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.