Rubber Gains for Third Week on Low Thailand Production Concerns Share Business

Rubber Gains for Third Week on Low Thailand Production Concerns Share Business

Feb. 26 (Bloomberg) -- Rubber advanced for a third week as concerns over supply shortages during the low-production season in Thailand and rising crude oil prices boosted the appeal of the commodity used in tires.

Futures in Tokyo gained as much as 0.8 percent to 296.9 yen a kilogram ($3,326 a metric ton) after declining by 0.6 percent. The yen-based contract reached 303.4 yen on Feb. 24, the highest level since Jan. 20, and has added 0.5 percent this week.

“Fundamentally, low supply in Thailand will continue to support prices,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said by phone from Bangkok. Still, “the market is in consolidation mode amid a lack of fresh factors.”

Thailand is entering the low-production season, which normally begins in the nation’s main growing areas in late March. Rubber trees shed leaves and latex output slows during the season, known as wintering, reducing the raw material supply.

“Supplies in Thailand are tight” and there are lots of buyers, Roka Komiya, trader at Marubeni Corp. said by phone from Tokyo. “That’s sustaining the price.”

Rubber for August delivery, the most-active contract, advanced 0.5 percent to settle at 296.1 yen on the Tokyo Commodity Exchange.

Thai rubber auction prices declined today after 12 straight days of gains, pressured by crude oil’s drop yesterday, according to the Rubber Research Institute of Thailand. “Limited supply cushioned the downside of the local price fall,” the institute said on its Web site today.

The auctioned price of unsmoked sheets dropped 0.6 percent to 100.80 baht ($3.05) per kilogram. Ribbed smoked sheets declined 0.8 percent to 105.27 baht a kilogram, according to the organization.

May-delivery rubber on the Shanghai Futures Exchange fell 0.5 percent to settle at 24,850 yuan ($3,640) a ton. It climbed to 25,450 yuan yesterday, the highest level since Jan. 21.

PRANAB DA's BUDGET FOR YOU

New Delhi, Feb. 26

Middle-class Indians will have more disposable income in their hands from the Finance Minister, Mr Pranab Mukherjee's 2010-11 Union Budget, even as they might have to shell out more for what they buy.

Income-tax

While individuals would continue to be tax-exempt on incomes up to Rs 1.6 lakh, the Budget has proposed the 10 per cent rate on a slab extending up to Rs 5 lakh, as against the current Rs 3 lakh.

Likewise, the 20 per cent rate will now apply on income slabs beyond Rs 5 lakh and up to Rs 8 lakh, compared with the existing Rs 3 lakh to Rs 5 lakh range. The maximum marginal rate of 30 per cent will be charged only on an income slab of above Rs 8 lakh, whereas this limit is Rs 5 lakh now.

Simply put, an individual with taxable income of Rs 5 lakh would save Rs 20,600 annually from Mr Mukherjee's move. If his income is Rs 8 lakh, the savings works out to Rs 51,500, which means an additional Rs 4,300 every month to splurge or to save.

The flip side, however, is the Finance Minister's proposals on the indirect tax front — which may probably take away as much as what the income-tax reliefs would put in middle class pockets.

Excise duty raised

To start with, the standard ‘Cenvat' excise duty, applicable on most non-petroleum products, has been raised from 8 per cent to 10 per cent, which Mr Mukherjee has justified as a partial rollback of the earlier rate reductions as part of the various fiscal stimulus packages. The affected goods range from cars and bikes to steel and most consumer durables.

The Budget has also effected a Re 1 a litre excise hike on petrol and diesel, along with raising their Customs duty from 2.5 per cent to 7.5 per cent. As a result, a litre of petrol will now cost Rs 2.71 more, and diesel will be Rs 2.55 a litre costlier. The inflationary impact of the latter may not be small.

Service tax

While Mr Mukherjee has kept the service tax rate unchanged at 10 per cent, he has widened its ambit to include rail freight and air travel (both domestic and international on all classes).

Thus, while Ms Mamata Banerjee's Rail Budget did not hike either passenger or freight charges, the Union Budget has made up partially through service tax on goods hauled by rail. Other commodities that would turn dearer are cement, gold and silver jewellery.

As far as corporates are concerned, the Budget offers a mixed bag. While the surcharge on domestic companies has been slashed from 10 per cent to 7.5 per cent, the Minimum Alternative Tax (MAT) rate has been raised from 15 per cent to 18 per cent of book profits. That would bring MAT assessees closer to other companies that pay a corporate tax of 30 per cent.

But these blips notwithstanding, industry by and large has welcomed Mr Mukherjee's latest Budget, unlike the one he presented for 2009-10. The markets this time cheered the various proposals, including the setting of a specific Rs 40,000-crore disinvestment target and also the clear signals sent out on a return to fiscal prudence.

For 2010-11, the Finance Minister has projected the Centre's net market borrows at Rs 345,010 crore, which is below the current fiscal's revised estimate (RE) of Rs 398,411 crore. This, in turn, is expected to ward off fears about hardening of interest rates and private investments being crowded out as a result.

The fiscal deficit, too, is slated to fall from the RE of 2009-10, both in absolute terms (from Rs 414,041 crore to Rs 381,408 crore) as well as relative to GDP (from 6.7 per cent to 5.5 per cent).

Reform signals

While the latest Budget is not seen as a ‘game-changer', most corporates, however, have welcomed the fiscal consolidation measures and statement of commitment to introduce the dual Goods and Services Tax (GST) regime and the Direct Taxes Code from April 2011 as strong reform signals.

In fact, Mr Mukherjee indicated to presspersons that the Central GST rate may be pegged at 10 per cent, which happens to equal the Cenvat and service tax rates proposed in the Budget.

The other big positives were the move to control subsidies. Besides allowing oil companies to hike petrol and diesel prices, Mr Mukherjee also promised to take forward the recommendations of Kirit Parekh Expert Group's on decontrol “in due course”.

Spot rubber prices improve

Spot rubber prices improve

Kottayam, Feb. 26

Domestic rubber prices improved on Friday. Natural rubber futures prices on NMCE rose following budget announcements, as traders took a positive stance after analysing the impact of higher vehicle prices and tyre demand. In spot, sheet rubber improved to Rs 141.50 from Rs 140.50 a kg while the market made all-round gains on fresh buying and short covering.

Futures gain

RSS 4 flared up at its March futures to Rs 143.10 (141.29), April to Rs 147.90 (145.34), May to Rs 150.95 (148.21) and June to Rs 152.85 (150.24) a kg on National Multi Commodity Exchange (NMCE). RSS 3 firmed up at its March futures to ¥284.9 (¥283.8) (Rs 147.14), April to ¥287.4 (¥286), May to ¥289.3 (¥288.4) and June to ¥291.4 (¥290.7) a kg for during the day session on Tokyo Commodity Exchange (TOCOM). RSS 3 weakened to Rs 151.17 (152.08) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) improved to Rs 151.60 (151.16) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 141.50 (140.50); RSS-5: 137.50 (136.75); ungraded: 137 (135.50); ISNR 20: 136.50 (136) and latex 60 per cent: 91 (91).¥

Rubber in Tokyo Drops

Rubber in Tokyo Drops
Rubber in Tokyo Drops 0.6% to 292.90 Yen, Erasing Earlier Gain Share Business

Feb. 26 (Bloomberg) -- Rubber on the Tokyo Commodity Exchange declined by as much as 0.6 percent to 292.90 yen a kilogram, erasing an earlier gain by the same amount.\\

Spot rubber under pressure


Kottayam, Feb. 25

Spot rubber remained under pressure on Thursday. According to observers, the market slipped mainly on buyer resistance though there has been no visible selling pressure on any grade from dealers or growers. Sheet rubber weakened to Rs 140.50 from Rs 141 a kg amidst scattered transactions. The trend was mixed.

Futures improve

RSS 4 improved marginally at its March futures to Rs 141.34 (140.75), April to Rs 145.39 (145.11), May to Rs 148.39 (147.99) and June to Rs 150.25 (150.08) a kg on National Multi Commodity Exchange (NMCE). The March futures declined to ¥283.8 (¥289.2) (Rs 147.35), April to ¥286 (¥291.3), May to ¥288.4 (¥295.1) and June to ¥290.7 (¥297.6) a kg for RSS 3 during the day session on Tokyo Commodity Exchange.

RSS 3 flared up to Rs 152.08 (150.08) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) was quoted firm at Rs 151.16 (149.58) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 140.50 (141); RSS-5: 136.75 (138); ungraded: 135.50 (136); ISNR 20: 136 (136) and latex 60 per cent: 91 (91).

Spot rubber drops with weak futures

Spot rubber drops with weak futures

Kottayam, Feb. 24

Physical rubber prices declined on Wednesday. The prices slipped following the weakness in domestic and international futures and profit booking from dealers kept the market under pressure on late trades. Sheet rubber moved down to Rs 141 from Rs 142 a kg on buyer resistance. There were rumours that certain leading manufacturers were buyers on the grade even above the quoted level during the closing hours on Tuesday.

RSS 4 declined at its March futures to Rs 140.50 (143.08), April to Rs 144.86 (147.42), May to Rs 147.55 (150.29) and June to Rs 149.66 (152.45) a kg for on National Multi Commodity Exchange (NMCE).

Tokyo Futures firm

The March futures closed at ¥289.2 (¥289) (Rs 148.89), April at ¥291.3 (¥291.6), May at ¥295.1 (¥294.8) and June at ¥297.6 (297.1) a kg for RSS 3 during the day session on Tokyo Commodity Exchange (TOCOM). RSS 3 improved to Rs 150.08 (148.62) a kg on Singapore Commodity Exchange (SICOM). The grade closed at Rs 149.58 (149.52) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 141 (142); RSS-5: 138 (138.50); ungraded: 136
(136.50); ISNR 20: 136 (136.50) and latex 60 per cent: 91 (91).

Tyre imports hurting rubber growers: ATMA

Kochi Feb. 24

The surging import and dumping of tyres is severely impacting the interest of the natural rubber market in the country, the Automotive Tyre Manufacturers Association (ATMA) has said. A study conducted by ATMA has pointed out that the market for natural rubber growers and traders has shrunk by over 25,000 tonnes during April-December 2009 due to rising truck and bus tyre imports.

This was mainly due to the significant increase in the import of truck and bus tyres into India over the past few years. The spike was all the more evident in the recent months with import of truck and bus tyres surging from 27,000 in April to two lakh in December 2009.

“The import of tyre as a finished product entails an indirect import of rubber, affecting the interest of domestic rubber growers as they lose the market which otherwise normally belonged to them,” said Mr Rajiv Budhraja, Director-General of ATMA.

ATMA's analysis has shown that when import of tyres (2009) is taken into consideration, the import of natural rubber increased from 680 tonnes in April to 5,102 tonnes in December. The cumulative natural rubber import through imported truck and bus tyres during April-December thus works out to 25,639 tonnes.

Findings on dumping

Recognising the large-scale import and dumping of truck and bus tyres, the designated government agency in its final findings has recommended the imposition of anti-dumping duty on radial truck and bus tyre imports from China and Thailand.


The Rubber Board has also urged the government to check the dumping of tyres with a view to safeguard the interests of the domestic rubber growers.

The tyre industry is not only the largest consumer of natural rubber in India but the share of rubber consumed by the sector has been consistently growing over the years. Currently, the tyre industry consumes about 60 per cent of the total rubber produced in the country.

Spot rubber rules steady

Spot rubber rules steady
Kottayam, Feb. 23

Spot rubber closed unchanged on Tuesday. Declines in the domestic and international rubber futures kept the sentiments under pressure during the day but the prices sustained at previous day's levels lacking quantity sellers in the market. Sheet rubber closed steady at Rs 142 a kg and the volumes continued to be low amidst scattered transactions.


Futures weak

The March futures closed weak at Rs 143.06 (143.70), April at Rs 147.52 (148.68), May at Rs 150.22 (151.69) and June at Rs 152.64 (153.25) a kg for RSS 4 on National Multi Commodity Exchange (NMCE). RSS 3 weakened at its March futures to ¥289 (¥290.5) (Rs 146.88), April to ¥291.6 (¥293.9), May to ¥294.8 (¥297.7), June to ¥297.1 (¥300.3) and July to ¥299 (¥302.5) a kg while the August futures concluded its debut trading at 300.8 Yen during the day session on Tokyo Commodity Exchange. RSS 3 slipped to Rs 148.62 (148.86) a kg on Singapore Commodity Exchange (SICOM). It moved down to Rs 149.52 (150.18) a kg at Bangkok.



Spot prices were (Rs/kg): RSS-4: 142 (142); RSS-5: 138.50 (138.50); ungraded: 136.50 (136.50); ISNR 20: 136.50 (136.50) and latex 60 per cent: 91 (91).(B.L)

http://www.thehindubusinessline.com/2010/02/24/stories/2010022452652000.htm

Drought worsens in China's rubber-growing Yunnan
BEIJING: The most severe drought in China's southwestern Yunnan province in six decades has hit sugarcane, rubber and coffee crops and blocked transport on a major river bordering Laos and Myanmar, the Xinhua news agency reported.



The drought has affected a total of 2.55 million hectares of crops, including wheat and vegetables, accounting for 85 percent of the province's total growing area, Xinhua cited the local agricultural bureau as saying.(Reuters)

http://in.reuters.com/article/worldNews/idINIndia-46421320100224

Rubber Declines From One-Month High as Crude Drops, Yen Weakens Share Business

Rubber Declines From One-Month High as Crude Drops, Yen Weakens Share Business

Feb. 23 (Bloomberg) -- Rubber retreated from a one-month high as a drop in oil reduces the competitiveness of the commodity against its rival synthetic products, and a strong Japanese currency weakened the appeal of yen-based contracts.

Futures in Tokyo fell for the third time in four days, losing as much as 2.2 percent. The price reached the highest level since Jan. 21 yesterday, nearing this year’s peak of 306 yen per kilogram ($3,360 a metric ton) on Jan. 15.

Crude oil dropped for the first time in six days on speculation fuel supplies in the U.S. increased, a sign demand from the world’s biggest energy consumer may be slowing. The yen advanced as concern over Greece’s fiscal future and the pace of the Fed’s stimulus withdrawal increased demand for Japan’s currency as a refuge.

“Rubber declined as it lost support from the currency and energy markets,” said Hisaaki Tasaka, an analyst at Tokyo-based commodity broker ACE Koeki Co., said today by phone. Still, “losses were limited as cash rubber prices gained on good demand and tightening supply.”

Rubber for July delivery lost as much as 6.5 yen to 296 yen per kilogram before settling at 299 yen on the Tokyo Commodity Exchange. August-delivery rubber, listed on the bourse today, surged 5.1 percent to settle at 300.8 yen.

In the cash market, shippers in Thailand, the top producer and exporter, raised offers for RSS-3 grade rubber for April shipment to $3.27 a kilogram from $3.20 yesterday, Tasaka said.

Chinese Demand

“Physical prices increased as Chinese buyers returned to the market after the Lunar New Year holiday,” Tasaka said. “Exporters also raised offers on expectations supply will decrease seasonally over the next few months.”

Rubber trees shed leaves and latex output slows during wintering, or the low-production season, that normally begins in Thailand’s main growing areas in February.

May-delivery rubber on the Shanghai Futures Exchange lost 0.6 percent to settle at 24,855 yuan ($3,639) a ton. It rose to 25,380 yuan yesterday, the highest since Jan. 21, as trade resumed after a week-long Lunar New Year holiday.

Benchmark Thai rubber prices continued rising as buyers accelerate purchases before the low-production season, the Rubber Research Institute of Thailand said on its Web site today.

The price of unsmoked sheets gained 0.2 percent to 99.99 baht ($3.02) per kilogram. Ribbed smoked sheets rose 0.8 percent to 104.29 baht a kilogram, according to the organization.

“Strong demand from China and concerns over declining rubber production continue to support Thai prices,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said by phone from Bangkok.

Crude oil for April delivery lost as much as 0.5 percent to $79.73 a barrel in electronic trading on the New York Mercantile Exchange, before trading at $80.09.

The yen strengthened to 90.91 per dollar at 4:35 p.m. in Singapore from 91.14 in New York yesterday, when the currency advanced 0.4 percent.

Spot rubber prices improve

Spot rubber prices improve

Kottayam, Feb. 22

Spot rubber prices improved on Monday. Moderate gains in the international rubber futures catalysed the market mood and it moved up further on fresh buying and short covering. Sheet rubber increased to Rs 142 from Rs 140 a kg while the remaining grades also finished on the higher side though there has been no considerable improvement in volumes.

Futures firm

The March futures for RSS 4 closed at Rs 143.56 (143.62), April at Rs 148.50 (148.47), May at Rs 151.55 (151.40) and June at Rs 153.02 (153.41) a kg on National Multi Commodity Exchange (NMCE).The February contract expired at ¥289 (284.7) (Rs 146.25) while the March futures for RSS 3 improved to ¥290.5 (¥283.2), April to ¥293.9 (¥286.6), May to ¥297.7 (¥290.4), June to ¥300.3 (¥292.5) and July to ¥302.5 (¥294.6) a kg during the day session on Tokyo Commodity Exchange (TOCOM).

The March futures weakened to ¥285.2, April to ¥290.7, May to ¥295.1, June to ¥297 and July to ¥300 a kg during the night session. RSS 3 moved up further to Rs 148.86 (148.47) a kg on Singapore Commodity Exchange (SICOM). It closed firm at Rs 150.18 (148.11) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 142 (140); RSS-5: 138.50 (137); ungraded: 136.50 (135); ISNR 20: 136.50 (135) and latex 60 per cent: 91 (90).

CAR EXPORTS RISE

Hyundai India's exports cross a million

Australia is the latest export market.

Chennai, Feb. 22

Hyundai Motor India Ltd (HMIL), the country's largest passenger car exporter, achieved yet another milestone with a cumulative export of 10 lakh cars when it loaded its i20 hatchbacks to Australia from the Chennai port.

This milestone was achieved in just over a decade of Hyundai starting its plant at Sriperumbudur, near Chennai.

10 new markets

In 2010, the Korean major plans to add 10 new markets with Australia being the latest entrant to the list. The first shipment to Australia was 500 units of i20s that was loaded through the ro-ro (roll-on roll-off) carrier Asian Emperor.

The total export of i20 cars to Australia is expected to be around 15,000 a year, according to a company release.

Mr H. W. Park, Managing Director and CEO, HMIL, said that with the inclusion of Australia, the company has now covered almost all the continents where ‘Made in India' Hyundai cars are on the roads. Beginning with the export of 20 Santro cars to Nepal in 1999, Hyundai's ‘Made in India' cars are now exported to nearly 110 countries and by the year-end it will reach 120 countries, he said at a function at the Chennai port to mark the the 10 lakh car achievement.

HMIL's parent has noticed the progress made by the Indian operations, now the biggest outside Korea. “India is now a designated hub for the small car,” he said. Over 50 per cent of HMIL's production is exported, he said.

Demand scene

According to Mr Arvind Saxena, Director, HMIL, other than China and India most of the global markets saw a decline in car demand. For instance, the demand in the US market declined by nearly 2.7 per cent; the UK and Germany saw a decline of 4.4 per cent and 5.3 per cent respectively, and Russia's market dipped by nearly 7.5 per cent.

However, China's demand increased by nearly 8.5 per cent and India's by 7.5 per cent. The growth rate was lower when compared to the previous year, he said. The stimulus package announced by the Centre had helped the demand in India. The package should continue for some more time, he said.

Export revenue

HMIL's export revenue that was nearly 35 per cent of car exports in 2006; increased to 50 per cent in 2008 but dropped to 48 per cent in 2009, he said.

Mr Saxena later told newspersons that the company was working on a car smaller than the Santro. “The plan is on,” he said.

Dumping duty on truck, bus radials from China, Thailand

New Delhi, Feb. 22

The Finance Ministry has imposed definitive anti-dumping duty on truck and bus radial tyres imported from China and Thailand.

This move comes as a victory for the domestic tyre industry. It will result in lower imports of radial truck and bus tyres by domestic commercial vehicle manufacturers as landed cost is likely to go up on account of this levy, say tyre industry sources.

Domestic commercial vehicle manufacturers were resorting to imports of truck and bus radial tyres from China and Thailand to meet their requirements.

Based on the recommendations of the Designated Authority in the Commerce Ministry, the Revenue Department has now imposed definitive anti-dumping duty ranging from $24.97 per set of TTF (tyre +tube+ flap) to $99.05 per TTF depending on the producer/country of export.

Rubber for July Delivery Rises 2.3% as Crude Oil Advances

Rubber for July Delivery Rises 2.3% as Crude Oil Advances

Feb. 22 (Bloomberg) -- Rubber futures in Tokyo rallied as much as 2.3 percent as crude oil advanced.

The July-delivery contract reached 301.4 yen per kilogram before trading at 301.1 yen at 9:03 a.m. local time on the Tokyo Commodity Exchange.

Rubber Declines as Stocks, Oil Slump After U.S. Raises Rate Share Business

Rubber Declines as Stocks, Oil Slump After U.S. Raises Rate Share Business

Feb. 19 (Bloomberg) -- Rubber declined, tracking a decline in crude oil and Asian stocks, after the Federal Reserve increased its discount rate, triggering concern that government stimulus programs are winding down.

Futures for July delivery in Tokyo fell as much as 0.9 percent after rising earlier to 300.2 yen per kilogram ($3,262 a metric ton), the highest level since Jan. 22. The contract closed at 294.6 yen, a 3.3 percent gain for the week.

Japanese stocks fell the most in two weeks after the Fed raised the discount rate charged to banks for direct loans by a quarter point to 0.75 percent.

“Equity market falls and declining oil prices spilled over to the rubber market, prompting investors to unwind positions,” Chaiwat Muenmee, analyst at DS Futures Co., said from Bangkok.

The MSCI Asia Pacific Index fell 2.3 percent to 115.16 as of 3:54 p.m. in Singapore, the steepest drop since Feb. 5, reversing this week’s advance.

Rubber also declined as falling crude oil prices reduced its competitiveness against rival synthetic rubber. Oil dropped for the first time in four days as the dollar’s rally weakened the appeal of the commodity as an alternative investment.

In the cash market, Thai shippers offered so-called RSS-3 grade rubber for April shipment at about $3.30 a kilogram today from $3.18 yesterday, said Kazuhiko Saito, chief analyst at Tokyo-based broker Fujitomi Co. Rubber trees shed leaves and latex output slows during wintering, the low-production season that normally begins in Thailand’s main growing areas in February.

Thai Output

Benchmark Thai rubber prices increased as buyers accelerated purchases on concern that the El Nino weather pattern may lower local production and boost prices, the Rubber Research Institute of Thailand said on its Web site today.

The price of unsmoked sheets gained 0.3 percent to 99.55 baht ($3) per kilogram. Ribbed smoked sheets added 0.3 percent to 103.12 baht a kilogram, according to the organization.

“Lower production in Thailand will drive prices further next week,” said Chaiwat. “We may see continued demand from China when the Shanghai market resumes next week but the demand growth may slow as some companies built up stock before holidays.”

The rubber market in Shanghai is closed this week for the Lunar New Year holidays.

Tyre industry may face shortage of natural rubber

Kochi, Feb. 19

Reports that Tata Motors has scaled down production of commercial vehicles by 5-10 per cent in January has sent tremors down the commercial vehicle industry in the country.

One of the main reasons stated is the shortage of key components such as bus/truck radial tyres. This scaling down of vehicle output was despite bus/truck tyre production in India growing by 39 per cent in December 2009 over last year. Bus/truck tyre output for the first nine months of the fiscal was up 11 per cent. Going by the accelerated pace of economic activity, the demand for heavy vehicles and thereby bus/truck tyres is poised to grow in the coming months.

Gearing up to meet the burgeoning demand, the industry announced a flurry of projects with investments totalling Rs 18,411 crore to be executed in the next couple of years. Most of these projects are to address the current shortages in the bus/tyre radial segment. Bus/truck radial tyre projects have been announced by industry majors such as Apollo Tyres, Birla, Bridgestone, JK Tyres, MRF, Dunlop and Michelin. Once these projects are executed, the industry should be in a position to meet the short to medium-term demands of the commercial vehicle sector.

Source of rubber

But the bigger question is where will the tyre industry source natural rubber from? With rubber demand poised to overtake supply in the short to medium-term, the tyre industry does not see very encouraging times in the immediate future, Mr Rajiv Buddhraja, Director-General of the Automotive Tyre Manufacturers Association of India (ATMA), said. Data provided by ATMA reveal that the existing installed capacity to manufacture 11 lakh bus/truck radial tyres would more than double to 26.2 lakh in 2010-11. Then it is poised to more than double to 62.4 lakh in 2011-12.

Fluctuations in output

Meanwhile, statistics available from the Association of Natural Rubber Producing Countries reveal that there have been severe fluctuations in Indian rubber production in recent years. After producing 8.53 lakh tonnes of natural rubber in 2006, there were several fluctuations with production in 2009 projected to dip to 8.17 lakh tonnes. The projection for 2010 is production could rise to 2006 levels, at 8.53 lakh tonnes.

In 2006, India was rubber surplus country with demand pegged at 8.15 lakh tonnes. With consumption in 2009 estimated at 9.04 lakh tonnes, India would become a rubber deficit country. The consumption for 2010 is projected to be 9.82 lakh tonnes. While there is little doubt that the consumption figures would be met, question marks linger on the production possibilities. However, the future holds some promise for the natural rubber sector.

New area coverage

There has been some growth in new areas coming under rubber plantations. From 14,800 hectares in 2005, the area under new rubber saplings shot up to 27,500 hectares in 2008. Despite the lag effect of seven years for rubber trees to yield, this augurs well for the industry. Question marks also remain over large areas with old and low yielding trees.

The pace of re-planting has been dismal: most often at less than 10,000 hectares a year. This compares very poorly with countries such as Indonesia which replanted 55,000 hectares last year and Thailand with 64,000 hectares.

On a comparative basis, other rubber growing countries are racing far ahead of India in bringing new area under rubber plantation. Thailand added 2.21 lakh hectares under rubber trees in 2008, Vietnam 75,000 hectares and China 49,000 hectares against 27,000 hectares by India.

India has a tough task ahead to bridge the gap between demand and supply of rubber in the coming years.

Continue stimulus, cut import duty on natural rubber, says tyre industry

New Delhi, Feb 15

The tyre industry wants the Government to continue with the fiscal stimulus, while reducing the import duties on natural rubber from 20 per cent to 10 per cent. It is also hoping for an anti-dumping duty on Chinese truck and bus radials.

The Government had reduced the excise duty on tyres from 12 per cent to 8 per cent, in two stages. The second excise duty deduction was in February 2009. “The stimulus provided by the Government benefited the industry during the slowdown and we hope that it continues. Also, the import of natural rubber attracts a very high Customs duty. Combined with this, the increasing prices of domestically grown natural rubber and its shortage have made it difficult for the industry. We hope the Customs duty on the import of natural rubber will be brought down. This will help in bridging the gap between the demand and supply of natural rubber, which accounts for almost 50 per cent of the production cost for the tyre manufacturers,” said Mr Neeraj Kanwar, Chairman, Automotive Tyre Manufacturers' Association (ATMA) and Managing Director, Apollo Tyres Ltd.

Mr Kanwar said there needs to be a correction in the inverted duty structure of the Government, according to which the import duty on tyres is 10 per cent, while the import duty on natural rubber is 20 per cent. He is also seeking an anti-dumping duty on truck/bus radial tyre imports.

“ATMA has already taken up this issue (of inverted duty structure) with the Government by seeking a reduction in duty on natural rubber from 20 per cent to 7.5 per cent, or alternatively, an increase in Customs duty on tyres from 10 per cent to 20 per cent,” he said.

Mr Rajiv Budhraja, Director-General, ATMA, said that while lower interest rates should continue, the tyre industry would also like to see a continuation of the stimulus even for the transportation sector, as in such a case, the “spin-off benefits” for the tyre sector are huge.

Timely completion

“We'd also like to see the infrastructure and road projects being completed on time. The Government needs to achieve the set targets in an accelerated fashion ,” he said. Besides all of the above, Mr A. S. Mehta, Marketing Director, JK Tyre, said that the industry would also like to see the anti-dumping duty on truck/bus radials imposed by the Government.

“We need it (the anti-dumping duty) to protect the domestic industry from Chinese products, which are around 30 per cent cheaper, due to the various benefits that the Chinese Government provides and the huge scales of manufacturing that they have. The domestic industry also has to be made strong enough,” he said.

The PHD Chamber of Commerce and Industry has asked for a waiver of Customs duty on raw materials not manufactured domestically, such as butyl rubber, and polyester tyre cord.

Rubber Gains to 4-Week High as Yen Drops, Thai Prices Increase Share Business

Surge in NMCE's physical delivery of rubber
AHMEDABAD: National Multi Commodity Exchange of India witnessed 263% increase in delivery in natural rubber from 430 metric tons in January 2010 to 1559 metric tons in February 2010. The Rubber Futures contract expires on the 15th of every month. The delivery happened at NMCE registered warehouse of CWC. An increase in demand from the rubber consuming industry for quality rubber and multi delivery centers of exchange certified warehouse of CWC were the key reasons for the increase in delivery, NMCE said in a press release.

“This is very healthy trend because on one hand producers are able to harness good price and deliver their Rubber in the exchange warehouse and on the other hand user industry is able to hold the position by just paying margin money and take delivery by paying full only on the date of delivery. Quality of Rubber is also being maintained by scientific storage in quality godowns of CWC, “said Mr. Anil Mishra- CEO, NMCE

Mr. B.B. Pattanaik (Chairman, NMCE & MD, CWC) said, “I express my satisfaction over large number of deliveries taken by the consumers. Rubber has been a jewel in the crown of NMCE where a large number of growers participate in Futures and also take advantage of this alternative platform where they can sell their produce at appropriate price through depositing the produce with CWC for scientific storage and for taking loan against the CWC Warehouse Receipts from the banks.”


Mr. C.P.Krishnan- Director, Geojit Comtrade commented, “Many consuming industries have taken delivery from NMCE certified warehouses of CWC. The key reason for taking delivery from exchange certified warehouse is that quality rubber in large quantity can be taken delivery at designated locations.”


The inventory at exchange certified warehouses has also been increasing and more than 7230 metric tonnes is lying deposited in the exchange warehouses and more and more deliveries are taking place. Rubber deposits are lying at CWC warehouses at Aluva, Ernakulum, Kakkanad, Palakkad, Kozhikode, Kottayam and Trichur.


NMCE, which is the only national exchange in the country to trade Rubber futures also, has the distinction of being the third largest Rubber Futures trading exchange in the world after Shanghai Futures Exchange (SHFE) and Tokyo commodity Exchange (TOCOM). (Commodity Online)

http://www.commodityonline.com/news/Surge-in-NMCEs-physical-delivery-of-rubber-25751-3-1.html

Tyre prices may increase after Budget
Kochi: The tyre industry expects prices to increase further after the Budget as the prices of the raw material are on an upsurge.



Natural rubber (NR) prices have been appreciating since the last few months. The price of benchmark grade RSS-4 increased to Rs 140 a kg today from Rs 134 a kg last week. The possibility of a second round of price rise this year will be viewed only after the Budget, said a top official of Automotive Tyre Manufacturers Association (Atma). “We have submitted some proposals to the Minister for Finance in the pre-Budget discussion and hope for the best. The bull phase in the NR market is likely to continue for the next few months as this is an off season. So tyre companies can not go for long with the existing price pattern,” he said.


It is too early to comment on a second round of price increase, said AS Mehta, director (marketing), JK Tyres. “The import duty structure on NR and tyres is highly negative to the industry and the duty on NR should be reduced. at present, the duty on tyre is 10 per cent while NR has got an import duty of 20 per cent. How can we justify just half the duty of raw material for the finished product,” he added. (BS)

http://www.business-standard.com/india/news/tyre-prices-may-increase-after-budget/386014/


Rubber Gains to 4-Week High as Yen Drops, Thai Prices Increase Share Business

Feb. 19 (Bloomberg) -- Rubber advanced to a four-week high as the yen dropped against the dollar after the Federal Reserve Board raised the discount rate and Thai exporters boosted prices on improving demand from buyers in Asia.

Futures in Tokyo gained as much as 1.5 percent to the highest level since Jan. 22. The price is headed for a second weekly gain.

The Fed raised the discount rate charged to banks for direct loans by a quarter point to 0.75 percent, the first increase in more than three years. Japan’s currency reached a one-month low against the dollar, boosting the appeal of yen- based contracts. Rubber also gained as shippers in Thailand, the world’s largest producer, raised export prices after purchases by an Asian company, said Kazuhiko Saito, chief analyst at Tokyo-based broker Fujitomi Co.

“Physical rubber prices gained on good demand and as supply is set to decrease seasonally,” Saito said by phone today. “Prices may increase further as Chinese buyers will return to the market next week after holidays.”

Rubber for July delivery, the most-active contract, gained as much as 4.4 yen to 300.2 yen per kilogram ($3,239 a metric ton) before trading at 297.5 yen on the Tokyo Commodity Exchange at 11:56 a.m. local time.

In the cash market, Thai shippers offered so-called RSS-3 grade rubber for April shipment at about $3.30 a kilogram today from $3.18 yesterday, Saito said. Rubber trees shed leaves and latex output slows during wintering, the low-production season that normally begins in Thailand’s main growing areas in February.

The rubber market in Shanghai is closed this week for the Lunar New Year holidays.

Gains in futures were limited as crude oil declined, reducing the cost of making rival synthetic rubber, Saito said. Oil dropped for the first time in four days as the dollar’s rally weakened the appeal of the commodity as an alternative investment.

Crude oil for March delivery dropped as much as 1.4 percent to $77.95 a barrel in electronic trading on the New York Mercantile Exchange before trading at $78.07.


Spot rubber declines with futures

Kottayam, Feb. 18

Spot rubber turned weak on Thursday. Declines in trendsetting TOCOM futures and signs of weakness in domestic futures kept the market under pressure. Sheet rubber moved down to Rs 139.50 (140.00) a kg on buyer resistance. There was no visible selling pressure on any grade in the main marketing centres while the trend was mixed as ISNR 20 and latex finished flat amidst comparatively dull volumes.

Futures weak

RSS 4 recovered partially at its March futures to Rs 141.00 (140.25), April to Rs 145.50 (144.76), May to Rs 148.70 (148.27) and June to Rs 150.50 (150.25) a kg on National Multi Commodity Exchange (NMCE). The February futures for RSS 3 weakened to 286.0 (286.8) ¥ (145.54), March to ¥ 285.4 (288.9), April to ¥ 288.8 (291.7), May to ¥ 291.7 (293.9), June to ¥ 293.7 (296.1) and July to ¥ 295.8 (298.1) for a kg during the day session on Tokyo Commodity Exchange.

RSS 3 improved to Rs 147.71 (147.19) a kg on Singapore Commodity Exchange (SICOM). Its spot closed marginally higher at Rs 146.30 (146.26) a kg at Bangkok.

Spot prices (Rs a kg) were: RSS-4 : 139.50 (140); RSS-5 : 136 (137.00); ungraded : 134.50 (135); ISNR 20 : 135 (135); and latex 60 per cent: 90 (90).

Spot rubber rises on supply concerns

Spot rubber rises on supply concerns

Kottayam, Feb.17

Spot rubber prices rebounded on Wednesday. Sheet rubber managed to close at Rs 140 (138) a kg following the sharp gains in the international futures on TOCOM and SICOM. According to observers, the market was riding mainly on supply concerns as the inflow continued to be low probably due to the adverse climatic conditions.

Futures weak

The March futures for RSS 4 weakened to Rs 140.10 (142.94), April to Rs 144.60 (147.31), May futures to Rs 148 (150.85) and June to Rs 150.19 (152.87) a kg on National Multi Commodity Exchange (NMCE). RSS 3 flared up with the February futures rising to ¥286.8 (276.5) (Rs 145.98), March to ¥288.9 (277.8), April to ¥291.7 (280.3) and May to ¥293.9 (282.8) a kg during the day session on the Tokyo Commodity Exchange (TOCOM).

RSS 3 increased to Rs 147.19 (145.53) a kg on Singapore Commodity Exchange (SICOM). The grade closed firm Rs 146.26 (143.71) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 140 (138); RSS-5: 137 (135.50); Ungraded: 135 (134); ISNR 20: 135 (134) and latex 60per cent: 90 (90).

Rubber Advances to Four-Week High as Oil Rallies, Yen Weakens Share Business

Rubber Advances to Four-Week High as Oil Rallies, Yen Weakens Share Business

Feb. 17 (Bloomberg) -- Rubber advanced to the highest level in almost four weeks as a rally in oil and a drop in the Japanese currency raised the appeal of yen-based contracts for the commodity used in tires.

Futures in Tokyo rose as much as 4 percent to the highest level since Jan. 22. Oil climbed the most in more than four months yesterday, boosting the cost of making rival synthetic rubber, as the dollar’s drop against the euro made the commodity more attractive as an alternative asset.

The market rallied after Greece’s finance minister said yesterday his nation won’t need a European Union bailout, sparking gains in global shares and reducing demand for the Japanese currency as a refuge. Greece’s tax collectors called off a strike, easing concerns that unions may block spending cuts aimed at shrinking the EU’s biggest budget deficit.

“Rubber chased a rally in oil and metals as concern about Greece’s debt problem eased, spurring investors to buy risk assets,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.

Rubber for July delivery, the most-active contract, rose as much as 11.6 yen to 298.5 yen per kilogram ($3,305 a metric ton) before settling at 298.1 yen on the Tokyo Commodity Exchange.

Crude oil for March delivery traded at $77.08 a barrel, 7 cents higher, on the New York Mercantile Exchange at 3:28 p.m. Singapore time. Yesterday, the contract rose 3.9 percent to $77.01, the biggest percentage gain since Sept. 30.

Currency Moves

The rally in oil “spills over to the rubber market,” Pornthip Wongjirattikarn, marketing manager at Future Agri Trade Co., said by phone from Bangkok. A weakening yen also boosts demand for the commodity, Pornthip said.

The yen traded at 90.28 per dollar at 3:08 p.m. Singapore time from 90.14 in New York yesterday. The euro traded at $1.3741 from $1.3770 yesterday, when it reached $1.3779, the highest since Feb. 11.

Greece’s Finance Minister George Papaconstantinou said after a meeting of finance ministers in Brussels that “there’s no actual need for a bailout.” The Reuters/Jefferies CRB index of 19 raw materials climbed to the highest level since Jan. 26.

Rubber also gained as output in Thailand, the world’s largest exporter, is set to decline, Shigemoto said. During wintering, or the low-production season that normally begins in the nation’s main growing areas in February, trees shed their leaves and latex output slows.

In the cash market, Thai shippers have raised offers for so-called RSS-3 grade rubber for April shipment to about $3.08 a kilogram from $3 on Feb. 12, Shigemoto said.

“Supplies are quite thin these days as traders set aside some stocks for the dry period in March and April,” Future Agri’s Pornthip said.

The price of unsmoked sheets gained 2 percent to 98.38 baht ($2.97) per kilogram. Ribbed smoked sheets advanced 2.5 percent to 102.55 baht a kilogram, the Rubber Research Institute of Thailand said on its Web site today.

The Shanghai Futures Exchange is closed this week for the Lunar New Year holidays.

Physical delivery of rubber up 263% on NMCE

News- National

Physical delivery of rubber up 263% on NMCE
The National Multi Commodity Exchange reported a 263 per cent increase in its physical delivery of rubber at 1,559 tonnes in February from 430 tonnes in January. The main reason for the surge in delivery was an increase in demand from the rubber consuming industry and multi-delivery centres of exchange certified warehouse of the Central Warehousing Corporation (CWC), according to a press release.

Healthy trend
“This is a very healthy trend because on one hand producers are able to harness good price and deliver their rubber in the exchange warehouse and on the other hand the user industry is able to hold the position by just paying margin money and take delivery by paying full only on the date of delivery. Quality of rubber is also being maintained by scientific storage in quality godowns of the CWC,” said Mr Anil Mishra, Chief Executive Officer, NMCE.

The rubber futures contract expires on the 15th of every month. The delivery took place at the NMCE-registered warehouse of the CWC in Aluva, Ernakulum, Kakkanad, Palakkad, Kozhikode, Kottayam and Thrissur. (B.L)

Fresh buying spurs spot rubber prices
The domestic rubber market showed a better trend on Tuesday. On the spot market, sheet rubber increased to Rs 138 from Rs 136 a kg on fresh buying and short covering. Smart gains on NMCE and the continuation of a favourable mood in TOCOM combined to support the prices though major manufacturers were not visibly active in the main marketing centres. Supply concerns and the absence of sellers were the other decisive factors which influenced the buyers' sentiments during the day.

Futures improve

The March futures for RSS 4 improved to Rs 142.99 (139.09), April to Rs 147.44 (143.15) and May futures to Rs 151 (146.69) a kg on the National Multi Commodity Exchange (NMCE). The February futures firmed up to ¥276.5 (¥274.5) (Rs 142.01), March to ¥277.8 (¥275.8), April to ¥280.3 (¥277.8) and May to ¥282.8 (¥279.8) a kg for RSS 3 during the day session on Tokyo Commodity Exchange. . RSS 3 slipped to Rs 143.71 (143.80) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 138 (136); RSS-5: 135.50 (133); ungraded: 134 (132); ISNR 20: 134 (132.50) and latex 60 per cent: 90 (89). (B.L)

Rubber Declines on Concern China Tightening May Curb Demand Share Business

Rubber Declines on Concern China Tightening May Curb Demand Share Business

Feb. 15 (Bloomberg) -- Rubber fell the first time in four days on concern that China’s attempt to cool its economic expansion may curb demand for the commodity used in tires.

Futures in Tokyo fell as much as 1.1 percent to 282 yen per kilogram ($3,127 a metric ton) after the price advanced 6.4 percent last week. U.S. stocks and commodities fell Friday after China unexpectedly increased bank reserve requirements for lenders, prompting speculation efforts to curb growth there will dent demand for commodities.

“Investors are worried that the China tightening would lower demand for tires and may affect the pace of global economic recovery,” Chaiwat Muenmee, analyst at DS Futures Co. Ltd., said by phone from Bangkok.

Rubber for July delivery declined as much as 3.2 yen, the largest intra-day fall since Feb. 5. The contract traded at 283.3 yen at 10:58 a.m. Singapore time.

The People’s Bank of China said on its Web site Feb. 12 that the reserve requirement for banks will increase 50 basis points effective Feb. 25. China’s policy makers are aiming to avert asset bubbles and restrain inflation after flooding the economy with money last year to drive a recovery from the first global recession since World War II.

Oil traded near $74 a barrel after declining Friday as China ordered banks to set aside more deposits as reserves for the second time in a month.

“Some players are cashing in for profit amid thin trading as markets close for Chinese New Year,” Rewat Yenchai, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok.

The Shanghai Futures Exchange is closed this week for the Lunar New Year holidays.

Spot rubber rules steady

Spot rubber rules steady
Spot rubber prices closed unchanged on Friday. The market was in a holiday mood owing to Maha Shivrathri. Sheet rubber finished unchanged at Rs 134 a kg amidst scattered transactions. The volumes were dull.



Futures gain


RSS 3 flared up at its February futures to ¥274.4 (¥266.8) (Rs 141.89), March to ¥277 (¥268.5), April to ¥278.9 (¥270.7), May to ¥281.2 (¥272.5), June to ¥283.2 (¥274.9) and July to ¥285.2 (¥276.5) a kg during the day session on Tokyo Commodity Exchange (TOCOM).



RSS 3 improved to Rs 145.53 (143.13) a kg on Singapore Commodity Exchange (SICOM). The grade closed firm at Rs 144.59 (142.80) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 134 (134); RSS-5: 131.50 (131.50); ungraded: 129 (129); ISNR 20: 131.50 (131.50) and latex 60 per cent: 89 (89). (BL)

http://www.thehindubusinessline.com/2010/02/13/stories/2010021351281000.htm

Spot rubber improves on supply concern

Spot rubber improves on supply concern
Kottayam: The domestic rubber prices improved on Thursday. According to observers the prices improved mainly on supply concerns though there was no fresh demand from major consuming industries during the day. An increase in SICOM and Bangkok rubber prices might be another factor which catalysed the sentiments even amidst low demand, they added. In spot, sheet rubber improved to Rs 134 from Rs 133.50 a kg amidst scattered transactions. The trend was mixed.


Futures firm


The February futures firmed up to Rs 134 (133.15), March to Rs 137.25 (136.29), April to Rs 141.45 (140.18) and May to Rs 144.50 (143.07) a kg for RSS 4 on National Multi Commodity Exchange (NMCE). The Tokyo Commodity Exchange (TOCOM) remained closed on account of ‘National Foundation Day'. RSS 3 flared up to Rs 143.13 (140.72) a kg on Singapore Commodity Exchange (SICOM). The grade improved to Rs 142.80 (141.01) a kg at Bangkok.



Spot prices were (Rs/kg): RSS-4: 134 (133.50); RSS-5: 131.50 (131.50); ungraded: 129 (128.50); ISNR 20: 131.50 (131) and latex 60 per cent: 89 (89).(BL

Spot rubber prices improve

Commodity
Spot rubber prices improve
Kottayam: Spot rubber prices improved on Wednesday. Positive reports from the international market and a better closing on NMCE rubber futures extended support to physical trade. Sheet rubber improved to Rs 133.50 from Rs 132.50 a kg mainly on covering purchases. According to observers, there were no fresh enquiries from the tyre sector.
Futures gain

The February futures for RSS 4 moved up marginally to Rs 133.25 (132.98), March to Rs 136.47 (136.00), April to Rs 140.38 (140.24) and May to Rs 143.40 (143.10) a kg on National Multi Commodity Exchange (NMCE). RSS 3 closed at Rs 140.72 (139.38) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) increased to Rs 141.01 (140.69) a kg at Bangkok. The February futures for RSS 3 firmed up to ¥266.8 (¥262.6) (Rs 138.31), March to ¥268.5 (¥263.9), April to ¥270.7 (¥264.5) and May to ¥272.5 (¥266.2 a kg during the day session on Tokyo Commodity Exchange (TOCOM).



Spot prices were (Rs/kg): RSS-4: 133.50 (132.50); RSS-5: 131.50 (130); ungraded: 128.50 (127.50); ISNR 20: 131 (130) and latex 60 per cent: 89 (89). (BL)

Spot rubber prices steady

Spot rubber prices steady

Kottayam, Feb. 9

Spot rubber finished unchanged on Tuesday. The market lost it direction lacking quantity buyers and sellers either side to set the trend during a comparatively dull trading session.

Reports from the futures markets were also not so impressive to catalyse the market mood. Sheet rubber was quoted flat at Rs 132.50 a kg amidst scattered transactions. The volumes were low.

Futures improve

The February futures for RSS 4 improved to Rs 132.98 (132.68), March to Rs 135.80 (134.90), April to Rs 140.04 (138.71) and May to Rs 143.10 (141.32) a kg on National Multi Commodity Exchange (NMCE). RSS 3 firmed up to Rs 139.38 (139.08) a kg on Singapore Commodity Exchange (SICOM). The grade moved up Rs 140.69 (139.92) a kg at Bangkok. The February futures recovered to ¥262.6 (¥258.5) (Rs 136.74), March to ¥263.9 (¥259), April to ¥264.5 (¥260.4) and May to ¥266.2 (¥262.1 a kg for RSS 3 during the day session on Tokyo Commodity Exchange. Spot rates were (Rs/kg): RSS-4: 132.50 (132.50); RSS-5: 130 (130); ungraded: 127.50 (127.50); ISNR 20: 130 (130) and latex 60 per cent: 89 (89).

NR output up 6% in January
Natural rubber (NR) production registered a rise of 6 per cent in January, at 97,500 tonnes against 91,900 tonnes in the same month last year.

The rise in production was due to favourable winter season and maximum tapping by growers due to the prevailing higher prices. In most of the rubber plantations, tapping is expected to be prolonged for a couple of weeks as the climate in the hill areas of Kerala is cold. So the production in February is also expected to improve. According to stockists, production in February may cross 50,000 tonnes against 43,000 tonnes in February 2009.(BS)

http://www.business-standard.com/india/news/nr-output6-in-january/385016/

International Rubber Price

International Rubber Price

(09-Feb-2010 , 10:28 Hours IST)

INTERNATIONAL RUBBER MARKETS PRICE UPDATIONS

DATE:09Feb 2010
MARKETS
TOCOM (RSS3) Jul10 Fut 72 Up 135 Up 182 Up
Shanghai(RSS3) May10 Fut 71 Up 78 Up
MALAYSIA ( SMR 20 ) Spot 13 Up
SICOM(RSS3) Spot 139.38(30 Up)
BANGKOK ( RSS3 ) Spot 140.69(77 up)

Ultimate Uses of RUBBER!!!!!

Life rolls on:


A woman selling household utensils made out of car tyres in Dimapur, the
commercial town of Nagaland. These utensils are widely used in farming and for storing water.

Rubber May Drop as Strong Dollar, Prius Recall May Hurt Demand Share Business

Feb. 8 (Bloomberg) -- Rubber, little changed in Asia, may decline as a strong dollar reduces the appeal of commodities as an alternative investment and a possible recall by Toyota Motor Corp. of its Prius cars may slow auto sales.

Futures in Tokyo fluctuated after slumping 5.3 percent on Feb. 5, the biggest daily loss since Sept. 14. The commodity used in car tires has fallen 12 percent from this year’s peak of 306 yen per kilogram ($3,424 a metric ton) on Jan. 15.

The dollar climbed toward the highest level in eight months against the euro on speculation mounting budget deficits in some European nations will keep policymakers from raising interest rates. Toyota will recall at least 311,000 Prius hybrid cars globally after complaints about the brakes, the New York Times reported yesterday.

“Prius has been the best-selling car in Japan because of its fuel-efficiency,” Kazuhiko Saito, an analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. “Its recall could have a negative impact on car sales in the country.”

Rubber for July delivery, the most-active contract, lost 0.1 percent to 267.8 yen per kilogram on the Tokyo Commodity Exchange at 11:09 a.m. local time. Prices earlier fell to 266.2 yen, the lowest level since Dec. 22.

Losses were limited by speculation that lower prices may lure buyers from China, the largest consumer, ahead of the Lunar New Year holiday next week when markets close, Saito said. About 90 percent of natural rubber is used to make vehicle tires, he added.

Shanghai Rubber

May-delivery rubber on the Shanghai Futures Exchange added 0.2 percent to 22,230 yuan ($3,256) a ton at 10:13 a.m. local time. Prices fell to 22,000 yuan on Feb. 5, the lowest level since Dec. 16.

Rubber inventories plunged 13,645 tons to 128,306 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the exchange said Feb. 5.

Rubber futures in Tokyo have lost almost 3 percent this year amid concern that U.S. job losses and European budget deficits may stifle a global economic recovery. The Reuters/Jefferies CRB Index of 19 raw materials reached the lowest level since Oct.6 on Friday as investors cut holdings of riskier assets.

The dollar and the yen advanced against the euro after Group of Seven finance ministers in Iqaluit, Canada pledged to press ahead with economic stimulus measures amid concern about sovereign risk crises in nations including Greece, Portugal and Spain.

“As sovereign risks spread in the euro-zone, risk aversion will continue in the market,” said Susumu Kato, chief economist for Japan at Calyon Securities in Tokyo.

Rubber Tumbles to Six-Week Low as Dollar Rally Weakens Demand

Rubber Tumbles to Six-Week Low as Dollar Rally Weakens Demand
Feb. 5 (Bloomberg) -- Rubber plunged to a six-week low after crude oil slumped and on concern that the dollar rally will reduce the appetite for commodities as alternative assets.
Futures in Tokyo tumbled as much as 5.6 percent, extending yesterday’s 0.7 percent loss. Crude oil traded near $73 a barrel after having biggest drop in six months yesterday as an increase in U.S. jobless claims raised concern fuel consumption may be slow to recover. Lower crude price increases the competitiveness of rival synthetic rubber used in tires.
“The strengthening dollar is prompting investors to unwind their positions in commodities,” Rewat Yenchai, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok.
Rubber for July delivery on the Tokyo Commodity Exchange lost as much as 15.7 yen to 267.2 yen per kilogram ($2,980 a metric ton), the lowest price since Dec. 22, before settling at 268 yen.
The dollar rose to its highest level in more than eight months against the euro amid concern widening deficits will hamper Europe’s economic recovery. Rising job losses in the U.S. and financial problems in Europe also fueled investor concern that the global economic recovery is slowing.
Spillover
Declines in equity and other commodity markets spilled over to rubber, Roka Komiya, rubber trader at trading company Marubeni Corp., said by phone from Tokyo.
“Funds are flowing away from the commodity markets,” Komiya said. “If that stops, it will stop the decline of the rubber.”
The MSCI Asia Pacific Index dropped 2.5 percent to 114.69 as of 4:46 p.m. in Tokyo. The gauge has fallen 9.6 percent from a 17-month high on Jan. 15 amid concern central banks from China to India will tighten monetary policy to curb inflation.
“Some investors are worried over the recall of Toyota cars,” Takaki Shigemoto, an analyst at research and investment company JSC Corp., said by phone from Tokyo.
Toyota Motor Corp. said yesterday for the first time it may recall the latest version of the Prius, the world’s best-selling hybrid car, in Japan after the Japanese government ordered an investigation of its braking system.
Almost 8 million Toyota vehicles have already been recalled worldwide for defects that can cause sudden acceleration.
May-delivery rubber on the Shanghai Futures Exchange lost as much as 4.8 percent to 22,000 yuan ($3,222) a ton, the lowest level since Dec. 16, before settling at 22,190 yuan.

Rubber output up 6% in January-expected to drop in Feb,March

Rubber output up 6% in January
Production expected to drop in Feb, March.
Kochi, Feb. 4
Domestic rubber production increased six per cent in January. However, the Rubber Board officials said that the primary reason for the rise last month was due to a lower base as production in January 2009 was far lower, mainly due to adverse weather conditions. Rubber output for January this year was 97,500 tonnes (91,900 tonnes).
Production in February and March is expected to drop as most of the rubber trees shed their leaves and tapping operations come to a halt. Evey year, January is the month when rubber stocks are at their highest levels, and they begin to dip in the succeeding months as consumption overtakes production. Consumption of rubber was lower than production in January this year as well.
Consumption in January was 79,500 tonnes that resulted in an addition of 18,000 tonnes to the country's inventories. Production for the first 10 months of the current fiscal was down five per cent at 7,29,250 tonnes.
Meanwhile, consumption for the first 10 months was up 6.6 per cent at 7,73,815 tonnes, leaving a deficit which has been bridged by imports.
Imports
Rubber imports were up 114 per cent at 1,46,653 tonnes till January. Imports in January were 6,553 tonnes. As the domestic demand continued to outstrip supply, exports plunged 69.8 per cent to 12,912 tonnes during April-January period. Exports during January stood at 2,480 tonnes. Although rubber stocks stood at 2.8 lakh tonnes, they are bound to be eroded from their current high levels as the lean season has begun.
Target
Prices are also expected to rule firm as arrivals start declining. However, they are not expected to be capped as adequate stocks have been built for the coming months. Going by the trends so far, the country is not expected to reach the revised production target of 8.4 lakh tonnes set for the fiscal.
Rubber production target for 2009-10 was 8.67 lakh tonnes. In view of the adverse weather conditions and production shortfalls, the target was scaled down.

Spot rubber rules firm
Kottayam, Feb. 4
Physical rubber prices showed a firm trend on Thursday. Though the domestic futures were in a bearish mood with widespread losses in all contracts, most of the grades in spot finished higher on supply concerns. The only exception was sheet rubber which finished flat at Rs 135 on buyer resistance. Major players seemed to be expecting better prices in the days ahead though a mixed mood in international markets failed to give a definite direction.
Futures decline
The February futures declined to Rs 134.40 (136.12), March to Rs 137.01 (139.13), April to Rs 141.03 (143.16) and May to Rs 144.10 (145.99) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE). RSS 3 finished in the green at Rs 141.36 (141) a kg on Singapore Commodity Exchange (SICOM). It moved down to Rs 142.06 (142.31) a kg at Bangkok. The February futures for RSS 3 improved to ¥273 (¥272.5) (Rs 139.18), and March to ¥273.5 (¥271.9) while the April futures slipped to ¥275.5 (¥276) and May to ¥278 (¥279.1 a kg during the day session on Tokyo Commodity Exchange. Spot rates were (Rs/kg): RSS-4: 135 (135); RSS-5: 132 (131.50); ungraded: 130 (129); ISNR 20: 131.50 (130.50) and latex 60 per cent: 89.50 (89.50).

‘Rubber price will not come down’
Staff Reporter
KOCHI: The Indian Rubber Manufacturers’ Federation has said that move by tyre manufacturers and other rubber-based industries to push down the price of natural rubber will not succeed.
In a statement issued here, Chairman of the federation K. T. Mathew claimed that world demand for rubber had grown 25 per cent while production had come down 20 per cent during the current calendar year.
The statement also claimed that demand for natural rubber had gone up as automotive industry grew 30 to 60 per cent in different countries. Hence there has been an increase in demand for high quality tyres.
Decision to reduce the use of plastic and synthetic rubber on the basis of studies of climate change had also favoured natural rubber, the statement claimed.
Import of around 1,60,000 tonne of rubber last year had resulted in a rise in demand for natural rubber in Thailand and Indonesia, the statement said. The statement also warned that a shortage of rubber tappers too can add to the shortage of production and this in turn may further push up the prices.

International Rubber Price

International Rubber Price
(03-Feb-2010 , 12:17 Hours IST)
INTERNATIONAL RUBBER MARKETS PRICE UPDATIONS
DATE:03 Feb 2010
MARKETS
TOCOM (RSS3) Jul10 Fut 132 up
Shanghai(RSS3) May10 Fut 185 Up
MALAYSIA ( SMR 20 ) Spot 20 Up
SICOM(RSS3) Spot 141.11(11 Up)
BANGKOK ( RSS3 ) Spot 142.31(137 Up)

Lower yield pulls down rubber output -Global production declines 5%.

Lower yield pulls down rubber output
Global production declines 5%.

Kochi, Feb. 2
Adverse weather conditions and falling yields resulted in the country's rubber production declining 7.3 per cent in 2009. Though rubber-yielding area increased modestly by 3,000 hectares last year, a fall in yield from 1,903 kg/hectare in 2008 to 1,753 kg/hectare was the principal reason for the drop in production. Going by the current trend, rubber production is expected to rise to 8.53 lakh tonnes in 2010 from the estimated 8.17 lakh tonnes in 2009.
The total supply of rubber among the member-countries of the Association of Natural Rubber Producing Countries (ANRPC) fell 5.1 per cent to 8.68 million tonnes in 2009 against 9.15 million tonnes in 2008. The ANRPC consists of eight major rubber-producing countries that together account for 93 per cent of the global natural rubber production.
The natural rubber industry is currently passing through a situation of tight supply caused by a progressive decline in production and marked rebound in demand as global economic development accelerates. The ANRPC has said that rubber prices are poised to remain bullish in the coming months and farmers stand to benefit from the firm trends.
With wintry conditions prevailing in some of the producing countries pulling down production and a firm trend in crude oil prices, supply side constraints are likely to persist in the global rubber markets.
Aggregate rubber yielding area in Thailand, Indonesia, Malaysia, India, Vietnam, China, Sri Lanka and Cambodia expanded to 7.125 million hectares in 2009. But the average aggregate yield fell to 1,219 kg/hectare from 1,304 kg/hectare in 2008. The primary reason for the fall in yield was due to adverse climatic conditions over most of the rubber-growing regions last year, the ANRPC said.
Steepest fall
Malaysia witnessed the steepest fall of 22 per cent in production. The rubber yielding area in the country shrank 20,000 hectares last year while the average annual yield dipped to 1,128 kg/hectare from 1,411 kg/hectares in 2008. The next highest fall was recorded by India at 7.3 per cent. Thailand witnessed a fall of 6.1 per cent, while production in Indonesia dropped 5.7 per cent.
Even as production from the top four producing countries, Thailand, Indonesia, Malaysia and India, dropped, output in the other four producing countries moved up.
Although from a relatively low base, supply from Cambodia grew 81 per cent mainly in view of an additional 19,000 hectares. This helped in off-setting the effects of declining yield that fell from 1,181 kg/hectare to 982 kg/hectare.
China strengthened its position in the global supply with production surging 17.9 per cent with 25,000 hectares added to the area under cultivation. The average yield increased to 1,182 kg/hectare (1,053 kg/hectare).
The average supply from Vietnam grew 9.7 per cent with the average yield rising to 1,717 kg/hectare (1,653 kg/hectare). The output from Sri Lanka, meanwhile, increased 4.7 per cent despite a fall in average yield, as the yielding area expanded. India just about managed match Sri Lanka in bringing more yielding area under rubber plantations at 3,000 hectares.

Spot rubber prices improve
Kottayam, Feb. 2
Spot rubber rates improved on Tuesday. Moderate gains in the domestic rubber futures and positive reports from most of the leading international markets catalysed the sentiments. Sheet rubber firmed up smartly to Rs 134 from Rs 132 a kg on fresh buying coupled with short covering. The market made all-round gains with improved volumes though major manufacturers were reported to be inactive.
Futures Improve

The February futures for RSS 4 bounced back to Rs 135.90 (133.65), March to Rs 138.70 (135.99), April to Rs 142.63 (139.55) and May to Rs 144.90 (141.62) a kg on National Multi Commodity Exchange (NMCE). RSS 3 was firm at Rs 141 (140.03) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) slipped further to Rs 140.94 (141.27) a kg at Bangkok. The February futures for RSS 3 improved to ¥270 (¥264.5) (Rs 137.52), March to ¥270 (¥265.3), April to ¥273.7 (¥267.1) and May to ¥276.9 (¥270.3 a kg during the day session on Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 134 (132); RSS-5: 130 (129); ungraded: 128 (127); ISNR 20: 130.50 (129) and latex 60 per cent: 89.50 (89).

Rubber photos

RSS v-Geniune

Kottayam lot

Kottayam lot

Malabar-Kochi

Malabar-Kochi

Malabar-Kochi

Automakers zoom on the fast lane in January -Record highest ever monthly sales.
Mumbai, Feb. 1
January 2010 marks a milestone in the automotive journey of the country with Maruti Suzuki, Tata Motors, Mahindra & Mahindra and General Motors India reporting their highest ever monthly sales.
Maruti, the top carmaker, set a new sales record of nearly 96,000 units while its closest challenger, Hyundai Motor India, clocked 52,635 units and, in the process, its highest ever domestic sales at 29,601 units. For Tata Motors, passenger vehicle sales of 26,245 units are its highest ever to date. Similarly, Mahindra & Mahindra and GM India saw their sales reaching all-time highs of 20,332 and 9,421 units respectively.
Two-wheelers
On the two-wheeler front too, market leader Hero Honda clocked sales of 3.89 lakh motorcycles and gearless scooters in January, a growth of 23 per cent.
Maruti, which posted its highest ever monthly sales at 95,649 cars (surpassing its previous high of 87,807 units two months ago), showed a 33 per cent growth from January 2009 (71,779 units).
“Had we not shut down our plants for the first five days of the month for annual maintenance, we would have crossed the one lakh unit mark in January,” said Mr Mayank Parikh, Executive Officer, Sales and Marketing.
The month also saw the company treble its exports to 14,562 units and register a 40 per cent growth in the multipurpose vehicle segment, which almost touched 11,000, with the new Eeco. The compact car portfolio comprising the Alto, the Wagon-R, the Zen, the Swift, the A-Star and the Ritz posted a 25 per cent growth at 58,540 units. However, the old warhorses such as the Gypsy and the M800 have been showing a decline in sales.
Hyundai's run
Hyundai, in its turn, reported a 42 per cent growth in sales. The country's largest car exporter despatched 23,034 cars overseas last month. With record numbers for the domestic market, it now hopes to maintain the momentum. “We hope the momentum will continue with the help of the stimulus package offered by the Government,” said Mr Arvind Saxena, Director, Sales and Marketing.
Tata Motors had cause for cheer with sales of 7,258 units in the sedan segment, its highest ever since the Indigo launch in 2002. This was largely thanks to the recently launched Manza. The Nano accounted for a little over 4,000 units while the Indica range was flat at 11,448 units. The Sumo/Safari utility-vehicle portfolio grew 21 per cent to 3,538 units.
Growing sales of Bolero and Scorpio, coupled with additional volumes brought by the Xylo, contributed to a 51 per cent growth for M&M. “January is an auspicious period across north India as well as Tamil Nadu which celebrates Pongal. This leads to good sales,” said Mr Arun Malhotra, Senior Vice-President, Sales and Customer Care.
GM at new high
GM India's numbers more than doubled to a new high of 9,421 units on the back of the Chevrolet Beat and the Cruze, which sold 2,825 and 616 units, respectively. The Spark continued its steady run with 3,477 units.
The company has stated that it has already got over 10,000 bookings for the Beat, which was launched a month ago.
The two-wheeler segment showed an equally buoyant performance with market leader, Hero Honda clocking nearly four lakh units in January and maintaining its good run of an average 3.5 lakh units over the last year. TVS Motor Company posted sales of 1,25,578 units, up from 93,729 units, a growth of 34 per cent.

MY VIEW
60599 numbers of cars more sold in Jan2010 than in Jan2009.
Calculate at least 5 tyres each for a new vehicle, that is 302995 numbers of tyres more needed. From where does this new extra 3 lac tyres come from?
Have you ever thought ? There is no such increase in production of natural rubber.
So hold on and see prices of natural rubber zoom further...

Rubber Snaps Six-Day Drop as Yen Weakens, Car Sales Increase

Rubber Snaps Six-Day Drop as Yen Weakens, Car Sales Increase
Feb. 1 (Bloomberg) -- Rubber gained for the first time in seven days as a drop in the Japanese currency boosted the appeal of the yen-based contracts and rising car sales stoked speculation demand will grow for the commodity used in tires.
Futures in Tokyo rose as much as 1.4 percent. Prices fell 5.2 percent last week, the worst performance since the week ended Dec. 11, amid concern the U.S. and China may move to curb economic stimulus measures.
The market rose as the yen dropped against the dollar after data showed Jan. 29 that the U.S. economy grew at the fastest pace in six years last quarter. It was also supported today by data showing that Japanese auto sales posted the sixth straight increase in January, said Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo.
“A weak yen provided the largest support to the price of futures,” Shigemoto said today by phone.
Rubber for July delivery gained as much as 3.8 yen to 278.1 yen per kilogram ($3,082 a metric ton) before settling at 275.4 yen on the Tokyo Commodity Exchange.
The yen traded at 90.24 per dollar at 3:44 a.m. in Tokyo after reaching a one-week low of 90.93 on Jan. 29. The U.S. currency climbed after data from the U.S. Commerce Department showed gross domestic product grew at a 5.7 percent annual pace last quarter, the fastest pace in six years and topping economist estimates.
Sales of cars, trucks and buses, excluding minicars, rose 37 percent from a year earlier to 238,362 vehicles in January, the Japan Automobile Dealers Association said in a statement today. Toyota Motor Corp. boosted sales to 117,154 vehicles, excluding Lexus-brand cars. The company’s recent recalls of vehicles for faulty accelerator pedals don’t include models sold in Japan.
Auto Recovery
Japan’s auto sales began recovering from a yearlong slide in August as government rebates and tax cuts for fuel-efficient vehicles helped rekindle demand. The incentives helped raise sales by about 600,000 vehicles last year and may increase them by about 900,000 this year, the Japan Automobile Manufacturers Association said on Dec. 24.
May-delivery rubber on the Shanghai Futures Exchange ended little changed at 23,000 yuan ($3,369) a ton. Prices earlier slumped to 22,250 yuan, the lowest level since Dec. 16.
“Futures in Shanghai were earlier dragged down by speculation that China may take more steps to curb economic growth,” Shigemoto said. Chinese banks have begun restricting new loans, responding to a push by regulators to contain credit and curb the economic expansion.
Rubber inventories plunged 9,881 tons to 141,951 tons, the Shanghai exchange said on Jan. 29, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin.

Mixed trend in rubber

Kottayam: Physical rubber prices showed a mixed trend on Monday. A bullish mood in the domestic futures kept sheet rubber firm and the grade improved to Rs 132 from Rs 131.50 on covering purchases. There were no fresh enquiries from the tyre sector.

Meanwhile, latex 60 per cent declined on comparatively low demand. The transactions were in a low key.

Futures improve

RSS 4 improved at its February futures to Rs 133.70 (132.48), March to Rs 136 (134.34), April to Rs 139.67 (138) and May to Rs 141.56 (140.37) a kg on National Multi Commodity Exchange (NMCE). RSS 3 slipped to Rs 140.03 (141.08) a kg on Singapore Commodity Exchange (SICOM). But the grade (spot) moved down to Rs 141.27 (143.52) a kg at Bangkok. The February futures for RSS 3 closed at ¥264.5 (¥262.7) (Rs 135.85), March at ¥265.3 (¥264.7), April at ¥267.1 (¥268.5), May at ¥270.3 (¥269.2), June at ¥272.4 (¥271.6) and July at ¥275.4 (¥274.3) a kg during the day session on Tokyo Commodity Exchange (TOCOM). The February futures slipped to ¥262.8 and March to ¥265 while the April futures firmed up to ¥268.5, May to ¥271, June to ¥273.9 and July to ¥276.6 a kg during the night session.

Spot rates were (Rs/kg): RSS-4: 132 (131.50); RSS-5: 129 (129); ungraded: 127 (126); ISNR 20: 129 (129.50) and latex 60 per cent: 89 (90). (BL)

NYMEX-Crude extends gains to near $75 after 2 pct jump
TOKYO, Feb 2: U.S. crude futures extended their gains to around $75 a barrel on Tuesday, helped by a weaker dollar and U.S. manufacturing data that pointed to optimism about the economic recovery. (Reuters)
http://in.reuters.com/article/oilRpt/idINTOE6100AP20100202

International Rubber Price (02-Feb-2010 , 10:28 Hours IST) INTERNATIONAL RUBBER MARKETS PRICE UPDATIONS DATE:02 Feb 2010

MARKETS TOCOM (RSS3) Jul10 Fut 333 ,Up 328 Up ,326 Up

Shanghai(RSS3) May10 Fut 366 Up ,341 Up

MALAYSIA ( SMR 20 ) Spot 47 Up

SICOM(RSS3) Spot 141.00(97 Up)

BANGKOK ( RSS3 ) Spot 140.94(33 Down)

Rubber prices undergoing technical correction

Rubber prices undergoing technical correction
Kottayam: Rubber prices are undergoing a technical correction mainly due to the initiatives taken by the US. It intends to impose strict controls on institutions that incur loss in their transactions. This has prompted the international funds to make profit and then disappear from the scene.

The main reason for the price hike is the sluggishness in global rubber production and the surging demand. Following the announcement by International Tripartite Rubber Council (ITRC) at its meeting Kuala Lumpur that in the near future rubber production could not be increased, the TOCOM futures shot up to ¥305.5 a kg. Of the total global production, 76 per cent comes from Thailand, Malaysia and Indonesia that are members of ITRC. With the decision of Vietnam to joint

he council, ITRC will control 84 per cent of the rubber production. Considering the increase in demand and the non availability of the commodity, the manufacturers might demand for an import of 2 lakh tonnes, it is reported. Since the price of rubber is ruling high in the international market, anyimport will adversely affect the industries. In 2009, the import was around 1.5 lakh tonnes. The fluctuation in crude prices is the major factor which influences the rubber. The beginning of February is the Lunar New Year. The Chinese dealers are expected to withdraw this time. It will be a volatile phase in the market. This will continue till the Chinese dealers return to the market. After remarkable gains, the situation is quite congenial for a technical correction. While basically rubber is strong, profit booking may not create situations for big falls in the market. It is likely that the buyers would be more active by the middle of February. (BL)