Natural Rubber Outlook ‘Bearish’ on China Tightening
Posted: 30 May 2010 06:37 AM PDT
May 29 (Bloomberg) -- Rubber prices may fall as tightening in China’s real estate market may cut demand, an executive at Sinochem International Corp. said.
“The property market is a concern,” Yao Xingliang, vice general manager at Sinochem, said today at a conference in Shanghai. “If the property market weakens, transportation will be greatly reduced, threatening rubber demand from the tire industry.” Sinochem is China’s biggest rubber trader and the country is the world’s largest consumer of the material.
Rubber in Tokyo reached a 21-month high in April on concern about reduced output and as economies recovered from recession, stoking sales of cars and tires. China has restricted banks from extending loans for purchases of multiple homes, increased mortgage rates and raised down payment requirements in an attempt to deflate real estate bubbles.
“We are generally bearish on the natural rubber outlook later this year after prices had a big jump last year,” and amid government tightening measures and the external situation, said Yao.
Rubber on the Tokyo Commodity Exchange has gained 3.2 percent this year after doubling in 2009 as the rally slowed on concern the debt crisis in Europe will stall the economic recovery. The contract for November delivery gained 1.2 percent yesterday to close at 284.8 yen per kilogram. Futures reached a 21-month high of 338.5 yen on April 16.
‘Downside Limited’
Shares of China Vanke Co. and Poly Real Estate Group Co., China’s two biggest property developers, have fallen at least 30 percent this year after the government tightened bank lending. Housing prices surged a record 12.8 percent last month, even after the government intensified a crackdown on speculation to limit the risk of asset bubbles and keep housing affordable.
Still, “we also think the downside is limited given the economic recovery,” Sinochem’s Yao said. The market bottom for rubber in China is about 20,000 yuan ($2,928) a ton, he said. That’s about 13 percent below the closing price yesterday on the Shanghai Futures Exchange where the September contract ended at 22,950 yuan a ton.
Rubber may climb at least 25 percent to the highest level in three decades as demand increases in China outweighing concern European use will slow, Kazuya Tetsu, executive manager at broker Yutaka Shoji Co., said May 27. Car ownership in China, the world’s largest auto market, will expand, boosting consumption of the raw material used in tires, Tetsu said.
Sales Rise
China’s vehicle sales may rise 17 percent this year to 16 million as annual demand for automobiles may eventually exceed 30 million, an official at the State Information Center said last month.
The nation’s vehicle sales surged 46 percent last year to 3.6 million units, overtaking the U.S. as the world’s biggest auto market, after the government reduced the consumption tax on small vehicles and gave subsidies to encourage buying in rural areas.
(businessweek.com)
Monday, May 31, 2010
Saturday, May 29, 2010
Rubber industry urges Govt to regulate prices
Rubber industry urges Govt to regulate prices
Many units on the verge of closure, says AIRIA.
Kochi May 28
The rubber industry has sought Government intervention to keep natural rubber prices in check.
It has pointed out that natural rubber prices had moved steadily from Rs 151 a kg on May 11 to Rs 170/kg on May 25, a 13 per cent increase in a fortnight.
A joint communication in this regard has been sent by the All India Rubber Industries Association (AIRIA), the Automotive Tyre Manufacturers Association (ATMA) and the Indian Cycle and Rickshaw Tyre Manufacturers, which together account for the entire rubber consumption in the country, comprising both tyre and non-tyre units.
Closure feared
“While the Government is safeguarding the interests of the rubber growers, the future of five million people employed around 5,000 rubber units across the country has been grossly overlooked. Many such units, especially those in the MSME sector are on the verge of closing down as rubber prices continue to rise at an unprecedented pace. And even at such prices adequate rubber stocks are not available,” Mr T.K. Mukherjee, President, AIRIA, said.
Supply-Demand deficit
While the production of natural rubber in the country lagged behind consumption by 1,00,000 tonnes last year, the associations warned that the production-consumption deficit is likely to increase to 1,75,000 tonnes in 2010-11.
The industry association pointed out that the option of rubber import is not feasible as the Government charges 20 per cent duty on import of rubber while finished goods can be imported at less than 10 per cent duty.
Govt intervention sought
The communication to the Government follows a recent order by the Delhi High Court on a petition filed by the three associations, a press release said.
In the petition the three associations urged the Delhi High Court to impress upon the Government to regulate prices through removal of inverted duty structure in natural rubber by fixing a minimum and maximum price and curbing speculative interest by banning futures trading in rubber.
Disposing of the three petitions filed by the rubber consuming industry, the High Court has directed either the Ministry of Commerce or the Rubber Board to consider carefully the representations made by the petitioners regarding natural rubber pricing, the release said.
IMD sees monsoon onset ‘around Monday'
India Meteorological Department (IMD) has said that the onset of southwest monsoon over Kerala would occur ‘around May 31'.
The IMD had, on May 14, issued the forecast for onset of monsoon over Kerala on May 30 with a model error of 4 days.
It based its latest outlook on interpretation of latest meteorological conditions and also guidance of numerical weather models.
Physical rubber rules firm
Kottayam, May 28
Physical rubber prices were firm on Friday.
The market opened better with sheet rubber quoting at Rs 172 a kg but it lost the gains partially on late trades lacking follow-up buying at higher levels.
Mixed trend
Sheet rubber finished unchanged at Rs 171 a kg while the remaining grades except latex settled on the positive side. The trend continued to be mixed.
RSS 4 improved at the June futures to Rs 170.80 (168.67), July to Rs 170 (167.84), August to Rs 163.50 (160.24) and September to Rs 157.95 (155.10) a kg for on National Multi Commodity Exchange.
Futures up
The June futures for RSS 3 increased to ¥376 (¥369.5), July to ¥354 (¥349.7), August to ¥324.5 (¥318.7), September to ¥298.2 (¥294.1), October to ¥286.4 (¥283.8) and November to ¥284.8 (¥281.3) a kg during the day session on Tokyo Commodity Exchange.
The August futures firmed up marginally to ¥326.2, September to ¥300, October to ¥286.8 and November to ¥285.2 a kg while the June and July futures remained inactive during the night session.
Spot rates Rs/kg were: RSS-4: 171 (171); RSS-5: 169 (168); Ungraded: 167.50 (166); ISNR 20: 152 (151) and Latex 60 per cent: 110 (110).
User industries ask PMO to intervene on rubber prices
Posted: 28 May 2010 06:35 AM PDT
In a sequel to the High Court of Delhi telling the Union government to consider rubber user industries’ plea for price controls on the crucial product, the rubber user industries have asked the Prime Minister’s Office to move swiftly on the matter.
Natural rubber prices continue to rise, by Rs 2-3 a kg every second day, goes the plea from the same three parties who’d petitioned the HC — the All India Rubber Industries Association (AIRIA), the Automotive Tyre Manufacturers Association and the Indian Cycle and Rickshaw Tyre Manufacturers Association.
Since May 10, when the benchmark grade RSS-4 variety ruled at Rs 151 a kg, the price had moved up to Rs 170 a kg on May 25, according to Rubber Board data.
“While the government is safeguarding the interests of rubber growers, the future of five million people employed in around 5,000 rubber units across the country has been grossly overlooked. Many such units, particularly those in the small and medium enterprises sector, are on the verge of closing down, as rubber prices continue to rise at an unprecedented pace, and even at such prices, adequate rubber is not available,” said T K Mukherjee, president of the AIRIA.
The petitioners complain the option of import of rubber is not feasible, as the government continues to charge a 20 per cent tariff on this, although finished rubber goods can be imported at less than 10 per cent duty.
According to the communication, the production of natural rubber in the country lagged consumption by 1,00,000 tonnes in 2009-10. In 2010-11, NR production is likely to lag consumption by 1,75,000 tonnes, it contends.
AIRIA has urged import of 2,00,000 tonnes of duty-free rubber to survive the shortage and to cool the rising prices.
The three associations had petitioned the HC in Delhi to order th government to regulate NR prices and also ban futures trading in it, beside some related measures. The HC order, given earlier this week, asked the government to consider the matter carefully and give detailed reasons for whatever action it chose to do or not do. Only after that, it said, would there be a case for asking the courts to intervene.
(business-standard.com)
Rubber Futures in Tokyo Climb as Much as 2.1% to 287.2 Yen/Kg
Posted: 28 May 2010 06:41 AM PDT
By Aya Takada
May 28 (Bloomberg) -- Rubber futures in Tokyo advanced as much as 2.1 percent to 287.2 yen a kilogram. The November- delivery contract reached the highest level in three weeks.
(bloomberg.com)
Rubber May Jump 25% to 30-Year High on China, Japan Broker Says
Posted: 28 May 2010 06:39 AM PDT
By Aya Takada and Yasumasa Song
May 28 (Bloomberg) -- Rubber may climb at least 25 percent to the highest level in three decades as demand increases in China, the largest consumer, outweighing concern European use will slow, said an executive manager at broker Yutaka Shoji Co.
Futures may surpass the 2008 peak of 356.9 yen per kilogram ($3,922 a metric ton) on the Tokyo Commodity Exchange this year to reach the highest level since March 1980, said Kazuya Tetsu, who traded the commodity for more than 30 years at Marubeni Corp. before joining Yutaka Shoji last month.
Prices gained 3.6 percent this year after doubling in 2009 as the rally slowed on concern the sovereign debt crisis in Europe will stall the economic recovery, hurting demand for commodities. Car ownership in China, the world’s largest auto market, will expand, boosting consumption of the raw material used in tires, Tetsu said in an interview in Tokyo.
“China’s influence on the market and global economies is getting stronger,” Tetsu said yesterday. Demand from the country “is setting the market’s direction,” he said.
Rubber for November-delivery, the most-active contract in Tokyo, gained 1.8 percent to 286.20 yen at 2:17 p.m. local time today. The price reached a five-month low of 250.9 yen on May 17, down from a peak of 338.5 yen about a month earlier.
A price jump will benefit producers in Thailand, Indonesia and Malaysia, the biggest suppliers, and potentially boost costs for tire makers such as Bridgestone Corp. Marubeni is the country’s biggest trader of the commodity and Yutaka is one of the top five raw-materials brokerages.
Inflation Hedge
The European debt turmoil may force governments to keep interest rates low and delay implementation of their “exit policy”, leading to renewed investor interest in commodities as an inflation hedge, Tetsu said. Europe represented 15 percent of global consumption estimated at 10.2 million tons in 2008, according to International Rubber Study Group.
Sales of cars, sport-utility vehicles and multipurpose vehicles in China jumped 33 percent from a year earlier to 1.11 million units in April, according to the China Association of Automobile Manufacturers. In the first quarter sales jumped 76 percent to 3.52 million units.
Consumption of natural rubber in China may grow 10 percent this year to 3.35 million tons from 2009, the Association of Natural Rubber Producing Countries said in its May report.
Supplies of natural rubber may increase seasonally, helping curb prices on the cash market, Kazunori Kokubo, general manager at the international business section of Yutaka Shoji, said in the same interview.
Narrow Gap
“Tightness in supply will probably be alleviated in July as the influence from wintering will diminish,” he said. Trees shed their leaves during wintering, or the low-production period that runs from February to April, leading to lower latex output.
The increase in production may narrow the price gap between the nearby month on the Tokyo exchange and the most active contract, Kokubo said. June-delivery rubber added 1 percent to 373 yen at 2:06 p.m. local time.
Total production of natural rubber will grow 6.2 percent to 9.37 million tons this year, according to the ANRPC report. The association represents Cambodia, China, India, Malaysia, Indonesia, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
Cash prices in Thailand, the largest producer and exporter, increased as rains in southern provinces disrupted tapping, according to the Rubber Research Institute of Thailand. Thai RSS-3 grade rubber for June delivery rose 1.6 percent to 125.40 baht ($3.85) a kilogram, the institute said on its website yesterday. The price climbed to a record 130.55 baht April 27.
(bloomberg.com)
Rubber Has Best Weekly Gain Since December as Demand Recovers
Posted: 28 May 2010 06:38 AM PDT
By Aya Takada
May 28 (Bloomberg) -- Rubber climbed for a third day and booked the largest weekly gain since December as a rally in oil raised the appeal of the commodity and an advance in equities boosted investor interest in risk assets.
Futures in Tokyo advanced as much as 2.6 percent to the highest level since May 6. The price has climbed 6.8 percent this week, the best performance since the week ended Dec. 18.
Oil was poised for its first weekly gain in four weeks after China affirmed its commitment to investing in Europe and U.S. reports signaled that energy demand may recover with an economic rebound. Asian stocks climbed for a third day, after China said a report that it was reviewing foreign-exchange holdings of euro assets was “groundless.”
“Sales spurred by Europe’s debt concern have subsided after the report from China,” Hisaaki Tasaka, an analyst at Tokyo-based commodity broker ACE Koeki Co., said today by phone. “Rubber tracked a recovery in oil and stocks.”
Rubber for November delivery, the most-active contract, gained as much as 7.3 yen to 288.6 yen per kilogram before settling at 284.8 yen on the Tokyo Commodity Exchange.
The price may surpass the 2008 peak of 356.9 yen per kilogram this year to reach the highest level since March 1980, Kazuya Tetsu, executive manager at Tokyo-based broker Yutaka Shoji Co., said in an interview yesterday.
Market Direction
“China’s influence on the market and global economies is getting stronger,” Tetsu said. Demand from the country “is setting the market’s direction,” he said.
The European debt turmoil, which triggered a selloff of the raw material this month, may force governments to keep interest rates low and delay implementation of their “exit policy,” leading to renewed investor interest in commodities as an inflation hedge, he said.
Crude rose 4.3 percent yesterday to settle at $74.55 and was little changed today. The MSCI Asia Pacific Index gained 1.5 percent to 113.36, extending a global rally.
“Investors’ concerns are mitigated by China’s intention to invest in Europe,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc.
Futures also increased after cash rubber prices in Thailand, the largest producer and exporter, increased. Thai prices extended gains as rain in some southern provinces disrupted tapping, lowering supply, the Rubber Research Institute of Thailand said on its website.
Thai RSS-3 grade rubber for June delivery rose 1.6 percent to 125.40 baht ($3.85) a kilogram yesterday, according to the institute. Thailand’s market is closed today for a public holiday.
September-delivery rubber on the Shanghai Futures Exchange added 1.4 percent to settle at 22,905 yuan ($3,353) a ton.
(bloomberg.com)
Many units on the verge of closure, says AIRIA.
Kochi May 28
The rubber industry has sought Government intervention to keep natural rubber prices in check.
It has pointed out that natural rubber prices had moved steadily from Rs 151 a kg on May 11 to Rs 170/kg on May 25, a 13 per cent increase in a fortnight.
A joint communication in this regard has been sent by the All India Rubber Industries Association (AIRIA), the Automotive Tyre Manufacturers Association (ATMA) and the Indian Cycle and Rickshaw Tyre Manufacturers, which together account for the entire rubber consumption in the country, comprising both tyre and non-tyre units.
Closure feared
“While the Government is safeguarding the interests of the rubber growers, the future of five million people employed around 5,000 rubber units across the country has been grossly overlooked. Many such units, especially those in the MSME sector are on the verge of closing down as rubber prices continue to rise at an unprecedented pace. And even at such prices adequate rubber stocks are not available,” Mr T.K. Mukherjee, President, AIRIA, said.
Supply-Demand deficit
While the production of natural rubber in the country lagged behind consumption by 1,00,000 tonnes last year, the associations warned that the production-consumption deficit is likely to increase to 1,75,000 tonnes in 2010-11.
The industry association pointed out that the option of rubber import is not feasible as the Government charges 20 per cent duty on import of rubber while finished goods can be imported at less than 10 per cent duty.
Govt intervention sought
The communication to the Government follows a recent order by the Delhi High Court on a petition filed by the three associations, a press release said.
In the petition the three associations urged the Delhi High Court to impress upon the Government to regulate prices through removal of inverted duty structure in natural rubber by fixing a minimum and maximum price and curbing speculative interest by banning futures trading in rubber.
Disposing of the three petitions filed by the rubber consuming industry, the High Court has directed either the Ministry of Commerce or the Rubber Board to consider carefully the representations made by the petitioners regarding natural rubber pricing, the release said.
IMD sees monsoon onset ‘around Monday'
India Meteorological Department (IMD) has said that the onset of southwest monsoon over Kerala would occur ‘around May 31'.
The IMD had, on May 14, issued the forecast for onset of monsoon over Kerala on May 30 with a model error of 4 days.
It based its latest outlook on interpretation of latest meteorological conditions and also guidance of numerical weather models.
Physical rubber rules firm
Kottayam, May 28
Physical rubber prices were firm on Friday.
The market opened better with sheet rubber quoting at Rs 172 a kg but it lost the gains partially on late trades lacking follow-up buying at higher levels.
Mixed trend
Sheet rubber finished unchanged at Rs 171 a kg while the remaining grades except latex settled on the positive side. The trend continued to be mixed.
RSS 4 improved at the June futures to Rs 170.80 (168.67), July to Rs 170 (167.84), August to Rs 163.50 (160.24) and September to Rs 157.95 (155.10) a kg for on National Multi Commodity Exchange.
Futures up
The June futures for RSS 3 increased to ¥376 (¥369.5), July to ¥354 (¥349.7), August to ¥324.5 (¥318.7), September to ¥298.2 (¥294.1), October to ¥286.4 (¥283.8) and November to ¥284.8 (¥281.3) a kg during the day session on Tokyo Commodity Exchange.
The August futures firmed up marginally to ¥326.2, September to ¥300, October to ¥286.8 and November to ¥285.2 a kg while the June and July futures remained inactive during the night session.
Spot rates Rs/kg were: RSS-4: 171 (171); RSS-5: 169 (168); Ungraded: 167.50 (166); ISNR 20: 152 (151) and Latex 60 per cent: 110 (110).
User industries ask PMO to intervene on rubber prices
Posted: 28 May 2010 06:35 AM PDT
In a sequel to the High Court of Delhi telling the Union government to consider rubber user industries’ plea for price controls on the crucial product, the rubber user industries have asked the Prime Minister’s Office to move swiftly on the matter.
Natural rubber prices continue to rise, by Rs 2-3 a kg every second day, goes the plea from the same three parties who’d petitioned the HC — the All India Rubber Industries Association (AIRIA), the Automotive Tyre Manufacturers Association and the Indian Cycle and Rickshaw Tyre Manufacturers Association.
Since May 10, when the benchmark grade RSS-4 variety ruled at Rs 151 a kg, the price had moved up to Rs 170 a kg on May 25, according to Rubber Board data.
“While the government is safeguarding the interests of rubber growers, the future of five million people employed in around 5,000 rubber units across the country has been grossly overlooked. Many such units, particularly those in the small and medium enterprises sector, are on the verge of closing down, as rubber prices continue to rise at an unprecedented pace, and even at such prices, adequate rubber is not available,” said T K Mukherjee, president of the AIRIA.
The petitioners complain the option of import of rubber is not feasible, as the government continues to charge a 20 per cent tariff on this, although finished rubber goods can be imported at less than 10 per cent duty.
According to the communication, the production of natural rubber in the country lagged consumption by 1,00,000 tonnes in 2009-10. In 2010-11, NR production is likely to lag consumption by 1,75,000 tonnes, it contends.
AIRIA has urged import of 2,00,000 tonnes of duty-free rubber to survive the shortage and to cool the rising prices.
The three associations had petitioned the HC in Delhi to order th government to regulate NR prices and also ban futures trading in it, beside some related measures. The HC order, given earlier this week, asked the government to consider the matter carefully and give detailed reasons for whatever action it chose to do or not do. Only after that, it said, would there be a case for asking the courts to intervene.
(business-standard.com)
Rubber Futures in Tokyo Climb as Much as 2.1% to 287.2 Yen/Kg
Posted: 28 May 2010 06:41 AM PDT
By Aya Takada
May 28 (Bloomberg) -- Rubber futures in Tokyo advanced as much as 2.1 percent to 287.2 yen a kilogram. The November- delivery contract reached the highest level in three weeks.
(bloomberg.com)
Rubber May Jump 25% to 30-Year High on China, Japan Broker Says
Posted: 28 May 2010 06:39 AM PDT
By Aya Takada and Yasumasa Song
May 28 (Bloomberg) -- Rubber may climb at least 25 percent to the highest level in three decades as demand increases in China, the largest consumer, outweighing concern European use will slow, said an executive manager at broker Yutaka Shoji Co.
Futures may surpass the 2008 peak of 356.9 yen per kilogram ($3,922 a metric ton) on the Tokyo Commodity Exchange this year to reach the highest level since March 1980, said Kazuya Tetsu, who traded the commodity for more than 30 years at Marubeni Corp. before joining Yutaka Shoji last month.
Prices gained 3.6 percent this year after doubling in 2009 as the rally slowed on concern the sovereign debt crisis in Europe will stall the economic recovery, hurting demand for commodities. Car ownership in China, the world’s largest auto market, will expand, boosting consumption of the raw material used in tires, Tetsu said in an interview in Tokyo.
“China’s influence on the market and global economies is getting stronger,” Tetsu said yesterday. Demand from the country “is setting the market’s direction,” he said.
Rubber for November-delivery, the most-active contract in Tokyo, gained 1.8 percent to 286.20 yen at 2:17 p.m. local time today. The price reached a five-month low of 250.9 yen on May 17, down from a peak of 338.5 yen about a month earlier.
A price jump will benefit producers in Thailand, Indonesia and Malaysia, the biggest suppliers, and potentially boost costs for tire makers such as Bridgestone Corp. Marubeni is the country’s biggest trader of the commodity and Yutaka is one of the top five raw-materials brokerages.
Inflation Hedge
The European debt turmoil may force governments to keep interest rates low and delay implementation of their “exit policy”, leading to renewed investor interest in commodities as an inflation hedge, Tetsu said. Europe represented 15 percent of global consumption estimated at 10.2 million tons in 2008, according to International Rubber Study Group.
Sales of cars, sport-utility vehicles and multipurpose vehicles in China jumped 33 percent from a year earlier to 1.11 million units in April, according to the China Association of Automobile Manufacturers. In the first quarter sales jumped 76 percent to 3.52 million units.
Consumption of natural rubber in China may grow 10 percent this year to 3.35 million tons from 2009, the Association of Natural Rubber Producing Countries said in its May report.
Supplies of natural rubber may increase seasonally, helping curb prices on the cash market, Kazunori Kokubo, general manager at the international business section of Yutaka Shoji, said in the same interview.
Narrow Gap
“Tightness in supply will probably be alleviated in July as the influence from wintering will diminish,” he said. Trees shed their leaves during wintering, or the low-production period that runs from February to April, leading to lower latex output.
The increase in production may narrow the price gap between the nearby month on the Tokyo exchange and the most active contract, Kokubo said. June-delivery rubber added 1 percent to 373 yen at 2:06 p.m. local time.
Total production of natural rubber will grow 6.2 percent to 9.37 million tons this year, according to the ANRPC report. The association represents Cambodia, China, India, Malaysia, Indonesia, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
Cash prices in Thailand, the largest producer and exporter, increased as rains in southern provinces disrupted tapping, according to the Rubber Research Institute of Thailand. Thai RSS-3 grade rubber for June delivery rose 1.6 percent to 125.40 baht ($3.85) a kilogram, the institute said on its website yesterday. The price climbed to a record 130.55 baht April 27.
(bloomberg.com)
Rubber Has Best Weekly Gain Since December as Demand Recovers
Posted: 28 May 2010 06:38 AM PDT
By Aya Takada
May 28 (Bloomberg) -- Rubber climbed for a third day and booked the largest weekly gain since December as a rally in oil raised the appeal of the commodity and an advance in equities boosted investor interest in risk assets.
Futures in Tokyo advanced as much as 2.6 percent to the highest level since May 6. The price has climbed 6.8 percent this week, the best performance since the week ended Dec. 18.
Oil was poised for its first weekly gain in four weeks after China affirmed its commitment to investing in Europe and U.S. reports signaled that energy demand may recover with an economic rebound. Asian stocks climbed for a third day, after China said a report that it was reviewing foreign-exchange holdings of euro assets was “groundless.”
“Sales spurred by Europe’s debt concern have subsided after the report from China,” Hisaaki Tasaka, an analyst at Tokyo-based commodity broker ACE Koeki Co., said today by phone. “Rubber tracked a recovery in oil and stocks.”
Rubber for November delivery, the most-active contract, gained as much as 7.3 yen to 288.6 yen per kilogram before settling at 284.8 yen on the Tokyo Commodity Exchange.
The price may surpass the 2008 peak of 356.9 yen per kilogram this year to reach the highest level since March 1980, Kazuya Tetsu, executive manager at Tokyo-based broker Yutaka Shoji Co., said in an interview yesterday.
Market Direction
“China’s influence on the market and global economies is getting stronger,” Tetsu said. Demand from the country “is setting the market’s direction,” he said.
The European debt turmoil, which triggered a selloff of the raw material this month, may force governments to keep interest rates low and delay implementation of their “exit policy,” leading to renewed investor interest in commodities as an inflation hedge, he said.
Crude rose 4.3 percent yesterday to settle at $74.55 and was little changed today. The MSCI Asia Pacific Index gained 1.5 percent to 113.36, extending a global rally.
“Investors’ concerns are mitigated by China’s intention to invest in Europe,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc.
Futures also increased after cash rubber prices in Thailand, the largest producer and exporter, increased. Thai prices extended gains as rain in some southern provinces disrupted tapping, lowering supply, the Rubber Research Institute of Thailand said on its website.
Thai RSS-3 grade rubber for June delivery rose 1.6 percent to 125.40 baht ($3.85) a kilogram yesterday, according to the institute. Thailand’s market is closed today for a public holiday.
September-delivery rubber on the Shanghai Futures Exchange added 1.4 percent to settle at 22,905 yuan ($3,353) a ton.
(bloomberg.com)
Friday, May 28, 2010
Spot rubber rules firm
Spot rubber rules firm
Kottayam, May 27
Spot rubber ruled firm on Thursday. According to sources, the market was rather inactive during the session as the National Multi Commodity Exchange remained closed on account of Buddha Purnima. Still most of the grades were moderately better as the international indices ended on a positive note.
Sheet rubber increased to Rs 171 from Rs 170 a kg amidst comparatively low volumes. The trend was mixed.
Futures improve
The June futures improved to ¥369.5/Rs 190.65 (¥363), July to ¥349.7 (¥341.1), August to ¥318.7 (¥308.3), September to ¥294.1 (¥283.8), October to ¥283.8 (¥275.9) and November to ¥281.3 (¥273.7) a kg for RSS 3 during the day session on Tokyo Commodity Exchange. The grade firmed up further at its June futures to ¥373.7 (Rs 192.70), July to ¥351, August to ¥320.9, September to ¥296.8, October to ¥286.2 and November to ¥283.5 a kg during the night session.
RSS 3 (spot) flared up to Rs 183.64 (180.12) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 171 (170); RSS-5: 168.00 (167.50); ungraded: 166 (165); ISNR 20: 151 (151) and latex 60 per cent: 110 (110).
Rubber Advances to Three-Week High as Oil Gains, Yen Declines
May 27 (Bloomberg) -- Rubber advanced for a second day to the highest level in three weeks as a rally in crude oil and limited supplies from Thailand, the largest producer, boosted demand for the commodity used to make tires.
Futures in Tokyo were also bolstered by a fall in Japan’s currency against the dollar, which raised the appeal of yen- denominated contracts. The yen weakened as signs that Asia- Pacific economies are recovering sapped demand for Japan’s currency as a refuge.
“Overall sentiment is bullish” given the gains in oil and other commodities, Kazunori Kokubo, general manager of the international business department at commodity broker Yutaka Shoji Co., said by phone from Tokyo.
Rubber for November delivery, the most-active contract on the Tokyo Commodity Exchange, rose as much as 3 percent to 281.90 yen per kilogram ($3,122 a metric ton) before settling at 281.3 yen. Earlier, it fell to 272 yen on concerns that Europe’s debt crisis may stall economic recovery in the region.
Oil futures in New York climbed as much as 1.5 percent, boosting the cost of making synthetic rubber from naphtha. The yen declined to 110.54 per euro as of 6:40 a.m. in London from 109.47 in New York yesterday.
The most-active rubber contract gained 5.5 percent this week, a second weekly gain, amid worries that there’s continued tight supply from major producing countries. The “supply situation hasn’t improved,” Kokubo said.
Tight Supply
The low supply from key producers together with robust demand in Asia will keep the market strong, the Association of Natural Rubber Producing Countries said in its May newsletter on May 25. Demand from China, India and Malaysia, which account for more than 45 percent of global consumption, should stay robust, the association said.
Cash prices in Thailand, the largest exporter, extended gains as rains in some southern provinces disrupted tapping, lowering supply, the Rubber Research Institute of Thailand said on its website today. Processers continued purchases on worries there’s a supply shortage, it said. Thai RSS-3 grade rubber for June delivery rose 1.6 percent to 125.40 baht ($3.85) a kilogram.
September-delivery rubber on the Shanghai Futures Exchange added 0.8 percent to settle at 22,585 yuan ($3,306) a ton.
(bloomberg.com)
Vietnam's May Rubber Exports Declined
Posted: 26 May 2010 11:28 PM PDT
By Siwaporn Bumroongpan
27 May 2010 - Vietnam’s rubber exports for May is estimated about 20,000 tonnes, down 53.5% from the same period in 2009, according to the Government’s General Statistics Office. In terms of value, it is estimated down by 6.2% from US $64 million to US$60 million compared with the same month last year.
For the first 5 months of 2010, Vietnam rubber export is estimated at about 176,000 tonnes, with a value of US $479 million, which up 85.5% in value, but down 4.4% in volume when compared with the same period the previous year.
For the first quarter of the year, Vietnam exported 123,000 tonnes of rubber, valued at US $325 million.
For the month of April, the export was at 32,750 tonnes, worth US $94.14 million, raising the total export volume for Jan-Apr to 155,750 tonnes for total value of US$419.48 million, up 10.6 percent and 5.6 percent, respectively against the same period of 2009.
(irco.biz)
Surging tyre import worries rubber sector
Posted: 26 May 2010 11:23 PM PDT
KOCHI: A rising tide of Chinese-made two-wheeler tyre import has the domestic tyre industry and rubber planters worried.
The import of two-wheeler tyres (mostly for motorcycles) has seen a sharp rise to 3.23 lakh tyres in 2009-10 from 21,137 in 2008-09. Automobile Tyre Manufacturers Association (ATMA) spokesmen said nearly 80-90% of this import is from China.
According to automobile industry spokesmen, the two-wheeler tyre import could follow the trend seen in truck tyre shipment. The import of truck tyres increased from 80,000 to 13-14 lakh tyres in 5 years.
Speaking to ET, Mr Rajiv Budhraja, ATMA director general, said, “The industry is keeping a close watch on the import scenario and will take a call on the development soon.” The import price is sometimes as low as $5 for motorcycle tyres and $1.2 for tubes as some importers take advantage of dumping and under-invoicing.
(economictimes.indiatimes.com)
Asian rubber producers mull setting up regional cash market
Posted: 26 May 2010 11:21 PM PDT
* Consortium represents 70 percent of global rubber output
* Futures seen distorting market fundamentals
By Apornrath Phoonphongphiphat
BANGKOK, May 25 (Reuters) - Thailand, Indonesia and Malaysia, the world's top three rubber producers, want to set up a cash market for the commodity that would make pricing more transparent and stabile, industry officials said on Tuesday. A regional rubber market might also reduce the influence on physical prices of futures markets such as the Tokyo Commodity Exchange (TOCOM), said Abdul Rasip Latiff, chief executive officer of the IRCo.
The IRCo, or International Rubber Consortium, groups rubber industry officials, exporters and government officials from the three countries that account for 70 percent of world rubber output.
"The concept has been agreed upon and a special committee of experts has been established to study the feasibility of this concept in greater detail," Latiff said in an IRCo statement.
Cash prices are relatively high at the moment, with the benchmark Thai RSS3 offered at $3.80 per kg on Tuesday,
Prices have been extremely volatile in recent years, hitting a record high of $4.10 per kg in April as the dry season cut latex output at a time of strong demand.
Traders, producers and end-users, mostly tyre makers, have blamed the volatility to some extent on the speculative nature of trading on TOCOM, which has overshadowed the fundamentals in the physical market.
The cash market would be located in one of the three countries and would include warehouses and a clearing house, where buyers and sellers would commit to physical deals with specified shipment dates, said a senior official at the IRCo, who asked not to be named.
Although there are local markets in several key rubber areas in the three countries, such as Hat Yai in Thailand, the IRCo believes a regional market would help increase the influence of fundamental factors.
"The regional rubber market will help reflect real supply and demand on the fundamental side as well as discover appropriate price levels," another IRCo official said.
Most traders welcomed the idea of setting up a cash rubber market in the region, agreeing it would help stabilise prices and give buyers and sellers a centre for exchanging rubber, but they had reservations.
In particular, they felt big players might be able to influence prices more easily if there was one market.
"The concept is good, but the question is, how can they assure us there'll be no collusion? Otherwise they would fail to stabilise prices," a Malaysian trader said.
(in.reuters.com)
Kottayam, May 27
Spot rubber ruled firm on Thursday. According to sources, the market was rather inactive during the session as the National Multi Commodity Exchange remained closed on account of Buddha Purnima. Still most of the grades were moderately better as the international indices ended on a positive note.
Sheet rubber increased to Rs 171 from Rs 170 a kg amidst comparatively low volumes. The trend was mixed.
Futures improve
The June futures improved to ¥369.5/Rs 190.65 (¥363), July to ¥349.7 (¥341.1), August to ¥318.7 (¥308.3), September to ¥294.1 (¥283.8), October to ¥283.8 (¥275.9) and November to ¥281.3 (¥273.7) a kg for RSS 3 during the day session on Tokyo Commodity Exchange. The grade firmed up further at its June futures to ¥373.7 (Rs 192.70), July to ¥351, August to ¥320.9, September to ¥296.8, October to ¥286.2 and November to ¥283.5 a kg during the night session.
RSS 3 (spot) flared up to Rs 183.64 (180.12) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 171 (170); RSS-5: 168.00 (167.50); ungraded: 166 (165); ISNR 20: 151 (151) and latex 60 per cent: 110 (110).
Rubber Advances to Three-Week High as Oil Gains, Yen Declines
May 27 (Bloomberg) -- Rubber advanced for a second day to the highest level in three weeks as a rally in crude oil and limited supplies from Thailand, the largest producer, boosted demand for the commodity used to make tires.
Futures in Tokyo were also bolstered by a fall in Japan’s currency against the dollar, which raised the appeal of yen- denominated contracts. The yen weakened as signs that Asia- Pacific economies are recovering sapped demand for Japan’s currency as a refuge.
“Overall sentiment is bullish” given the gains in oil and other commodities, Kazunori Kokubo, general manager of the international business department at commodity broker Yutaka Shoji Co., said by phone from Tokyo.
Rubber for November delivery, the most-active contract on the Tokyo Commodity Exchange, rose as much as 3 percent to 281.90 yen per kilogram ($3,122 a metric ton) before settling at 281.3 yen. Earlier, it fell to 272 yen on concerns that Europe’s debt crisis may stall economic recovery in the region.
Oil futures in New York climbed as much as 1.5 percent, boosting the cost of making synthetic rubber from naphtha. The yen declined to 110.54 per euro as of 6:40 a.m. in London from 109.47 in New York yesterday.
The most-active rubber contract gained 5.5 percent this week, a second weekly gain, amid worries that there’s continued tight supply from major producing countries. The “supply situation hasn’t improved,” Kokubo said.
Tight Supply
The low supply from key producers together with robust demand in Asia will keep the market strong, the Association of Natural Rubber Producing Countries said in its May newsletter on May 25. Demand from China, India and Malaysia, which account for more than 45 percent of global consumption, should stay robust, the association said.
Cash prices in Thailand, the largest exporter, extended gains as rains in some southern provinces disrupted tapping, lowering supply, the Rubber Research Institute of Thailand said on its website today. Processers continued purchases on worries there’s a supply shortage, it said. Thai RSS-3 grade rubber for June delivery rose 1.6 percent to 125.40 baht ($3.85) a kilogram.
September-delivery rubber on the Shanghai Futures Exchange added 0.8 percent to settle at 22,585 yuan ($3,306) a ton.
(bloomberg.com)
Vietnam's May Rubber Exports Declined
Posted: 26 May 2010 11:28 PM PDT
By Siwaporn Bumroongpan
27 May 2010 - Vietnam’s rubber exports for May is estimated about 20,000 tonnes, down 53.5% from the same period in 2009, according to the Government’s General Statistics Office. In terms of value, it is estimated down by 6.2% from US $64 million to US$60 million compared with the same month last year.
For the first 5 months of 2010, Vietnam rubber export is estimated at about 176,000 tonnes, with a value of US $479 million, which up 85.5% in value, but down 4.4% in volume when compared with the same period the previous year.
For the first quarter of the year, Vietnam exported 123,000 tonnes of rubber, valued at US $325 million.
For the month of April, the export was at 32,750 tonnes, worth US $94.14 million, raising the total export volume for Jan-Apr to 155,750 tonnes for total value of US$419.48 million, up 10.6 percent and 5.6 percent, respectively against the same period of 2009.
(irco.biz)
Surging tyre import worries rubber sector
Posted: 26 May 2010 11:23 PM PDT
KOCHI: A rising tide of Chinese-made two-wheeler tyre import has the domestic tyre industry and rubber planters worried.
The import of two-wheeler tyres (mostly for motorcycles) has seen a sharp rise to 3.23 lakh tyres in 2009-10 from 21,137 in 2008-09. Automobile Tyre Manufacturers Association (ATMA) spokesmen said nearly 80-90% of this import is from China.
According to automobile industry spokesmen, the two-wheeler tyre import could follow the trend seen in truck tyre shipment. The import of truck tyres increased from 80,000 to 13-14 lakh tyres in 5 years.
Speaking to ET, Mr Rajiv Budhraja, ATMA director general, said, “The industry is keeping a close watch on the import scenario and will take a call on the development soon.” The import price is sometimes as low as $5 for motorcycle tyres and $1.2 for tubes as some importers take advantage of dumping and under-invoicing.
(economictimes.indiatimes.com)
Asian rubber producers mull setting up regional cash market
Posted: 26 May 2010 11:21 PM PDT
* Consortium represents 70 percent of global rubber output
* Futures seen distorting market fundamentals
By Apornrath Phoonphongphiphat
BANGKOK, May 25 (Reuters) - Thailand, Indonesia and Malaysia, the world's top three rubber producers, want to set up a cash market for the commodity that would make pricing more transparent and stabile, industry officials said on Tuesday. A regional rubber market might also reduce the influence on physical prices of futures markets such as the Tokyo Commodity Exchange (TOCOM), said Abdul Rasip Latiff, chief executive officer of the IRCo.
The IRCo, or International Rubber Consortium, groups rubber industry officials, exporters and government officials from the three countries that account for 70 percent of world rubber output.
"The concept has been agreed upon and a special committee of experts has been established to study the feasibility of this concept in greater detail," Latiff said in an IRCo statement.
Cash prices are relatively high at the moment, with the benchmark Thai RSS3 offered at $3.80 per kg on Tuesday,
Prices have been extremely volatile in recent years, hitting a record high of $4.10 per kg in April as the dry season cut latex output at a time of strong demand.
Traders, producers and end-users, mostly tyre makers, have blamed the volatility to some extent on the speculative nature of trading on TOCOM, which has overshadowed the fundamentals in the physical market.
The cash market would be located in one of the three countries and would include warehouses and a clearing house, where buyers and sellers would commit to physical deals with specified shipment dates, said a senior official at the IRCo, who asked not to be named.
Although there are local markets in several key rubber areas in the three countries, such as Hat Yai in Thailand, the IRCo believes a regional market would help increase the influence of fundamental factors.
"The regional rubber market will help reflect real supply and demand on the fundamental side as well as discover appropriate price levels," another IRCo official said.
Most traders welcomed the idea of setting up a cash rubber market in the region, agreeing it would help stabilise prices and give buyers and sellers a centre for exchanging rubber, but they had reservations.
In particular, they felt big players might be able to influence prices more easily if there was one market.
"The concept is good, but the question is, how can they assure us there'll be no collusion? Otherwise they would fail to stabilise prices," a Malaysian trader said.
(in.reuters.com)
Thursday, May 27, 2010
Spot rubber firm on supply concerns
Spot rubber firm on supply concerns
Kottayam, May 26
Physical rubber prices turned better on Wednesday. The market reacted in tandem with the smart gains in domestic futures on NMCE as sellers stayed back anticipating a positive trend during the days ahead. Sheet rubber increased to Rs 170 (168) on fresh buying and short covering. According to sources, the tyre sector was inactive and the prices ruled firm mainly on supply concerns.
Futures recover
The June futures for RSS 4 bounced back to Rs 168.81 (164.69), July to Rs 168 (164), August to Rs 160.11 (156.04) and September to Rs 155.10 (153.75) a kg on National Multi Commodity Exchange.
RSS 3 improved at its June futures to ¥363 (¥357.9), July to ¥341.1 (¥332.1), August to ¥308.3 (¥296.2), September to ¥283.8 (¥277.1) and October to ¥275.9 (¥271) while the November futures finished its debut trading at ¥273.7 a kg during the day session on Tokyo Commodity Exchange.
The June futures closed at ¥361.6, July at ¥344, August at ¥311.1, September at ¥387.5, October at ¥277.8 and November at ¥275 a kg during the night session.
RSS 3 firmed up further to Rs 180.12 (177.70) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 170 (168); RSS-5: 167.50 (166); ungraded: 165 (163); ISNR 20: 151 (149) and latex 60 per cent: 110 (106).
Court asks Govt to address woes of rubber users
New Delhi, May 22
The Delhi High Court has directed the Union Government and Commerce Ministry to look into the representations made by the rubber user industry on the high price of natural rubber and the inverted duty structure within eight weeks.
The three user-industry associations — Automotive Tyre Manufacturers' Association, Indian Cycle and Rickshaw Tyre Manufacturers' Association and All-India Rubber industries Association – had approached the court through separate petitions after their representations were rejected by the Commerce Ministry. They asked for fixing maximum and minimum price for natural rubber, reduction in Customs duty on natural rubber from 20 per cent to 7.5 per cent and a ban on its futures to avoid speculative trading.
“This court directs the Union of India and Ministry of Commerce to consider the representations including the present petition … within a period of eight weeks. Ideally, the Secretary, Ministry of Commerce should constitute a panel comprising experts from the Rubber Board,” said the Delhi High Court verdict.
It added that “a reasoned order containing the decision of the Government will be passed within a period of four weeks thereafter,” which would have to be communicated to the petitioners within a period of two weeks. The Court has also left an option for the petitioners to come back to it for further remedy, in case the decision of the Commerce Ministry is unsatisfactory.
Speaking to Business Line, a user industry official said: “We want the import duty to be fixed beyond a certain point. If natural rubber is at Rs 80 a kg, the duty would be at Rs 16 a kg (20 per cent customs) and Rs 16 a kg duty should be the ceiling, even if natural rubber prices go up. Even though we have made several representations, we have not received a reasoned justification so far. We want the interests of the users also to be taken care of, like it had been done for cotton.”
With the exponential growth of the auto industry, the rising demand for tyres versus a much smaller growth in the production of natural rubber has led to the sharp increase in pricing. According to Rubber Board data, average monthly natural rubber (RSS 4) prices have gone up to Rs 149.48 a kg in March this year, from Rs 137.72 a kg in January. It had then touched a high of Rs 167.92 a kg on April 24 – 22 per cent higher than January average prices – before falling to Rs 165.30 a kg by May 1. The price on May 21, 2010 was Rs 165 a kg, 67 per cent higher compared with the same period a year ago.
Kottayam, May 26
Physical rubber prices turned better on Wednesday. The market reacted in tandem with the smart gains in domestic futures on NMCE as sellers stayed back anticipating a positive trend during the days ahead. Sheet rubber increased to Rs 170 (168) on fresh buying and short covering. According to sources, the tyre sector was inactive and the prices ruled firm mainly on supply concerns.
Futures recover
The June futures for RSS 4 bounced back to Rs 168.81 (164.69), July to Rs 168 (164), August to Rs 160.11 (156.04) and September to Rs 155.10 (153.75) a kg on National Multi Commodity Exchange.
RSS 3 improved at its June futures to ¥363 (¥357.9), July to ¥341.1 (¥332.1), August to ¥308.3 (¥296.2), September to ¥283.8 (¥277.1) and October to ¥275.9 (¥271) while the November futures finished its debut trading at ¥273.7 a kg during the day session on Tokyo Commodity Exchange.
The June futures closed at ¥361.6, July at ¥344, August at ¥311.1, September at ¥387.5, October at ¥277.8 and November at ¥275 a kg during the night session.
RSS 3 firmed up further to Rs 180.12 (177.70) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 170 (168); RSS-5: 167.50 (166); ungraded: 165 (163); ISNR 20: 151 (149) and latex 60 per cent: 110 (106).
Court asks Govt to address woes of rubber users
New Delhi, May 22
The Delhi High Court has directed the Union Government and Commerce Ministry to look into the representations made by the rubber user industry on the high price of natural rubber and the inverted duty structure within eight weeks.
The three user-industry associations — Automotive Tyre Manufacturers' Association, Indian Cycle and Rickshaw Tyre Manufacturers' Association and All-India Rubber industries Association – had approached the court through separate petitions after their representations were rejected by the Commerce Ministry. They asked for fixing maximum and minimum price for natural rubber, reduction in Customs duty on natural rubber from 20 per cent to 7.5 per cent and a ban on its futures to avoid speculative trading.
“This court directs the Union of India and Ministry of Commerce to consider the representations including the present petition … within a period of eight weeks. Ideally, the Secretary, Ministry of Commerce should constitute a panel comprising experts from the Rubber Board,” said the Delhi High Court verdict.
It added that “a reasoned order containing the decision of the Government will be passed within a period of four weeks thereafter,” which would have to be communicated to the petitioners within a period of two weeks. The Court has also left an option for the petitioners to come back to it for further remedy, in case the decision of the Commerce Ministry is unsatisfactory.
Speaking to Business Line, a user industry official said: “We want the import duty to be fixed beyond a certain point. If natural rubber is at Rs 80 a kg, the duty would be at Rs 16 a kg (20 per cent customs) and Rs 16 a kg duty should be the ceiling, even if natural rubber prices go up. Even though we have made several representations, we have not received a reasoned justification so far. We want the interests of the users also to be taken care of, like it had been done for cotton.”
With the exponential growth of the auto industry, the rising demand for tyres versus a much smaller growth in the production of natural rubber has led to the sharp increase in pricing. According to Rubber Board data, average monthly natural rubber (RSS 4) prices have gone up to Rs 149.48 a kg in March this year, from Rs 137.72 a kg in January. It had then touched a high of Rs 167.92 a kg on April 24 – 22 per cent higher than January average prices – before falling to Rs 165.30 a kg by May 1. The price on May 21, 2010 was Rs 165 a kg, 67 per cent higher compared with the same period a year ago.
Wednesday, May 26, 2010
Rubber growers get Rs.95 lakh assistance for 2010-11
Rubber growers get Rs.95 lakh assistance for 2010-11
Posted: 26 May 2010 05:55 AM PDT
The government Wednesday said 18,915 rubber growers will receive financial assistance of Rs.95 lakh this financial year.
The growers will receive the amount on the basis of price spectrum band 2009, calculated on the basis of seven years' moving average of international price for the commodity.
The amount has been provided under the price stabilisation fund scheme, which was launched by the commerce ministry in April 2003 with the aim to provide financial relief to tea, coffee, natural rubber and tobacco growers when the prices of these commodities fall below a specified level.
The scheme is based on the principle of contribution from the growers and from the government depending upon boom, normal and distress years. During the distress year, the growers can withdraw from the scheme.
The annual average domestic price for rubber was Rs.97.56 per kg during 2009 and it was a normal year for rubber, an official statement said.
Spot rubber turns weak
Posted: 26 May 2010 05:53 AM PDT
On Tuesday (25 May 2010), the spot rubber market turned weak as the market failed to break above Rs 170 per kg for sheet rubber and the grade moved down to Rs 168 (170) mainly on selling from dealers following the sharp declines on National Multi Commodity Exchange (NMCE).
The June futures for RSS 4 declined to Rs 164.51 (168.86), July to Rs 163.98 (168.59), August to Rs 156.01 (160.59) and September to Rs 151.26 (153.75) a kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 168 (170); RSS-5: 166 (167); ungraded: 163 (165); ISNR 20: 149 (149) and latex 60 per cent: 106 (106).
(indiainfoline.com)
JK Tyre says to raise prices by 3-4 pct in June
Posted: 26 May 2010 05:50 AM PDT
NEW DELHI, May 25 (Reuters) - JK Tyre and Industries (JKIN.BO: Quote, Profile, Research) plans to increase prices of its products by 3-4 percent in June, on surging costs of raw material, especially rubber, Managing Director Raghupati Singhania said on Tuesday.
The firm has already raised prices by 5 percent since January.
It expects 30-35 percent revenue growth in FY11 as vehicle sales boom, but profitability may be under pressure due to the rise in raw material prices, Arun K Bajoria, president, said.
Natural rubber makes up over 40 percent of the cost of a tyre. It has risen 21.5 percent to 16,900 rupees per 100 kilograms so far this year.
Earlier on Tuesday JK Tyre had reported an 82 percent rise in Jan-March net profit to 255 million rupees. Its quarterly net sales rose to 11.3 billion rupees from 9.26 billion rupees.
JK Tyre shares ended down 1.74 percent at 177.75 rupees in a weak Mumbai market.
TOCOM May rubber expires, fewest deliveries since February
Posted: 26 May 2010 05:56 AM PDT
TOKYO, May 25 (Reuters) - The May rubber futures contract on the Tokyo Commodity Exchange expired on Tuesday at 377.9 yen per kg, up 0.1 yen on the day, with 102 lots or 510 tonnes of deliveries, the fewest since the February contract at 56 lots.
A month earlier, the April contract expired at a record high price of 455.4 yen per kg with 142 lots delivered.
The relatively small deliveries in the past few months were due to limited supply available via TOCOM as prices in the physical market stayed high, traders said.
Prices of the next spot June contract <0#JRU:> are set to firm again when its expiry date of June 24 nears because rubber supply is unlikely to increase drastically until July, said a manager at a Japanese commodity brokerage.
"But for now, such influence from the spot contract is tame as we have one month to go. The rubber market rather looks vulnerable to bearish views in other markets and is set to fall in the near term," the manager said, adding the key TOCOM contract would soon test technical support of 260 yen a kg.
On Tuesday, the key October contract fell 6.2 yen to 271.0 yen per kg. [RUB/AS] Newly-listed November contract takes over the benchmark status when it starts trading on Wednesday.
(in.reuters.com)
Posted: 26 May 2010 05:55 AM PDT
The government Wednesday said 18,915 rubber growers will receive financial assistance of Rs.95 lakh this financial year.
The growers will receive the amount on the basis of price spectrum band 2009, calculated on the basis of seven years' moving average of international price for the commodity.
The amount has been provided under the price stabilisation fund scheme, which was launched by the commerce ministry in April 2003 with the aim to provide financial relief to tea, coffee, natural rubber and tobacco growers when the prices of these commodities fall below a specified level.
The scheme is based on the principle of contribution from the growers and from the government depending upon boom, normal and distress years. During the distress year, the growers can withdraw from the scheme.
The annual average domestic price for rubber was Rs.97.56 per kg during 2009 and it was a normal year for rubber, an official statement said.
Spot rubber turns weak
Posted: 26 May 2010 05:53 AM PDT
On Tuesday (25 May 2010), the spot rubber market turned weak as the market failed to break above Rs 170 per kg for sheet rubber and the grade moved down to Rs 168 (170) mainly on selling from dealers following the sharp declines on National Multi Commodity Exchange (NMCE).
The June futures for RSS 4 declined to Rs 164.51 (168.86), July to Rs 163.98 (168.59), August to Rs 156.01 (160.59) and September to Rs 151.26 (153.75) a kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 168 (170); RSS-5: 166 (167); ungraded: 163 (165); ISNR 20: 149 (149) and latex 60 per cent: 106 (106).
(indiainfoline.com)
JK Tyre says to raise prices by 3-4 pct in June
Posted: 26 May 2010 05:50 AM PDT
NEW DELHI, May 25 (Reuters) - JK Tyre and Industries (JKIN.BO: Quote, Profile, Research) plans to increase prices of its products by 3-4 percent in June, on surging costs of raw material, especially rubber, Managing Director Raghupati Singhania said on Tuesday.
The firm has already raised prices by 5 percent since January.
It expects 30-35 percent revenue growth in FY11 as vehicle sales boom, but profitability may be under pressure due to the rise in raw material prices, Arun K Bajoria, president, said.
Natural rubber makes up over 40 percent of the cost of a tyre. It has risen 21.5 percent to 16,900 rupees per 100 kilograms so far this year.
Earlier on Tuesday JK Tyre had reported an 82 percent rise in Jan-March net profit to 255 million rupees. Its quarterly net sales rose to 11.3 billion rupees from 9.26 billion rupees.
JK Tyre shares ended down 1.74 percent at 177.75 rupees in a weak Mumbai market.
TOCOM May rubber expires, fewest deliveries since February
Posted: 26 May 2010 05:56 AM PDT
TOKYO, May 25 (Reuters) - The May rubber futures contract on the Tokyo Commodity Exchange expired on Tuesday at 377.9 yen per kg, up 0.1 yen on the day, with 102 lots or 510 tonnes of deliveries, the fewest since the February contract at 56 lots.
A month earlier, the April contract expired at a record high price of 455.4 yen per kg with 142 lots delivered.
The relatively small deliveries in the past few months were due to limited supply available via TOCOM as prices in the physical market stayed high, traders said.
Prices of the next spot June contract <0#JRU:> are set to firm again when its expiry date of June 24 nears because rubber supply is unlikely to increase drastically until July, said a manager at a Japanese commodity brokerage.
"But for now, such influence from the spot contract is tame as we have one month to go. The rubber market rather looks vulnerable to bearish views in other markets and is set to fall in the near term," the manager said, adding the key TOCOM contract would soon test technical support of 260 yen a kg.
On Tuesday, the key October contract fell 6.2 yen to 271.0 yen per kg. [RUB/AS] Newly-listed November contract takes over the benchmark status when it starts trading on Wednesday.
(in.reuters.com)
Rubber Market to Stay Strong on Supply, Group Says
Rubber Market to Stay Strong on Supply, Group Says
May 25 (Bloomberg) -- Rubber demand from India and China and tight supply after the low-production season will help keep the market strong, the Association of Natural Rubber Producing Countries said.
Demand in China, India and Malaysia, which account for more than 45 percent of global consumption, should stay robust, the association said in its May newsletter.
Natural-rubber imports by China rose 17 percent to 602,000 tons from January to April, and demand, including that of compound rubber, increased 26 percent to 1.05 million tons, according to the association, which represents 94 percent of global output of the commodity. Consumption of natural rubber in India during the first four months jumped 12 percent to 316,000 tons, it said.
Futures in Tokyo plunged 20 percent since reaching a 21- month high of 338.5 yen a kilogram ($3,777 a metric ton) on April 16. The most-active contract gained 1.7 percent last week after dropping to a five-month low of 250.9 yen on May 17. Rubber for October delivery, the most-active contract, fell 2.2 percent to settle at 271 yen on the Tokyo Commodity Exchange.
The International Rubber Consortium Ltd. forecast yesterday that natural rubber prices are likely to stay around current levels, because of increasing demand and a lack of shipments from Thailand.
Tight supplies from the main producing countries after the post-wintering season will support prices, the Association of Natural Rubber Producing Countries said. Trees shed their leaves during the wintering season that runs from February to April, lowering latex output.
The association today maintained the output forecast for its member countries at 9.37 million tons this year, a rise of 6.2 percent from 2009, it said.
The association represents Cambodia, China, India, Malaysia, Indonesia, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
Rubber Gains as Crude Oil Rally Boosts Demand Amid Tight Supply
May 26 (Bloomberg) -- Rubber advanced as crude oil gained, improving the appeal of the commodity used to make tires, amid speculation of tight supplies from producing countries.
Futures in Tokyo rose as much as 2.8 percent as crude oil rebounded, rising above $70 a barrel after a report showed a drop in gasoline stockpiles in the U.S. and equities recovered from their worst levels. A gain in oil boosts the cost of synthetic rubber made from petroleum.
Rubber also climbed as “supplies from major producers have remained tight,” Takaki Shigemoto, analyst at research and investment company JSC Corp. in Tokyo, said today by phone.
Rubber for October delivery, the most-active contract, climbed as much as 7.6 yen to 278.6 yen per kilogram ($3,092 a metric ton) on the Tokyo Commodity Exchange before trading at 277.5 yen as of 10:37 a.m. local time. The new contract for November delivery was at 274.6 yen after opening at 275 yen.
September-delivery rubber on the Shanghai Futures Exchange rose 1.9 percent to 22,430 yuan ($3,283) a ton.
Demand in China, India and Malaysia, which account for more than 45 percent of global rubber consumption, should stay robust, the Association of Natural Rubber Producing Countries said in its May newsletter. Tight supply after the low-production season will keep the market strong, said the association, which represents 94 percent of global output.
Natural rubber imports by China rose 17 percent to 602,000 tons in the January-April period and demand, including that for compound rubber, rose 26 percent to 1.05 million tons, according to the association. Consumption of natural rubber in India during the first four months rose 12 percent to 316,000 tons, it said.
Rubber markets weak on selling
Kottayam, May 25
The domestic rubber markets turned weak on Tuesday. In spot, the market failed to break above Rs 170 a kg for sheet rubber and the grade moved down to Rs 168 (170) mainly on selling from dealers following the sharp declines on NMCE. The market is experiencing a technical correction and it may regain strength since all the external factors favour a bull run, an analyst said. The trend was mixed.
The June futures declined to Rs 164.51 (168.86), July to Rs 163.98 (168.59), August to Rs 156.01 (160.59) and September to Rs 151.26 (153.75) a kg for RSS 4 on NMCE. The May futures for RSS 3 expired at ¥377.9 (¥377.8) a kg while its June futures slipped to ¥352 (¥357.9), July to ¥332.1 (¥334.3), August to ¥296.2 (¥297.8), September to ¥277.1 (¥281.9) and October to ¥271 (¥277.2) a kg during the day session on Tokyo Commodity Exchange. The June futures moved down further to ¥344.7, July to ¥331.7, August to ¥294, September to ¥274.7 and October to ¥268.5 a kg during the night session.
RSS 3 improved to Rs 177.70 (175.65) a kg at Bangkok. Spot rubber rates Rs/kg were: RSS-4: 168 (170); RSS-5: 166 (167); Ungraded: 163 (165); ISNR 20: 149 (149) and Latex 60 per cent:106(106).
May 25 (Bloomberg) -- Rubber demand from India and China and tight supply after the low-production season will help keep the market strong, the Association of Natural Rubber Producing Countries said.
Demand in China, India and Malaysia, which account for more than 45 percent of global consumption, should stay robust, the association said in its May newsletter.
Natural-rubber imports by China rose 17 percent to 602,000 tons from January to April, and demand, including that of compound rubber, increased 26 percent to 1.05 million tons, according to the association, which represents 94 percent of global output of the commodity. Consumption of natural rubber in India during the first four months jumped 12 percent to 316,000 tons, it said.
Futures in Tokyo plunged 20 percent since reaching a 21- month high of 338.5 yen a kilogram ($3,777 a metric ton) on April 16. The most-active contract gained 1.7 percent last week after dropping to a five-month low of 250.9 yen on May 17. Rubber for October delivery, the most-active contract, fell 2.2 percent to settle at 271 yen on the Tokyo Commodity Exchange.
The International Rubber Consortium Ltd. forecast yesterday that natural rubber prices are likely to stay around current levels, because of increasing demand and a lack of shipments from Thailand.
Tight supplies from the main producing countries after the post-wintering season will support prices, the Association of Natural Rubber Producing Countries said. Trees shed their leaves during the wintering season that runs from February to April, lowering latex output.
The association today maintained the output forecast for its member countries at 9.37 million tons this year, a rise of 6.2 percent from 2009, it said.
The association represents Cambodia, China, India, Malaysia, Indonesia, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
Rubber Gains as Crude Oil Rally Boosts Demand Amid Tight Supply
May 26 (Bloomberg) -- Rubber advanced as crude oil gained, improving the appeal of the commodity used to make tires, amid speculation of tight supplies from producing countries.
Futures in Tokyo rose as much as 2.8 percent as crude oil rebounded, rising above $70 a barrel after a report showed a drop in gasoline stockpiles in the U.S. and equities recovered from their worst levels. A gain in oil boosts the cost of synthetic rubber made from petroleum.
Rubber also climbed as “supplies from major producers have remained tight,” Takaki Shigemoto, analyst at research and investment company JSC Corp. in Tokyo, said today by phone.
Rubber for October delivery, the most-active contract, climbed as much as 7.6 yen to 278.6 yen per kilogram ($3,092 a metric ton) on the Tokyo Commodity Exchange before trading at 277.5 yen as of 10:37 a.m. local time. The new contract for November delivery was at 274.6 yen after opening at 275 yen.
September-delivery rubber on the Shanghai Futures Exchange rose 1.9 percent to 22,430 yuan ($3,283) a ton.
Demand in China, India and Malaysia, which account for more than 45 percent of global rubber consumption, should stay robust, the Association of Natural Rubber Producing Countries said in its May newsletter. Tight supply after the low-production season will keep the market strong, said the association, which represents 94 percent of global output.
Natural rubber imports by China rose 17 percent to 602,000 tons in the January-April period and demand, including that for compound rubber, rose 26 percent to 1.05 million tons, according to the association. Consumption of natural rubber in India during the first four months rose 12 percent to 316,000 tons, it said.
Rubber markets weak on selling
Kottayam, May 25
The domestic rubber markets turned weak on Tuesday. In spot, the market failed to break above Rs 170 a kg for sheet rubber and the grade moved down to Rs 168 (170) mainly on selling from dealers following the sharp declines on NMCE. The market is experiencing a technical correction and it may regain strength since all the external factors favour a bull run, an analyst said. The trend was mixed.
The June futures declined to Rs 164.51 (168.86), July to Rs 163.98 (168.59), August to Rs 156.01 (160.59) and September to Rs 151.26 (153.75) a kg for RSS 4 on NMCE. The May futures for RSS 3 expired at ¥377.9 (¥377.8) a kg while its June futures slipped to ¥352 (¥357.9), July to ¥332.1 (¥334.3), August to ¥296.2 (¥297.8), September to ¥277.1 (¥281.9) and October to ¥271 (¥277.2) a kg during the day session on Tokyo Commodity Exchange. The June futures moved down further to ¥344.7, July to ¥331.7, August to ¥294, September to ¥274.7 and October to ¥268.5 a kg during the night session.
RSS 3 improved to Rs 177.70 (175.65) a kg at Bangkok. Spot rubber rates Rs/kg were: RSS-4: 168 (170); RSS-5: 166 (167); Ungraded: 163 (165); ISNR 20: 149 (149) and Latex 60 per cent:106(106).
Saturday, May 22, 2010
Spot rubber hits Rs 165/kg
Spot rubber hits Rs 165/kg
Kottayam, May 21
The rubber prices moved up further on Friday. In spot, sheet rubber increased to Rs 165 from Rs 163 a kg mainly on covering purchases.
According to sources, the prices remained firm catalysed by the bullish global markets but the domestic markets appeared to be moving also under the grip of speculators. There were no quantity sellers even at higher levels probably due to acute short supply.
Futures gain
The June futures closed at Rs 166.50 (164.71), July at Rs 166.59 (164.71), August at Rs 158.12 (157.37) and September at Rs 153.70 (154.18) a kg for RSS 4 on National Multi Commodity Exchange. The May futures weakened to ¥367.8/Rs 191.95 (¥373), while the June futures improved to ¥350 (¥349.3), July to ¥322 (¥309.5) August to ¥284.8 (¥278), September to ¥271.6 (¥267.7) and October to ¥266.7 (¥263.8) a kg for RSS 3 during the day session on Tokyo Commodity Exchange. RSS 3 (spot) firmed up further to Rs 171.50 (168.04) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 165 (163); RSS-5: 162 (159); ungraded: 160 (156); ISNR 20: 142.50 (141) and latex 60 per cent: 103 (101).
Mangalore co-op to start rubber procurement
Mangalore, May 21
The Mangalore Agriculturists' Sahakari Sangha (MASS) Ltd, a co-operative involved in the procurement and marketing of arecanut, is planning to enter the rubber market.
Addressing presspersons here on Friday, Mr T.G. Rajarama Bhat, President of MASS Ltd, said that the cooperative has approached the Rubber Board for licence to procure rubber from growers in Karnataka. Once the co-operative gets permission, it will start procuring rubber at Sullia and Puttur towns of Dakshina Kannada district.
Now MASS acts as an agent for the Belthangady Rubber Society to procure rubber at Uppinangady in Dakshina Kannada district.
Rubber Gains to One-Week High as Thai Riots May Disrupt Supply
Posted: 20 May 2010 05:53 PM PDT
May 20 (Bloomberg) -- Rubber advanced to the highest level in more than a week as clashes between security forces and protesters in Thailand raised concern that supply from the world’s largest exporter may be disrupted.
Futures in Tokyo gained for a third day, advancing as much as 2.3 percent to the highest level since May 11, as fighting continued in Bangkok a day after the forced surrender of anti- government protesters left 16 people dead.
Rioters set fire to 31 buildings including several banks in Bangkok, Thanom Onketpol, an adviser to the city’s governor, said on the PBS television network. Protesters also torched a city hall in Udon Thani province and seized a government building in Khon Kaen, both in the northeast of the country. Thailand is the world’s largest producer and shipper of rubber.
“Riots in Thailand were spreading from Bangkok to other areas, raising concern that violence may escalate further and disrupt transportation of the raw material,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.
Rubber for October delivery, the most-active contract, gained as much as 6.1 yen to 273.8 yen per kilogram ($2,984 a metric ton) before trading at 269.3 yen on the Tokyo Commodity Exchange at 11:52 a.m. local time.
The price earlier declined to as low as 262.6 yen as a drop in equities markets raised speculation that economic growth may stall. Asian stocks fell for the fifth straight day amid concern that Europe’s debt crisis may derail a recovery as governments take austerity measures to reduce deficits.
Risk Appetite
The risk appetite of investors also dropped as Germany this week introduced a temporary ban on naked short selling to calm the region’s financial markets.
“Germany’s short-sale restriction is prompting suspicion that the situation is actually worse than investors think,” said Mitsushige Akino, who oversees the equivalent of $450 million at Ichiyoshi Investment Management Co.
Rubber futures have retreated 20 percent after climbing to a 21-month high of 338.5 yen on April 16 on a seasonal drop in supply from Thailand.
Producers in Thailand’s south, the major growing area, have resumed tapping rubber trees as the low-production period known as wintering ends, Shigemoto said.
Thai shippers offered so-called RSS-3 grade rubber for July shipment at $3.50 a kilogram yesterday, up from $3.15 on May 14, he said.
September-delivery rubber on the Shanghai Futures Exchange added 0.5 percent to 21,955 yuan ($3,216) a ton at 10:58 a.m. local time.
(bloomberg.com)
Rubber Drops, Reversing Earlier Gains, as Asian Stocks Slump
Posted: 20 May 2010 05:45 PM PDT
May 20 (Bloomberg) -- Rubber declined, reversing earlier gains, as a slump in Asian stocks raised concern that the economic recovery may stall and reduce demand for the raw material used in tires.
Futures in Tokyo dropped for the first day in three. The price reached the highest level since May 11 earlier as clashes between Thai security forces and protesters stoked concern that supply from the world’s largest exporter may be disrupted.
Asian stocks tumbled after slower-than-estimated growth in Japan drove Tokyo shares lower for a second day. While the Japanese economy grew at the fastest pace in three quarters, the 4.9 percent expansion was less than the 5.5 percent median forecast of 21 economists in a Bloomberg survey.
“Losses in the equities markets eroded investor confidence in the recovery, leading to sales of rubber futures,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.
Rubber for October delivery, the most-active contract, lost 1.5 percent to settle at 263.8 yen per kilogram ($2,886 a metric ton) on the Tokyo Commodity Exchange.
The MSCI Asia Pacific Index lost 1.7 percent to 112.81 at 4:53 p.m. in Tokyo, while Japan’s Nikkei 225 Stock Average fell 1.5 percent to 10,030.31. Japan’s Finance Minister Naoto Kan warned that the economy was in a deflationary state.
Risk Appetite
The risk appetite of investors also dropped after Germany this week introduced a temporary ban on naked short-selling to calm the region’s financial markets.
“Germany’s short-sale restriction is prompting suspicion that the situation is actually worse than investors think,” said Mitsushige Akino, who oversees the equivalent of $450 million at Ichiyoshi Investment Management Co.
Losses in rubber futures were limited as fighting continued in Bangkok a day after the forced surrender of anti-government protesters left 16 people dead.
Rioters set fire to 31 buildings including several banks in Bangkok, Thanom Onketpol, an adviser to the city’s governor, said on the PBS television network. Protesters also torched a city hall in Udon Thani province and seized a government building in Khon Kaen, both in the northeast of the country.
“Riots in Thailand were spreading from Bangkok to other areas, raising concern that violence may escalate further and disrupt transportation of the raw material,” Shigemoto said.
Rubber futures have retreated 22 percent since reaching a 21-month high of 338.5 yen on April 16 on a seasonal drop in supply from Thailand.
Producers in Thailand’s south, the major growing area, have resumed tapping rubber trees as the low-production period known as wintering ends, Shigemoto said.
Cash prices in Thailand advanced on concerns that supplies will remain low because of drought, the Rubber Research Institute of Thailand said on its website today.
The price of Thai RSS-3 grade rubber for June delivery, which excludes freight and insurance, gained 1.7 percent today to 117.85 baht ($3.64) a kilogram, it said.
September-delivery rubber on the Shanghai Futures Exchange dropped 0.4 percent to 21,765 yuan ($3,188) a ton, reversing an earlier advance of 2.4 percent.
(bloomberg.com)
Rubber Futures in Tokyo Reverse Gains as Stock Market Declines
Posted: 20 May 2010 05:43 PM PDT
May 20 (Bloomberg) -- Rubber futures in Tokyo reversed earlier gains as Asian stocks dropped, raising concern that the economic recovery may stall.
The October-delivery contract lost 0.7 percent to 265.9 yen per kilogram at 2:49 p.m. local time. The price gained as much as 2.3 percent to 273.8 yen earlier.
(bloomberg.com)
China is the largest buyer of Malaysian rubber
Posted: 20 May 2010 05:31 PM PDT
Market Review on Rubber
Rubber advanced for the first time in three days as rising crude oil prices improved the appeal of the raw material used to make tyres. Futures gained as much as 1.9 percent after falling 3.6 percent on Monday to the lowest close in five months. Rubber has tumbled 24 percent since climbing to a 21-month high of 338.5 yen April 16. Tocom rubber opened higher on bargain hunting, stayed in positive territory, but gains only gathered pace in later part of trading day with investors covering
short positions as spot May supplies tight.
The much awaited south-west monsoon on Monday (May 17) brought first showers to the Andaman and Nicobar islands, setting the stage for its early progression towards Kerala, According to the Director General of the India Meteorological Department India, South-west monsoon has set in over parts of south Bay of Bengal, Andaman and Nicobar Islands and most parts of Andaman Sea.
A depression in the Bay of Bengal was expected to pull the monsoonal flow towards the mainland and it may reach Kerala earlier than May 30. Malaysia’s natural rubber production increased 48.4% year-on-year in March, the Department of Statistics said on May 14. On a monthly basis, however, production decreased 13.2%. The smallholdings sector contributed 95% of the total production, while the rest came from the estate sector. In March, natural rubber exports surged 88.6% annually and a strong growth of 40.9% was recorded monthly.
China topped the list of main buyers of Malaysian rubber with a share of 34.9% in the total exported rubber. Reliance Industries Ltd proposes to set up a joint venture with Russian petrochemical firm SIBUR to make synthetic rubber in India.
In a media release issued jointly on Sunday, the companies said the proposed joint venture make butyl rubber at RIL's petrochemical facility at Jamnagar, Gujarat.
(commodityonline.com)
Rubber Board to hold meetings for rubber growers
Posted: 20 May 2010 05:30 PM PDT
KOTTAYAM (Commodity Online): The Rubber Board will hold an intensive mass contact programme so as to bring awareness among the rubber growers about the need of improving the quality of sheet rubber and to impart training in scientific sheet rubber processing.
In a statement issued on Thursday, 20 May 2010 the board informed that the meetings are scheduled to be held from 1 June to 16 July 2010. Four thousand meetings with a participation of one lakh growers will be arranged in the traditional rubber growing belt of Kerala, Tamil Nadu and Karnataka with the active involvement of the Rubber Producers’ Societies.
“The tyre industry- especially the truck/bus tyre sector- consumes the major portion of the natural rubber. The tyre sector is now switching over to production of radial tyres, which have relatively superior quality and better life than the cross ply (bias) tyres. Sheet rubber of the quality RSS 4 and above is essential for the production of radial tyres. This will make it difficult for the growers to fetch good price for low quality sheets in future. The growers should therefore be prepared to improve the quality of their sheet rubber,” the Board maintained in a statement.
In addition to the main theme of quality improvement of sheet rubber, topics like tappers bank, low frequency tapping, controlled upward tapping, mechanisation in rubber cultivation, necessity of replanting, mosquito control in rubber estates etc will also be discussed in the campaign meetings.
Kottayam, May 21
The rubber prices moved up further on Friday. In spot, sheet rubber increased to Rs 165 from Rs 163 a kg mainly on covering purchases.
According to sources, the prices remained firm catalysed by the bullish global markets but the domestic markets appeared to be moving also under the grip of speculators. There were no quantity sellers even at higher levels probably due to acute short supply.
Futures gain
The June futures closed at Rs 166.50 (164.71), July at Rs 166.59 (164.71), August at Rs 158.12 (157.37) and September at Rs 153.70 (154.18) a kg for RSS 4 on National Multi Commodity Exchange. The May futures weakened to ¥367.8/Rs 191.95 (¥373), while the June futures improved to ¥350 (¥349.3), July to ¥322 (¥309.5) August to ¥284.8 (¥278), September to ¥271.6 (¥267.7) and October to ¥266.7 (¥263.8) a kg for RSS 3 during the day session on Tokyo Commodity Exchange. RSS 3 (spot) firmed up further to Rs 171.50 (168.04) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 165 (163); RSS-5: 162 (159); ungraded: 160 (156); ISNR 20: 142.50 (141) and latex 60 per cent: 103 (101).
Mangalore co-op to start rubber procurement
Mangalore, May 21
The Mangalore Agriculturists' Sahakari Sangha (MASS) Ltd, a co-operative involved in the procurement and marketing of arecanut, is planning to enter the rubber market.
Addressing presspersons here on Friday, Mr T.G. Rajarama Bhat, President of MASS Ltd, said that the cooperative has approached the Rubber Board for licence to procure rubber from growers in Karnataka. Once the co-operative gets permission, it will start procuring rubber at Sullia and Puttur towns of Dakshina Kannada district.
Now MASS acts as an agent for the Belthangady Rubber Society to procure rubber at Uppinangady in Dakshina Kannada district.
Rubber Gains to One-Week High as Thai Riots May Disrupt Supply
Posted: 20 May 2010 05:53 PM PDT
May 20 (Bloomberg) -- Rubber advanced to the highest level in more than a week as clashes between security forces and protesters in Thailand raised concern that supply from the world’s largest exporter may be disrupted.
Futures in Tokyo gained for a third day, advancing as much as 2.3 percent to the highest level since May 11, as fighting continued in Bangkok a day after the forced surrender of anti- government protesters left 16 people dead.
Rioters set fire to 31 buildings including several banks in Bangkok, Thanom Onketpol, an adviser to the city’s governor, said on the PBS television network. Protesters also torched a city hall in Udon Thani province and seized a government building in Khon Kaen, both in the northeast of the country. Thailand is the world’s largest producer and shipper of rubber.
“Riots in Thailand were spreading from Bangkok to other areas, raising concern that violence may escalate further and disrupt transportation of the raw material,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.
Rubber for October delivery, the most-active contract, gained as much as 6.1 yen to 273.8 yen per kilogram ($2,984 a metric ton) before trading at 269.3 yen on the Tokyo Commodity Exchange at 11:52 a.m. local time.
The price earlier declined to as low as 262.6 yen as a drop in equities markets raised speculation that economic growth may stall. Asian stocks fell for the fifth straight day amid concern that Europe’s debt crisis may derail a recovery as governments take austerity measures to reduce deficits.
Risk Appetite
The risk appetite of investors also dropped as Germany this week introduced a temporary ban on naked short selling to calm the region’s financial markets.
“Germany’s short-sale restriction is prompting suspicion that the situation is actually worse than investors think,” said Mitsushige Akino, who oversees the equivalent of $450 million at Ichiyoshi Investment Management Co.
Rubber futures have retreated 20 percent after climbing to a 21-month high of 338.5 yen on April 16 on a seasonal drop in supply from Thailand.
Producers in Thailand’s south, the major growing area, have resumed tapping rubber trees as the low-production period known as wintering ends, Shigemoto said.
Thai shippers offered so-called RSS-3 grade rubber for July shipment at $3.50 a kilogram yesterday, up from $3.15 on May 14, he said.
September-delivery rubber on the Shanghai Futures Exchange added 0.5 percent to 21,955 yuan ($3,216) a ton at 10:58 a.m. local time.
(bloomberg.com)
Rubber Drops, Reversing Earlier Gains, as Asian Stocks Slump
Posted: 20 May 2010 05:45 PM PDT
May 20 (Bloomberg) -- Rubber declined, reversing earlier gains, as a slump in Asian stocks raised concern that the economic recovery may stall and reduce demand for the raw material used in tires.
Futures in Tokyo dropped for the first day in three. The price reached the highest level since May 11 earlier as clashes between Thai security forces and protesters stoked concern that supply from the world’s largest exporter may be disrupted.
Asian stocks tumbled after slower-than-estimated growth in Japan drove Tokyo shares lower for a second day. While the Japanese economy grew at the fastest pace in three quarters, the 4.9 percent expansion was less than the 5.5 percent median forecast of 21 economists in a Bloomberg survey.
“Losses in the equities markets eroded investor confidence in the recovery, leading to sales of rubber futures,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.
Rubber for October delivery, the most-active contract, lost 1.5 percent to settle at 263.8 yen per kilogram ($2,886 a metric ton) on the Tokyo Commodity Exchange.
The MSCI Asia Pacific Index lost 1.7 percent to 112.81 at 4:53 p.m. in Tokyo, while Japan’s Nikkei 225 Stock Average fell 1.5 percent to 10,030.31. Japan’s Finance Minister Naoto Kan warned that the economy was in a deflationary state.
Risk Appetite
The risk appetite of investors also dropped after Germany this week introduced a temporary ban on naked short-selling to calm the region’s financial markets.
“Germany’s short-sale restriction is prompting suspicion that the situation is actually worse than investors think,” said Mitsushige Akino, who oversees the equivalent of $450 million at Ichiyoshi Investment Management Co.
Losses in rubber futures were limited as fighting continued in Bangkok a day after the forced surrender of anti-government protesters left 16 people dead.
Rioters set fire to 31 buildings including several banks in Bangkok, Thanom Onketpol, an adviser to the city’s governor, said on the PBS television network. Protesters also torched a city hall in Udon Thani province and seized a government building in Khon Kaen, both in the northeast of the country.
“Riots in Thailand were spreading from Bangkok to other areas, raising concern that violence may escalate further and disrupt transportation of the raw material,” Shigemoto said.
Rubber futures have retreated 22 percent since reaching a 21-month high of 338.5 yen on April 16 on a seasonal drop in supply from Thailand.
Producers in Thailand’s south, the major growing area, have resumed tapping rubber trees as the low-production period known as wintering ends, Shigemoto said.
Cash prices in Thailand advanced on concerns that supplies will remain low because of drought, the Rubber Research Institute of Thailand said on its website today.
The price of Thai RSS-3 grade rubber for June delivery, which excludes freight and insurance, gained 1.7 percent today to 117.85 baht ($3.64) a kilogram, it said.
September-delivery rubber on the Shanghai Futures Exchange dropped 0.4 percent to 21,765 yuan ($3,188) a ton, reversing an earlier advance of 2.4 percent.
(bloomberg.com)
Rubber Futures in Tokyo Reverse Gains as Stock Market Declines
Posted: 20 May 2010 05:43 PM PDT
May 20 (Bloomberg) -- Rubber futures in Tokyo reversed earlier gains as Asian stocks dropped, raising concern that the economic recovery may stall.
The October-delivery contract lost 0.7 percent to 265.9 yen per kilogram at 2:49 p.m. local time. The price gained as much as 2.3 percent to 273.8 yen earlier.
(bloomberg.com)
China is the largest buyer of Malaysian rubber
Posted: 20 May 2010 05:31 PM PDT
Market Review on Rubber
Rubber advanced for the first time in three days as rising crude oil prices improved the appeal of the raw material used to make tyres. Futures gained as much as 1.9 percent after falling 3.6 percent on Monday to the lowest close in five months. Rubber has tumbled 24 percent since climbing to a 21-month high of 338.5 yen April 16. Tocom rubber opened higher on bargain hunting, stayed in positive territory, but gains only gathered pace in later part of trading day with investors covering
short positions as spot May supplies tight.
The much awaited south-west monsoon on Monday (May 17) brought first showers to the Andaman and Nicobar islands, setting the stage for its early progression towards Kerala, According to the Director General of the India Meteorological Department India, South-west monsoon has set in over parts of south Bay of Bengal, Andaman and Nicobar Islands and most parts of Andaman Sea.
A depression in the Bay of Bengal was expected to pull the monsoonal flow towards the mainland and it may reach Kerala earlier than May 30. Malaysia’s natural rubber production increased 48.4% year-on-year in March, the Department of Statistics said on May 14. On a monthly basis, however, production decreased 13.2%. The smallholdings sector contributed 95% of the total production, while the rest came from the estate sector. In March, natural rubber exports surged 88.6% annually and a strong growth of 40.9% was recorded monthly.
China topped the list of main buyers of Malaysian rubber with a share of 34.9% in the total exported rubber. Reliance Industries Ltd proposes to set up a joint venture with Russian petrochemical firm SIBUR to make synthetic rubber in India.
In a media release issued jointly on Sunday, the companies said the proposed joint venture make butyl rubber at RIL's petrochemical facility at Jamnagar, Gujarat.
(commodityonline.com)
Rubber Board to hold meetings for rubber growers
Posted: 20 May 2010 05:30 PM PDT
KOTTAYAM (Commodity Online): The Rubber Board will hold an intensive mass contact programme so as to bring awareness among the rubber growers about the need of improving the quality of sheet rubber and to impart training in scientific sheet rubber processing.
In a statement issued on Thursday, 20 May 2010 the board informed that the meetings are scheduled to be held from 1 June to 16 July 2010. Four thousand meetings with a participation of one lakh growers will be arranged in the traditional rubber growing belt of Kerala, Tamil Nadu and Karnataka with the active involvement of the Rubber Producers’ Societies.
“The tyre industry- especially the truck/bus tyre sector- consumes the major portion of the natural rubber. The tyre sector is now switching over to production of radial tyres, which have relatively superior quality and better life than the cross ply (bias) tyres. Sheet rubber of the quality RSS 4 and above is essential for the production of radial tyres. This will make it difficult for the growers to fetch good price for low quality sheets in future. The growers should therefore be prepared to improve the quality of their sheet rubber,” the Board maintained in a statement.
In addition to the main theme of quality improvement of sheet rubber, topics like tappers bank, low frequency tapping, controlled upward tapping, mechanisation in rubber cultivation, necessity of replanting, mosquito control in rubber estates etc will also be discussed in the campaign meetings.
Friday, May 21, 2010
Spot rubber improves on short covering
Spot rubber improves on short covering
Kottayam, May 20
Spot rubber flared up on Thursday. The market moved up as speculators took charge to encash the situation inspired by the higher rates in the futures markets mainly TOCOM. Sheet rubber improved to Rs 163 from Rs 160 a kg on fresh buying and short covering. There were no genuine consumer buyers in the market and the prices strengthened on speculative buying, an observer said.
Futures improve
The June futures declined to Rs 164.90 (161.17), July to Rs 164.63 (160.99), August to Rs 157.51 (154.92) and September to Rs 154.50 (150.65) a kg for RSS 4 on the National Multi Commodity Exchange. RSS 3 improved with the May futures rising to ¥373/Rs 192.40 (¥372), June to ¥349.3 (¥345.2) and July to ¥309.5 (¥305) while the August futures weakened to ¥278 (¥280.7), September to ¥267.7 (¥270.8) and October to ¥263.8 (¥267.7) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 increased to Rs 168.04 (163.58) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 163 (160); RSS-5: 159 (156); ungraded: 156 (154); ISNR 20: 141 (139) and latex 60 per cent: 101 (98.50).
Rubber Set for Fifth Weekly Drop as Economic Recovery May Slow
May 21 (Bloomberg) -- Rubber headed for a fifth weekly decline as concern grew European governments may fail to contain the region’s debt crisis, curbing the global economic recovery and reducing raw material demand.
Futures in Tokyo dropped for a second day and lost as much as 3 percent. The market also came under pressure after Japan’s currency rallied to a two-week high against the dollar, cutting the appeal of yen-denominated contracts.
Treasury Secretary Timothy F. Geithner will visit Germany and the U.K. next week “to discuss the economic situation in the region and the measures being taken to restore global confidence and financial stability,” the Treasury Department said yesterday. U.S. stocks plunged yesterday, with the Standard & Poor’s 500 Index losing the most in 13 months, after jobless claims increased and mortgage foreclosures jumped.
“Investors are eager to cut holdings of their risk assets for cash,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone.
Rubber for October delivery, the most-active contract, lost as much as 7.8 yen to 256.0 yen per kilogram ($2,843 a metric ton) before trading at 260.1 yen on the Tokyo Commodity Exchange at 11:02 a.m. local time.
The MSCI Asia Pacific Index declined for a sixth day, losing 1.9 percent. Oil slumped yesterday to the lowest settlement since Sept. 29.
“Investors are avoiding risk in the face of Europe’s sovereign debt crisis,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. “With no exit for Europe’s problem in sight, people are afraid a global financial crisis will erupt.”
Thai Turmoil
Losses in rubber futures were limited as political turmoil in Thailand raised concern that supply from the world’s largest exporter may be disrupted.
Thailand’s military ended its mission to disperse anti- government protesters from their central Bangkok base after a May 19 assault left 15 people dead and sparked arson attacks on shopping malls and banks. Troops will now assist police enforcing a 9 p.m. to 5 a.m. curfew in a third of the country through May 22, army commander Daopong Rattansuwan said in a televised briefing late last night.
“As rubber production and shipment operations are mainly done in the nation’s southern area, violence in Bangkok and other cities may not have had a major impact on the physical trade,” Sugata said.
Rubber futures have retreated since reaching a 21-month high of 338.5 yen on April 16 on a seasonal drop in Thai production and amid optimism that global economic recovery will increase demand for the commodity used in tires.
Thai RSS-3 grade rubber for June delivery gained 1.7 percent today to 117.85 baht ($3.64) a kilogram, excluding freight and insurance, the Rubber Research Institute of Thailand said on its website yesterday.
September-delivery rubber on the Shanghai Futures Exchange lost 1.6 percent to 21,415 yuan ($3,137) a ton at 10:06 a.m. local time.
Kottayam, May 20
Spot rubber flared up on Thursday. The market moved up as speculators took charge to encash the situation inspired by the higher rates in the futures markets mainly TOCOM. Sheet rubber improved to Rs 163 from Rs 160 a kg on fresh buying and short covering. There were no genuine consumer buyers in the market and the prices strengthened on speculative buying, an observer said.
Futures improve
The June futures declined to Rs 164.90 (161.17), July to Rs 164.63 (160.99), August to Rs 157.51 (154.92) and September to Rs 154.50 (150.65) a kg for RSS 4 on the National Multi Commodity Exchange. RSS 3 improved with the May futures rising to ¥373/Rs 192.40 (¥372), June to ¥349.3 (¥345.2) and July to ¥309.5 (¥305) while the August futures weakened to ¥278 (¥280.7), September to ¥267.7 (¥270.8) and October to ¥263.8 (¥267.7) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 increased to Rs 168.04 (163.58) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 163 (160); RSS-5: 159 (156); ungraded: 156 (154); ISNR 20: 141 (139) and latex 60 per cent: 101 (98.50).
Rubber Set for Fifth Weekly Drop as Economic Recovery May Slow
May 21 (Bloomberg) -- Rubber headed for a fifth weekly decline as concern grew European governments may fail to contain the region’s debt crisis, curbing the global economic recovery and reducing raw material demand.
Futures in Tokyo dropped for a second day and lost as much as 3 percent. The market also came under pressure after Japan’s currency rallied to a two-week high against the dollar, cutting the appeal of yen-denominated contracts.
Treasury Secretary Timothy F. Geithner will visit Germany and the U.K. next week “to discuss the economic situation in the region and the measures being taken to restore global confidence and financial stability,” the Treasury Department said yesterday. U.S. stocks plunged yesterday, with the Standard & Poor’s 500 Index losing the most in 13 months, after jobless claims increased and mortgage foreclosures jumped.
“Investors are eager to cut holdings of their risk assets for cash,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone.
Rubber for October delivery, the most-active contract, lost as much as 7.8 yen to 256.0 yen per kilogram ($2,843 a metric ton) before trading at 260.1 yen on the Tokyo Commodity Exchange at 11:02 a.m. local time.
The MSCI Asia Pacific Index declined for a sixth day, losing 1.9 percent. Oil slumped yesterday to the lowest settlement since Sept. 29.
“Investors are avoiding risk in the face of Europe’s sovereign debt crisis,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. “With no exit for Europe’s problem in sight, people are afraid a global financial crisis will erupt.”
Thai Turmoil
Losses in rubber futures were limited as political turmoil in Thailand raised concern that supply from the world’s largest exporter may be disrupted.
Thailand’s military ended its mission to disperse anti- government protesters from their central Bangkok base after a May 19 assault left 15 people dead and sparked arson attacks on shopping malls and banks. Troops will now assist police enforcing a 9 p.m. to 5 a.m. curfew in a third of the country through May 22, army commander Daopong Rattansuwan said in a televised briefing late last night.
“As rubber production and shipment operations are mainly done in the nation’s southern area, violence in Bangkok and other cities may not have had a major impact on the physical trade,” Sugata said.
Rubber futures have retreated since reaching a 21-month high of 338.5 yen on April 16 on a seasonal drop in Thai production and amid optimism that global economic recovery will increase demand for the commodity used in tires.
Thai RSS-3 grade rubber for June delivery gained 1.7 percent today to 117.85 baht ($3.64) a kilogram, excluding freight and insurance, the Rubber Research Institute of Thailand said on its website yesterday.
September-delivery rubber on the Shanghai Futures Exchange lost 1.6 percent to 21,415 yuan ($3,137) a ton at 10:06 a.m. local time.
Thursday, May 20, 2010
Mixed trend in rubber
Mixed trend in rubber
Kottayam, May 19
Physical rubber prices witnessed a mixed mood on Wednesday. Sheet rubber closed unchanged at Rs 160 a kg on buyer resistance possibly since the domestic futures were in a corrective phase during the session. According to observers, the market seemed to be struggling to hold on the gains lacking strong consumer support above Rs 150 a kg for sheet rubber. The transactions were in a low key.
Futures decline
The June futures declined to Rs 161.20 (163.42), July to Rs 160.90 (163.37), August to Rs 154.70 (158.14) and September to Rs 151.24 (153.76) a kg for RSS 4 on the National Multi Commodity Exchange. RSS 3 improved further at the May futures to ¥372(Rs 188.70) (¥370), June to ¥345.2 (¥338.8), July to ¥305 (¥295), August to ¥380.7 (¥273.4), September to ¥270.8 (¥264.1) and October to ¥267.7 (¥262) a kg during the day session on the Tokyo Commodity Exchange. The May futures closed at ¥375 (Rs 190.05), June at ¥342.1, July at ¥305.4, August at ¥275.7, September at ¥265.6 and October at ¥262.8 a kg during the night session. RSS 3 improved further to Rs 163.58 (160.42) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 160 (160); RSS-5: 156 (155); ungraded: 154 (152); ISNR 20: 139 (138) and latex 60 per cent: 98.50 (97).
Oil, Copper, Zinc Tumble as Commodities Slide on Euro Concern
Posted: 18 May 2010 11:24 PM PDT
By James Poole
May 19 (Bloomberg) -- Crude oil, copper, zinc and rubber dropped on concern Europe’s debt crisis will worsen, derailing economic growth and hurting demand for commodities.
Oil for June delivery slumped as much as 2 percent to $68.05 a barrel before trading at $68.14 at 8:46 a.m. Singapore time. Copper for three-month delivery declined 2.8 percent to $6,505 per ton, zinc slid 3.5 percent to $1,871 per ton and rubber fell 1.6 percent to 257.80 yen per kilogram.
(bloomberg.com)
Rise in spot rubber prices
Posted: 18 May 2010 11:23 PM PDT
On Tuesday (18 May 2010), the spot rubber prices rose due to speculative interests. Another bull run in the domestic and international markets mainly TOCOM catalysed the day's mood. Sheet rubber increased sharply to Rs 160 (Rs 155) per kg amidst scattered transactions.
The June futures for RSS 4 rose to Rs 163.30 (157.90), July to Rs 163.11 (157.72) and August to Rs 158 (154.34) a kg on National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 155 (154); RSS-5: 151 (150); ungraded: 148 (147.50); ISNR 20: 136 (137) and latex 60 per cent: 96 (97).
(indiainfoline.com)
Synthetic rubber output up 27% in Feb
Posted: 18 May 2010 11:22 PM PDT
The production of synthetic rubber went up by 24.2% to 8,768 tonne in February against 7,055 tonne in the year-ago period, according to the latest Rubber Board data. Consumption grew by about 30% to 31,440 tonne in February 2010 over 24,210 tonne in the same month last year, on the back of high demand from auto tyre manufacturers.
Rubber Gains to One-Week High as Thai Riots May Disrupt Supply
May 20 (Bloomberg) -- Rubber advanced to the highest level in more than a week as clashes between security forces and protesters in Thailand raised concern that supply from the world’s largest exporter may be disrupted.
Futures in Tokyo gained for a third day, advancing as much as 2.3 percent to the highest level since May 11, as fighting continued in Bangkok a day after the forced surrender of anti- government protesters left 16 people dead.
Rioters set fire to 31 buildings including several banks in Bangkok, Thanom Onketpol, an adviser to the city’s governor, said on the PBS television network. Protesters also torched a city hall in Udon Thani province and seized a government building in Khon Kaen, both in the northeast of the country. Thailand is the world’s largest producer and shipper of rubber.
“Riots in Thailand were spreading from Bangkok to other areas, raising concern that violence may escalate further and disrupt transportation of the raw material,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.
Rubber for October delivery, the most-active contract, gained as much as 6.1 yen to 273.8 yen per kilogram ($2,984 a metric ton) before trading at 269.3 yen on the Tokyo Commodity Exchange at 11:52 a.m. local time.
The price earlier declined to as low as 262.6 yen as a drop in equities markets raised speculation that economic growth may stall. Asian stocks fell for the fifth straight day amid concern that Europe’s debt crisis may derail a recovery as governments take austerity measures to reduce deficits.
Risk Appetite
The risk appetite of investors also dropped as Germany this week introduced a temporary ban on naked short selling to calm the region’s financial markets.
“Germany’s short-sale restriction is prompting suspicion that the situation is actually worse than investors think,” said Mitsushige Akino, who oversees the equivalent of $450 million at Ichiyoshi Investment Management Co.
Rubber futures have retreated 20 percent after climbing to a 21-month high of 338.5 yen on April 16 on a seasonal drop in supply from Thailand.
Producers in Thailand’s south, the major growing area, have resumed tapping rubber trees as the low-production period known as wintering ends, Shigemoto said.
Thai shippers offered so-called RSS-3 grade rubber for July shipment at $3.50 a kilogram yesterday, up from $3.15 on May 14, he said.
September-delivery rubber on the Shanghai Futures Exchange added 0.5 percent to 21,955 yuan ($3,216) a ton at 10:58 a.m. local time.
Kottayam, May 19
Physical rubber prices witnessed a mixed mood on Wednesday. Sheet rubber closed unchanged at Rs 160 a kg on buyer resistance possibly since the domestic futures were in a corrective phase during the session. According to observers, the market seemed to be struggling to hold on the gains lacking strong consumer support above Rs 150 a kg for sheet rubber. The transactions were in a low key.
Futures decline
The June futures declined to Rs 161.20 (163.42), July to Rs 160.90 (163.37), August to Rs 154.70 (158.14) and September to Rs 151.24 (153.76) a kg for RSS 4 on the National Multi Commodity Exchange. RSS 3 improved further at the May futures to ¥372(Rs 188.70) (¥370), June to ¥345.2 (¥338.8), July to ¥305 (¥295), August to ¥380.7 (¥273.4), September to ¥270.8 (¥264.1) and October to ¥267.7 (¥262) a kg during the day session on the Tokyo Commodity Exchange. The May futures closed at ¥375 (Rs 190.05), June at ¥342.1, July at ¥305.4, August at ¥275.7, September at ¥265.6 and October at ¥262.8 a kg during the night session. RSS 3 improved further to Rs 163.58 (160.42) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 160 (160); RSS-5: 156 (155); ungraded: 154 (152); ISNR 20: 139 (138) and latex 60 per cent: 98.50 (97).
Oil, Copper, Zinc Tumble as Commodities Slide on Euro Concern
Posted: 18 May 2010 11:24 PM PDT
By James Poole
May 19 (Bloomberg) -- Crude oil, copper, zinc and rubber dropped on concern Europe’s debt crisis will worsen, derailing economic growth and hurting demand for commodities.
Oil for June delivery slumped as much as 2 percent to $68.05 a barrel before trading at $68.14 at 8:46 a.m. Singapore time. Copper for three-month delivery declined 2.8 percent to $6,505 per ton, zinc slid 3.5 percent to $1,871 per ton and rubber fell 1.6 percent to 257.80 yen per kilogram.
(bloomberg.com)
Rise in spot rubber prices
Posted: 18 May 2010 11:23 PM PDT
On Tuesday (18 May 2010), the spot rubber prices rose due to speculative interests. Another bull run in the domestic and international markets mainly TOCOM catalysed the day's mood. Sheet rubber increased sharply to Rs 160 (Rs 155) per kg amidst scattered transactions.
The June futures for RSS 4 rose to Rs 163.30 (157.90), July to Rs 163.11 (157.72) and August to Rs 158 (154.34) a kg on National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 155 (154); RSS-5: 151 (150); ungraded: 148 (147.50); ISNR 20: 136 (137) and latex 60 per cent: 96 (97).
(indiainfoline.com)
Synthetic rubber output up 27% in Feb
Posted: 18 May 2010 11:22 PM PDT
The production of synthetic rubber went up by 24.2% to 8,768 tonne in February against 7,055 tonne in the year-ago period, according to the latest Rubber Board data. Consumption grew by about 30% to 31,440 tonne in February 2010 over 24,210 tonne in the same month last year, on the back of high demand from auto tyre manufacturers.
Rubber Gains to One-Week High as Thai Riots May Disrupt Supply
May 20 (Bloomberg) -- Rubber advanced to the highest level in more than a week as clashes between security forces and protesters in Thailand raised concern that supply from the world’s largest exporter may be disrupted.
Futures in Tokyo gained for a third day, advancing as much as 2.3 percent to the highest level since May 11, as fighting continued in Bangkok a day after the forced surrender of anti- government protesters left 16 people dead.
Rioters set fire to 31 buildings including several banks in Bangkok, Thanom Onketpol, an adviser to the city’s governor, said on the PBS television network. Protesters also torched a city hall in Udon Thani province and seized a government building in Khon Kaen, both in the northeast of the country. Thailand is the world’s largest producer and shipper of rubber.
“Riots in Thailand were spreading from Bangkok to other areas, raising concern that violence may escalate further and disrupt transportation of the raw material,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.
Rubber for October delivery, the most-active contract, gained as much as 6.1 yen to 273.8 yen per kilogram ($2,984 a metric ton) before trading at 269.3 yen on the Tokyo Commodity Exchange at 11:52 a.m. local time.
The price earlier declined to as low as 262.6 yen as a drop in equities markets raised speculation that economic growth may stall. Asian stocks fell for the fifth straight day amid concern that Europe’s debt crisis may derail a recovery as governments take austerity measures to reduce deficits.
Risk Appetite
The risk appetite of investors also dropped as Germany this week introduced a temporary ban on naked short selling to calm the region’s financial markets.
“Germany’s short-sale restriction is prompting suspicion that the situation is actually worse than investors think,” said Mitsushige Akino, who oversees the equivalent of $450 million at Ichiyoshi Investment Management Co.
Rubber futures have retreated 20 percent after climbing to a 21-month high of 338.5 yen on April 16 on a seasonal drop in supply from Thailand.
Producers in Thailand’s south, the major growing area, have resumed tapping rubber trees as the low-production period known as wintering ends, Shigemoto said.
Thai shippers offered so-called RSS-3 grade rubber for July shipment at $3.50 a kilogram yesterday, up from $3.15 on May 14, he said.
September-delivery rubber on the Shanghai Futures Exchange added 0.5 percent to 21,955 yuan ($3,216) a ton at 10:58 a.m. local time.
Wednesday, May 19, 2010
Rubber hits Rs 160/kg
Rubber hits Rs 160/kg
Kottayam, May 18
Spot rubber made smart gains on Tuesday. Another bull run in the domestic and international markets mainly TOCOM catalysed the day's mood but, according to observers, the prices moved up here on speculative interests. Sheet rubber improved sharply to Rs 160 (Rs 155) a kg amidst scattered transactions. The volumes were dull.
Futures recover
The June futures for RSS 4 bounced back to Rs 163.30 (157.90), July to Rs 163.11 (157.72) and August to Rs 158 (154.34) a kg on National Multi Commodity Exchange. RSS 3 was firm at Rs 160.42 (158.59) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 160 (155); RSS-5: 155 (151); ungraded: 152 (148); ISNR 20: 138 (136) and latex 60 per cent: 97 (96).
Asia Rubber-Tight supply delays Thai shipment; SIR20 traded
Posted: 18 May 2010 06:28 AM PDT
* Some Thai shipments delayed, traders shrug off violence
* SIR20, SMR20 done at $2.70 to $2.80/kg
* China chases nearby shipments
By Lewa Pardomuan
SINGAPORE, May 18 (Reuters) - Tight supply has caused the delay of several shipments of Thai rubber but the deadly violence in the capital Bangkok has had little impact on physical trading, dealers said on Tuesday.
China and major tyre makers such as Bridgestone Corp (5108.T) are in the market for nearby shipments, and a few deals for Indonesia's SIR20 and Malaysia's SMR20 were struck late on Monday at less than $3 a kg, they said.
But some consumers turned their backs on Thai RSS3 grade because of the high prices and a price gap between June and July cargoes. Heavy rains have disrupted tapping in main producer Thailand, leading to tight supplies.
"It's very difficult to trade now. Bridgestone is looking to buy RSS3 at $3.15 while sellers are quoting it at $3.40 for July shipment. The price gap is too big," said a dealer in Thailand'+s southern city of Hat Yai.
"There are some delays in shipments for May/June shipment mostly to major consumers such as Bridgestone and Michelin, but it has something to do with tight supply. There are no problems in the port of Bangkok. The protesters don't go into the port." Thai anti-government protesters agreed on Tuesday to talks brokered by a Senate leader to end Thailand's deadliest political crisis in 18 years, but analysts doubted the negotiations would halt the spiralling violence. [ID:nSGE64H027] Although the physical market was normal in Thailand, difficulties in getting raw material had caused a slowdown in activity. Consumers desperate for June shipment will have to pay as high as $3.60 a kg -- 20 cents higher than for July cargo.
Physical rubber struck a record high of $4.10 a kg in mid-April. For details on physical prices, click on [ID:nSGE64H02D]
In second largest producer Indonesia, SIR20 changed hands at $1.22 per pound for July delivery and at $1.23 to $1.24 per pound for June, indicating tightness in supply for prompt shipment.
"There are not many sellers around but we heard about several deals last night. China is around but they are not so aggressive," said a dealer in Indonesia's main growing island of Sumatra, referring to the world's largest consumer.
China's rubber stocks have seen a steady decline since February as consumers turned to domestic warehouses for supplies but there were signs they were stocking up again.
Deliverable rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 16.6 percent from one week earlier, the exchange said on May 14
"China has been buying quite substantially in the past few days, but maybe because we are selling cheaply," said a physical dealer in Singapore. "We sold SMR20 at $2.80, while others offer the grade at $2.90." (Additional reporting by Apornrath Phoonphongphiphat in BANGKOK; Editing by Ed Lane)
(reuters.com)
Dealers set to raise tyre prices
Posted: 18 May 2010 01:01 AM PDT
BRUNEI - Tyre dealers are poised to raise prices in the coming months, with some vendors saying the adjustment could be as much as 10 per cent amid a sharp rise in the global prices of rubber.
"Tyre prices will be increased accordingly with the increase in price for rubber and other raw materials used in producing tyres," said Jasmain Tay, general manager of Hock Motor Company, distributor of Goodyear, Dunlop, Silverstone and Yokohama branded tyres.
He said that Hock Motor was still studying the move, hence any adjustments should not come into effect until July.
A representative from Sin Hup Huat Co, authorised distributor of Michelin tyres in Brunei, also said the firm would be raising prices, but did not comment further.
Guan Ho Hin, a dealer of branded tyres, would also hike prices sometime next month, an employee said. "The price will go up, maybe about 10 per cent, but exactly how much, it's difficult to actually say. It depends on the size and the pattern of the tyre."
Two weeks ago, French tyre maker Michelin announced it would be increasing prices to offset higher costs of raw materials rubber.
"Tight supplies in major producing countries like Thailand and Malaysia, and a spike in demand (worldwide)," are contributing factors for the volatility of rubber prices, according to wire agency Reuters.
World rubber prices were volatile for much of this year after surging in 2009 due to supply shortages.
In a press statement, Jean-Dominique Senard, one of Michelin's three managing partners, called the "violent increase" in rubber prices a "real issue" for 2010, saying that Michelin was going to ensure that sale prices reflect the rise in costs they are experiencing.
Prices could balance out again in 2013-14, he noted.
Michelin said it had suffered a 10 per cent drop in sales for 2009, during the global economic downturn when the tyre maker released its full-year results, citing rising rubber prices and an unclear market outlook as reasons for being "extremely vigilant".
Italian rival Pirelli & C SpA had also said it was considering raising tyre prices to offset raw material costs, including the cost of natural rubber.
Tay of Guan Hock Motor said freight prices were also a factor in the cost competitiveness of tyre products as they were directly shipped to Brunei from Europe. "If freight prices go down then of course it's going to be good."
He added that while it was something that needed to be addressed, high freight prices are generally similar to raw material prices, whereby the buyer does not have any control over it.
"Any increase in costing, for example (rubber or freight), will naturally increase overall prices for consumers," he said.
(motoring.asiaone.com)
Rubber Climbs for First Day in Three as Oil Rally Boosts Appeal
Posted: 18 May 2010 12:59 AM PDT
By Supunnabul Suwannakij and Aya Takada
May 18 (Bloomberg) -- Rubber advanced for the first time in three days as rising crude oil prices improved the appeal of the raw material used to make tires.
Futures gained as much as 4.1 percent after falling 3.6 percent yesterday to the lowest close in five months. The price reached a 21-month high of 338.5 yen per kilogram ($3,656 a metric ton) April 16 on a seasonal decrease in supply from Thailand, the largest exporter.
Crude oil advanced for the first time in six days as some investors took the view a drop below $70 a barrel made the commodity attractive to buy. Natural rubber typically tracks oil prices as a gain in crude boosts the cost of synthetic rubber made from petroleum.
“Oil staying above $70 a barrel provides positive sentiment to the rubber market,” Chaiwat Muenmee, an analyst at broker DS Futures Co., said by phone from Bangkok.
Rubber for October delivery, the most-active contract, gained as much as 10.3 yen to 263.1 yen before settling at 262 yen on the Tokyo Commodity Exchange.
Crude oil for June delivery climbed as much as 1.5 percent to $71.12 a barrel on the New York Mercantile Exchange before trading at $70.99 at 4:07 p.m. in Tokyo. Yesterday, the contract fell to $70.08 a barrel, the lowest settlement since Dec. 14.
The cash market in Thailand, world’s largest producer, remains closed for a second day as political turmoil escalates. At least 38 people have been killed since May 13 and more than 200 injured after protesters occupied parts of downtown Bangkok.
“The political turmoil is unlikely to affect the Tocom market as rubber exports haven’t been disrupted,” said Chaiwat.
September-delivery rubber on the Shanghai Futures Exchange added 3.6 percent to 21,825 yuan ($3,197) a ton.
Synthetic rubber output up 13%
Posted: 17 May 2010 03:43 PM PDT
India’s synthetic rubber output during the 11 months ending February 2010 rose 12.6% on year to 98,280 tonnes from 87,251 tonnes, according to data released by the Rubber Board today.
The demand for synthetic rubber rose 17.6% on year to 3,13,405 tonnes from 2,66,465 tonnes, it said. The volume of synthetic rubber import rose 28% on year to 2,24,948 tonnes from 1,75,595 tonnes.
During February, synthetic rubber production rose 24% on year to 8,768 tonnes from 7,055 tonnes, while consumption moved up 30% to 31,440 tonnes as against 24,210 tonnes last year. Synthetic rubber import in February rose to 21,607 tonnes from 9,765 tonnes a year ago.
India imports bulk of its synthetic rubber, a derivative of petroleum, and its price is closely linked to global crude oil prices.
Kottayam, May 18
Spot rubber made smart gains on Tuesday. Another bull run in the domestic and international markets mainly TOCOM catalysed the day's mood but, according to observers, the prices moved up here on speculative interests. Sheet rubber improved sharply to Rs 160 (Rs 155) a kg amidst scattered transactions. The volumes were dull.
Futures recover
The June futures for RSS 4 bounced back to Rs 163.30 (157.90), July to Rs 163.11 (157.72) and August to Rs 158 (154.34) a kg on National Multi Commodity Exchange. RSS 3 was firm at Rs 160.42 (158.59) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 160 (155); RSS-5: 155 (151); ungraded: 152 (148); ISNR 20: 138 (136) and latex 60 per cent: 97 (96).
Asia Rubber-Tight supply delays Thai shipment; SIR20 traded
Posted: 18 May 2010 06:28 AM PDT
* Some Thai shipments delayed, traders shrug off violence
* SIR20, SMR20 done at $2.70 to $2.80/kg
* China chases nearby shipments
By Lewa Pardomuan
SINGAPORE, May 18 (Reuters) - Tight supply has caused the delay of several shipments of Thai rubber but the deadly violence in the capital Bangkok has had little impact on physical trading, dealers said on Tuesday.
China and major tyre makers such as Bridgestone Corp (5108.T) are in the market for nearby shipments, and a few deals for Indonesia's SIR20 and Malaysia's SMR20 were struck late on Monday at less than $3 a kg, they said.
But some consumers turned their backs on Thai RSS3 grade because of the high prices and a price gap between June and July cargoes. Heavy rains have disrupted tapping in main producer Thailand, leading to tight supplies.
"It's very difficult to trade now. Bridgestone is looking to buy RSS3 at $3.15 while sellers are quoting it at $3.40 for July shipment. The price gap is too big," said a dealer in Thailand'+s southern city of Hat Yai.
"There are some delays in shipments for May/June shipment mostly to major consumers such as Bridgestone and Michelin, but it has something to do with tight supply. There are no problems in the port of Bangkok. The protesters don't go into the port." Thai anti-government protesters agreed on Tuesday to talks brokered by a Senate leader to end Thailand's deadliest political crisis in 18 years, but analysts doubted the negotiations would halt the spiralling violence. [ID:nSGE64H027] Although the physical market was normal in Thailand, difficulties in getting raw material had caused a slowdown in activity. Consumers desperate for June shipment will have to pay as high as $3.60 a kg -- 20 cents higher than for July cargo.
Physical rubber struck a record high of $4.10 a kg in mid-April. For details on physical prices, click on [ID:nSGE64H02D]
In second largest producer Indonesia, SIR20 changed hands at $1.22 per pound for July delivery and at $1.23 to $1.24 per pound for June, indicating tightness in supply for prompt shipment.
"There are not many sellers around but we heard about several deals last night. China is around but they are not so aggressive," said a dealer in Indonesia's main growing island of Sumatra, referring to the world's largest consumer.
China's rubber stocks have seen a steady decline since February as consumers turned to domestic warehouses for supplies but there were signs they were stocking up again.
Deliverable rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 16.6 percent from one week earlier, the exchange said on May 14
"China has been buying quite substantially in the past few days, but maybe because we are selling cheaply," said a physical dealer in Singapore. "We sold SMR20 at $2.80, while others offer the grade at $2.90." (Additional reporting by Apornrath Phoonphongphiphat in BANGKOK; Editing by Ed Lane)
(reuters.com)
Dealers set to raise tyre prices
Posted: 18 May 2010 01:01 AM PDT
BRUNEI - Tyre dealers are poised to raise prices in the coming months, with some vendors saying the adjustment could be as much as 10 per cent amid a sharp rise in the global prices of rubber.
"Tyre prices will be increased accordingly with the increase in price for rubber and other raw materials used in producing tyres," said Jasmain Tay, general manager of Hock Motor Company, distributor of Goodyear, Dunlop, Silverstone and Yokohama branded tyres.
He said that Hock Motor was still studying the move, hence any adjustments should not come into effect until July.
A representative from Sin Hup Huat Co, authorised distributor of Michelin tyres in Brunei, also said the firm would be raising prices, but did not comment further.
Guan Ho Hin, a dealer of branded tyres, would also hike prices sometime next month, an employee said. "The price will go up, maybe about 10 per cent, but exactly how much, it's difficult to actually say. It depends on the size and the pattern of the tyre."
Two weeks ago, French tyre maker Michelin announced it would be increasing prices to offset higher costs of raw materials rubber.
"Tight supplies in major producing countries like Thailand and Malaysia, and a spike in demand (worldwide)," are contributing factors for the volatility of rubber prices, according to wire agency Reuters.
World rubber prices were volatile for much of this year after surging in 2009 due to supply shortages.
In a press statement, Jean-Dominique Senard, one of Michelin's three managing partners, called the "violent increase" in rubber prices a "real issue" for 2010, saying that Michelin was going to ensure that sale prices reflect the rise in costs they are experiencing.
Prices could balance out again in 2013-14, he noted.
Michelin said it had suffered a 10 per cent drop in sales for 2009, during the global economic downturn when the tyre maker released its full-year results, citing rising rubber prices and an unclear market outlook as reasons for being "extremely vigilant".
Italian rival Pirelli & C SpA had also said it was considering raising tyre prices to offset raw material costs, including the cost of natural rubber.
Tay of Guan Hock Motor said freight prices were also a factor in the cost competitiveness of tyre products as they were directly shipped to Brunei from Europe. "If freight prices go down then of course it's going to be good."
He added that while it was something that needed to be addressed, high freight prices are generally similar to raw material prices, whereby the buyer does not have any control over it.
"Any increase in costing, for example (rubber or freight), will naturally increase overall prices for consumers," he said.
(motoring.asiaone.com)
Rubber Climbs for First Day in Three as Oil Rally Boosts Appeal
Posted: 18 May 2010 12:59 AM PDT
By Supunnabul Suwannakij and Aya Takada
May 18 (Bloomberg) -- Rubber advanced for the first time in three days as rising crude oil prices improved the appeal of the raw material used to make tires.
Futures gained as much as 4.1 percent after falling 3.6 percent yesterday to the lowest close in five months. The price reached a 21-month high of 338.5 yen per kilogram ($3,656 a metric ton) April 16 on a seasonal decrease in supply from Thailand, the largest exporter.
Crude oil advanced for the first time in six days as some investors took the view a drop below $70 a barrel made the commodity attractive to buy. Natural rubber typically tracks oil prices as a gain in crude boosts the cost of synthetic rubber made from petroleum.
“Oil staying above $70 a barrel provides positive sentiment to the rubber market,” Chaiwat Muenmee, an analyst at broker DS Futures Co., said by phone from Bangkok.
Rubber for October delivery, the most-active contract, gained as much as 10.3 yen to 263.1 yen before settling at 262 yen on the Tokyo Commodity Exchange.
Crude oil for June delivery climbed as much as 1.5 percent to $71.12 a barrel on the New York Mercantile Exchange before trading at $70.99 at 4:07 p.m. in Tokyo. Yesterday, the contract fell to $70.08 a barrel, the lowest settlement since Dec. 14.
The cash market in Thailand, world’s largest producer, remains closed for a second day as political turmoil escalates. At least 38 people have been killed since May 13 and more than 200 injured after protesters occupied parts of downtown Bangkok.
“The political turmoil is unlikely to affect the Tocom market as rubber exports haven’t been disrupted,” said Chaiwat.
September-delivery rubber on the Shanghai Futures Exchange added 3.6 percent to 21,825 yuan ($3,197) a ton.
Synthetic rubber output up 13%
Posted: 17 May 2010 03:43 PM PDT
India’s synthetic rubber output during the 11 months ending February 2010 rose 12.6% on year to 98,280 tonnes from 87,251 tonnes, according to data released by the Rubber Board today.
The demand for synthetic rubber rose 17.6% on year to 3,13,405 tonnes from 2,66,465 tonnes, it said. The volume of synthetic rubber import rose 28% on year to 2,24,948 tonnes from 1,75,595 tonnes.
During February, synthetic rubber production rose 24% on year to 8,768 tonnes from 7,055 tonnes, while consumption moved up 30% to 31,440 tonnes as against 24,210 tonnes last year. Synthetic rubber import in February rose to 21,607 tonnes from 9,765 tonnes a year ago.
India imports bulk of its synthetic rubber, a derivative of petroleum, and its price is closely linked to global crude oil prices.
Tuesday, May 18, 2010
Spot rubber prices improve
Spot rubber prices improve
Kottayam, May 17
Spot rubber prices improved on Monday. The market opened weak quoting sheet rubber RSS 4 at Rs 153 a kg but the grade improved to Rs 155 (Rs 154) a kg on late trades following the sharp gains on NMCE. The trend was mixed as ISNR 20 and latex 60 per cent slipped on low demand. The volumes were dull.
The June futures flared up to Rs 158 (152.76), July to Rs 157.52 (152.65), August to Rs 154.20 (149.86) and September to Rs 150.15 a kg for RSS 4 on National Multi Commodity Exchange. RSS 3 improved at the May futures to ¥358.8/Rs 176.92 (¥352.8) while its June futures weakened to ¥327.2 (¥328.8), July to ¥282.3 (¥294.1), August to ¥263.5 (¥279.3), September to ¥253.8 (¥269.9) and October to ¥252.8 (¥269.4) a kg during the day session on Tokyo Commodity Exchange. The May futures closed at ¥353 (Rs 174.18), June at ¥331.5, July at ¥287, August at ¥267.9, September at ¥258.6 and October at ¥257.5 a kg during the night session. RSS 3 (spot) firmed up to Rs 158.59 (157.46) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 155 (154); RSS-5: 151 (150); ungraded: 148 (147.50); ISNR 20: 136 (137) and latex 60 per cent: 96 (97).
Rubber Gains First Time in Three Days as Oil Rise Boosts Appeal
May 18 (Bloomberg) -- Rubber advanced for the first time in three days as rising crude oil prices improved the appeal of the raw material used to make tires.
Futures gained as much as 1.9 percent after falling 3.6 percent yesterday to the lowest close in five months. Rubber has tumbled 24 percent since climbing to a 21-month high of 338.5 yen ($3,662 a metric ton) April 16.
Crude oil rose for the first time in six days as some investors took the view a drop below $70 a barrel made the commodity attractive to buy. Natural rubber usually tracks oil prices as a gain in crude boosts the cost of synthetic rubber made from petroleum.
“Oil staying above $70 a barrel provides positive sentiment to the rubber market,” Chaiwat Muenmee, an analyst at broker DS Futures Co., said by phone from Bangkok.
Rubber for October delivery, the most-active contract, gained as much as 4.8 yen to 257.6 yen before trading at 256.6 yen on the Tokyo Commodity Exchange at 12:02 p.m. local time.
Crude oil for June delivery rose as much as 76 cents, or 1.1 percent, to $70.84 a barrel in electronic trading on the New York Mercantile Exchange. Yesterday, the contract fell $1.53 to $70.08 a barrel, the lowest settlement since Dec. 14.
The cash market in Thailand, world’s largest exporter, remains closed for a second day as political turmoil escalates. At least 38 people have been killed since May 13 and more than 200 injured after protestors occupied parts of downtown Bangkok.
“The political turmoil is unlikely to affect the TOCOM market as rubber exports haven’t been disrupted,” said Chaiwat.
September-delivery rubber on the Shanghai Futures Exchange added 0.3 percent to 21,315 yuan ($3,122) a ton as of 10:50 a.m.
India rubber seen steady on thin arrivals, weak demand
Posted: 17 May 2010 05:42 AM PDT
MUMBAI, May 17 (Reuters) - Indian rubber prices are likely to remain steady in low-volume trade this week as weak arrivals in the physical market are offsetting tepid demand from tyre-makers, analysts and traders said on Monday.
"Arrivals were very low for past 6-8 days and demand was also weak. This week prices may rise or fall by 1 or 2 rupees, but major upside or downside is unlikely," said V.N. Viswamohan Prabhu, a spot trader based in Kochi in southern Kerala state.
At 4:33 p.m., the benchmark June contract NMRUM0 on the National Multi-Commodity Exchange (NMCE) was up 2.4 percent at 15,650 rupees per 100 kg.
Spot price of the most traded RSS-4 rubber (ribbed smoked sheet) was steady at 15,400 rupees per 100 kg in Kottayam, Kerala, Rubber Board data showed.
India's rubber production is likely to rise 7.5 percent to 893,000 tonnes in 2010/11 helping reduce costlier imports, a senior Rubber Board official said last month.
Tokyo rubber futures fell to a five-month low on Monday as drops in oil prices spurred stop-loss selling, while the possible cancellation of production-curbing measures by top producing countries also weighed on the market.
(Reporting by Rajendra Jadhav; Editing by Sunil Nair)
(in.reuters.com)
India unlikely to face rubber shortage in 2010-11
Posted: 17 May 2010 05:41 AM PDT
MUMBAI (Commodity Online): India unlikely to face shortage of natural rubber in 2010-11 due to the availability of 245,000 tons carry forward stocks, according to the Rubber Board of India.
The Board also rejected the demand for duty-free import of natural rubber by consuming industries in view of the sufficient carry forward stocks.
The stock considered enough to help tide over the gap of 85,000 tonne between the production of 893,000 tonne and demand of 978,000 tonne as per the initial estimate prepared in the 12 months ending in April 2011.
Meanwhile, country’s synthetic rubber production from April 2009 through February 2010 rose 12.6% from a year earlier to 98,280 metric tons, the state- run Rubber Board said Friday.
Consumption of synthetic rubber during the period increased 17.6% to 313,405 tons due to a rise in demand from tire makers.
U.S. imports of technically specified natural rubber rose 8.6% in March from the previous month, and was up 15.5% from the previous year, the Commerce Department reported Wednesday.
Malaysia's natural rubber production in March was 70,318 metric tons, 48% higher than a year earlier but still lower than the 16-month high recorded in January, as seasonal wintering between February and April slowed latex output.
Mar 10 total 59,337tonne v/s Feb 10 total 54,337tonne Natural rubber stocks in Japan stood at 5,610 metric tons April 20, down 3.9% from 5,835 tons April 10, according to data issued Thursday by the Rubber Trade Association of Japan. Natural latex stocks fell to 79 tons from 103 tons, while synthetic rubber stocks fell to 1,786 tons from 1,963 tons.
(commodityonline.com)
Natural rubber prices fall 10 pc in one month
Posted: 17 May 2010 05:37 AM PDT
New Delhi, May 17 (PTI) Natural rubber prices have fallen by about 10 per cent in the last one month from its peak of Rs 170 a kg taking cues from global markets, where rates have declined on concerns over Greece's debt crisis, experts said.
"India is integrated with the international market.
Whatever happens overseas will reflect here too. Prices have fallen so sharply because the Greek sovereign debt crisis has hit commodity prices in foreign markets and rubber has fallen there, which has caused this sharp fall," Indian Rubber Growers Association General Secretary Siby J Monippally said.
The price of natural rubber (RSS-4 variety) fell to Rs 154 a kg on May 15 at both Cochin and Kottayam markets from Rs 170 a kg a month ago, according to Rubber Board's data. At Bangkok, prices are currently ruling at Rs 157.46, down from Rs 180.36 on April 26.
(ptinews.com)
Rubber Reaches Five-Month Low as Debt Crisis May Slow Recovery
Posted: 16 May 2010 10:16 PM PDT
By Aya Takada
May 17 (Bloomberg) -- Rubber slumped to the lowest in five months as equity markets extended losses on concern Europe’s sovereign debt crisis may slow the economic recovery, and as a stronger Japanese currency cut the appeal of yen-based contracts.
Futures in Tokyo lost as much as 3.6 percent to the lowest level since December. The price has tumbled 25 percent since climbing to a 21-month high of 338.5 yen ($3,672 a metric ton) on April 16.
Commodities dropped on speculation that austerity measures planned by indebted European nations including Spain and Greece will cut growth in the region. Crude oil traded at a three-month low, strengthening the appeal of synthetic rubber made from petroleum.
“Investors are cutting holdings of their risk assets on concern that the debt crisis may derail economic growth,” Kazuhiko Saito, an analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. “A stronger yen is another blow to futures in Tokyo.”
Rubber for October delivery, the most-active contract, fell as much as 9.4 yen to 252.8 yen before trading at 254 yen on the Tokyo Commodity Exchange at 11:52 a.m. local time. The yen strengthened for a third day to 92.07 per dollar.
Crude oil for June delivery slumped for a fifth day, dropping as much as 2.5 percent to $69.82 a barrel on the New York Mercantile Exchange before trading at $70.31, the lowest since Feb. 5.
Slowing Purchases
The MSCI Asia Pacific Index of equities tumbled 2.3 percent to 117.23 as Europe’s debt crisis and concern that China will move to quell inflation eroded investor confidence in the economic recovery.
“The euro nations are taking actions for their fiscal problems but they are running out of options,” said Kazuhiro Takahashi, a general manager at Daiwa Securities Capital Markets Co. in Tokyo.
September-delivery rubber on the Shanghai Futures Exchange lost 1.6 percent to 21,395 yuan ($3,134) a ton.
Natural rubber inventories monitored by the Shanghai exchange fell 5,951 tons to 29,899 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the bourse said May 14. It was the lowest level since July, 2008.
“Chinese buyers may be slowing purchases, expecting a further drop in the raw material price,” Saito said.
(bloomberg.com)
Rubber prices likely to remain high on robust demand
Posted: 16 May 2010 10:15 PM PDT
KUALA LUMPUR: Faster-than-expected global economic recovery and acceleration in the demand for natural rubber (NR) will likely keep rubber prices high in the short and medium term, said the Association of Natural Rubber Producing Countries (ANRPC).
The association said in its latest NR Trends and Statistics report that demand for rubber was strongly dependent on the global economic growth. “These fundamentals will likely continue to support rubber prices as growing demand may offset the post-wintering rise in supply.”
The International Monetary Fund in its revised World Economic Outlook report in late April had indicated a stronger-than-anticipated economic recovery. The world economy is expected to grow at 4.2% in 2010 against 3.9% projected in January and 3.25% in October 2009.
In addition, the high NR import and consumption in China, India and Malaysia in the first quarter of this year were clear indications of acceleration in NR demand.
“More than 45% of the global NR demand comes from these countries, which are the three major consuming countries in the ANRPC,” said the association. The ANRPC member countries represent about 94% of the global NR supply.
Malaysia, for example, posted an annualised 13.3% rise in consumption and 28.3% in NR import in the first quarter of this year.
“The country is in transition from an NR exporter to NR importer,” ANRPC said adding that Malaysia imported an estimated 183,500 tonnes of NR during first quarter of 2010.
Malaysia's dominant glove manufacturing industry looks set to benefit from the higher demand resulting from the US government US$940bil health bill.
According to ANRPC, NR demand would likely receive a further boost as a section of the tyre manufacturing industry would enter the market after April.
It added tyre manufacturing industry by and large, postponed purchases in March and April in expectation of comfortable supply availability after the wintering season.
For this year, global NR production is anticipated to grow by 6.2% to 9.4 million tonnes from 8.82 million tonnes, said ANRPC.
Yielding area is estimated to expand this year by 6,000ha in India, 23,000ha in Vietnam, 22,000ha in China and 10,000ha in Cambodia.
While biggest producer Thailand's 2010 hectarage data were not available, ANRPC said Indonesia's yielding area was estimated to have expanded marginally by 3,000ha .
As for Malaysia, due to severe shortage of labour, a section of smallholders does not harvest rubber unless “prices are highly favourable.”
ANRPC said an estimated 85,000ha of mature areas, left untapped in Malaysia, were opened for harvesting this year, thanks to favourable prices.
Factors that could affect rubber market in the coming months, after the end of the wintering season in April, include the age structure of existing yielding areas in major producing countries which could exert downward pressure on average yield.
In addition, the appreciation in the currencies of NR exporting countries versus the US dollar normally exerts upward pressure on prices of NR. “A stronger local currency compels exporters to raise the offer prices which are quoted in US dollar,” said ANRPC.
On the other hand, appreciation in the Japanese yen against the US dollar could push NR prices downward.
Kottayam, May 17
Spot rubber prices improved on Monday. The market opened weak quoting sheet rubber RSS 4 at Rs 153 a kg but the grade improved to Rs 155 (Rs 154) a kg on late trades following the sharp gains on NMCE. The trend was mixed as ISNR 20 and latex 60 per cent slipped on low demand. The volumes were dull.
The June futures flared up to Rs 158 (152.76), July to Rs 157.52 (152.65), August to Rs 154.20 (149.86) and September to Rs 150.15 a kg for RSS 4 on National Multi Commodity Exchange. RSS 3 improved at the May futures to ¥358.8/Rs 176.92 (¥352.8) while its June futures weakened to ¥327.2 (¥328.8), July to ¥282.3 (¥294.1), August to ¥263.5 (¥279.3), September to ¥253.8 (¥269.9) and October to ¥252.8 (¥269.4) a kg during the day session on Tokyo Commodity Exchange. The May futures closed at ¥353 (Rs 174.18), June at ¥331.5, July at ¥287, August at ¥267.9, September at ¥258.6 and October at ¥257.5 a kg during the night session. RSS 3 (spot) firmed up to Rs 158.59 (157.46) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 155 (154); RSS-5: 151 (150); ungraded: 148 (147.50); ISNR 20: 136 (137) and latex 60 per cent: 96 (97).
Rubber Gains First Time in Three Days as Oil Rise Boosts Appeal
May 18 (Bloomberg) -- Rubber advanced for the first time in three days as rising crude oil prices improved the appeal of the raw material used to make tires.
Futures gained as much as 1.9 percent after falling 3.6 percent yesterday to the lowest close in five months. Rubber has tumbled 24 percent since climbing to a 21-month high of 338.5 yen ($3,662 a metric ton) April 16.
Crude oil rose for the first time in six days as some investors took the view a drop below $70 a barrel made the commodity attractive to buy. Natural rubber usually tracks oil prices as a gain in crude boosts the cost of synthetic rubber made from petroleum.
“Oil staying above $70 a barrel provides positive sentiment to the rubber market,” Chaiwat Muenmee, an analyst at broker DS Futures Co., said by phone from Bangkok.
Rubber for October delivery, the most-active contract, gained as much as 4.8 yen to 257.6 yen before trading at 256.6 yen on the Tokyo Commodity Exchange at 12:02 p.m. local time.
Crude oil for June delivery rose as much as 76 cents, or 1.1 percent, to $70.84 a barrel in electronic trading on the New York Mercantile Exchange. Yesterday, the contract fell $1.53 to $70.08 a barrel, the lowest settlement since Dec. 14.
The cash market in Thailand, world’s largest exporter, remains closed for a second day as political turmoil escalates. At least 38 people have been killed since May 13 and more than 200 injured after protestors occupied parts of downtown Bangkok.
“The political turmoil is unlikely to affect the TOCOM market as rubber exports haven’t been disrupted,” said Chaiwat.
September-delivery rubber on the Shanghai Futures Exchange added 0.3 percent to 21,315 yuan ($3,122) a ton as of 10:50 a.m.
India rubber seen steady on thin arrivals, weak demand
Posted: 17 May 2010 05:42 AM PDT
MUMBAI, May 17 (Reuters) - Indian rubber prices are likely to remain steady in low-volume trade this week as weak arrivals in the physical market are offsetting tepid demand from tyre-makers, analysts and traders said on Monday.
"Arrivals were very low for past 6-8 days and demand was also weak. This week prices may rise or fall by 1 or 2 rupees, but major upside or downside is unlikely," said V.N. Viswamohan Prabhu, a spot trader based in Kochi in southern Kerala state.
At 4:33 p.m., the benchmark June contract NMRUM0 on the National Multi-Commodity Exchange (NMCE) was up 2.4 percent at 15,650 rupees per 100 kg.
Spot price of the most traded RSS-4 rubber (ribbed smoked sheet) was steady at 15,400 rupees per 100 kg in Kottayam, Kerala, Rubber Board data showed.
India's rubber production is likely to rise 7.5 percent to 893,000 tonnes in 2010/11 helping reduce costlier imports, a senior Rubber Board official said last month.
Tokyo rubber futures fell to a five-month low on Monday as drops in oil prices spurred stop-loss selling, while the possible cancellation of production-curbing measures by top producing countries also weighed on the market.
(Reporting by Rajendra Jadhav; Editing by Sunil Nair)
(in.reuters.com)
India unlikely to face rubber shortage in 2010-11
Posted: 17 May 2010 05:41 AM PDT
MUMBAI (Commodity Online): India unlikely to face shortage of natural rubber in 2010-11 due to the availability of 245,000 tons carry forward stocks, according to the Rubber Board of India.
The Board also rejected the demand for duty-free import of natural rubber by consuming industries in view of the sufficient carry forward stocks.
The stock considered enough to help tide over the gap of 85,000 tonne between the production of 893,000 tonne and demand of 978,000 tonne as per the initial estimate prepared in the 12 months ending in April 2011.
Meanwhile, country’s synthetic rubber production from April 2009 through February 2010 rose 12.6% from a year earlier to 98,280 metric tons, the state- run Rubber Board said Friday.
Consumption of synthetic rubber during the period increased 17.6% to 313,405 tons due to a rise in demand from tire makers.
U.S. imports of technically specified natural rubber rose 8.6% in March from the previous month, and was up 15.5% from the previous year, the Commerce Department reported Wednesday.
Malaysia's natural rubber production in March was 70,318 metric tons, 48% higher than a year earlier but still lower than the 16-month high recorded in January, as seasonal wintering between February and April slowed latex output.
Mar 10 total 59,337tonne v/s Feb 10 total 54,337tonne Natural rubber stocks in Japan stood at 5,610 metric tons April 20, down 3.9% from 5,835 tons April 10, according to data issued Thursday by the Rubber Trade Association of Japan. Natural latex stocks fell to 79 tons from 103 tons, while synthetic rubber stocks fell to 1,786 tons from 1,963 tons.
(commodityonline.com)
Natural rubber prices fall 10 pc in one month
Posted: 17 May 2010 05:37 AM PDT
New Delhi, May 17 (PTI) Natural rubber prices have fallen by about 10 per cent in the last one month from its peak of Rs 170 a kg taking cues from global markets, where rates have declined on concerns over Greece's debt crisis, experts said.
"India is integrated with the international market.
Whatever happens overseas will reflect here too. Prices have fallen so sharply because the Greek sovereign debt crisis has hit commodity prices in foreign markets and rubber has fallen there, which has caused this sharp fall," Indian Rubber Growers Association General Secretary Siby J Monippally said.
The price of natural rubber (RSS-4 variety) fell to Rs 154 a kg on May 15 at both Cochin and Kottayam markets from Rs 170 a kg a month ago, according to Rubber Board's data. At Bangkok, prices are currently ruling at Rs 157.46, down from Rs 180.36 on April 26.
(ptinews.com)
Rubber Reaches Five-Month Low as Debt Crisis May Slow Recovery
Posted: 16 May 2010 10:16 PM PDT
By Aya Takada
May 17 (Bloomberg) -- Rubber slumped to the lowest in five months as equity markets extended losses on concern Europe’s sovereign debt crisis may slow the economic recovery, and as a stronger Japanese currency cut the appeal of yen-based contracts.
Futures in Tokyo lost as much as 3.6 percent to the lowest level since December. The price has tumbled 25 percent since climbing to a 21-month high of 338.5 yen ($3,672 a metric ton) on April 16.
Commodities dropped on speculation that austerity measures planned by indebted European nations including Spain and Greece will cut growth in the region. Crude oil traded at a three-month low, strengthening the appeal of synthetic rubber made from petroleum.
“Investors are cutting holdings of their risk assets on concern that the debt crisis may derail economic growth,” Kazuhiko Saito, an analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. “A stronger yen is another blow to futures in Tokyo.”
Rubber for October delivery, the most-active contract, fell as much as 9.4 yen to 252.8 yen before trading at 254 yen on the Tokyo Commodity Exchange at 11:52 a.m. local time. The yen strengthened for a third day to 92.07 per dollar.
Crude oil for June delivery slumped for a fifth day, dropping as much as 2.5 percent to $69.82 a barrel on the New York Mercantile Exchange before trading at $70.31, the lowest since Feb. 5.
Slowing Purchases
The MSCI Asia Pacific Index of equities tumbled 2.3 percent to 117.23 as Europe’s debt crisis and concern that China will move to quell inflation eroded investor confidence in the economic recovery.
“The euro nations are taking actions for their fiscal problems but they are running out of options,” said Kazuhiro Takahashi, a general manager at Daiwa Securities Capital Markets Co. in Tokyo.
September-delivery rubber on the Shanghai Futures Exchange lost 1.6 percent to 21,395 yuan ($3,134) a ton.
Natural rubber inventories monitored by the Shanghai exchange fell 5,951 tons to 29,899 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the bourse said May 14. It was the lowest level since July, 2008.
“Chinese buyers may be slowing purchases, expecting a further drop in the raw material price,” Saito said.
(bloomberg.com)
Rubber prices likely to remain high on robust demand
Posted: 16 May 2010 10:15 PM PDT
KUALA LUMPUR: Faster-than-expected global economic recovery and acceleration in the demand for natural rubber (NR) will likely keep rubber prices high in the short and medium term, said the Association of Natural Rubber Producing Countries (ANRPC).
The association said in its latest NR Trends and Statistics report that demand for rubber was strongly dependent on the global economic growth. “These fundamentals will likely continue to support rubber prices as growing demand may offset the post-wintering rise in supply.”
The International Monetary Fund in its revised World Economic Outlook report in late April had indicated a stronger-than-anticipated economic recovery. The world economy is expected to grow at 4.2% in 2010 against 3.9% projected in January and 3.25% in October 2009.
In addition, the high NR import and consumption in China, India and Malaysia in the first quarter of this year were clear indications of acceleration in NR demand.
“More than 45% of the global NR demand comes from these countries, which are the three major consuming countries in the ANRPC,” said the association. The ANRPC member countries represent about 94% of the global NR supply.
Malaysia, for example, posted an annualised 13.3% rise in consumption and 28.3% in NR import in the first quarter of this year.
“The country is in transition from an NR exporter to NR importer,” ANRPC said adding that Malaysia imported an estimated 183,500 tonnes of NR during first quarter of 2010.
Malaysia's dominant glove manufacturing industry looks set to benefit from the higher demand resulting from the US government US$940bil health bill.
According to ANRPC, NR demand would likely receive a further boost as a section of the tyre manufacturing industry would enter the market after April.
It added tyre manufacturing industry by and large, postponed purchases in March and April in expectation of comfortable supply availability after the wintering season.
For this year, global NR production is anticipated to grow by 6.2% to 9.4 million tonnes from 8.82 million tonnes, said ANRPC.
Yielding area is estimated to expand this year by 6,000ha in India, 23,000ha in Vietnam, 22,000ha in China and 10,000ha in Cambodia.
While biggest producer Thailand's 2010 hectarage data were not available, ANRPC said Indonesia's yielding area was estimated to have expanded marginally by 3,000ha .
As for Malaysia, due to severe shortage of labour, a section of smallholders does not harvest rubber unless “prices are highly favourable.”
ANRPC said an estimated 85,000ha of mature areas, left untapped in Malaysia, were opened for harvesting this year, thanks to favourable prices.
Factors that could affect rubber market in the coming months, after the end of the wintering season in April, include the age structure of existing yielding areas in major producing countries which could exert downward pressure on average yield.
In addition, the appreciation in the currencies of NR exporting countries versus the US dollar normally exerts upward pressure on prices of NR. “A stronger local currency compels exporters to raise the offer prices which are quoted in US dollar,” said ANRPC.
On the other hand, appreciation in the Japanese yen against the US dollar could push NR prices downward.
Monday, May 17, 2010
Spot rubber turns weak
Spot rubber turns weak
Kottayam, May 15
Spot rubber market turned weak on Saturday. Declines in the domestic futures affected the market mood and the prices slipped mainly on buyer resistance. Sheet rubber weakened to Rs 154 from Rs 155 a kg amidst scattered transactions. The trend was mixed.
Futures decline
The May futures declined to Rs 152.40 (153.25), June to Rs 152.76 (153.91), July to Rs 152.65 (153.94) and August to Rs 149.86 (150.97) a kg for RSS 4 on National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 154 (155); RSS-5: 150 (151); ungraded: 147.50 (148); ISNR 20: 137 (137) and latex 60 per cent: 97 (97).
Kottayam, May 15
Spot rubber market turned weak on Saturday. Declines in the domestic futures affected the market mood and the prices slipped mainly on buyer resistance. Sheet rubber weakened to Rs 154 from Rs 155 a kg amidst scattered transactions. The trend was mixed.
Futures decline
The May futures declined to Rs 152.40 (153.25), June to Rs 152.76 (153.91), July to Rs 152.65 (153.94) and August to Rs 149.86 (150.97) a kg for RSS 4 on National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 154 (155); RSS-5: 150 (151); ungraded: 147.50 (148); ISNR 20: 137 (137) and latex 60 per cent: 97 (97).
Saturday, May 15, 2010
Spot rubber rules steady
Spot rubber rules steady
Kottayam, May 14
Spot rubber was almost steady on Friday. Minor variations in the domestic and international futures failed to make any visible impact in the market. Sheet rubber closed unchanged at Rs 155 a kg amidst dull volumes. The trend was mixed as ISNR 20 slipped further on low demand.
Futures firm
In the futures market, the May contract closed up at Rs 153.25 (153), June at Rs 153.90 (154.01), July at Rs 153.75 (154.22) and August to Rs 151 (151.36) a kg for RSS 4 on the National Multi Commodity Exchange. The May futures for RSS 3 improved to ¥352.8/Rs 172.33 (¥351) and June to ¥328.8 (¥326.5) while the July futures weakened to ¥ 288.7 (¥294.1), August to ¥272 (¥279.3), September to ¥263.1 (¥269.9) and October to ¥262.2 (¥269.4) a kg during the day session on Tokyo Commodity Exchange. RSS 3 closed at Rs 157.46 (157.66) a kg at Bangkok.
Spot rates were: RSS-4: 155 (155); RSS-5: 151 (151); ungraded: 148 (148); ISNR 20: 137 (138) and latex 60 per cent: 97 (97).
Tyre sector skids over steep rubber prices, lower imports
Posted: 13 May 2010 03:43 PM PDT
KOCHI: Rising rubber prices in India and abroad have left automobile tyre manufacturers, who are adding huge capacities, with fewer options. While domestic supplies have remained expensive, imports are likely to be far lower than the previous year’s level.
International rubber prices have to be at least 20% lower than the local prices for tyre companies to opt for duty-paid import of natural rubber. However, international prices have remained higher than the domestic prices in the recent past.
India has emerged as the second largest consumer of rubber with rubber consumption declining in US. The consumption in India stood at 9.31 lakh tonnes last year. While total import stood at 1.71 lakh tonnes last year, the Rubber Board has projected 70,000 tonnes of imports for this year. One reason for this could be the possibility of lower duty-free imports under advance licence. “Tyre exports fell by 5% last year. The lower exports would reduce the imports under advance licence, especially since the industry imported a huge quantity last year,” an official of Rubber Board said.
Mr Rajiv Budhraja, director general, Automotive Tyre Manufacturers Association, told ET around 11,000 tonnes have been imported into the country till May this year. “Bulk of this import is technically-specified rubber because the price differential with the comparable Indian standard natural rubber (ISNR) was favourable for imports,” he said.
Tyre companies require 75,000-80,000 tonnes of natural rubber a month. The deficit in the country last year was close to 1 lakh tonnes and the deficit has been estimated at around 85,000 tonnes this year. According to Mr Budhraja, “tyre companies are concerned about the availability of rubber in the medium term.” He said that countries like China, which are competing with us, are increasing acreage under rubber and at the same time ensuring international supplies. As compared to this, the production plans for North East region have not achieved targets, he pointed out.
With the tyre industry adding huge capacities, the overall availability of natural rubber is a cause for concern. Even for duty-free imports of rubber to be economically feasible, international prices have to be lower by Rs 4-4.50 per kg. The sector is now seeking customs duty reduction for rubber.
Kottayam, May 14
Spot rubber was almost steady on Friday. Minor variations in the domestic and international futures failed to make any visible impact in the market. Sheet rubber closed unchanged at Rs 155 a kg amidst dull volumes. The trend was mixed as ISNR 20 slipped further on low demand.
Futures firm
In the futures market, the May contract closed up at Rs 153.25 (153), June at Rs 153.90 (154.01), July at Rs 153.75 (154.22) and August to Rs 151 (151.36) a kg for RSS 4 on the National Multi Commodity Exchange. The May futures for RSS 3 improved to ¥352.8/Rs 172.33 (¥351) and June to ¥328.8 (¥326.5) while the July futures weakened to ¥ 288.7 (¥294.1), August to ¥272 (¥279.3), September to ¥263.1 (¥269.9) and October to ¥262.2 (¥269.4) a kg during the day session on Tokyo Commodity Exchange. RSS 3 closed at Rs 157.46 (157.66) a kg at Bangkok.
Spot rates were: RSS-4: 155 (155); RSS-5: 151 (151); ungraded: 148 (148); ISNR 20: 137 (138) and latex 60 per cent: 97 (97).
Tyre sector skids over steep rubber prices, lower imports
Posted: 13 May 2010 03:43 PM PDT
KOCHI: Rising rubber prices in India and abroad have left automobile tyre manufacturers, who are adding huge capacities, with fewer options. While domestic supplies have remained expensive, imports are likely to be far lower than the previous year’s level.
International rubber prices have to be at least 20% lower than the local prices for tyre companies to opt for duty-paid import of natural rubber. However, international prices have remained higher than the domestic prices in the recent past.
India has emerged as the second largest consumer of rubber with rubber consumption declining in US. The consumption in India stood at 9.31 lakh tonnes last year. While total import stood at 1.71 lakh tonnes last year, the Rubber Board has projected 70,000 tonnes of imports for this year. One reason for this could be the possibility of lower duty-free imports under advance licence. “Tyre exports fell by 5% last year. The lower exports would reduce the imports under advance licence, especially since the industry imported a huge quantity last year,” an official of Rubber Board said.
Mr Rajiv Budhraja, director general, Automotive Tyre Manufacturers Association, told ET around 11,000 tonnes have been imported into the country till May this year. “Bulk of this import is technically-specified rubber because the price differential with the comparable Indian standard natural rubber (ISNR) was favourable for imports,” he said.
Tyre companies require 75,000-80,000 tonnes of natural rubber a month. The deficit in the country last year was close to 1 lakh tonnes and the deficit has been estimated at around 85,000 tonnes this year. According to Mr Budhraja, “tyre companies are concerned about the availability of rubber in the medium term.” He said that countries like China, which are competing with us, are increasing acreage under rubber and at the same time ensuring international supplies. As compared to this, the production plans for North East region have not achieved targets, he pointed out.
With the tyre industry adding huge capacities, the overall availability of natural rubber is a cause for concern. Even for duty-free imports of rubber to be economically feasible, international prices have to be lower by Rs 4-4.50 per kg. The sector is now seeking customs duty reduction for rubber.
Friday, May 14, 2010
Kerala's rubber, cardamom growers on buying spreeKerala's rubber, cardamom growers on buying spree
Kerala's rubber, cardamom growers on buying spree
INCOME BOUNCE.
The lure of luxury goods is catching up with the nouveau riche in rural Kerala
G. K. Nair
Kochi, May 13
In the sun dappled plantation of rubber trees, the gleam of white is striking. Get a bit closer, you realise that the glint is coming off a large SUV, obviously foreign made.
For the first-time visitor to rural Kerala, the presence of the vehicle and the setting may be surprising. But not for the locals, who have been buying up vehicles on a scale scarcely seen elsewhere in rural India.
Luxury cars of German and Japanese make, SUVs/MUVs, and medium and small-cars of indigenous manufacturers in Kerala's villages and towns seem to be overtaking the vehicle population of many an urban centre, thanks to the zooming natural rubber and cardamom prices. And not just cars, sales of consumer durables, jewellery and gourmet food items are soaring in the rubber/cardamom-growing districts, according to major dealers.
However, Kottayam, the latex district of the country, with most of its land area under natural rubber, topped in sales in all segments followed by Pathanamthitta, Kollam, and Idukki. Of an estimated one million rubber growers in the country, the majority are in these districts.
The average cardamom price has been ruling above Rs 1,000 a kg for the past several months though prices have been remunerative for about three years now, a grower said.. According to a Kottayam-based dealer, the response has been tremendous to a special sales promotion scheme under which “a household with an annual income of Rs 2 lakh is offered a Maruti car through bank finance.” State Bank of India and its subsidiary, State Bank of Travancore, are in the forefront of vehicle financing in this belt. No repayment default has been reported so far, banking sources said.
In 2009-10, car sales in the rubber-cardamom belt rose a whopping 76 per cent over the previous fiscal; the key beneficiary has been Maruti, which drove away with 31 per cent of vehicle sales.
But, those in the lower middle and middle income groups go for cars in the Rs 2-4 lakh price range. They settle for the Alto, the Wagon R, the Chevrolet Spark, the Hyundai i10.
The upper middle income set plumps for the A Star, the Esteem, the Swift, the SX 4, the DZire, the Aveo, the Fiat Punto, the Ford or the Xylo.
A major dealer told Business Line that most cardamom growers preferred SUVs considering the hilly terrain they operate in.
Also, upper and high income groups own more than one vehicle, the second usually being a luxury car or an SUV. About 50-60 Hondas and 40-50 Toyotas are sold a year in Kottayam and Pathanamthitta districts. According to a major Kottayam dealer, Benz and BMWs also find buyers here.
Rubber incomes
The income from natural rubber, which is hovering around Rs 150 a kg, is significantly high. According to official sources, from 15 trees one can get one kg of sheet rubber, though growers put the number varyingly at 20-30 trees.
Usually, 200 trees are planted on an acre and tapping starts from the seventh year of planting. The daily rubber output from one acre is 7-10 kg, a grower estimates. Tappers are paid 75 paise a tree and one person can easily tap up to 600 trees daily. The prosperity of the tappers is evident from the fact that many arrive at plantations by two-wheelers early in the morning, work till noon and go away.
“For the last two years, rubber cultivation has become profitable. Last year, despite the recession, prices went up,” Mr J.K. Thomas, Managing Director, Malankara Plantations, told Business Line. Compared to three years ago, rubber prices are up 150-200 per cent.
They were hovering around Rs 100 in 2007 and are now above Rs 150, he said. Going by the kind of income rubber growers are getting now, there is certainly a change in their lifestyle. It is evident from the sale of cars in Kottayam. Until a few months ago, if you booked a car, you could take delivery the next day. But now, you have to wait for one-two months,” said Mr Thomas, a former President of United Planters Association of Southern India (UPASI).
Besides cars, sales of consumer durables too have gone up by 35-50 per cent, Mr Sathya Chandran Nair, a major dealer told Business Line. Attributing this growth to high prices for natural rubber, he said sales of air-conditioners had increased substantially. Home UPS/inverters are flying off shelves to beat the power outages. Sales of small home gensets have also gone up.
Mushrooming of mega jewellery shops in the major rubber growing districts is also an indication of increased disposable income among the people. As an icing on the cake come the remittances from those working in other States or abroad.
Spot rubber prices improve
Kottayam, May 13
Spot rubber market showed signs of improvement on Thursday. According to sources, the prices surged following sharp gains on the TOCOM. The market was also moderately bullish on the NMCE. On the spot market, sheet rubber firmed up to Rs 155 from Rs 152 a kg on fresh buying and short-covering. The trend was mixed.
Futures gain
RSS 4 improved at the May futures to Rs 153 (151.10), June to Rs 154.05 (152.77), July to Rs 154.30 (152.89) and August to Rs 151.31 (150.62) a kg on the National Multi Commodity Exchange. The May futures bounced back to ¥351/Rs 170.56 (¥333), June to ¥326.5 (¥312), July to ¥294.1 (¥287.1), August to ¥279.3 (¥272.9), September to ¥269.9 (¥262.7) and October to ¥269.4 (¥262.3) a kg for RSS 3 during the day session on Tokyo Commodity Exchange. Spot rates were (Rs/kg): RSS-4: 155 (152); RSS-5: 151 (147.50); ungraded: 148 (144); ISNR 20: 138 (139) and latex 60 per cent: 97 (97).
Rubber Falls as Much as 3.3%, Erasing Gains Earlier This Week
May 14 (Bloomberg) -- Rubber futures fell as much as 3.3 percent and are headed for their third decline this week.
October-delivery rubber slumped to 260.6 yen per kilogram on the Tokyo Commodity Exchange and traded at 262.4 yen at 9:20 a.m. local time. The contract climbed 2.7 percent yesterday and is barely changed for the week.
INCOME BOUNCE.
The lure of luxury goods is catching up with the nouveau riche in rural Kerala
G. K. Nair
Kochi, May 13
In the sun dappled plantation of rubber trees, the gleam of white is striking. Get a bit closer, you realise that the glint is coming off a large SUV, obviously foreign made.
For the first-time visitor to rural Kerala, the presence of the vehicle and the setting may be surprising. But not for the locals, who have been buying up vehicles on a scale scarcely seen elsewhere in rural India.
Luxury cars of German and Japanese make, SUVs/MUVs, and medium and small-cars of indigenous manufacturers in Kerala's villages and towns seem to be overtaking the vehicle population of many an urban centre, thanks to the zooming natural rubber and cardamom prices. And not just cars, sales of consumer durables, jewellery and gourmet food items are soaring in the rubber/cardamom-growing districts, according to major dealers.
However, Kottayam, the latex district of the country, with most of its land area under natural rubber, topped in sales in all segments followed by Pathanamthitta, Kollam, and Idukki. Of an estimated one million rubber growers in the country, the majority are in these districts.
The average cardamom price has been ruling above Rs 1,000 a kg for the past several months though prices have been remunerative for about three years now, a grower said.. According to a Kottayam-based dealer, the response has been tremendous to a special sales promotion scheme under which “a household with an annual income of Rs 2 lakh is offered a Maruti car through bank finance.” State Bank of India and its subsidiary, State Bank of Travancore, are in the forefront of vehicle financing in this belt. No repayment default has been reported so far, banking sources said.
In 2009-10, car sales in the rubber-cardamom belt rose a whopping 76 per cent over the previous fiscal; the key beneficiary has been Maruti, which drove away with 31 per cent of vehicle sales.
But, those in the lower middle and middle income groups go for cars in the Rs 2-4 lakh price range. They settle for the Alto, the Wagon R, the Chevrolet Spark, the Hyundai i10.
The upper middle income set plumps for the A Star, the Esteem, the Swift, the SX 4, the DZire, the Aveo, the Fiat Punto, the Ford or the Xylo.
A major dealer told Business Line that most cardamom growers preferred SUVs considering the hilly terrain they operate in.
Also, upper and high income groups own more than one vehicle, the second usually being a luxury car or an SUV. About 50-60 Hondas and 40-50 Toyotas are sold a year in Kottayam and Pathanamthitta districts. According to a major Kottayam dealer, Benz and BMWs also find buyers here.
Rubber incomes
The income from natural rubber, which is hovering around Rs 150 a kg, is significantly high. According to official sources, from 15 trees one can get one kg of sheet rubber, though growers put the number varyingly at 20-30 trees.
Usually, 200 trees are planted on an acre and tapping starts from the seventh year of planting. The daily rubber output from one acre is 7-10 kg, a grower estimates. Tappers are paid 75 paise a tree and one person can easily tap up to 600 trees daily. The prosperity of the tappers is evident from the fact that many arrive at plantations by two-wheelers early in the morning, work till noon and go away.
“For the last two years, rubber cultivation has become profitable. Last year, despite the recession, prices went up,” Mr J.K. Thomas, Managing Director, Malankara Plantations, told Business Line. Compared to three years ago, rubber prices are up 150-200 per cent.
They were hovering around Rs 100 in 2007 and are now above Rs 150, he said. Going by the kind of income rubber growers are getting now, there is certainly a change in their lifestyle. It is evident from the sale of cars in Kottayam. Until a few months ago, if you booked a car, you could take delivery the next day. But now, you have to wait for one-two months,” said Mr Thomas, a former President of United Planters Association of Southern India (UPASI).
Besides cars, sales of consumer durables too have gone up by 35-50 per cent, Mr Sathya Chandran Nair, a major dealer told Business Line. Attributing this growth to high prices for natural rubber, he said sales of air-conditioners had increased substantially. Home UPS/inverters are flying off shelves to beat the power outages. Sales of small home gensets have also gone up.
Mushrooming of mega jewellery shops in the major rubber growing districts is also an indication of increased disposable income among the people. As an icing on the cake come the remittances from those working in other States or abroad.
Spot rubber prices improve
Kottayam, May 13
Spot rubber market showed signs of improvement on Thursday. According to sources, the prices surged following sharp gains on the TOCOM. The market was also moderately bullish on the NMCE. On the spot market, sheet rubber firmed up to Rs 155 from Rs 152 a kg on fresh buying and short-covering. The trend was mixed.
Futures gain
RSS 4 improved at the May futures to Rs 153 (151.10), June to Rs 154.05 (152.77), July to Rs 154.30 (152.89) and August to Rs 151.31 (150.62) a kg on the National Multi Commodity Exchange. The May futures bounced back to ¥351/Rs 170.56 (¥333), June to ¥326.5 (¥312), July to ¥294.1 (¥287.1), August to ¥279.3 (¥272.9), September to ¥269.9 (¥262.7) and October to ¥269.4 (¥262.3) a kg for RSS 3 during the day session on Tokyo Commodity Exchange. Spot rates were (Rs/kg): RSS-4: 155 (152); RSS-5: 151 (147.50); ungraded: 148 (144); ISNR 20: 138 (139) and latex 60 per cent: 97 (97).
Rubber Falls as Much as 3.3%, Erasing Gains Earlier This Week
May 14 (Bloomberg) -- Rubber futures fell as much as 3.3 percent and are headed for their third decline this week.
October-delivery rubber slumped to 260.6 yen per kilogram on the Tokyo Commodity Exchange and traded at 262.4 yen at 9:20 a.m. local time. The contract climbed 2.7 percent yesterday and is barely changed for the week.
Thursday, May 13, 2010
Spot rubber rules steady
Spot rubber rules steady
Kottayam, May 12
Spot rubber finished almost unchanged on Wednesday. Market activities were in a dull pace as most traders preferred to wait for a clear trend to emerge after the sharp declines during the past few weeks.
Sheet rubber closed flat at Rs 152 a kg amidst scattered transactions..
Futures improve
The May futures for RSS 4 improved to Rs 151.10 (147.08), June to Rs 152.99 (148.27), July to Rs 152.90 (148.29) and August to Rs 150.80 (146.36) a kg on the NMCE.
Spot rates were (Rs/kg): RSS-4: 152 (152); RSS-5: 147.50 (147.50); ungraded: 144 (144.50); ISNR 20: 139 (139) and latex 60 per cent: 97 (97).
Rubber Advances as Stocks Rally Boosts Confidence in Recovery
May 13 (Bloomberg) -- Rubber advanced for the first time in three days as a global equity rally raised investor confidence in the economic recovery, boosting demand for raw materials.
Futures in Tokyo rebounded as much as 3.5 percent to 271.5 yen per kilogram ($2,914 a metric ton). The contract has dropped 9 percent this month on concern that the sovereign debt crisis that began in Greece will spread to other European countries.
Asian equities climbed, led by tech stocks, after International Business Machines Corp. and Cisco Systems Inc. earnings boosted confidence in the industry and as concerns eased about Europe’s debt crisis. The euro rose after Portugal sold 1 billion euros ($1.3 billion) of 10-year bonds yesterday, getting higher demand than at previous auctions.
“Corporate earnings showed recovery in manufacturing activities,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone. “Raw material demand will grow on rising production.”
Rubber for October delivery, the most-active contract, gained 4.4 yen to 266.7 yen a kilogram on the Tokyo Commodity Exchange at 11:41 a.m. local time.
Japanese companies including Toyota Motor Corp. and Panasonic Corp. forecast profits will surge this year as exports and cost cuts drive a recovery from the worst recession on record. Toyota, which vowed to slash 290 billion yen in costs, predicted profit will gain 48 percent.
The automaker is expanding in China and India, where rising wages and consumer confidence is fueling demand for cars, televisions and factory equipment.
Rubber futures reached a 21-month high of 338.5 yen on April 16 on rising demand and as supply from Thailand, the world’s largest exporter, declined seasonally.
‘Picking Up’
Growers in Thailand’s main producing area are beginning to resume tapping rubber trees after the low-production season, Shigemoto said. During February to April, rubber trees shed leaves and latex output slows, a period known as wintering.
“Shipments of smoked-sheet rubber from Thailand will probably start picking up early next month,” Shigemoto said. “Until then, supply in the international market will remain tight, buoying rubber prices.”
The free-on-board price of Thai RSS-3 grade rubber for June-delivery, which excludes freight and insurance, was unchanged at 112.65 baht ($3.48) a kilogram yesterday, according to the Rubber Institute of Thailand. The price climbed to a record 130.55 baht on April 28.
Rubber also advanced on speculation that China, the world’s largest consumer, may increase purchases to replenish inventories after stockpiles dropped to the lowest level in almost two years, Shigemoto said.
Natural rubber stockpiles monitored by the Shanghai Futures Exchange fell 2,968 tons to 35,850 tons, the bourse said on May 7. The volume was the smallest since August 2008.
September-delivery rubber on the Shanghai Futures Exchange declined 0.2 percent to 22,245 yuan ($3,258) a ton at 10:46 a.m. local time.
Rubber futures seen steady; eyes spot demand
Posted: 12 May 2010 01:54 AM PDT
MUMBAI: Rubber futures, which hit upper circuit on Monday, are likely to trade in a narrow range this week as higher arrivals and production are seen offsetting good spot demand from tyre makers, analysts said.
"In physical markets in Kerala arrivals are gradually rising. Production is also expected to be on higher side," said Shiji Abraham, analyst with JRG Wealth Management. India's rubber production is likely to rise 7.5 percent to 893,000 tonnes in 2010/11 helping reduce costlier imports, a senior Rubber Board official said last month. "Tyre markers are increasing purchases due to sharp drop in prices," Shiji said.
Spot price of the most traded RSS-4 rubber (ribbed smoked sheet) has fallen over 11 percent since hitting a record high of 17,000 rupees per 100 kg in Kottayam, Kerala, on April 16, Rubber Board data showed. It rose by 200 rupees to 15,100 rupees on Monday.
The benchmark June contract on the National Multi-Commodity Exchange (NMCE) provisionally closed up 4 percent at 15,303 rupees per 100 kg. Tokyo rubber futures rose 2.6 percent on Monday, snapping a five-day falling streak as a weaker yen and a jump in oil prices gingered up investor sentiment, while China was said to have bought rubber last week.
(economictimes.indiatimes.com)
Sekhar Research To Invest RM35 Million To Produce Rubber Compound
Posted: 12 May 2010 01:54 AM PDT
PETALING JAYA, May 12 (Bernama) -- Sekhar Research Innovations Sdn Bhd (SRI), a tyre recycling technology developer, will invest RM35 million to establish a plant to produce rubber compound.
In announcing this here Wednesday, its Chief Executive Officer, Gopinath B. Sekhar, said 20,000 metric tonnes of compound masterbatch would be produced annually.
Compound masterbatch is derived from the recycling of scrap tyre rubber which is devulcanised and converted into raw rubber material.
"The plant will cater for both local and Asean markets and generate revenue in excess of RM80 million per annum.
"We are finalising a site in Port Klang and the plant will be completed and operational by year-end," he told a media briefing on the company's business plan.
Sekhar said SRI had, since 2006, invested more than RM3 million to develop the SRI Activation Technology, a proprietary solution, used in the production of compounds that are currently being tested and evaluated by global tyre manufacturers.
Locally, the company is evaluating and conducting road testing trials with the Rubber Research Institute of Malaysia (RRIM).
"We will produce 50 metric tonnes of compound masterbatch per month at our present test facility here in two months," he said, adding that initial production would be targeted at the retread tyre and general rubber goods market which is expected to generate a per annum revenue of more than RM2 million.
As part of the company's global expansion, SRI has a licencee in the United States for the eventual production of SRI compound masterbatch.
Sekhar said similar agreements were underway in Europe and Asia.
"We are offering a solution that provides a savings of between four and eight percent in terms of raw material cost.
"Given that profit margins in the industry are uniformly less than 10 per cent, the potential here is for profits to double," he added.
Sekhar said more than one billion tyres are produced globally anually valued at more than US$130 billion.
(bernama.com)
Rubber Slumps on Doubts Over Europe Bailout, China Auto Sales
Posted: 12 May 2010 01:53 AM PDT
By Aya Takada and Supunnabul Suwannakij
May 11 (Bloomberg) -- Rubber declined, reversing earlier gains, as commodities slumped on concerns that European bailout plans worth almost $1 trillion may not be sufficient to end the region’s sovereign debt crisis.
Futures in Tokyo fell as much as 2 percent to 264.1 yen per kilogram ($2,851 a metric ton) after jumping as much as 3.6 percent earlier. The price slumped to a five-month low of 259.5 yen per kilogram on May 7 on concerns that Europe’s debt crisis may slow the global economic recovery and weaken demand for the commodity used to make tires.
“Worries over European debt crisis spurred selling on equities around the globe, strengthening the dollar and pressuring commodities markets,” Kant Julotok, analyst at commodity broker Agrowealth Ltd., said by phone from Bangkok.
Rubber for October delivery, the most-active contract, declined 1.8 percent to settle at 264.5 yen on the Tokyo Commodity Exchange. The price touched a 21-month high of 338.5 yen on April 16 on speculation that economic growth will boost demand for the raw material.
Asian stocks fell as commodity-related companies dropped on concern that China will step up efforts to cool growth. Crude oil fell as investors questioned whether the European bailout plan will reduce deficits in Greece, Spain and Portugal.
The MSCI Asia Pacific Index of equities fell as much as 1.1 percent after climbing 1.5 percent yesterday, the first gain in six days. The euro dropped against the dollar today for the first time in three days.
Crude oil for June delivery declined as much as 0.9 percent to $76.10 a barrel in electronic trading on the New York Mercantile Exchange before trading at $76.15.
Car Sales Slow
Rubber also dropped after data showed yesterday that growth in China’s car sales slowed in April to the lowest level since March 2009, stoking concern that demand in the world’s largest rubber consumer may weaken, Kazuhiko Saito, an analyst at commodity broker Fujitomi Ltd., said today.
Sales of cars, sport-utility vehicles and multipurpose vehicles increased 33 percent from a year earlier to 1.11 million units, compared with a 63 percent jump in March, the China Association of Automobile Manufacturers said. Total vehicle demand climbed 34 percent to 1.56 million.
Chinese consumers’ willingness to spend dropped in the first quarter, possibly because of rising property prices, Nielsen Co. and the nation’s statistics bureau said in a statement on May 6, citing a survey. Consumer prices rose 2.8 percent in April from a year earlier, the fastest pace in 18 months, and property prices jumped 12.8 percent, the statistics bureau said today.
The free-on-board price of Thai RSS-3 grade rubber for June-delivery, which excludes freight and insurance, rose 2.7 percent to 112.65 baht ($3.48) a kilogram, according to the Rubber Institute of Thailand. The price climbed to a record 130.55 baht on April 28.
September-delivery rubber on the Shanghai Futures Exchange lost 1.8 percent to settle at 22,170 yuan ($3,247) a ton. It plunged to 22,000 yuan a ton on May 7, the lowest level since Feb. 9.
Kottayam, May 12
Spot rubber finished almost unchanged on Wednesday. Market activities were in a dull pace as most traders preferred to wait for a clear trend to emerge after the sharp declines during the past few weeks.
Sheet rubber closed flat at Rs 152 a kg amidst scattered transactions..
Futures improve
The May futures for RSS 4 improved to Rs 151.10 (147.08), June to Rs 152.99 (148.27), July to Rs 152.90 (148.29) and August to Rs 150.80 (146.36) a kg on the NMCE.
Spot rates were (Rs/kg): RSS-4: 152 (152); RSS-5: 147.50 (147.50); ungraded: 144 (144.50); ISNR 20: 139 (139) and latex 60 per cent: 97 (97).
Rubber Advances as Stocks Rally Boosts Confidence in Recovery
May 13 (Bloomberg) -- Rubber advanced for the first time in three days as a global equity rally raised investor confidence in the economic recovery, boosting demand for raw materials.
Futures in Tokyo rebounded as much as 3.5 percent to 271.5 yen per kilogram ($2,914 a metric ton). The contract has dropped 9 percent this month on concern that the sovereign debt crisis that began in Greece will spread to other European countries.
Asian equities climbed, led by tech stocks, after International Business Machines Corp. and Cisco Systems Inc. earnings boosted confidence in the industry and as concerns eased about Europe’s debt crisis. The euro rose after Portugal sold 1 billion euros ($1.3 billion) of 10-year bonds yesterday, getting higher demand than at previous auctions.
“Corporate earnings showed recovery in manufacturing activities,” Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone. “Raw material demand will grow on rising production.”
Rubber for October delivery, the most-active contract, gained 4.4 yen to 266.7 yen a kilogram on the Tokyo Commodity Exchange at 11:41 a.m. local time.
Japanese companies including Toyota Motor Corp. and Panasonic Corp. forecast profits will surge this year as exports and cost cuts drive a recovery from the worst recession on record. Toyota, which vowed to slash 290 billion yen in costs, predicted profit will gain 48 percent.
The automaker is expanding in China and India, where rising wages and consumer confidence is fueling demand for cars, televisions and factory equipment.
Rubber futures reached a 21-month high of 338.5 yen on April 16 on rising demand and as supply from Thailand, the world’s largest exporter, declined seasonally.
‘Picking Up’
Growers in Thailand’s main producing area are beginning to resume tapping rubber trees after the low-production season, Shigemoto said. During February to April, rubber trees shed leaves and latex output slows, a period known as wintering.
“Shipments of smoked-sheet rubber from Thailand will probably start picking up early next month,” Shigemoto said. “Until then, supply in the international market will remain tight, buoying rubber prices.”
The free-on-board price of Thai RSS-3 grade rubber for June-delivery, which excludes freight and insurance, was unchanged at 112.65 baht ($3.48) a kilogram yesterday, according to the Rubber Institute of Thailand. The price climbed to a record 130.55 baht on April 28.
Rubber also advanced on speculation that China, the world’s largest consumer, may increase purchases to replenish inventories after stockpiles dropped to the lowest level in almost two years, Shigemoto said.
Natural rubber stockpiles monitored by the Shanghai Futures Exchange fell 2,968 tons to 35,850 tons, the bourse said on May 7. The volume was the smallest since August 2008.
September-delivery rubber on the Shanghai Futures Exchange declined 0.2 percent to 22,245 yuan ($3,258) a ton at 10:46 a.m. local time.
Rubber futures seen steady; eyes spot demand
Posted: 12 May 2010 01:54 AM PDT
MUMBAI: Rubber futures, which hit upper circuit on Monday, are likely to trade in a narrow range this week as higher arrivals and production are seen offsetting good spot demand from tyre makers, analysts said.
"In physical markets in Kerala arrivals are gradually rising. Production is also expected to be on higher side," said Shiji Abraham, analyst with JRG Wealth Management. India's rubber production is likely to rise 7.5 percent to 893,000 tonnes in 2010/11 helping reduce costlier imports, a senior Rubber Board official said last month. "Tyre markers are increasing purchases due to sharp drop in prices," Shiji said.
Spot price of the most traded RSS-4 rubber (ribbed smoked sheet) has fallen over 11 percent since hitting a record high of 17,000 rupees per 100 kg in Kottayam, Kerala, on April 16, Rubber Board data showed. It rose by 200 rupees to 15,100 rupees on Monday.
The benchmark June contract on the National Multi-Commodity Exchange (NMCE) provisionally closed up 4 percent at 15,303 rupees per 100 kg. Tokyo rubber futures rose 2.6 percent on Monday, snapping a five-day falling streak as a weaker yen and a jump in oil prices gingered up investor sentiment, while China was said to have bought rubber last week.
(economictimes.indiatimes.com)
Sekhar Research To Invest RM35 Million To Produce Rubber Compound
Posted: 12 May 2010 01:54 AM PDT
PETALING JAYA, May 12 (Bernama) -- Sekhar Research Innovations Sdn Bhd (SRI), a tyre recycling technology developer, will invest RM35 million to establish a plant to produce rubber compound.
In announcing this here Wednesday, its Chief Executive Officer, Gopinath B. Sekhar, said 20,000 metric tonnes of compound masterbatch would be produced annually.
Compound masterbatch is derived from the recycling of scrap tyre rubber which is devulcanised and converted into raw rubber material.
"The plant will cater for both local and Asean markets and generate revenue in excess of RM80 million per annum.
"We are finalising a site in Port Klang and the plant will be completed and operational by year-end," he told a media briefing on the company's business plan.
Sekhar said SRI had, since 2006, invested more than RM3 million to develop the SRI Activation Technology, a proprietary solution, used in the production of compounds that are currently being tested and evaluated by global tyre manufacturers.
Locally, the company is evaluating and conducting road testing trials with the Rubber Research Institute of Malaysia (RRIM).
"We will produce 50 metric tonnes of compound masterbatch per month at our present test facility here in two months," he said, adding that initial production would be targeted at the retread tyre and general rubber goods market which is expected to generate a per annum revenue of more than RM2 million.
As part of the company's global expansion, SRI has a licencee in the United States for the eventual production of SRI compound masterbatch.
Sekhar said similar agreements were underway in Europe and Asia.
"We are offering a solution that provides a savings of between four and eight percent in terms of raw material cost.
"Given that profit margins in the industry are uniformly less than 10 per cent, the potential here is for profits to double," he added.
Sekhar said more than one billion tyres are produced globally anually valued at more than US$130 billion.
(bernama.com)
Rubber Slumps on Doubts Over Europe Bailout, China Auto Sales
Posted: 12 May 2010 01:53 AM PDT
By Aya Takada and Supunnabul Suwannakij
May 11 (Bloomberg) -- Rubber declined, reversing earlier gains, as commodities slumped on concerns that European bailout plans worth almost $1 trillion may not be sufficient to end the region’s sovereign debt crisis.
Futures in Tokyo fell as much as 2 percent to 264.1 yen per kilogram ($2,851 a metric ton) after jumping as much as 3.6 percent earlier. The price slumped to a five-month low of 259.5 yen per kilogram on May 7 on concerns that Europe’s debt crisis may slow the global economic recovery and weaken demand for the commodity used to make tires.
“Worries over European debt crisis spurred selling on equities around the globe, strengthening the dollar and pressuring commodities markets,” Kant Julotok, analyst at commodity broker Agrowealth Ltd., said by phone from Bangkok.
Rubber for October delivery, the most-active contract, declined 1.8 percent to settle at 264.5 yen on the Tokyo Commodity Exchange. The price touched a 21-month high of 338.5 yen on April 16 on speculation that economic growth will boost demand for the raw material.
Asian stocks fell as commodity-related companies dropped on concern that China will step up efforts to cool growth. Crude oil fell as investors questioned whether the European bailout plan will reduce deficits in Greece, Spain and Portugal.
The MSCI Asia Pacific Index of equities fell as much as 1.1 percent after climbing 1.5 percent yesterday, the first gain in six days. The euro dropped against the dollar today for the first time in three days.
Crude oil for June delivery declined as much as 0.9 percent to $76.10 a barrel in electronic trading on the New York Mercantile Exchange before trading at $76.15.
Car Sales Slow
Rubber also dropped after data showed yesterday that growth in China’s car sales slowed in April to the lowest level since March 2009, stoking concern that demand in the world’s largest rubber consumer may weaken, Kazuhiko Saito, an analyst at commodity broker Fujitomi Ltd., said today.
Sales of cars, sport-utility vehicles and multipurpose vehicles increased 33 percent from a year earlier to 1.11 million units, compared with a 63 percent jump in March, the China Association of Automobile Manufacturers said. Total vehicle demand climbed 34 percent to 1.56 million.
Chinese consumers’ willingness to spend dropped in the first quarter, possibly because of rising property prices, Nielsen Co. and the nation’s statistics bureau said in a statement on May 6, citing a survey. Consumer prices rose 2.8 percent in April from a year earlier, the fastest pace in 18 months, and property prices jumped 12.8 percent, the statistics bureau said today.
The free-on-board price of Thai RSS-3 grade rubber for June-delivery, which excludes freight and insurance, rose 2.7 percent to 112.65 baht ($3.48) a kilogram, according to the Rubber Institute of Thailand. The price climbed to a record 130.55 baht on April 28.
September-delivery rubber on the Shanghai Futures Exchange lost 1.8 percent to settle at 22,170 yuan ($3,247) a ton. It plunged to 22,000 yuan a ton on May 7, the lowest level since Feb. 9.
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