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.