tyre manufacturers' body, in the last one month the average volume of daily trade has gone up from 1,000 tonnes to 4,500 tonnes.

“Certain speculators taking part in the futures trading are causing huge distortion in the market and even availability of rubber has become an issue. What is most unfortunate is that the rally being witnessed in the rubber prices is taking place at a time when rubber tapping season is at its peak,” said Mr Rajiv Budhraja, Director-General of ATMA, said in a statement here.

Interestingly, the volatility in price internationally is not as significant. For instance on SICOM, the December contracts have ranged between Rs 12,677 and Rs12,575 a quintal during December 1-11, while on NMCE, the contracts have gone up from Rs 12,705 a quintal on December 1 to Rs 13,355 on December 11.

According to Rubber Board estimates, the production was pegged at 1,03,000 tonnes in November and 1,00,000 tonnes in December this year against a consumption of 80,000 tonnes each in November and December. This should add to the availability of stock with growers and traders and, if at all, should put downward pressure on prices, he said. (BL)
http://www.thehindubusinessline.com/2009/12/19/stories/2009121952861600.htm