Spot rubber prices improve

Spot rubber prices improve

Kottayam, June 11

The domestic rubber prices improved on Friday. In spot, the market made all-round gains catalysed even by the marginal increase in its futures on the National Multi-Commodity Exchange (NMCE) amidst acute short supplies. Sheet rubber moved up to Rs 169 from Rs 168.25 a kg on fresh buying and short covering. The volumes were dull.

Futures firm

The June futures for RSS 4 firmed up to Rs 170.50 (169.56), July to Rs 166.70 (165.86), August to Rs 159.97 (159.73) and September to Rs 156.30 (155.40) a kg on the NMCE. RSS 3 slipped with the June futures dropping to ¥349.9/Rs 178.59 (¥351.4) while the July futures improved to ¥330.3 (¥328.2), August to ¥311.7 (¥309.6), September to ¥289.8 (¥287.9), October to ¥269.8 (¥268.5) and November to ¥264.8 (¥260.2) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) weakened to Rs 164.58 (165.07) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 169 (168.25); RSS-5: 167 (165.50); ungraded: 164.50 (164); ISNR 20: 150.50 (150) and latex 60 per cent: 113 (111.50).





Rubber Climbs for Second Day as Demand May Grow on Recovery
Posted: 11 Jun 2010 12:02 AM PDT
By Aya Takada

June 11 (Bloomberg) -- Rubber climbed for a second day, paring a weekly loss, on speculation that Europe’s debt crisis won’t stall economic growth in Asia, leading to increased demand for the commodity used to make tires.

Futures in Tokyo advanced as much as 2.3 percent to the highest level since June 7. The price is headed for a second weekly loss as concerns remain that the sovereign debt crisis may spread from Greece to other European nations.

The ECB yesterday raised its euro-region growth forecast for this year to around 1 percent from 0.8 percent. Asian stocks advanced for the second straight day as investor appetite for riskier assets increased. Japan’s currency retreated against the dollar, raising the appeal of yen-based contracts.

“A pessimistic view on the economic outlook receded after data showed strong growth in Chinese exports and accelerated recovery in Japan’s economy,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. “Rubber tracked gains in industrial commodities.”

Rubber for November delivery rose as much as 6 yen to 269 yen a kilogram ($2,938 a metric ton) before trading at 267.5 yen on the Tokyo Commodity Exchange at 11:17 a.m.

The price has lost 2.3 percent this week, extending a 3.8 percent drop last week. Output in Thailand, the world’s largest producer and exporter, expanded seasonally, leading to a drop in the physical market and capping Tokyo futures, Sugata said.

Cash Rubber

Cash rubber in Thailand extended a decline for a seventh day yesterday as a volatile Japanese currency hurt prices, the Rubber Institute of Thailand said on its website.

The free-on-board price of RSS-3 grade rubber for July delivery fell 0.7 percent to 114.35 baht ($3.51) a kilogram, according to the institute, which reviews the price daily and issues new data in the afternoon.

September-delivery rubber on the Shanghai Futures Exchange added 2 percent to 21,860 yuan ($3,201) a ton at 10:07 a.m. local time.

Exports from China jumped 48.5 percent in May from a year earlier, according to data released yesterday, indicating that Europe’s sovereign-debt crisis has yet to restrain the world’s fastest-growing major economy. China is the world’s largest natural rubber consumer, followed by the U.S. and Japan.

Japan’s economy rose at an annualized 5 percent rate in the three months ended March 31, faster than the 4.9 percent reported last month and the biggest gain since the second quarter of 2009, a government report showed today.

(bloomberg.com)





Emerging-Market Stocks Rise to One-Week High on China, Europe
Posted: 11 Jun 2010 12:01 AM PDT
By Chan Tien Hin

June 11 (Bloomberg) -- Developing-nation stocks rose, sending the benchmark index to a one-week high, after China reported higher-than-estimated retail sales and the European Central bank increased its economic growth forecast.

The MSCI Emerging Markets Index gained 1.1 percent to 917.33 at 12:12 p.m. in Singapore, set for its highest level since June 3. The gauge has climbed 0.4 percent this week. Indexes in China, Taiwan, South Korea, India, Indonesia, Malaysia and the Philippines all advanced.

“No other place is safer than China in this decade,” Liu Yang, chairwoman of Atlantis Investment Management Ltd., which oversees $3 billion, said in a Bloomberg Television interview. “The U.S. has its problems. Europe is falling apart. The global imbalances are making emerging markets more attractive.”

The emerging-markets gauge has lost 7.3 percent this year on concern Europe’s debt crisis and measures to slow growth in China will hurt the global economic recovery. China’s surging retail sales and loan growth that beat economist estimates adding to evidence that the world’s third-biggest economy is withstanding Europe’s debt crisis.

Official data released yesterday in Beijing showed China’s exports jumped the most in six years and property prices rose at a near-record pace. The nation’s retail sales surged 18.7 percent in May, today’s data showed, compared with an 18.5 percent gain in April. The estimate was for 18.5 percent growth.

Gree Electric Appliances Inc. led gains for retailers, climbing 2 percent and GD Midea Holding Co. added 1.4 percent.

Chinese banks extended 639.4 billion yuan of new local- currency loans last month, the central bank said on its website.

Industrial & Commercial Bank of China Ltd., the nation’s biggest lender, gained 0.7 percent to 4.17 yuan. Bank of China Ltd., the third-largest, advanced 0.6 percent to 3.57 yuan.

Europe Crisis

China is paying close attention to the European debt crisis and its impact on the country, Sheng Laiyun, spokesman for the National Bureau of Statistics, told a briefing in Beijing today.

The ECB raised its euro-region growth forecast for this year and cut it for 2011. The central bank expects the economy will expand around 1 percent in 2010 compared with a previous forecast of about 0.8 percent. It will grow about 1.2 percent in 2011, lower than an earlier projection of around 1.5 percent because of weaker domestic demand, said Jean-Claude Trichet, head of the ECB.

India’s Bombay Stock Exchange Sensitive Index climbed 0.9 percent, its third day of gains. Reliance Industries Ltd., the most valuable company, added 1.8 percent after two people familiar with the matter said it’s considering buying a stake in shale gas assets owned by Pioneer Natural Resources Co.

Korea Gains

In South Korea, the Kospi Index advanced 0.9 percent, its highest level since May 14. Hyundai Heavy Industries Co., the world’s largest shipbuilder, led advances among South Korean shipyards on speculation they may raise prices to offset a stronger currency and higher material costs.

Thailand’s SET index gained 0.2 percent. Sri Trang Agro- Industry Pcl, the biggest publicly traded rubber producer, rose 1.1 percent to a record after rubber prices climbed.

Taiwan’s Taiex index rose 1.5 percent to 7,290.87, bound for its highest close since June 4.

(bloomberg.com)





Rubber prices stabilise as tyre firms defer purchases
Posted: 10 Jun 2010 11:58 PM PDT
C.J. Punnathara

Kochi, June 10

The price of natural rubber has stabilised in the domestic market on steady arrivals and subdued demand.

Several of the small scale rubber-based industries have shut shop temporarily or permanently as they find iteconomically unviable to operate at the existing high raw material prices and weakening overall demand, Mr N. Radhakrishnan, former President of the Cochin Rubber Merchants Association, said.

Of the monthly domestic demand of approximately 75,000 tonnes, almost 30-35 per cent comes from small-scale rubber industries. As monthly demand has weakened, prices have more or less stabilised at their current highs.

The bigger tyre companies are also deferring bulk purchases, reducing the overall demand.

Production expectation

The prediction that domestic rubber production is slated to increase this year is also expected to douse the price spiral.

Between January and April, natural rubber production is expected to have grown 8.5 per cent. The prognosis by the Association of Natural Rubber Producing Countries (ANRPC) is that production is slated to grow by 12 per cent in May-July period.

The association, which accounts for 94 per cent of global natural rubber production, has said that for 2010 Indian rubber production is slated to grow by 9.1 per cent.

Moreover, there has been no slackening of arrivals as the farmers continue to tap the trees in spite of the onset of the rains. “The farmers are mercilessly tapping the trees to reap high prices,” Mr Radhakrishnan said.

Moreover, there is abundant stock which is beginning to reach the markets. Stocks will start coming back to the market as and when prices ease and there is a threat they might fall further, rather than when they strengthen, sources in the trade said.

Despite the merciless tapping, the onset of the regular summer rains is also expected to dampen output and arrivals into the market. As the monsoon intensifies and becomes persistent it is expected to affect tapping and curing operations.

Also, the onset of ‘fever season' in the rubber growing belts of the country is likely to increase absenteeism and reduce production.

Skilled labour which all along had been an inherent problem in plantations is likely to intensify with the onset of the fever, sources pointed out.

Bullish on production

As more and more areas under fresh rubber plantations are expected to become productive in the coming years, the Rubber Board remains bullish on production prospects into the coming years.

However, trade sources point to the huge backlog of old trees which need to be replanted in order to sustain growth in production. Replanting has not been undertaken on a systematic or in an organised manner.

As the real estate value of land has been growing rapidly, it is doubtful if large tracts of land, which await replanting, will ever come under rubber trees again, they warned.

(thehindubusinessline.com)