MUMBAI (Commodity Online): India is considering a cut in the import tax on natural rubber to help bulk consumers such as tire makers, whose input costs have mounted because of a local shortfall, Currently the import tax on natural rubber is 20%, translating to around Rs.30 per kg (65 U.S. cents) based on international prices.
The government is looking at capping the tax at Rs.20.46/kg (44 U.S. cents).
India's synthetic rubber imports surged 51.7% in April due to higher demand from tire makers, the state-run Rubber Board said Tuesday. Synthetic rubber imports during the first month of this fiscal year totaled 25,885 metric tons, compared with 17,065 tons a year earlier, the board said on its website.
Consumption of synthetic rubber increased 24.7% to 32,815 tons in April, with demand from tire makers climbing 31.7% to 22,872 tons, it added. Production during the month remained almost steady at 8,180 tons.
According to data from the Rubber Board, India's synthetic rubber output in April rose to 8,180 mt from 8,169 mt a year ago. Demand for synthetic rubber rose 24.7% on year to 32,815 mt from 26,315 mt, while imports rose 51.6% on year to 25,885 mt from 17,065 mt. Increase in demand from automobile tyre manufacturers mainly supported the growth in demand for synthetic rubber.
Saturday, July 31, 2010
Spot rubber weakens on buyer resistance
Spot rubber weakens on buyer resistance
Kottayam, July 30
Spot rubber prices turned weak on Friday. The market slipped on buyer resistance though supply concerns continued to haunt the traders amidst sustained monsoon rains. Sheet rubber moved down to Rs 185 from Rs 185.50 a kg, while the trend was mixed as ISNR 20 and latex 60 per cent were flat and rather inactive The Rubber Board's rate was steady at Rs 184 a kg for RSS 4.
Futures gain
In futures, the August series closed at Rs 183.86 (185.22), September at Rs 168.95 (168.75), October at Rs 160.50 (160.49) and November at Rs 160.50 (160.50) a kg for RSS 4 on the National Multi Commodity Exchange. The near month August series hit a high of Rs 185.99 and a low of Rs 182.60 a kg during the session. The total open interest in all series was 5724 lots. RSS 3 improved with August futures rising to ¥303.8/Rs 163.33 (¥300.6) during the day session and to ¥303.9 (Rs 163.38) a kg during the night session on the Tokyo Commodity Exchange. The grade closed at Rs 150.54 (Rs 149.72) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 185 (185.50); RSS-5: 179 (179.50); ungraded: 169.50 (170); ISNR 20: 157 (157) and latex 60 per cent: 110 (110).
Goodyear Q2 beats estimates but 2nd half a worry
Posted: 29 Jul 2010 05:42 PM PDT
(Reuters) - Goodyear Tire & Rubber Co (GT.N) posted better-than-expected quarterly earnings on Thursday and a profit in its key North American unit, but shares slipped on concerns about the second-half outlook.
Goodyear, whose shares were down 4 percent on Thursday after a run-up of more than 20 percent in July, said the economy remained uncertain and raw materials costs were a challenge but had been more than offset in the quarter by the increased pricing and the sale of a higher percentage of more expensive tires.
"The improving global economy, while certain not to be a straight upward path, will provide the environment to fill our factories," Chief Executive Richard Kramer said on a conference call with analysts.
Kramer also said there would be a "significant footprint action" in North America, but Goodyear has not made any final decisions about potential changes.
Goodyear's four-year contract with the United Steelworkers union last year left jobs at its Union City, Tennessee, plant unprotected while providing job security at six other plants. Union City has about 2,000 jobs.
"The market may have been underestimating the materials cost headwinds the company faces in the second half of the year," CRT Capital Group analyst Kirk Ludtke said.
The question really is whether Goodyear will be able to pass the increases in raw materials to customers, Morningstar analyst Joung Park said.
Goodyear, the largest U.S. tire maker, pushed to a profit in North America after a steep loss a year earlier. The turnaround was due to price increases, sale of a higher percentage of more expensive tires and market share gains on branded consumer replacement tires, the company said.
In Latin America, operating income fell in part due to the Venezuelan currency devaluation, Goodyear said. For the year, the currency devaluation, weaker demand and other factors could pressure operating income by $75 million in the unit, it said.
Goodyear reported net income of $28 million, or 11 cents per share, for the second quarter, compared with a net loss of $221 million, or 92 cents per share, a year earlier. Revenue rose 15 percent to $4.5 billion.
Excluding one-time items, Goodyear reported earnings of 12 cents per share. Analysts, on average, had expected it to earn 5 cents per share, according to Thomson Reuters I/B/E/S.
Goodyear sold 10 percent more tires in the quarter than a year earlier. In general, about two-thirds of Goodyear's tire sales are to the replacement market and one-third to automotive manufacturers for new vehicles, generating lower margins.
In the North American unit, tire sales to manufacturers rose 69 percent in the quarter from the year-earlier period, when the manufacturing shutdowns at General Motors Co GM.UL and Chrysler Group LLC during their government-supported bankruptcies had cut demand.
Shipments of replacement tires in North America rose 2 percent in the quarter from a year earlier.
Goodyear expects raw materials costs in the second half of the year to be less than previously forecast. It expects them to peak in the third quarter, with an increase of 30 percent to 35 percent from a year earlier. It expects fourth quarter raw materials costs to be up about 30 percent from a year earlier.
Goodyear shares were down 52 cents, or 4.4 percent, at $11.43 Thursday afternoon on the New York Stock Exchange.
(reuters.com)
Kerala expects good spice yield
Posted: 29 Jul 2010 05:40 PM PDT
The moderate monsoon in Kerala has been good for most crops and adequate rains has provided the perfect platform for the agriculture sector. According to analysts, this would be a good season for both edible and cash crops.
The progress of the monsoon has enthused natural rubber growers and production is in full swing. Rubber Board sources said production would be up by around 6-7 per cent and the existing high prices will encourage growers to invest in plantations.
Production increased 5 per cent in June to 57,000 tonnes against 54,255 tones in June, 09, according to the latest data.
N Radhakrishnan, former president of Cochin Rubber Merchants Association said production will increase, as tapping is in full swing in major rubber cultivating areas. But the slow pace in re-planting of old trees are serious concerns.
KM Michel, president, Cardamom Growers Association said the rainfall pattern in high ranges is good and spices, especially cardamom and pepper, are expected to have a good yield.
According to his estimates there might be 5-10 per cent increase in production. During the last season, around 10,000 tonnes of cardamom was produced. The high average price (Rs 1500 per kg) has also pushed up nursing of plantations in Idukki district, where nearly 70 per cent of cardamom is produced.
Agriculture officer Benny Kuriakose said the sharp increase in prices of black pepper and a moderate monsoon is also encouraging growers. The total production last season was between 45,000-50,000 tonnes. The harvesting season will begin in December.
Coco is expected to have a good crop. Growers said the monsoon was also favourable for growing nutmeg. An official of the Coconut Development Board told Business Standard that production is likely to increase.
R Anilkumar, a banana planter of Thrissur district said there was minimal damage due to lack of strong winds and a good crop is expected during Onam in August.
After 45 days of ban on trawlers, the fishing sector will be active from 1st August and good seasonal catch is expected. Around 5,000 fishing boats are preparing for a good season.
(business-standard.com)
Kottayam, July 30
Spot rubber prices turned weak on Friday. The market slipped on buyer resistance though supply concerns continued to haunt the traders amidst sustained monsoon rains. Sheet rubber moved down to Rs 185 from Rs 185.50 a kg, while the trend was mixed as ISNR 20 and latex 60 per cent were flat and rather inactive The Rubber Board's rate was steady at Rs 184 a kg for RSS 4.
Futures gain
In futures, the August series closed at Rs 183.86 (185.22), September at Rs 168.95 (168.75), October at Rs 160.50 (160.49) and November at Rs 160.50 (160.50) a kg for RSS 4 on the National Multi Commodity Exchange. The near month August series hit a high of Rs 185.99 and a low of Rs 182.60 a kg during the session. The total open interest in all series was 5724 lots. RSS 3 improved with August futures rising to ¥303.8/Rs 163.33 (¥300.6) during the day session and to ¥303.9 (Rs 163.38) a kg during the night session on the Tokyo Commodity Exchange. The grade closed at Rs 150.54 (Rs 149.72) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 185 (185.50); RSS-5: 179 (179.50); ungraded: 169.50 (170); ISNR 20: 157 (157) and latex 60 per cent: 110 (110).
Goodyear Q2 beats estimates but 2nd half a worry
Posted: 29 Jul 2010 05:42 PM PDT
(Reuters) - Goodyear Tire & Rubber Co (GT.N) posted better-than-expected quarterly earnings on Thursday and a profit in its key North American unit, but shares slipped on concerns about the second-half outlook.
Goodyear, whose shares were down 4 percent on Thursday after a run-up of more than 20 percent in July, said the economy remained uncertain and raw materials costs were a challenge but had been more than offset in the quarter by the increased pricing and the sale of a higher percentage of more expensive tires.
"The improving global economy, while certain not to be a straight upward path, will provide the environment to fill our factories," Chief Executive Richard Kramer said on a conference call with analysts.
Kramer also said there would be a "significant footprint action" in North America, but Goodyear has not made any final decisions about potential changes.
Goodyear's four-year contract with the United Steelworkers union last year left jobs at its Union City, Tennessee, plant unprotected while providing job security at six other plants. Union City has about 2,000 jobs.
"The market may have been underestimating the materials cost headwinds the company faces in the second half of the year," CRT Capital Group analyst Kirk Ludtke said.
The question really is whether Goodyear will be able to pass the increases in raw materials to customers, Morningstar analyst Joung Park said.
Goodyear, the largest U.S. tire maker, pushed to a profit in North America after a steep loss a year earlier. The turnaround was due to price increases, sale of a higher percentage of more expensive tires and market share gains on branded consumer replacement tires, the company said.
In Latin America, operating income fell in part due to the Venezuelan currency devaluation, Goodyear said. For the year, the currency devaluation, weaker demand and other factors could pressure operating income by $75 million in the unit, it said.
Goodyear reported net income of $28 million, or 11 cents per share, for the second quarter, compared with a net loss of $221 million, or 92 cents per share, a year earlier. Revenue rose 15 percent to $4.5 billion.
Excluding one-time items, Goodyear reported earnings of 12 cents per share. Analysts, on average, had expected it to earn 5 cents per share, according to Thomson Reuters I/B/E/S.
Goodyear sold 10 percent more tires in the quarter than a year earlier. In general, about two-thirds of Goodyear's tire sales are to the replacement market and one-third to automotive manufacturers for new vehicles, generating lower margins.
In the North American unit, tire sales to manufacturers rose 69 percent in the quarter from the year-earlier period, when the manufacturing shutdowns at General Motors Co GM.UL and Chrysler Group LLC during their government-supported bankruptcies had cut demand.
Shipments of replacement tires in North America rose 2 percent in the quarter from a year earlier.
Goodyear expects raw materials costs in the second half of the year to be less than previously forecast. It expects them to peak in the third quarter, with an increase of 30 percent to 35 percent from a year earlier. It expects fourth quarter raw materials costs to be up about 30 percent from a year earlier.
Goodyear shares were down 52 cents, or 4.4 percent, at $11.43 Thursday afternoon on the New York Stock Exchange.
(reuters.com)
Kerala expects good spice yield
Posted: 29 Jul 2010 05:40 PM PDT
The moderate monsoon in Kerala has been good for most crops and adequate rains has provided the perfect platform for the agriculture sector. According to analysts, this would be a good season for both edible and cash crops.
The progress of the monsoon has enthused natural rubber growers and production is in full swing. Rubber Board sources said production would be up by around 6-7 per cent and the existing high prices will encourage growers to invest in plantations.
Production increased 5 per cent in June to 57,000 tonnes against 54,255 tones in June, 09, according to the latest data.
N Radhakrishnan, former president of Cochin Rubber Merchants Association said production will increase, as tapping is in full swing in major rubber cultivating areas. But the slow pace in re-planting of old trees are serious concerns.
KM Michel, president, Cardamom Growers Association said the rainfall pattern in high ranges is good and spices, especially cardamom and pepper, are expected to have a good yield.
According to his estimates there might be 5-10 per cent increase in production. During the last season, around 10,000 tonnes of cardamom was produced. The high average price (Rs 1500 per kg) has also pushed up nursing of plantations in Idukki district, where nearly 70 per cent of cardamom is produced.
Agriculture officer Benny Kuriakose said the sharp increase in prices of black pepper and a moderate monsoon is also encouraging growers. The total production last season was between 45,000-50,000 tonnes. The harvesting season will begin in December.
Coco is expected to have a good crop. Growers said the monsoon was also favourable for growing nutmeg. An official of the Coconut Development Board told Business Standard that production is likely to increase.
R Anilkumar, a banana planter of Thrissur district said there was minimal damage due to lack of strong winds and a good crop is expected during Onam in August.
After 45 days of ban on trawlers, the fishing sector will be active from 1st August and good seasonal catch is expected. Around 5,000 fishing boats are preparing for a good season.
(business-standard.com)
Friday, July 30, 2010
Rise in spot rubber prices continues
Rise in spot rubber prices continues
Kottayam, July 29
Spot rubber firmed up further on Thursday.
The market moved up following gains in futures on speculation that the demand in China, the world's largest consumer, would keep growing, along with the expansion of the tyre output in the nation.
Sheet rubber advanced to Rs 185.50 from Rs 185.00 on covering purchases. The Rubber Board's rate for the grade was Rs 184.00 (Rs 183.50 ) a kg.
FUTURES FIRM
The trend was mixed. The NMCE rubber futures were firm on early trades but it shed the gains partially later, selling at higher levels. The near-month August series hit a high of Rs 187.00 and a low of Rs 183.50 a kg during the session.
The August futures improved to Rs 185.59 (Rs 184.04), September to Rs 169.10 (Rs 168.79), and November to Rs 160.50 (Rs 160.10). The October series slipped to Rs 160.49 (Rs 161.21) per kg for RSS 4.
.
The grade closed at Rs 149.72 (Rs 149.04) a kg at Bangkok.
Spot rates (a kg) were: Rs 185.50 (185.00) for RSS-4; Rs 179.50 (Rs 179.00) for RSS-5; Rs 170.00 (Rs 169.00) for Ungraded; Rs 157.00 (Rs 157.00) for ISNR 20; and Rs 110.00 (Rs 111.00) for Latex 60 per cent.
Rubber Climbs to Two-Week High as Chinese Demand May Expand
Posted: 28 Jul 2010 11:26 PM PDT
By Aya Takada
July 29 (Bloomberg) -- Rubber advanced to a two-week high on speculation that demand in China, the world’s largest consumer, will keep growing after Sumitomo Rubber Industries Ltd. said it will expand tire output in the nation.
Futures in Tokyo climbed as much as 1.9 percent to the highest level since July 12. The price has gained 1 percent in July, heading for the first monthly advance since March.
Sumitomo Rubber, Japan’s second-largest tire maker after Bridgestone Corp., will invest $297 million to set up a factory in Hunan province, the company said in a statement yesterday. It will be the company’s second factory in China and start production in July 2012, it said.
“The news added to expectations that China’s raw-material demand will continue to grow, backed by a rapid expansion in the nation’s economy,” Hisaaki Tasaka, an analyst at broker ACE Koeki Co. in Tokyo, said today by phone.
January-delivery rubber increased as much as 5 yen to 273.6 yen per kilogram ($3,133 a metric ton) on the Tokyo Commodity Exchange before trading at 272 yen at 11:10 a.m. local time.
Gains in futures were limited as Asian stocks extended a global decline after the Federal Reserve said U.S. economic growth slowed in some areas, raising concern that the recovery of the world’s largest economy may weaken.
“Economic activity has continued to increase, on balance, since the previous survey,” the central bank said in its Beige Book business survey, noting that two of the Fed’s 12 districts reported the economy “held steady” and two said the pace of expansion slowed.
‘Unusually Uncertain’
The report underscored the Fed’s view that the recovery, while still moving forward, is progressing at a slower pace than earlier in the year. Fed Chairman Ben S. Bernanke said in congressional testimony last week that the central bank expects “continued moderate growth” and noted that the economic outlook remains “unusually uncertain.”
In the cash market, Thai prices advanced yesterday on speculation that heavy rains in the nation’s rubber-growing southern provinces may limit supply, according to the Rubber Research Institute of Thailand. The price added 0.2 percent to 102.4 baht ($3.18) per kilogram.
January-delivery rubber on the Shanghai Futures Exchange gained 0.9 percent to 23,525 yuan ($3,470) a ton.
(bloomberg.com)
Tight supplies to keep rubber prices steady
Posted: 28 Jul 2010 11:24 PM PDT
KOCHI: The global prices of natural rubber will remain steady in the medium term on account of tight supplies and growing demand.
Abdul Aziz, secretary general, International Rubber Research and Development Board (IRRDB), said the natural rubber situation is not likely to see any significant change in the medium term.
However, countries like Vietnam, China, Cambodia and Laos are increasing the area under rubber. By the second half of this decade, Vietnam could emerge as a major player surpassing both India and Malaysia, he said.
Mr Aziz said production in the Asian countries has been affected by labour shortage and climatic changes. An increase in production is also limited by large-scale replanting in the leading producers. Mr Aziz was speaking to ET on the sidelines of the international workshop on ‘Climate Change and Natural Rubber Cultivation Research and Development Priorities’ jointly organised by the Rubber Research Institute of India (RRI) and IRRDB.
An expert on natural rubber, Mr Aziz was of the view that price stabilisation was not warranted as the current upsurge is shaped by the demand and supply factors.
Earlier in his keynote address Prof J Sreenivasan of Indian Institute of Science, Bangalore said studies showed that over the years there has been a decline in the rainfall in Kerala, the main rubber producing region.
Dr James Jacob, director, RRI, in his paper, ‘Impact of Climate Change on Natural Rubber Productivity in Different Agro-climatic Regions in India’, pointed out that the productivity of rubber plantations in the state was on the decline due to rising temperature.
According to him, a one degree increase in temperature will result in a 15% fall in productivity. It is in this context that the RRI is developing new heat resistant clones of natural rubber. The productivity of NR in the country declined to 1,784 kg per hectare per year in 2009-10 from 1,867 kg during 2008-09.
(economictimes.indiatimes.com)
High input costs halve MRF net
Posted: 28 Jul 2010 11:24 PM PDT
CHENNAI: Increased raw material costs, especially natural rubber and employee costs, along with interest charges pulled down MRF’s net profit by 51% to Rs 61.6 crore in the third quarter ended June 30, 2010 against Rs 125.7 crore in the year-ago period. The board has approved the payment of interim dividend of Rs 3 per equity share.
However, buoyancy in the auto sector and greater demand in the replacement market for tyres helped the company to lift net sales 34.2% to Rs 1,924.4 crore against Rs 1,433.6 crore in the year-ago period.
The other operating income was less at `96 lakh against Rs 4.7 crore in the year-ago period. In the first nine months, MRF reported a higher net profit of Rs 276.8 crore against Rs 156.1 crore in the same period in the previous year. Net sales improved to Rs 5,345.9 crore against Rs 4,189.6 crore in the year-ago period.
In the first nine months, the company has surpassed the net profit of Rs 253 crore, reported during the year ending September 30, 2009 on net sales of Rs 5,663.8 crore.
MRF executive V-P marketing, Koshy Varghese said despite robust sales, the profits took a beating in Q3 due to high cost of natural rubber. During the quarter, consumption of raw materials increased 78% to Rs 1367.1 crore against Rs 766.7 crore in the year-ago period.
Employees’ cost increased to Rs 102 crore, interest Rs 19.7 crore against Rs 11.5 crore in the year-ago period. Tax liability was lower at Rs 87.5 crore against `188.1 crore in the year-ago period.
With the Government allowing users to import tyres at lower duty, the company found it difficult to increase the prices to recover the additional cost on inputs and the operational expenses. Stating natural rubber prices in the international market are lower compared with domestic prices, he hoped the government will reduce import duty on material.
(economictimes.indiatimes.com)
Rise in spot rubber prices
Posted: 28 Jul 2010 11:23 PM PDT
On Wednesday (28 July 2010), the spot rubber prices rose as the market continued to suffer from short supplies. Sheet rubber increased further to Rs 185 from Rs 183.50 per kg on fresh buying and short covering. Latex 60% declined further due to low demand.
The August futures for RSS 4 declined to Rs 184.02 (184.66), September to Rs 169 (171.86), October to Rs 161.40 (161.71) and November to Rs 160.39 (160.49) a kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 185 (183.50); RSS-5: 179 (178); ungraded: 169 (168); ISNR 20: 157 (156.50) and latex 60 per cent: 111 (112).
(indiainfoline.com)
Kottayam, July 29
Spot rubber firmed up further on Thursday.
The market moved up following gains in futures on speculation that the demand in China, the world's largest consumer, would keep growing, along with the expansion of the tyre output in the nation.
Sheet rubber advanced to Rs 185.50 from Rs 185.00 on covering purchases. The Rubber Board's rate for the grade was Rs 184.00 (Rs 183.50 ) a kg.
FUTURES FIRM
The trend was mixed. The NMCE rubber futures were firm on early trades but it shed the gains partially later, selling at higher levels. The near-month August series hit a high of Rs 187.00 and a low of Rs 183.50 a kg during the session.
The August futures improved to Rs 185.59 (Rs 184.04), September to Rs 169.10 (Rs 168.79), and November to Rs 160.50 (Rs 160.10). The October series slipped to Rs 160.49 (Rs 161.21) per kg for RSS 4.
.
The grade closed at Rs 149.72 (Rs 149.04) a kg at Bangkok.
Spot rates (a kg) were: Rs 185.50 (185.00) for RSS-4; Rs 179.50 (Rs 179.00) for RSS-5; Rs 170.00 (Rs 169.00) for Ungraded; Rs 157.00 (Rs 157.00) for ISNR 20; and Rs 110.00 (Rs 111.00) for Latex 60 per cent.
Rubber Climbs to Two-Week High as Chinese Demand May Expand
Posted: 28 Jul 2010 11:26 PM PDT
By Aya Takada
July 29 (Bloomberg) -- Rubber advanced to a two-week high on speculation that demand in China, the world’s largest consumer, will keep growing after Sumitomo Rubber Industries Ltd. said it will expand tire output in the nation.
Futures in Tokyo climbed as much as 1.9 percent to the highest level since July 12. The price has gained 1 percent in July, heading for the first monthly advance since March.
Sumitomo Rubber, Japan’s second-largest tire maker after Bridgestone Corp., will invest $297 million to set up a factory in Hunan province, the company said in a statement yesterday. It will be the company’s second factory in China and start production in July 2012, it said.
“The news added to expectations that China’s raw-material demand will continue to grow, backed by a rapid expansion in the nation’s economy,” Hisaaki Tasaka, an analyst at broker ACE Koeki Co. in Tokyo, said today by phone.
January-delivery rubber increased as much as 5 yen to 273.6 yen per kilogram ($3,133 a metric ton) on the Tokyo Commodity Exchange before trading at 272 yen at 11:10 a.m. local time.
Gains in futures were limited as Asian stocks extended a global decline after the Federal Reserve said U.S. economic growth slowed in some areas, raising concern that the recovery of the world’s largest economy may weaken.
“Economic activity has continued to increase, on balance, since the previous survey,” the central bank said in its Beige Book business survey, noting that two of the Fed’s 12 districts reported the economy “held steady” and two said the pace of expansion slowed.
‘Unusually Uncertain’
The report underscored the Fed’s view that the recovery, while still moving forward, is progressing at a slower pace than earlier in the year. Fed Chairman Ben S. Bernanke said in congressional testimony last week that the central bank expects “continued moderate growth” and noted that the economic outlook remains “unusually uncertain.”
In the cash market, Thai prices advanced yesterday on speculation that heavy rains in the nation’s rubber-growing southern provinces may limit supply, according to the Rubber Research Institute of Thailand. The price added 0.2 percent to 102.4 baht ($3.18) per kilogram.
January-delivery rubber on the Shanghai Futures Exchange gained 0.9 percent to 23,525 yuan ($3,470) a ton.
(bloomberg.com)
Tight supplies to keep rubber prices steady
Posted: 28 Jul 2010 11:24 PM PDT
KOCHI: The global prices of natural rubber will remain steady in the medium term on account of tight supplies and growing demand.
Abdul Aziz, secretary general, International Rubber Research and Development Board (IRRDB), said the natural rubber situation is not likely to see any significant change in the medium term.
However, countries like Vietnam, China, Cambodia and Laos are increasing the area under rubber. By the second half of this decade, Vietnam could emerge as a major player surpassing both India and Malaysia, he said.
Mr Aziz said production in the Asian countries has been affected by labour shortage and climatic changes. An increase in production is also limited by large-scale replanting in the leading producers. Mr Aziz was speaking to ET on the sidelines of the international workshop on ‘Climate Change and Natural Rubber Cultivation Research and Development Priorities’ jointly organised by the Rubber Research Institute of India (RRI) and IRRDB.
An expert on natural rubber, Mr Aziz was of the view that price stabilisation was not warranted as the current upsurge is shaped by the demand and supply factors.
Earlier in his keynote address Prof J Sreenivasan of Indian Institute of Science, Bangalore said studies showed that over the years there has been a decline in the rainfall in Kerala, the main rubber producing region.
Dr James Jacob, director, RRI, in his paper, ‘Impact of Climate Change on Natural Rubber Productivity in Different Agro-climatic Regions in India’, pointed out that the productivity of rubber plantations in the state was on the decline due to rising temperature.
According to him, a one degree increase in temperature will result in a 15% fall in productivity. It is in this context that the RRI is developing new heat resistant clones of natural rubber. The productivity of NR in the country declined to 1,784 kg per hectare per year in 2009-10 from 1,867 kg during 2008-09.
(economictimes.indiatimes.com)
High input costs halve MRF net
Posted: 28 Jul 2010 11:24 PM PDT
CHENNAI: Increased raw material costs, especially natural rubber and employee costs, along with interest charges pulled down MRF’s net profit by 51% to Rs 61.6 crore in the third quarter ended June 30, 2010 against Rs 125.7 crore in the year-ago period. The board has approved the payment of interim dividend of Rs 3 per equity share.
However, buoyancy in the auto sector and greater demand in the replacement market for tyres helped the company to lift net sales 34.2% to Rs 1,924.4 crore against Rs 1,433.6 crore in the year-ago period.
The other operating income was less at `96 lakh against Rs 4.7 crore in the year-ago period. In the first nine months, MRF reported a higher net profit of Rs 276.8 crore against Rs 156.1 crore in the same period in the previous year. Net sales improved to Rs 5,345.9 crore against Rs 4,189.6 crore in the year-ago period.
In the first nine months, the company has surpassed the net profit of Rs 253 crore, reported during the year ending September 30, 2009 on net sales of Rs 5,663.8 crore.
MRF executive V-P marketing, Koshy Varghese said despite robust sales, the profits took a beating in Q3 due to high cost of natural rubber. During the quarter, consumption of raw materials increased 78% to Rs 1367.1 crore against Rs 766.7 crore in the year-ago period.
Employees’ cost increased to Rs 102 crore, interest Rs 19.7 crore against Rs 11.5 crore in the year-ago period. Tax liability was lower at Rs 87.5 crore against `188.1 crore in the year-ago period.
With the Government allowing users to import tyres at lower duty, the company found it difficult to increase the prices to recover the additional cost on inputs and the operational expenses. Stating natural rubber prices in the international market are lower compared with domestic prices, he hoped the government will reduce import duty on material.
(economictimes.indiatimes.com)
Rise in spot rubber prices
Posted: 28 Jul 2010 11:23 PM PDT
On Wednesday (28 July 2010), the spot rubber prices rose as the market continued to suffer from short supplies. Sheet rubber increased further to Rs 185 from Rs 183.50 per kg on fresh buying and short covering. Latex 60% declined further due to low demand.
The August futures for RSS 4 declined to Rs 184.02 (184.66), September to Rs 169 (171.86), October to Rs 161.40 (161.71) and November to Rs 160.39 (160.49) a kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 185 (183.50); RSS-5: 179 (178); ungraded: 169 (168); ISNR 20: 157 (156.50) and latex 60 per cent: 111 (112).
(indiainfoline.com)
Thursday, July 29, 2010
Economic Times-22.7.2010
KOTTAYAM (Commodity Online): Addressing the concerns of productivity and output in natural rubber, the Rubber Board chairman, Sajen Peter today put a special emphasize on strengthening research activity.
Addressing the international workshop on ‘Climate Change and Natural Rubber Cultivation: Research and Development Priorities’ here, Peter pointed out that the problem of production and productivity can be solved to a great extent by evolving drought resistant clones and by developing new cultural practices.
The three day international workshop is held at Rubber Research Institute of India (RRII) and jointly organised by Rubber Research Institute of India and International Rubber Research and Development Board (IRRDB).
In his inaugural address, Peter maintained that climate change is posing threat to the farmers all over the world and small growers would be worse affected. Any reduction in supply of natural rubber due to global warming not only jeopardise the livelihood means of so many millions, but would also put the rubber manufacturing industry in trouble.
Increased use of synthetic rubbers as substitute would result in further build up of green house gases, he further mentioned.
Speaking on the climate situation and the issues that a country has to face due to changing climatic conditions, the Secretary General, IRRDB, Dr. Abdul Aziz said that every natural rubber growing country faced problems of weather and new pests and disease might appear in the new climate scenario.
Thirty one scientific papers will be presented in the workshop by the experts from the areas of physiology, agronomy, molecular biology, biotechnology, breeding, pathology, climatology, extension and planning.
The workshop is being conceived with the objectives to review how far climate has changed in the major natural rubber producing countries of the world, to examine how far climate change impacted growth and productivity of rubber, to assess future climate scenarios in natural rubber growing countries, to evolve research strategies for rubber cultivation in stressful environments, to evaluate the carbon dioxide sequestration potential of natural rubber holdings in different countries and to evaluate innovations in rubber processing and manufacturing industries for energy efficiency and reducing carbon dioxide emission to mitigate climate changes.
Sheet rubber improves on short covering
Sheet rubber improves on short covering
Kottayam, July 28
Spot rubber turned better on Wednesday. The undercurrent was firm as the market continued to suffer from short supplies. Sheet rubber improved further to Rs 185 from Rs 183.50 on fresh buying and short covering. The Rubber Board's rate was a little lower at Rs 183.50 (182.50) a kg. Latex 60 per cent fell further journey on low demand. In the international market, Tokyo rubber futures rose nearly two per cent to a two-week high but gains were restricted followed by profit-taking at higher levels. The NMCE futures finished in red though the domestic scenario remained more or less the same.
Futures weak
The August series for RSS 4 weakened to Rs 184.02 (184.66), September to Rs 169 (171.86), October to Rs 161.40 (161.71) and November to Rs 160.39 (160.49) a kg on the National Multi Commodity Exchange. The volumes totalled 10468 lots and turnover 187.94 crores. The total open interest in all series was 5540 lots. RSS 3 improved at its August futures to ¥297.4/Rs 158.33 (¥293.5) during the day session and to ¥299(Rs 159.23) a kg during the night session on the Tokyo Commodity Exchange. The grade closed at Rs 149.04 a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 185 (183.50); RSS-5: 179 (178); ungraded: 169 (168); ISNR 20: 157 (156.50) and latex 60 per cent: 111 (112).
‘Climate change affecting rubber output'
Our Correspondent
Kottayam, July 28
An international workshop on climate change and rubber cultivation was inaugurated by Mr Sajen Peter, Chairman, Rubber Board, in the presence of scientists and researchers from ten countries, including Malaysia, Indonesia, Thailand, Sri Lanka, China and Cambodia, at the Rubber Research Institute of India (RRII), Kottayam.
Inaugurating the workshop, Mr Peter said the RRII has been tracking the temperature and has found that it is increasing steadily. There are more than 10 million small growers who depend on natural rubber cultivation for their livelihood in the producing countries and climate change has the potential to post serious threats to their living.
Climate changes affect rubber production and productivity and it is very important to conduct research on various aspects related to climate, said Dr Abdul Aziz Secretary-General, International Rubber Research and Development Board (IRRDB). Dr Stephen V. Evans, Secretary-General, International Rubber Study Group, also spoke. About sixty papers on various aspects of climate changes would be presented during the three-day workshop which concludes on July 30.
Rubber at Two-Week High as Asian Equities Rally Boosts Appeal
Posted: 27 Jul 2010 11:30 PM PDT
By Supunnabul Suwannakij
July 28 (Bloomberg) -- Rubber advanced for the second time this week, reaching a two-week high, as gains in Asian equity markets and a weaker Japanese currency boosted its appeal.
Futures climbed as much as 1.9 percent as Asian stocks rose, driving the MSCI Asia Pacific Index higher for the fourth straight day, on optimism over improving corporate earnings.
“Rallies across the Asian market spilled over to commodities, including rubber,” said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co.
December-delivery rubber climbed as high as 268.6 yen per kilogram ($3,058 a metric ton) on the Tokyo Commodity Exchange at 12:16 p.m.
November-delivery rubber on the Shanghai Futures Exchange added 2.6 percent to 22,745 yuan ($3,355) a ton.
“A weaker yen supports the rubber market,” Kazunori Kokubo, general manager of the international business department at commodity broker Yutaka Shoji Co., said by phone from Tokyo.
The currency weakened to 87.90 yesterday from 86.88 on July 26, making the yen-denominated rubber contract more attractive for holders of other currencies.
Low stockpile levels in China and Japan led to speculation that buyers will step into the market to replenish inventories, Kokubo said.
“Warehouse stock in Japan is still very low and investors who hold short positions are worried about higher prices, prompting them to cover,” Kokubo said, referring to bets that prices would fall.
Data from the Tokyo exchange showed last week that natural- rubber stockpiles monitored by the bourse dropped by 29 percent to 1,341 tons as of July 10. It was the lowest level since at least 2001, according to exchange spokesman Seiki Ichimura.
Natural rubber stockpiles in China decreased 2,046 tons to 19,328 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said July 23.
(bloomberg.com)
Singapore Exchange Plans New Products as Derivative Trade Booms
Posted: 27 Jul 2010 11:29 PM PDT
By Jonathan Burgos
July 28 (Bloomberg) -- Singapore Exchange Ltd. plans to introduce new derivatives products to benefit from record levels of trading in the securities.
Contracts the bourse plans to introduce in the financial year ending June 2011 include futures and options that track European and Indian stock indexes, Janice Kan, senior vice president for derivatives at the Singapore Exchange, said in a July 26 interview.
The average daily volume of trading in futures and options totaled 240,292 contracts in June and 310,809 in May, exchange data showed. The record daily average across a whole year was 250,651 in 2008. Average daily trading in Hong Kong, whose stock market is four times the size of Singapore’s, was 456,742 contracts in June, according to the Hong Kong bourse’s website.
“The futures market thrives on volatility and uncertainty,” Kan said. “When there is volatility, people seek to hedge their investments. Futures are very efficient contracts to use for this.”
Historical volatility on Singapore’s benchmark Straits Times Index rose to a 10-month high in June as Europe’s mounting budget deficits sparked concern the sovereign debt crisis will spread. The gauge gained 3 percent last month following a 7.5 percent slump in May.
More than 10 stock and fixed-income futures and options instruments trade actively on Singapore’s exchange, bourse data show. Its Singapore Commodity Exchange Ltd. unit offers trading in futures for rubber, gold and coffee. Over-the-counter trading of iron ore, energy and freight-forward swaps are available on the clearinghouse SGX AsiaClear.
Euro Stoxx 50
Singapore Exchange announced this week a deal with Eurex, Europe’s largest derivatives exchange, to sell futures and options contracts linked to the Euro Stoxx 50 Index in the next six months. The contracts will be denominated in U.S. dollars.
The average daily volume of euro-denominated Euro Stoxx 50 Index futures traded on Eurex was more than 1.6 million contracts in the first half, while the options had 1.2 million contracts, Singapore’s bourse and Eurex said in a joint statement on July 26. The contract will be the Singaporean exchange’s first non-Asian index futures product.
“There is a lot of potential for this contract,” Kan said.
Her company will explore the feasibility of offering U.S. stocks futures and options after the European stock-index product is introduced, Kan said.
Within Asia, the bourse plans to offer options linked to India’s S&P CNX Nifty Index, she said. Nifty futures contracts are the third most-actively traded on the Singaporean exchange this year, bourse data showed.
Growth Engine
Kan said the exchange is also planning to revive trading on Chinese stock futures, which have not been active on the exchange since 2008. The bourse introduced a contract in 2006 based on the FTSE/Xinhua China A-50 Index.
Restrictions in China create demand for offshore trading in Chinese stock futures, even after the country introduced a futures contract in April, Kan said.
“Asia is the next growth engine for the world economy,” Kan said. “These products allow us to benefit from the trading flows into the region.”
The new products are expected to help SGX attract more overseas investors such as so-called high-frequency traders, Kan said.
High-frequency traders, who rely on computers to execute large orders at speeds usually at less than a thousandth of a second, now account for 25 percent of Singapore’s derivatives trading, up from about 10 percent two years ago, she said.
(bloomberg.com)
Sri Lanka rubber estate hopes for eco-friendly premium
Posted: 27 Jul 2010 11:26 PM PDT
July 28, 2010 (LBO) - A Sri Lankan rubber estate said it was expecting premium prices for a specialist rubber it was making after being certified for environmental growing and production standards.
Horana Plantations, a unit of Sri Lanka's Ceylon Theatres group, said its rubber and timber plantations had been certified for good forest management practices by the Forest Stewardship Council, an European organization helping guide 'fair trade' buyers.
The firm's rubber estates have been awarded Non-Timber Forest Products (NTFP) Certification by the FSC, the first for a Sri Lankan firm, it said.
"This certification has enabled the Company to obtain premium prices for the export of crepe and sole crepe rubber under the Fair Deal Trading agreement." Chief executive officer Rajiv Casie Chitty told shareholders in the annual report.
"This recognition has further encouraged HP-PLC (Horana Planations PLC) to continue our efforts to make plantation sustainable and eco-friendly."
Sri Lanka's is a niche producer of 'crepe' rubber which commands high prices in world markets.
The firm's timber and forestry cultivation has also been certified by the FSC.
The certification is given for "for managing and harvesting non-timber products from the raw material and rubber latex produced in our properties to minimise biodiversity loss and preserve sustainable rural life through responsible business practices," the firm said.
Horana Plantations had said it was increasing timber planting as prices for fuelwood rose.
Last year it had planted 29.5 hectares of timber trees and 55 hectares of rubber. Horana Plantations said rain reduced latex production last year to 1.4 million kilograms which was the lowest recorded "in many years."
"Despite the reduction in production, the Company recorded significant profits due to the strong market for Rubber in the world market and stringent management controls," Casie Chitty said.
The rubber prices at auctions in Colombo auction had increased from an average of 160 rupees to around 300 rupee levels by December 2009. The net sale average was 279.15 rupees per kilogram for 2009 up from 209.74 a year earlier.
Cost of production had increased to 208.16 per kilogram from 170.16 per kilo a year earlier, with labour and energy pushing up the total.
Gross profits from rubber had increased 71 percent to 102.3 million rupees from 59.6 million a year earlier.
"This sector is expected to perform consistently well in the future with the recovery from the global financial slump likely to renew and increase demand for rubber in the world market," Casie Chitty said.
The firm which also makes tea and small amounts of cinnamon posted net profits of 94 million rupees for the year ended March 2010 up from 55.2 million rupees a year earlier.
Gross revenues rose to 1.78 billion rupees from 1.38 billion rupees. The firm only paid 13.4 million rupees in management fees.
(lankabusinessonline.com)
Kottayam, July 28
Spot rubber turned better on Wednesday. The undercurrent was firm as the market continued to suffer from short supplies. Sheet rubber improved further to Rs 185 from Rs 183.50 on fresh buying and short covering. The Rubber Board's rate was a little lower at Rs 183.50 (182.50) a kg. Latex 60 per cent fell further journey on low demand. In the international market, Tokyo rubber futures rose nearly two per cent to a two-week high but gains were restricted followed by profit-taking at higher levels. The NMCE futures finished in red though the domestic scenario remained more or less the same.
Futures weak
The August series for RSS 4 weakened to Rs 184.02 (184.66), September to Rs 169 (171.86), October to Rs 161.40 (161.71) and November to Rs 160.39 (160.49) a kg on the National Multi Commodity Exchange. The volumes totalled 10468 lots and turnover 187.94 crores. The total open interest in all series was 5540 lots. RSS 3 improved at its August futures to ¥297.4/Rs 158.33 (¥293.5) during the day session and to ¥299(Rs 159.23) a kg during the night session on the Tokyo Commodity Exchange. The grade closed at Rs 149.04 a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 185 (183.50); RSS-5: 179 (178); ungraded: 169 (168); ISNR 20: 157 (156.50) and latex 60 per cent: 111 (112).
‘Climate change affecting rubber output'
Our Correspondent
Kottayam, July 28
An international workshop on climate change and rubber cultivation was inaugurated by Mr Sajen Peter, Chairman, Rubber Board, in the presence of scientists and researchers from ten countries, including Malaysia, Indonesia, Thailand, Sri Lanka, China and Cambodia, at the Rubber Research Institute of India (RRII), Kottayam.
Inaugurating the workshop, Mr Peter said the RRII has been tracking the temperature and has found that it is increasing steadily. There are more than 10 million small growers who depend on natural rubber cultivation for their livelihood in the producing countries and climate change has the potential to post serious threats to their living.
Climate changes affect rubber production and productivity and it is very important to conduct research on various aspects related to climate, said Dr Abdul Aziz Secretary-General, International Rubber Research and Development Board (IRRDB). Dr Stephen V. Evans, Secretary-General, International Rubber Study Group, also spoke. About sixty papers on various aspects of climate changes would be presented during the three-day workshop which concludes on July 30.
Rubber at Two-Week High as Asian Equities Rally Boosts Appeal
Posted: 27 Jul 2010 11:30 PM PDT
By Supunnabul Suwannakij
July 28 (Bloomberg) -- Rubber advanced for the second time this week, reaching a two-week high, as gains in Asian equity markets and a weaker Japanese currency boosted its appeal.
Futures climbed as much as 1.9 percent as Asian stocks rose, driving the MSCI Asia Pacific Index higher for the fourth straight day, on optimism over improving corporate earnings.
“Rallies across the Asian market spilled over to commodities, including rubber,” said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co.
December-delivery rubber climbed as high as 268.6 yen per kilogram ($3,058 a metric ton) on the Tokyo Commodity Exchange at 12:16 p.m.
November-delivery rubber on the Shanghai Futures Exchange added 2.6 percent to 22,745 yuan ($3,355) a ton.
“A weaker yen supports the rubber market,” Kazunori Kokubo, general manager of the international business department at commodity broker Yutaka Shoji Co., said by phone from Tokyo.
The currency weakened to 87.90 yesterday from 86.88 on July 26, making the yen-denominated rubber contract more attractive for holders of other currencies.
Low stockpile levels in China and Japan led to speculation that buyers will step into the market to replenish inventories, Kokubo said.
“Warehouse stock in Japan is still very low and investors who hold short positions are worried about higher prices, prompting them to cover,” Kokubo said, referring to bets that prices would fall.
Data from the Tokyo exchange showed last week that natural- rubber stockpiles monitored by the bourse dropped by 29 percent to 1,341 tons as of July 10. It was the lowest level since at least 2001, according to exchange spokesman Seiki Ichimura.
Natural rubber stockpiles in China decreased 2,046 tons to 19,328 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said July 23.
(bloomberg.com)
Singapore Exchange Plans New Products as Derivative Trade Booms
Posted: 27 Jul 2010 11:29 PM PDT
By Jonathan Burgos
July 28 (Bloomberg) -- Singapore Exchange Ltd. plans to introduce new derivatives products to benefit from record levels of trading in the securities.
Contracts the bourse plans to introduce in the financial year ending June 2011 include futures and options that track European and Indian stock indexes, Janice Kan, senior vice president for derivatives at the Singapore Exchange, said in a July 26 interview.
The average daily volume of trading in futures and options totaled 240,292 contracts in June and 310,809 in May, exchange data showed. The record daily average across a whole year was 250,651 in 2008. Average daily trading in Hong Kong, whose stock market is four times the size of Singapore’s, was 456,742 contracts in June, according to the Hong Kong bourse’s website.
“The futures market thrives on volatility and uncertainty,” Kan said. “When there is volatility, people seek to hedge their investments. Futures are very efficient contracts to use for this.”
Historical volatility on Singapore’s benchmark Straits Times Index rose to a 10-month high in June as Europe’s mounting budget deficits sparked concern the sovereign debt crisis will spread. The gauge gained 3 percent last month following a 7.5 percent slump in May.
More than 10 stock and fixed-income futures and options instruments trade actively on Singapore’s exchange, bourse data show. Its Singapore Commodity Exchange Ltd. unit offers trading in futures for rubber, gold and coffee. Over-the-counter trading of iron ore, energy and freight-forward swaps are available on the clearinghouse SGX AsiaClear.
Euro Stoxx 50
Singapore Exchange announced this week a deal with Eurex, Europe’s largest derivatives exchange, to sell futures and options contracts linked to the Euro Stoxx 50 Index in the next six months. The contracts will be denominated in U.S. dollars.
The average daily volume of euro-denominated Euro Stoxx 50 Index futures traded on Eurex was more than 1.6 million contracts in the first half, while the options had 1.2 million contracts, Singapore’s bourse and Eurex said in a joint statement on July 26. The contract will be the Singaporean exchange’s first non-Asian index futures product.
“There is a lot of potential for this contract,” Kan said.
Her company will explore the feasibility of offering U.S. stocks futures and options after the European stock-index product is introduced, Kan said.
Within Asia, the bourse plans to offer options linked to India’s S&P CNX Nifty Index, she said. Nifty futures contracts are the third most-actively traded on the Singaporean exchange this year, bourse data showed.
Growth Engine
Kan said the exchange is also planning to revive trading on Chinese stock futures, which have not been active on the exchange since 2008. The bourse introduced a contract in 2006 based on the FTSE/Xinhua China A-50 Index.
Restrictions in China create demand for offshore trading in Chinese stock futures, even after the country introduced a futures contract in April, Kan said.
“Asia is the next growth engine for the world economy,” Kan said. “These products allow us to benefit from the trading flows into the region.”
The new products are expected to help SGX attract more overseas investors such as so-called high-frequency traders, Kan said.
High-frequency traders, who rely on computers to execute large orders at speeds usually at less than a thousandth of a second, now account for 25 percent of Singapore’s derivatives trading, up from about 10 percent two years ago, she said.
(bloomberg.com)
Sri Lanka rubber estate hopes for eco-friendly premium
Posted: 27 Jul 2010 11:26 PM PDT
July 28, 2010 (LBO) - A Sri Lankan rubber estate said it was expecting premium prices for a specialist rubber it was making after being certified for environmental growing and production standards.
Horana Plantations, a unit of Sri Lanka's Ceylon Theatres group, said its rubber and timber plantations had been certified for good forest management practices by the Forest Stewardship Council, an European organization helping guide 'fair trade' buyers.
The firm's rubber estates have been awarded Non-Timber Forest Products (NTFP) Certification by the FSC, the first for a Sri Lankan firm, it said.
"This certification has enabled the Company to obtain premium prices for the export of crepe and sole crepe rubber under the Fair Deal Trading agreement." Chief executive officer Rajiv Casie Chitty told shareholders in the annual report.
"This recognition has further encouraged HP-PLC (Horana Planations PLC) to continue our efforts to make plantation sustainable and eco-friendly."
Sri Lanka's is a niche producer of 'crepe' rubber which commands high prices in world markets.
The firm's timber and forestry cultivation has also been certified by the FSC.
The certification is given for "for managing and harvesting non-timber products from the raw material and rubber latex produced in our properties to minimise biodiversity loss and preserve sustainable rural life through responsible business practices," the firm said.
Horana Plantations had said it was increasing timber planting as prices for fuelwood rose.
Last year it had planted 29.5 hectares of timber trees and 55 hectares of rubber. Horana Plantations said rain reduced latex production last year to 1.4 million kilograms which was the lowest recorded "in many years."
"Despite the reduction in production, the Company recorded significant profits due to the strong market for Rubber in the world market and stringent management controls," Casie Chitty said.
The rubber prices at auctions in Colombo auction had increased from an average of 160 rupees to around 300 rupee levels by December 2009. The net sale average was 279.15 rupees per kilogram for 2009 up from 209.74 a year earlier.
Cost of production had increased to 208.16 per kilogram from 170.16 per kilo a year earlier, with labour and energy pushing up the total.
Gross profits from rubber had increased 71 percent to 102.3 million rupees from 59.6 million a year earlier.
"This sector is expected to perform consistently well in the future with the recovery from the global financial slump likely to renew and increase demand for rubber in the world market," Casie Chitty said.
The firm which also makes tea and small amounts of cinnamon posted net profits of 94 million rupees for the year ended March 2010 up from 55.2 million rupees a year earlier.
Gross revenues rose to 1.78 billion rupees from 1.38 billion rupees. The firm only paid 13.4 million rupees in management fees.
(lankabusinessonline.com)
Wednesday, July 28, 2010
Covering purchases perk up sheet rubber
Covering purchases perk up sheet rubber
Kottayam, July 27
Spot rubber prices were mixed on Tuesday. Firm futures kept sheet rubber bullish and the grade improved to Rs 183.5 from Rs 182.5 a kg mainly on covering purchases. The Rubber Board's rate followed suit at Rs 182.5, up from Rs 181.5 a kg. Meanwhile, latex 60 per cent continued its fall on low demand. Domestic rubber prices may edge higher this week on thin supplies and robust demand but a sharp rise is unlikely as the market is expecting significant imports next month, sources said.
Futures improve
The August series improved to Rs 184.5 (180.22), September to Rs 171.65 (167.52), October to Rs 161.9 (160.26) and November to Rs 160.5 (159.99) a kg for RSS 4 on the National Multi Commodity Exchange . The August futures for RSS 3 finished ended at ¥293.5 (Rs 156.62), while the September futures slipped to ¥281.1 (¥282.5) during the day session
Spot rates were (Rs/kg): RSS-4: 183.5 (182.5); RSS-5: 178 (177); ungraded: 168 (168); ISNR 20: 156.5 (158) and latex 60 per cent: 112 (117).
Kottayam, July 27
Spot rubber prices were mixed on Tuesday. Firm futures kept sheet rubber bullish and the grade improved to Rs 183.5 from Rs 182.5 a kg mainly on covering purchases. The Rubber Board's rate followed suit at Rs 182.5, up from Rs 181.5 a kg. Meanwhile, latex 60 per cent continued its fall on low demand. Domestic rubber prices may edge higher this week on thin supplies and robust demand but a sharp rise is unlikely as the market is expecting significant imports next month, sources said.
Futures improve
The August series improved to Rs 184.5 (180.22), September to Rs 171.65 (167.52), October to Rs 161.9 (160.26) and November to Rs 160.5 (159.99) a kg for RSS 4 on the National Multi Commodity Exchange . The August futures for RSS 3 finished ended at ¥293.5 (Rs 156.62), while the September futures slipped to ¥281.1 (¥282.5) during the day session
Spot rates were (Rs/kg): RSS-4: 183.5 (182.5); RSS-5: 178 (177); ungraded: 168 (168); ISNR 20: 156.5 (158) and latex 60 per cent: 112 (117).
Tuesday, July 27, 2010
Global rubber meet to disuss climate change
Global rubber meet to disuss climate change
Kottayam, July 26
Mr Sajen Peter, Chairman, Rubber Board, will inaugurate a three-day international workshop at rhe Rubber Research Institute of India , Kottayam, on ‘Climate Change and Natural Rubber Cultivation: Research and Development Priorities', jointly organised by RRII and International Rubber Research and Development Board (IRRDB), on July 28.
The IRRDB is an international organisation for natural rubber research, with its headquarters in Kuala Lumpur, Malaysia. Dr Abdul Aziz, Secretary-General, IRRDB, will preside over the inaugural function. Prof J. Sreenivasan, Indian Institute of Science, Bangalore will deliver the keynote address – ‘Why should we worry about climate change'.
Kottayam, July 26
Mr Sajen Peter, Chairman, Rubber Board, will inaugurate a three-day international workshop at rhe Rubber Research Institute of India , Kottayam, on ‘Climate Change and Natural Rubber Cultivation: Research and Development Priorities', jointly organised by RRII and International Rubber Research and Development Board (IRRDB), on July 28.
The IRRDB is an international organisation for natural rubber research, with its headquarters in Kuala Lumpur, Malaysia. Dr Abdul Aziz, Secretary-General, IRRDB, will preside over the inaugural function. Prof J. Sreenivasan, Indian Institute of Science, Bangalore will deliver the keynote address – ‘Why should we worry about climate change'.
Sunday, July 25, 2010
Spot rubber improves on covering purchases
Spot rubber improves on covering purchases
Kottayam, July 24
Spot rubber prices improved on Saturday. The market gained strength again, catalysed by the bullish closing on the National Multi Commodity Exchange. Sheet rubber firmed up to Rs 182 from Rs 181 a kg on covering purchases. The trend was mixed as ISNR 20 finished flat and ungraded rubber slipped on low demand.
Futures gain
The August futures improved to Rs 179.05 (176.67), September to Rs 165.80 (162.91), October to Rs 159.90 (158.27) and November to Rs 159.40 (158.01) a kg for RSS 4 on the National Multi Commodity Exchange. The total volume was 3,456 lots and turnover Rs 60.70 crore. The total open interest in all series was 5,904.
Spot rates were (Rs/kg): RSS-4: 182 (181); RSS-5: 177 (176.50); ungraded: 167 (170); ISNR 20: 160 (160) and latex 60 per cent: 123 (123).
Rubber Climbs From Six-Week Low as Rally in Equities Boosts Confidence
Rubber recovered from a six-week low as the nearby contract surged amid speculation that low stockpiles in Japan may make physical delivery difficult at its expiry on July 26.
Futures in Tokyo climbed as much as 3.5 percent after slumping yesterday to the lowest level since June 9. The price also increased as a rally in global stocks boosted investor confidence in economic growth.
The July-delivery contract surged by 11.2 percent after data showed this week that natural-rubber stockpiles monitored by the Tokyo Commodity Exchange dropped by 29 percent to 1,341 tons as of July 10. It was the lowest level since at least 2001, according to exchange spokesman Seiki Ichimura.
“Reduced inventories spurred a short-covering rally, leading to a jump in the price of the July contract,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. Speculators with short, or sell, positions in the nearby contract must buy them back by the expiry date, unless they can deliver the raw material.
December-delivery rubber increased as much as 8.9 yen to 266.2 yen per kilogram ($3,059 a metric ton) before settling at 265.6 yen on the Tokyo Commodity Exchange.
July-delivery rubber surged 40 yen to 397.2 yen. In April, the nearby contract jumped to 455.4 yen, the highest-ever expiry price, exchange spokesman Ichimura said.
Equities Gain
Rubber futures also advanced as Asian stocks increased after U.S. companies from AT&T Inc. to United Parcel Service Inc. raised profit forecasts. The yen fell against all of its major counterparts on speculation Japanese policy makers may act to weaken the currency to support economic growth.
The MSCI Asia Pacific Index gained 1.7 percent to 117.55 at 4:29 p.m. Tokyo time, extending its increase this week. Asian equities may “surprise on the upside” in the second half of the year because the global economy is likely to avoid a recession, according to Nomura Asset Management Co.
Economic growth in emerging markets including China will counter any slowdown in the U.S. and Europe, helping to boost Asian equities, said Graham Muirhead, Singapore-based head of investment for the Asia-Pacific region outside Japan at Nomura Asset. His firm, which holds $12 billion in Asian equities, is a unit of Nomura Holdings Inc., Japan’s largest brokerage.
November-delivery rubber on the Shanghai Futures Exchange gained 2.8 percent to 22,220 yuan ($3,278) a ton.
Kottayam, July 24
Spot rubber prices improved on Saturday. The market gained strength again, catalysed by the bullish closing on the National Multi Commodity Exchange. Sheet rubber firmed up to Rs 182 from Rs 181 a kg on covering purchases. The trend was mixed as ISNR 20 finished flat and ungraded rubber slipped on low demand.
Futures gain
The August futures improved to Rs 179.05 (176.67), September to Rs 165.80 (162.91), October to Rs 159.90 (158.27) and November to Rs 159.40 (158.01) a kg for RSS 4 on the National Multi Commodity Exchange. The total volume was 3,456 lots and turnover Rs 60.70 crore. The total open interest in all series was 5,904.
Spot rates were (Rs/kg): RSS-4: 182 (181); RSS-5: 177 (176.50); ungraded: 167 (170); ISNR 20: 160 (160) and latex 60 per cent: 123 (123).
Rubber Climbs From Six-Week Low as Rally in Equities Boosts Confidence
Rubber recovered from a six-week low as the nearby contract surged amid speculation that low stockpiles in Japan may make physical delivery difficult at its expiry on July 26.
Futures in Tokyo climbed as much as 3.5 percent after slumping yesterday to the lowest level since June 9. The price also increased as a rally in global stocks boosted investor confidence in economic growth.
The July-delivery contract surged by 11.2 percent after data showed this week that natural-rubber stockpiles monitored by the Tokyo Commodity Exchange dropped by 29 percent to 1,341 tons as of July 10. It was the lowest level since at least 2001, according to exchange spokesman Seiki Ichimura.
“Reduced inventories spurred a short-covering rally, leading to a jump in the price of the July contract,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. Speculators with short, or sell, positions in the nearby contract must buy them back by the expiry date, unless they can deliver the raw material.
December-delivery rubber increased as much as 8.9 yen to 266.2 yen per kilogram ($3,059 a metric ton) before settling at 265.6 yen on the Tokyo Commodity Exchange.
July-delivery rubber surged 40 yen to 397.2 yen. In April, the nearby contract jumped to 455.4 yen, the highest-ever expiry price, exchange spokesman Ichimura said.
Equities Gain
Rubber futures also advanced as Asian stocks increased after U.S. companies from AT&T Inc. to United Parcel Service Inc. raised profit forecasts. The yen fell against all of its major counterparts on speculation Japanese policy makers may act to weaken the currency to support economic growth.
The MSCI Asia Pacific Index gained 1.7 percent to 117.55 at 4:29 p.m. Tokyo time, extending its increase this week. Asian equities may “surprise on the upside” in the second half of the year because the global economy is likely to avoid a recession, according to Nomura Asset Management Co.
Economic growth in emerging markets including China will counter any slowdown in the U.S. and Europe, helping to boost Asian equities, said Graham Muirhead, Singapore-based head of investment for the Asia-Pacific region outside Japan at Nomura Asset. His firm, which holds $12 billion in Asian equities, is a unit of Nomura Holdings Inc., Japan’s largest brokerage.
November-delivery rubber on the Shanghai Futures Exchange gained 2.8 percent to 22,220 yuan ($3,278) a ton.
Saturday, July 24, 2010
India to continue current duty on rubber import--bad news for Indian manufacturers
India to continue current duty on rubber import
Posted: 23 Jul 2010 05:53 AM PDT
MUMBAI (Commodity Online): India rejected the industry’s demand for a cut on natural rubber imports from 20% to 7.5%, said a statement of Rubber Board of India.
A panel, set up on the directives of the Delhi High Court, headed by the Rubber Board Chairman Sajen Peter, has decided to continue present import duty for natural rubber.
However, the panel, called for a mechanism to cap the customs duty burden on the consuming industries by levying the duty at a benchmark level, irrespective of global prices.
According to director general of the Automotive Tyre Manufacturers Association, Rajiv Budhraja, Demand for natural 41 rubber in India, the world's second-largest consumer, is growing by around 12% a year, but production is only expanding at 5%-6%.
During the January-June period, the country imported 836,093 tons of natural rubber, up 1% from a year earlier. China is the world's biggest importer of natural rubber. It purchases most of its supplies from Thailand, Indonesia a Malaysia, the world's leading natural rubber producers.
General Administration of Customs, China's natural rubber imports in June declined 12% from a year earlier to 115,752 metric tons. Imports were up 25% from 92,702 tons in May.
According to government and industry sources, India's imports of natural rubber will likely rise in the current fiscal year as local production is growing at a much slower pace than demand, mainly from tire makers.
(commodityonline.com)
Synthetic rubber imports rise by 51.6% in April
Posted: 23 Jul 2010 05:52 AM PDT
Imports of synthetic rubber rose by 51.6 per cent to 25,885 tonnes in April on strong demand mainly by the tyre industry, the Rubber Board said today.
Synthetic rubber imports stood at 17,065 tonnes in the corresponding period last fiscal, the board said.
The production of synthetic rubber in the country increased marginally to 8,180 tonnes in April this year against 8,169 tonnes in April, 2009.
During the month under consideration, the total consumption of synthetic rubber grew up by 24.7 per cent to 78,250 tonnes compared to 73,470 tonnes in the comparable month period last fiscal.
The consumption of synthetic rubber by the automotive tyre sector, which accounts for more than half of the rubber use in the country, increased by 31.6 per cent to 22,872 tonnes in April, 2010 against 17,373 tonnes in the corresponding period last year.
(indiainfoline.com)
Rubber Gains From 6-Week Low as Stock Rally Boosts Confidence
Posted: 22 Jul 2010 08:29 PM PDT
By Aya Takada
July 23 (Bloomberg) -- Rubber recovered from a six-week low as Asian stocks extended a global rally, boosting investor confidence in economic growth and raising speculation that demand will increase for the commodity used to make tires.
Futures in Tokyo climbed as much as 3 percent after slumping yesterday to the lowest level since June 9. The price also increased as a drop in the Japanese currency against the dollar raised the appeal of yen-based contracts.
Asian stocks increased, driving the MSCI Asia Pacific Index to its third straight weekly advance, as U.S. companies from AT&T Inc. to United Parcel Service Inc. raised profit forecasts. The yen fell against all of its major counterparts on speculation Japanese policy makers may act to weaken the currency to support economic growth.
“Rubber chased a rally in stocks and other industrial commodities,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. “Futures are also drawing support from the currency market.”
December-delivery rubber increased as much as 7.7 yen to 265 yen per kilogram ($3,047 a metric ton) before trading at 262.6 yen on the Tokyo Commodity Exchange at 10:55 a.m.
The MSCI Asia Pacific Index gained 1.3 percent to 117.10 as of 10:41 a.m., extending its increase this week. Japan’s currency, which yesterday traded within 0.1 yen of its 2010 high reached last week, retreated on the prospect that Prime Minister Naoto Kan’s administration will add pressure on the Bank of Japan to increase monetary easing measures.
Low Stockpiles
Rubber futures also increased amid speculation that low stockpiles in Japan may make physical delivery difficult when the nearby contract expires on July 26, Sugata said.
Natural-rubber stockpiles monitored by the Tokyo exchange dropped by 29 percent to 1,341 tons as of July 10, data from the bourse showed this week. It was the lowest volume since at least 2001, according to exchange spokesman Seiki Ichimura.
Speculators with short, or sell, positions in the nearby contract must buy them back by the expiry date, unless they can deliver the raw material. July-delivery rubber surged 4.3 percent to 372.5 yen. Last month, the June-delivery contract expired at 372 yen.
November-delivery rubber on the Shanghai Futures Exchange gained 2.1 percent to 22,065 yuan ($3,256) a ton at 10:04 a.m. local time.
Cash rubber prices in Thailand declined yesterday as Chinese buyers have put off orders and some investors are concerned that there’s a weaker pace of recovery in China and the U.S., according to the Rubber Research Institute of Thailand. The Thai benchmark price fell 1 percent to 103.65 baht a kilogram, the group said yesterday on its website.
(bloomberg.com)
Higher NR prices raise synthetic rubber demand
Posted: 22 Jul 2010 05:50 PM PDT
The rise in natural rubber (NR) price has reflected in a sharp increase in consumption of synthetic rubber (SR) in India, where NR is predominantly used for industrial applications.
The low price of SR, compared to NR, for the last couple of years has forced tyre majors to make a switch to SR. According to the latest trend in the consumption pattern, the current ratio of NR-SR consumption of 73:27 is likely to change to 70:30 in favour of SR by the end of the current financial year.
The Rubber Board data reveals that SR consumption increased to 347,710 tonnes during 2009-10 registering a growth of 18.7 per cent against a negative growth of 1.4 per cent attained in the previous year. The automotive tyre sector consumed 238,153 tonnes of SR during 2009-10 as against 185,094 tonnes during 2008-09, recording a growth of 28.7per cent.
The growth in the consumption of NR in 2009-10 was confined to 13.4 per cent. While a decline of 2.5 per cent was recorded in the consumption of NR by general rubber goods manufacturers (354,355 tonnes) last financial year, an increase of 1.6 per cent (109,557 tonnes) was registered in the consumption of SR.
The relative share of consumption of NR and SR in India changed to 73:27 during 2009-10 from 75:25 during 2008-09. The static or lower global production of NR has not only pushed the prices up, but it has also put the rubber-based industries on a tight spot.
The prices of various SR grades have, however, reduced due to the decline in the price of crude oil. During the last one year, the price of NR has increased more than 100 per cent as the local price of the bench mark grade RSS-4 touched a peak of Rs 185 a kg this month.
Natural rubber prices surged to a record high of more than $3,500 a tonne in the global market while SR rubber values are currently hovering around $2,500 a tonne on an average in the Asian markets.
The price hike has been a concern for leading NR growing nations, like Thailand, as they feel that big producers, like tyre companies, might switch over to synthetic rubber as they are cheaper. At present, European and US companies prefer SR to NR and their consumption ratio of SR:NR is 60:40. But the recent big shift towards SR in the Asean region has also added pressure on the price line on SR.
Natural rubber and synthetic rubber prices usually move in tandem as they are traditionally inter-dependent substitutes. Global synthetic rubber prices may surge on strong orders from tyre manufacturers looking for a cheaper alternative in raw material to natural rubber, industry sources said.
The rise in natural rubber prices added pressure to the tight synthetic rubber market, which was beset by spikes in cost of feedstock butadiene (BD).
BD prices had climbed by more than $200 a tonne over the past month to $2,000-2,050 a tonne.
“Natural rubber prices are going up so sharply that synthetic rubber makers have no choice but to raise their prices further,” a Chinese Styrene Butadiene Rubber (SBR) maker said. The price increase would likely lift costs for manufacturers that were heavily dependent on the commodity, particularly tyre makers. The use of synthetic rubber as an alternative may not offer much comfort since prices have also started to run up, market sources said.
Major synthetic rubber makers in Asia, including Kumho Petrochemical (KKPC), LG Chem, Zeon, BSTE of Thailand and PT Sentra of Indonesia, have all raised prices for fresh shipments for both the non-oil grade SBR and butadiene rubber (BR).
Fresh offers for SBR grade were $250- 350 a tonne higher from early March at $2,400-2,500 a tonne, while butadiene rubber (BR) surged to $2,800-2,850 a tonne, market sources said.
(business-standard.com)
Posted: 23 Jul 2010 05:53 AM PDT
MUMBAI (Commodity Online): India rejected the industry’s demand for a cut on natural rubber imports from 20% to 7.5%, said a statement of Rubber Board of India.
A panel, set up on the directives of the Delhi High Court, headed by the Rubber Board Chairman Sajen Peter, has decided to continue present import duty for natural rubber.
However, the panel, called for a mechanism to cap the customs duty burden on the consuming industries by levying the duty at a benchmark level, irrespective of global prices.
According to director general of the Automotive Tyre Manufacturers Association, Rajiv Budhraja, Demand for natural 41 rubber in India, the world's second-largest consumer, is growing by around 12% a year, but production is only expanding at 5%-6%.
During the January-June period, the country imported 836,093 tons of natural rubber, up 1% from a year earlier. China is the world's biggest importer of natural rubber. It purchases most of its supplies from Thailand, Indonesia a Malaysia, the world's leading natural rubber producers.
General Administration of Customs, China's natural rubber imports in June declined 12% from a year earlier to 115,752 metric tons. Imports were up 25% from 92,702 tons in May.
According to government and industry sources, India's imports of natural rubber will likely rise in the current fiscal year as local production is growing at a much slower pace than demand, mainly from tire makers.
(commodityonline.com)
Synthetic rubber imports rise by 51.6% in April
Posted: 23 Jul 2010 05:52 AM PDT
Imports of synthetic rubber rose by 51.6 per cent to 25,885 tonnes in April on strong demand mainly by the tyre industry, the Rubber Board said today.
Synthetic rubber imports stood at 17,065 tonnes in the corresponding period last fiscal, the board said.
The production of synthetic rubber in the country increased marginally to 8,180 tonnes in April this year against 8,169 tonnes in April, 2009.
During the month under consideration, the total consumption of synthetic rubber grew up by 24.7 per cent to 78,250 tonnes compared to 73,470 tonnes in the comparable month period last fiscal.
The consumption of synthetic rubber by the automotive tyre sector, which accounts for more than half of the rubber use in the country, increased by 31.6 per cent to 22,872 tonnes in April, 2010 against 17,373 tonnes in the corresponding period last year.
(indiainfoline.com)
Rubber Gains From 6-Week Low as Stock Rally Boosts Confidence
Posted: 22 Jul 2010 08:29 PM PDT
By Aya Takada
July 23 (Bloomberg) -- Rubber recovered from a six-week low as Asian stocks extended a global rally, boosting investor confidence in economic growth and raising speculation that demand will increase for the commodity used to make tires.
Futures in Tokyo climbed as much as 3 percent after slumping yesterday to the lowest level since June 9. The price also increased as a drop in the Japanese currency against the dollar raised the appeal of yen-based contracts.
Asian stocks increased, driving the MSCI Asia Pacific Index to its third straight weekly advance, as U.S. companies from AT&T Inc. to United Parcel Service Inc. raised profit forecasts. The yen fell against all of its major counterparts on speculation Japanese policy makers may act to weaken the currency to support economic growth.
“Rubber chased a rally in stocks and other industrial commodities,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. “Futures are also drawing support from the currency market.”
December-delivery rubber increased as much as 7.7 yen to 265 yen per kilogram ($3,047 a metric ton) before trading at 262.6 yen on the Tokyo Commodity Exchange at 10:55 a.m.
The MSCI Asia Pacific Index gained 1.3 percent to 117.10 as of 10:41 a.m., extending its increase this week. Japan’s currency, which yesterday traded within 0.1 yen of its 2010 high reached last week, retreated on the prospect that Prime Minister Naoto Kan’s administration will add pressure on the Bank of Japan to increase monetary easing measures.
Low Stockpiles
Rubber futures also increased amid speculation that low stockpiles in Japan may make physical delivery difficult when the nearby contract expires on July 26, Sugata said.
Natural-rubber stockpiles monitored by the Tokyo exchange dropped by 29 percent to 1,341 tons as of July 10, data from the bourse showed this week. It was the lowest volume since at least 2001, according to exchange spokesman Seiki Ichimura.
Speculators with short, or sell, positions in the nearby contract must buy them back by the expiry date, unless they can deliver the raw material. July-delivery rubber surged 4.3 percent to 372.5 yen. Last month, the June-delivery contract expired at 372 yen.
November-delivery rubber on the Shanghai Futures Exchange gained 2.1 percent to 22,065 yuan ($3,256) a ton at 10:04 a.m. local time.
Cash rubber prices in Thailand declined yesterday as Chinese buyers have put off orders and some investors are concerned that there’s a weaker pace of recovery in China and the U.S., according to the Rubber Research Institute of Thailand. The Thai benchmark price fell 1 percent to 103.65 baht a kilogram, the group said yesterday on its website.
(bloomberg.com)
Higher NR prices raise synthetic rubber demand
Posted: 22 Jul 2010 05:50 PM PDT
The rise in natural rubber (NR) price has reflected in a sharp increase in consumption of synthetic rubber (SR) in India, where NR is predominantly used for industrial applications.
The low price of SR, compared to NR, for the last couple of years has forced tyre majors to make a switch to SR. According to the latest trend in the consumption pattern, the current ratio of NR-SR consumption of 73:27 is likely to change to 70:30 in favour of SR by the end of the current financial year.
The Rubber Board data reveals that SR consumption increased to 347,710 tonnes during 2009-10 registering a growth of 18.7 per cent against a negative growth of 1.4 per cent attained in the previous year. The automotive tyre sector consumed 238,153 tonnes of SR during 2009-10 as against 185,094 tonnes during 2008-09, recording a growth of 28.7per cent.
The growth in the consumption of NR in 2009-10 was confined to 13.4 per cent. While a decline of 2.5 per cent was recorded in the consumption of NR by general rubber goods manufacturers (354,355 tonnes) last financial year, an increase of 1.6 per cent (109,557 tonnes) was registered in the consumption of SR.
The relative share of consumption of NR and SR in India changed to 73:27 during 2009-10 from 75:25 during 2008-09. The static or lower global production of NR has not only pushed the prices up, but it has also put the rubber-based industries on a tight spot.
The prices of various SR grades have, however, reduced due to the decline in the price of crude oil. During the last one year, the price of NR has increased more than 100 per cent as the local price of the bench mark grade RSS-4 touched a peak of Rs 185 a kg this month.
Natural rubber prices surged to a record high of more than $3,500 a tonne in the global market while SR rubber values are currently hovering around $2,500 a tonne on an average in the Asian markets.
The price hike has been a concern for leading NR growing nations, like Thailand, as they feel that big producers, like tyre companies, might switch over to synthetic rubber as they are cheaper. At present, European and US companies prefer SR to NR and their consumption ratio of SR:NR is 60:40. But the recent big shift towards SR in the Asean region has also added pressure on the price line on SR.
Natural rubber and synthetic rubber prices usually move in tandem as they are traditionally inter-dependent substitutes. Global synthetic rubber prices may surge on strong orders from tyre manufacturers looking for a cheaper alternative in raw material to natural rubber, industry sources said.
The rise in natural rubber prices added pressure to the tight synthetic rubber market, which was beset by spikes in cost of feedstock butadiene (BD).
BD prices had climbed by more than $200 a tonne over the past month to $2,000-2,050 a tonne.
“Natural rubber prices are going up so sharply that synthetic rubber makers have no choice but to raise their prices further,” a Chinese Styrene Butadiene Rubber (SBR) maker said. The price increase would likely lift costs for manufacturers that were heavily dependent on the commodity, particularly tyre makers. The use of synthetic rubber as an alternative may not offer much comfort since prices have also started to run up, market sources said.
Major synthetic rubber makers in Asia, including Kumho Petrochemical (KKPC), LG Chem, Zeon, BSTE of Thailand and PT Sentra of Indonesia, have all raised prices for fresh shipments for both the non-oil grade SBR and butadiene rubber (BR).
Fresh offers for SBR grade were $250- 350 a tonne higher from early March at $2,400-2,500 a tonne, while butadiene rubber (BR) surged to $2,800-2,850 a tonne, market sources said.
(business-standard.com)
Friday, July 23, 2010
Spot rubber gains on supply concern
Spot rubber gains on supply concern
Kottayam, July 22
Spot rubber prices turned better on Thursday.
The undercurrent was firm on supply concerns but the prices failed to reach the expected levels as futures failed to hold on to early gains on the National Multi Commodity Exchange.
Sheet rubber improved to Rs 181 from Rs 180 a kg, while the trend was mixed as ungraded rubber and latex ended flat.
Futures decline
Rubber futures declined on the NMCE. The August series weakened to Rs 177.70 (179.49), September to Rs 163.80 (166.38), October to Rs 159.01 (160.75) and November to Rs 159 (161.06) a kg for RSS 4. RSS 3 improved with the July futures rising to ¥357.2\Rs 193.88 (¥352) while its August futures weakened to ¥284.7 (¥292.9), September to ¥273.9 (¥280.8), October to ¥260.2 (¥266.5), November to ¥256.9 (¥263.6) and December to ¥257.3 (¥263.5) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 152.07 (153.03) a kg at Bangkok.
Spot rates were (RS/kg): RSS-4: 181 (180); RSS-5: 176.50 (175); ungraded: 170 (170); ISNR 20: 160 (159) and latex 60 per cent: 125 (125).
Rubber Climbs From Six-Week Low as Rally in Equities Boosts Confidence
Rubber recovered from a six-week low as Asian stocks extended a global rally, boosting investor confidence in economic growth and raising speculation that demand will increase for the commodity used to make tires.
Futures in Tokyo climbed as much as 3 percent after slumping yesterday to the lowest level since June 9. The price also increased as a drop in the Japanese currency against the dollar raised the appeal of yen-based contracts.
Asian stocks increased, driving the MSCI Asia Pacific Index to its third straight weekly advance, as U.S. companies from AT&T Inc. to United Parcel Service Inc. raised profit forecasts. The yen fell against all of its major counterparts on speculation Japanese policy makers may act to weaken the currency to support economic growth.
“Rubber chased a rally in stocks and other industrial commodities,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. “Futures are also drawing support from the currency market.”
December-delivery rubber increased as much as 7.7 yen to 265 yen per kilogram ($3,047 a metric ton) before trading at 262.6 yen on the Tokyo Commodity Exchange at 10:55 a.m.
The MSCI Asia Pacific Index gained 1.3 percent to 117.10 as of 10:41 a.m., extending its increase this week. Japan’s currency, which yesterday traded within 0.1 yen of its 2010 high reached last week, retreated on the prospect that Prime Minister Naoto Kan’s administration will add pressure on the Bank of Japan to increase monetary easing measures.
Low Stockpiles
Rubber futures also increased amid speculation that low stockpiles in Japan may make physical delivery difficult when the nearby contract expires on July 26, Sugata said.
Natural-rubber stockpiles monitored by the Tokyo exchange dropped by 29 percent to 1,341 tons as of July 10, data from the bourse showed this week. It was the lowest volume since at least 2001, according to exchange spokesman Seiki Ichimura.
Speculators with short, or sell, positions in the nearby contract must buy them back by the expiry date, unless they can deliver the raw material. July-delivery rubber surged 4.3 percent to 372.5 yen. Last month, the June-delivery contract expired at 372 yen.
November-delivery rubber on the Shanghai Futures Exchange gained 2.1 percent to 22,065 yuan ($3,256) a ton at 10:04 a.m. local time.
Cash rubber prices in Thailand declined yesterday as Chinese buyers have put off orders and some investors are concerned that there’s a weaker pace of recovery in China and the U.S., according to the Rubber Research Institute of Thailand. The Thai benchmark price fell 1 percent to 103.65 baht a kilogram, the group said yesterday on its website.
Kottayam, July 22
Spot rubber prices turned better on Thursday.
The undercurrent was firm on supply concerns but the prices failed to reach the expected levels as futures failed to hold on to early gains on the National Multi Commodity Exchange.
Sheet rubber improved to Rs 181 from Rs 180 a kg, while the trend was mixed as ungraded rubber and latex ended flat.
Futures decline
Rubber futures declined on the NMCE. The August series weakened to Rs 177.70 (179.49), September to Rs 163.80 (166.38), October to Rs 159.01 (160.75) and November to Rs 159 (161.06) a kg for RSS 4. RSS 3 improved with the July futures rising to ¥357.2\Rs 193.88 (¥352) while its August futures weakened to ¥284.7 (¥292.9), September to ¥273.9 (¥280.8), October to ¥260.2 (¥266.5), November to ¥256.9 (¥263.6) and December to ¥257.3 (¥263.5) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 152.07 (153.03) a kg at Bangkok.
Spot rates were (RS/kg): RSS-4: 181 (180); RSS-5: 176.50 (175); ungraded: 170 (170); ISNR 20: 160 (159) and latex 60 per cent: 125 (125).
Rubber Climbs From Six-Week Low as Rally in Equities Boosts Confidence
Rubber recovered from a six-week low as Asian stocks extended a global rally, boosting investor confidence in economic growth and raising speculation that demand will increase for the commodity used to make tires.
Futures in Tokyo climbed as much as 3 percent after slumping yesterday to the lowest level since June 9. The price also increased as a drop in the Japanese currency against the dollar raised the appeal of yen-based contracts.
Asian stocks increased, driving the MSCI Asia Pacific Index to its third straight weekly advance, as U.S. companies from AT&T Inc. to United Parcel Service Inc. raised profit forecasts. The yen fell against all of its major counterparts on speculation Japanese policy makers may act to weaken the currency to support economic growth.
“Rubber chased a rally in stocks and other industrial commodities,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. “Futures are also drawing support from the currency market.”
December-delivery rubber increased as much as 7.7 yen to 265 yen per kilogram ($3,047 a metric ton) before trading at 262.6 yen on the Tokyo Commodity Exchange at 10:55 a.m.
The MSCI Asia Pacific Index gained 1.3 percent to 117.10 as of 10:41 a.m., extending its increase this week. Japan’s currency, which yesterday traded within 0.1 yen of its 2010 high reached last week, retreated on the prospect that Prime Minister Naoto Kan’s administration will add pressure on the Bank of Japan to increase monetary easing measures.
Low Stockpiles
Rubber futures also increased amid speculation that low stockpiles in Japan may make physical delivery difficult when the nearby contract expires on July 26, Sugata said.
Natural-rubber stockpiles monitored by the Tokyo exchange dropped by 29 percent to 1,341 tons as of July 10, data from the bourse showed this week. It was the lowest volume since at least 2001, according to exchange spokesman Seiki Ichimura.
Speculators with short, or sell, positions in the nearby contract must buy them back by the expiry date, unless they can deliver the raw material. July-delivery rubber surged 4.3 percent to 372.5 yen. Last month, the June-delivery contract expired at 372 yen.
November-delivery rubber on the Shanghai Futures Exchange gained 2.1 percent to 22,065 yuan ($3,256) a ton at 10:04 a.m. local time.
Cash rubber prices in Thailand declined yesterday as Chinese buyers have put off orders and some investors are concerned that there’s a weaker pace of recovery in China and the U.S., according to the Rubber Research Institute of Thailand. The Thai benchmark price fell 1 percent to 103.65 baht a kilogram, the group said yesterday on its website.
Thursday, July 22, 2010
Spot rubber stays static
Spot rubber stays static
Kottayam, July 21
Spot rubber continued to rule unchanged on Wednesday. There were no quantity buyers or sellers in the market and the prices settled at previous day's closing levels amidst low volumes.
Sheet rubber finished flat at Rs 180 a kg but the grade seemed to be struggling to remain subdued possibly on supply concerns.
Futures gain
Rubber futures gained almost 2 per cent on the National Multi Commodity Exchange. The August series firmed up to Rs 179.40 (174.27), September to Rs 166.03 (162.34), October to Rs 160.71(158.17) and November to Rs 160.25 (158.00) a kg for RSS 4. The total volume has been 9112 lots and turnover 159.15 crores. The total open interest in all series was 5620. The July futures for RSS 3 improved to ¥352\Rs 190.84 (¥344.4) while the August futures weakened to ¥292.9 (¥293.9), September to ¥280.8 (¥283.3), October to ¥266.5 (¥270.4), November to ¥263.6 (¥266) and December to ¥263.5 (¥264.5) a kg during the day session on the Tokyo Commodity Exchange. Spot rates were (Rs/kg): RSS-4: 180 (180); RSS-5: 175 (175); ungraded: 170 (170); ISNR 20: 159 (159) and latex 60 per cent: 125 (125).
Sri Lanka rubber goods producers to protest levy
Posted: 21 Jul 2010 02:32 AM PDT
July 21, 2010 (LBO) - Exporters of finished rubber goods from Sri Lanka wants the government to lift a levy on their exports amid high raw material prices that was affecting their competiveness, an industry official said.
The 'cess' of four rupees a kilogram that is charged on finished rubber goods is expected to be used to give subsidies to growers.
"At the moment profits of growers have increased because rubber prices have increased steeply," Ananda Caldera, a senior rubber industry executive and a past president of an association representing rubber manufacturers in the island said.
"The growers no longer need subsidies. But the taxes are making it difficult for us to compete in international markets. We are going to request the plantations industry ministry to lift this cess."
Caldera said makers of rubber tyres and other goods were finding that cost of production in Sri Lanka were higher than other countries due to the cess.
He said finished rubber goods producers could export 60 billion rupees a year.
He said the demand for tyres which had slumped amid a global economic downturn was now improving and raw rubber prices are likely to go up further.
Sri Lanka's central bank, which keeps a tight peg with the US dollar has appreciated the rupee again to around 113 rupees a US dollar in recent weeks. Meanwhile Sri Lanka is also expected to lose tax benefits for export to the EU region from August.
(lankabusinessonline.com)
Villagers lay curse on rubber plantation in Mondulkiri province
Posted: 21 Jul 2010 02:32 AM PDT
ETHNIC Phnong villagers held a traditional ceremony in Mondulkiri province’s Pechreada district yesterday to curse a rubber plantation they say has robbed them of large tracts of rotational farmland and spirit forests.
Khan Channy, a community representative, said villagers made offerings of pigs and jars of rice wine in order to curse Socfin KCD, a French-Cambodian rubber company, and make it “vanish like a dead pig”.
The company – a joint venture between French rubber giant Socfin and the Khaou Chuly Group – was granted its first 2,500-hectare rubber concession in late 2007 and began clearing in early 2008.
More than 800 families in seven villages in Bou Sraa commune – which is made up predominantly of Phnong villages – claim to have been affected by the rubber plantation, now expected to cover 10,000 hectares.
Kob Neith, another community representative, said the company had offered residents of her village three choices in exchange for vacating their land: to sell their land to the company for US$80 per hectare; to exchange the land for replacement plots elsewhere; and to harvest rubber in designated areas and then sell it back to the company.
She said that although a decision has not yet been made, around 100 tractors and bulldozers were clearing land at the plantation site.
Kob Neith said there had been no response to repeated petitions and requests from affected villagers.
Yesterday’s ceremony followed a similar one held in June last year.
“We want a shared 350-hectare area for the whole community to support our living. It was the last resort to organise the ceremony to curse the company to vanish after the community has failed in dealing with the company,” she said.
Kul Midy, provincial coordinator for local rights group Adhoc, said a provincial committee met in late June to prepare for the registration of community land in Mondulkiri, but that Bou Sraa commune had not been on the agenda.
“The villagers have the right to hold a ritual to curse the company like this to express their feelings to the authorities so that the authorities may help solve their land dispute with the company,” he said.
Mondulkiri provincial governor Chan Yoeun declined to comment yesterday.
(phnompenhpost.com)
Kottayam, July 21
Spot rubber continued to rule unchanged on Wednesday. There were no quantity buyers or sellers in the market and the prices settled at previous day's closing levels amidst low volumes.
Sheet rubber finished flat at Rs 180 a kg but the grade seemed to be struggling to remain subdued possibly on supply concerns.
Futures gain
Rubber futures gained almost 2 per cent on the National Multi Commodity Exchange. The August series firmed up to Rs 179.40 (174.27), September to Rs 166.03 (162.34), October to Rs 160.71(158.17) and November to Rs 160.25 (158.00) a kg for RSS 4. The total volume has been 9112 lots and turnover 159.15 crores. The total open interest in all series was 5620. The July futures for RSS 3 improved to ¥352\Rs 190.84 (¥344.4) while the August futures weakened to ¥292.9 (¥293.9), September to ¥280.8 (¥283.3), October to ¥266.5 (¥270.4), November to ¥263.6 (¥266) and December to ¥263.5 (¥264.5) a kg during the day session on the Tokyo Commodity Exchange. Spot rates were (Rs/kg): RSS-4: 180 (180); RSS-5: 175 (175); ungraded: 170 (170); ISNR 20: 159 (159) and latex 60 per cent: 125 (125).
Sri Lanka rubber goods producers to protest levy
Posted: 21 Jul 2010 02:32 AM PDT
July 21, 2010 (LBO) - Exporters of finished rubber goods from Sri Lanka wants the government to lift a levy on their exports amid high raw material prices that was affecting their competiveness, an industry official said.
The 'cess' of four rupees a kilogram that is charged on finished rubber goods is expected to be used to give subsidies to growers.
"At the moment profits of growers have increased because rubber prices have increased steeply," Ananda Caldera, a senior rubber industry executive and a past president of an association representing rubber manufacturers in the island said.
"The growers no longer need subsidies. But the taxes are making it difficult for us to compete in international markets. We are going to request the plantations industry ministry to lift this cess."
Caldera said makers of rubber tyres and other goods were finding that cost of production in Sri Lanka were higher than other countries due to the cess.
He said finished rubber goods producers could export 60 billion rupees a year.
He said the demand for tyres which had slumped amid a global economic downturn was now improving and raw rubber prices are likely to go up further.
Sri Lanka's central bank, which keeps a tight peg with the US dollar has appreciated the rupee again to around 113 rupees a US dollar in recent weeks. Meanwhile Sri Lanka is also expected to lose tax benefits for export to the EU region from August.
(lankabusinessonline.com)
Villagers lay curse on rubber plantation in Mondulkiri province
Posted: 21 Jul 2010 02:32 AM PDT
ETHNIC Phnong villagers held a traditional ceremony in Mondulkiri province’s Pechreada district yesterday to curse a rubber plantation they say has robbed them of large tracts of rotational farmland and spirit forests.
Khan Channy, a community representative, said villagers made offerings of pigs and jars of rice wine in order to curse Socfin KCD, a French-Cambodian rubber company, and make it “vanish like a dead pig”.
The company – a joint venture between French rubber giant Socfin and the Khaou Chuly Group – was granted its first 2,500-hectare rubber concession in late 2007 and began clearing in early 2008.
More than 800 families in seven villages in Bou Sraa commune – which is made up predominantly of Phnong villages – claim to have been affected by the rubber plantation, now expected to cover 10,000 hectares.
Kob Neith, another community representative, said the company had offered residents of her village three choices in exchange for vacating their land: to sell their land to the company for US$80 per hectare; to exchange the land for replacement plots elsewhere; and to harvest rubber in designated areas and then sell it back to the company.
She said that although a decision has not yet been made, around 100 tractors and bulldozers were clearing land at the plantation site.
Kob Neith said there had been no response to repeated petitions and requests from affected villagers.
Yesterday’s ceremony followed a similar one held in June last year.
“We want a shared 350-hectare area for the whole community to support our living. It was the last resort to organise the ceremony to curse the company to vanish after the community has failed in dealing with the company,” she said.
Kul Midy, provincial coordinator for local rights group Adhoc, said a provincial committee met in late June to prepare for the registration of community land in Mondulkiri, but that Bou Sraa commune had not been on the agenda.
“The villagers have the right to hold a ritual to curse the company like this to express their feelings to the authorities so that the authorities may help solve their land dispute with the company,” he said.
Mondulkiri provincial governor Chan Yoeun declined to comment yesterday.
(phnompenhpost.com)
Wednesday, July 21, 2010
Rubber-based industries seek duty concessions
Rubber-based industries seek duty concessions
Staff Reporter
KOCHI: Rubber-based industries have demanded concessions, in view of the high price of natural rubber, before a government-appointed panel headed by the Rubber Board Chairman.
Rajiv Budhraja, director-general of Automotive Tyre Manufacturers' Association (ATMA), said in a press release here recently that the domestic price of natural rubber continued to rule high and imports were prohibitive considering the 20 per cent duty. ATMA, the All-India Rubber Industries' Association and the Indian Cycle and Rickshaw Tyre Manufacturers' Association have appealed before the panel that the Indian rubber industry should be on an equal footing with Chinese manufacturers, who were accessing cheaper natural rubber in the international market.
The domestic price of natural rubber (for block rubber) was higher than the international price by Rs.30-40 a kg. The Indian industry could not take advantage of the lower international price.
The ATMA official said China had lowered the import duty to 6.8 per cent. The high price of natural rubber in India had significantly reduced the cost competitiveness of the domestic industry. As a result, cheap Chinese tyres were set to invade the Indian market, particularly with the government lifting the curbs. The three associations had approached the Delhi High Court, which ordered the Ministry of Commerce to consider their plea, the release added.
(The Hindu)
Spot rubber prices unchanged
Our Correspondent
Kottayam, July 20
Spot rubber prices finished firm on Tuesday.
Domestic rubber prices, which hit record highs last week, are likely to move sideways this week on limited supplies due to rains, while a part of the demand would be met through imports, dealers said.
Sheet rubber closed unchanged at Rs 180 a kg and the volumes were comparatively low.
Rubber futures turned weak on NMCE . The August series slipped to Rs 174.20 (174.34), September to Rs 162.30 (163.41), October to Rs 158 (159.60) and November to Rs 158 (159) a kg for RSS 4.
RSS 3 declined with the July futures slipping to ¥344.4\Rs 187.88 (¥355.0); August to ¥293.9 (¥296.9); September to ¥283.3 (¥285.4); and October to ¥270.4 (¥270.5). The November futures firmed up marginally to ¥266.0 (265.3) and December to ¥ 264.5 (263.9) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) weakened to Rs 152.95 (153.73) a kg at Bangkok.
Spot rubber rates were (Rs/kg) 180 (180) for RSS-4; 175 (175) for RSS-5; 170 (171) for ungraded; 159 (159) for ISNR 20; and 125 (126) for Latex 60 per cent.
Rubber Climbs as Yen Drops, Stockpiles May Boost July Prices
Posted: 20 Jul 2010 01:42 AM PDT
By Aya Takada
July 20 (Bloomberg) -- Rubber increased as a weaker Japanese currency raised the appeal of yen-based contracts and data showed stockpiles monitored by the Tokyo Commodity Exchange dropped to the lowest level in at least nine years.
Futures in Tokyo climbed for a second day and gained as much as 0.8 percent after declining last week by 3.3 percent. The yen retreated from a seven-month high against the dollar on speculation that the central bank may weaken the currency.
Natural-rubber stockpiles monitored by the Tokyo exchange dropped by 29 percent to 1,341 metric tons as of July 10, data from the bourse showed. It was the lowest volume since at least 2001, exchange spokesman Seiki Ichimura said. Data before that year were unavailable, he said.
“As domestic stockpiles are at a very low level, short- position holders may have to buy back the nearby contract,” Takaki Shigemoto, an analyst at JSC Corp. in Tokyo, said today. Speculators with short, or sell, positions in the nearby contract must buy them back by the July 26 expiry date, unless they can deliver the raw material.
December-delivery rubber gained as much as 2.1 yen to 266 yen per kilogram ($3,059 a metric ton) before settling at 264.5 yen on the Tokyo Commodity Exchange. July-delivery rubber, which lost 3 percent today, surged by as much as 2.8 percent on July 16 amid speculation that the low stockpiles may make physical delivery difficult at the expiry.
“The market was supported by speculation that the nearby contract may surge before its expiry,” Shigemoto said today by phone. The July contract settled at 344.4 yen.
Gains Limited
Gains in futures were limited after U.S. home-builder confidence dropped more than forecast, renewing concern the economic recovery may falter.
The National Association of Home Builders/Wells Fargo confidence index dropped to 14 this month, the lowest level since April 2009, from 16 in June, data from the Washington- based group showed yesterday. Builders in the U.S. turned more pessimistic in July than forecast, a sign the expiration of a government tax credit will depress home construction.
The yen fell against all of its 16 major counterparts amid speculation recent gains will spur Japanese authorities to weaken the currency.
The Bank of Japan may take steps to ease monetary policy should the yen stay at about 85 per dollar, Dow Jones Newswires reported yesterday, citing people familiar with deliberations at the central bank.
November-delivery rubber on the Shanghai Futures Exchange gained 1.7 percent to 21,720 yuan ($3,205) a ton at 2:45 p.m. local time.
(bloomberg.com)
Malaysia: No drastic rubber demand change
Posted: 20 Jul 2010 01:40 AM PDT
Malaysia can’t see any “drastic” change in rubber supply and demand at the moment, Plantation Industries and Commodities Minister Datuk Bernard Dompok told reporters in Kuala Lumpur today.
The Southeast Asia country is still expecting to produce 900,000 metric tons of the commodity this year, Dompok said.
It is also encouraging smallholders to replant, he said. Malaysia is aiming for 40,000 hectares of annual replanting, Dompok said.
(btimes.com.my)
Government To Review SMR Specification Scheme
Posted: 20 Jul 2010 01:38 AM PDT
KUALA LUMPUR, July 20 (Bernama) -- The government is looking to review the Standard Malaysian Rubber (SMR) Specification Scheme to ensure that the over 40-year rubber grade remains relevant to current demands and is competitive.
Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said over the last four decades, the SMR Specification Scheme had transformed the country's natural rubber industry into a modern and technology-based sector, which produces technically specified rubber (TSR).
He said SMR is an internationally recognised brand name and the SMR standard is adopted by many other natural rubber producing countries.
However, the scenario had changed over the years and the country is now the third largest natural rubber producer while becoming less competitive as a producer in view of higher production costs, he said at the seminar on Standard Malaysian Rubber-New Dimensions here Tuesday.
"It is appropriate time for us to review our marketing strategy and seek to explore other ways of extracting value out of the goodwill and branding attached to the SMR that we produce. One particular aspect, may be for us, to review the SMR Specification Scheme," he said.
The SMR Specification Scheme was first launched in 1965. Since then, the scheme has undergone several revisions to accommodate technological advancements, changes to supplying materials and to satisfy consumer requirements.
The last revision was made in 1991.
Dompok is also confident that SMR producers in the country are in better position to re-strategise by shifting from processing standard block rubbers to other value-added rubbers such as specialty and new modified rubbers that are ready to be used by manufacturers of rubber products.
He also urged the midstream sector to be more efficient and competitive.
"This sector should no longer be associated with the perception of a dirty and low income industry. The rubber processors should utilise advanced processing tecnologies to achieve high productivity and cost effectiveness," he said.
Meanwhile, the seminar was organised by the Malaysian Rubber Board (MRB) to address the current issues and status of the SMR Specification Scheme, including issues of raw rubber supply and environmental concerns faced by the industry.
At the seminar, Dompok also launched an innovative machine, the RRIM Rapid DRC, developed by the MRB for dry rubber content (DRC) determination of cup lumps.
The machine is capable of determining DRC rapidly and accurately.
(bernama.com)
Rubber gives nomads an address - Tripura shifting cultivators settle for a permanent farming mode
Posted: 20 Jul 2010 01:36 AM PDT
Agartala, July 19: Latex is luring 30 nomadic families, which were spotted in different locations in three successive censuses, into settling down — with organised rubber plantations edging out the “bohemian” jhum cultivation.
Rankubai, the fabled village peopled exclusively by Reang shifting cultivators, is now a visible dot on Tripura’s hillscape in Gandacherra subdivision bordering Chittagong Hill Tracts of Bangladesh.
A primary school, two Mark-II wells, a tenuous road linking the new hamlet to Raisyabari market and occasional visits of rubber board officials are the first marks of development.
“It was with sustained persuasion and cajoling that we managed to win over the headman of the nomadic Rankubai village, Chitradhar Reang, 60, to make a new beginning. When they agreed, we allotted 45 hectares of land to 30 owners for rubber plantation. The Rubber Board came forward, providing them with earning for work on their own land since 2005. We have also been allotting work to them under various centrally sponsored schemes and in another two years the villagers will earn substantially from their rubber gardens,” said Shailaram Reang, joint director of primitive group programme department.
He recounted how resettlement projects for shifting cultivators — mostly Reangs — had failed earlier because within two or three years, the indigenous shifting cultivators would get tired of their new way of life and desert the resettlement areas after selling tin, timber and other household goods provided by the government.
“The entire way of life, ethos and values of the shifting cultivators revolve around jhum or shifting cultivation and without congenial conditions they tend to leave the settled way of life. Fortunately, rubber cultivation in hilly areas replicates their lifestyle in many ways,” said Reang.
Altogether 5,000 of Tripura’s 27,500 hardcore shifting cultivators have been resettled in newly created villages through rubber cultivation and the rest is also expected to be won over to the new way of life.
Apart from the resettlement scheme sponsored by the government and assisted by the rubber board, rubber cultivation is rapidly transforming Tripura’s socio-economic profile.
(telegraphindia.com)
Staff Reporter
KOCHI: Rubber-based industries have demanded concessions, in view of the high price of natural rubber, before a government-appointed panel headed by the Rubber Board Chairman.
Rajiv Budhraja, director-general of Automotive Tyre Manufacturers' Association (ATMA), said in a press release here recently that the domestic price of natural rubber continued to rule high and imports were prohibitive considering the 20 per cent duty. ATMA, the All-India Rubber Industries' Association and the Indian Cycle and Rickshaw Tyre Manufacturers' Association have appealed before the panel that the Indian rubber industry should be on an equal footing with Chinese manufacturers, who were accessing cheaper natural rubber in the international market.
The domestic price of natural rubber (for block rubber) was higher than the international price by Rs.30-40 a kg. The Indian industry could not take advantage of the lower international price.
The ATMA official said China had lowered the import duty to 6.8 per cent. The high price of natural rubber in India had significantly reduced the cost competitiveness of the domestic industry. As a result, cheap Chinese tyres were set to invade the Indian market, particularly with the government lifting the curbs. The three associations had approached the Delhi High Court, which ordered the Ministry of Commerce to consider their plea, the release added.
(The Hindu)
Spot rubber prices unchanged
Our Correspondent
Kottayam, July 20
Spot rubber prices finished firm on Tuesday.
Domestic rubber prices, which hit record highs last week, are likely to move sideways this week on limited supplies due to rains, while a part of the demand would be met through imports, dealers said.
Sheet rubber closed unchanged at Rs 180 a kg and the volumes were comparatively low.
Rubber futures turned weak on NMCE . The August series slipped to Rs 174.20 (174.34), September to Rs 162.30 (163.41), October to Rs 158 (159.60) and November to Rs 158 (159) a kg for RSS 4.
RSS 3 declined with the July futures slipping to ¥344.4\Rs 187.88 (¥355.0); August to ¥293.9 (¥296.9); September to ¥283.3 (¥285.4); and October to ¥270.4 (¥270.5). The November futures firmed up marginally to ¥266.0 (265.3) and December to ¥ 264.5 (263.9) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) weakened to Rs 152.95 (153.73) a kg at Bangkok.
Spot rubber rates were (Rs/kg) 180 (180) for RSS-4; 175 (175) for RSS-5; 170 (171) for ungraded; 159 (159) for ISNR 20; and 125 (126) for Latex 60 per cent.
Rubber Climbs as Yen Drops, Stockpiles May Boost July Prices
Posted: 20 Jul 2010 01:42 AM PDT
By Aya Takada
July 20 (Bloomberg) -- Rubber increased as a weaker Japanese currency raised the appeal of yen-based contracts and data showed stockpiles monitored by the Tokyo Commodity Exchange dropped to the lowest level in at least nine years.
Futures in Tokyo climbed for a second day and gained as much as 0.8 percent after declining last week by 3.3 percent. The yen retreated from a seven-month high against the dollar on speculation that the central bank may weaken the currency.
Natural-rubber stockpiles monitored by the Tokyo exchange dropped by 29 percent to 1,341 metric tons as of July 10, data from the bourse showed. It was the lowest volume since at least 2001, exchange spokesman Seiki Ichimura said. Data before that year were unavailable, he said.
“As domestic stockpiles are at a very low level, short- position holders may have to buy back the nearby contract,” Takaki Shigemoto, an analyst at JSC Corp. in Tokyo, said today. Speculators with short, or sell, positions in the nearby contract must buy them back by the July 26 expiry date, unless they can deliver the raw material.
December-delivery rubber gained as much as 2.1 yen to 266 yen per kilogram ($3,059 a metric ton) before settling at 264.5 yen on the Tokyo Commodity Exchange. July-delivery rubber, which lost 3 percent today, surged by as much as 2.8 percent on July 16 amid speculation that the low stockpiles may make physical delivery difficult at the expiry.
“The market was supported by speculation that the nearby contract may surge before its expiry,” Shigemoto said today by phone. The July contract settled at 344.4 yen.
Gains Limited
Gains in futures were limited after U.S. home-builder confidence dropped more than forecast, renewing concern the economic recovery may falter.
The National Association of Home Builders/Wells Fargo confidence index dropped to 14 this month, the lowest level since April 2009, from 16 in June, data from the Washington- based group showed yesterday. Builders in the U.S. turned more pessimistic in July than forecast, a sign the expiration of a government tax credit will depress home construction.
The yen fell against all of its 16 major counterparts amid speculation recent gains will spur Japanese authorities to weaken the currency.
The Bank of Japan may take steps to ease monetary policy should the yen stay at about 85 per dollar, Dow Jones Newswires reported yesterday, citing people familiar with deliberations at the central bank.
November-delivery rubber on the Shanghai Futures Exchange gained 1.7 percent to 21,720 yuan ($3,205) a ton at 2:45 p.m. local time.
(bloomberg.com)
Malaysia: No drastic rubber demand change
Posted: 20 Jul 2010 01:40 AM PDT
Malaysia can’t see any “drastic” change in rubber supply and demand at the moment, Plantation Industries and Commodities Minister Datuk Bernard Dompok told reporters in Kuala Lumpur today.
The Southeast Asia country is still expecting to produce 900,000 metric tons of the commodity this year, Dompok said.
It is also encouraging smallholders to replant, he said. Malaysia is aiming for 40,000 hectares of annual replanting, Dompok said.
(btimes.com.my)
Government To Review SMR Specification Scheme
Posted: 20 Jul 2010 01:38 AM PDT
KUALA LUMPUR, July 20 (Bernama) -- The government is looking to review the Standard Malaysian Rubber (SMR) Specification Scheme to ensure that the over 40-year rubber grade remains relevant to current demands and is competitive.
Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said over the last four decades, the SMR Specification Scheme had transformed the country's natural rubber industry into a modern and technology-based sector, which produces technically specified rubber (TSR).
He said SMR is an internationally recognised brand name and the SMR standard is adopted by many other natural rubber producing countries.
However, the scenario had changed over the years and the country is now the third largest natural rubber producer while becoming less competitive as a producer in view of higher production costs, he said at the seminar on Standard Malaysian Rubber-New Dimensions here Tuesday.
"It is appropriate time for us to review our marketing strategy and seek to explore other ways of extracting value out of the goodwill and branding attached to the SMR that we produce. One particular aspect, may be for us, to review the SMR Specification Scheme," he said.
The SMR Specification Scheme was first launched in 1965. Since then, the scheme has undergone several revisions to accommodate technological advancements, changes to supplying materials and to satisfy consumer requirements.
The last revision was made in 1991.
Dompok is also confident that SMR producers in the country are in better position to re-strategise by shifting from processing standard block rubbers to other value-added rubbers such as specialty and new modified rubbers that are ready to be used by manufacturers of rubber products.
He also urged the midstream sector to be more efficient and competitive.
"This sector should no longer be associated with the perception of a dirty and low income industry. The rubber processors should utilise advanced processing tecnologies to achieve high productivity and cost effectiveness," he said.
Meanwhile, the seminar was organised by the Malaysian Rubber Board (MRB) to address the current issues and status of the SMR Specification Scheme, including issues of raw rubber supply and environmental concerns faced by the industry.
At the seminar, Dompok also launched an innovative machine, the RRIM Rapid DRC, developed by the MRB for dry rubber content (DRC) determination of cup lumps.
The machine is capable of determining DRC rapidly and accurately.
(bernama.com)
Rubber gives nomads an address - Tripura shifting cultivators settle for a permanent farming mode
Posted: 20 Jul 2010 01:36 AM PDT
Agartala, July 19: Latex is luring 30 nomadic families, which were spotted in different locations in three successive censuses, into settling down — with organised rubber plantations edging out the “bohemian” jhum cultivation.
Rankubai, the fabled village peopled exclusively by Reang shifting cultivators, is now a visible dot on Tripura’s hillscape in Gandacherra subdivision bordering Chittagong Hill Tracts of Bangladesh.
A primary school, two Mark-II wells, a tenuous road linking the new hamlet to Raisyabari market and occasional visits of rubber board officials are the first marks of development.
“It was with sustained persuasion and cajoling that we managed to win over the headman of the nomadic Rankubai village, Chitradhar Reang, 60, to make a new beginning. When they agreed, we allotted 45 hectares of land to 30 owners for rubber plantation. The Rubber Board came forward, providing them with earning for work on their own land since 2005. We have also been allotting work to them under various centrally sponsored schemes and in another two years the villagers will earn substantially from their rubber gardens,” said Shailaram Reang, joint director of primitive group programme department.
He recounted how resettlement projects for shifting cultivators — mostly Reangs — had failed earlier because within two or three years, the indigenous shifting cultivators would get tired of their new way of life and desert the resettlement areas after selling tin, timber and other household goods provided by the government.
“The entire way of life, ethos and values of the shifting cultivators revolve around jhum or shifting cultivation and without congenial conditions they tend to leave the settled way of life. Fortunately, rubber cultivation in hilly areas replicates their lifestyle in many ways,” said Reang.
Altogether 5,000 of Tripura’s 27,500 hardcore shifting cultivators have been resettled in newly created villages through rubber cultivation and the rest is also expected to be won over to the new way of life.
Apart from the resettlement scheme sponsored by the government and assisted by the rubber board, rubber cultivation is rapidly transforming Tripura’s socio-economic profile.
(telegraphindia.com)
Monday, July 19, 2010
Govt considering reducing import duty on natural rubber
Govt considering reducing import duty on natural rubber
The government today said it is considering cutting import duty on natural rubber, a long pending demand of tyre manufacturers.
"Yes, I have seen requests ... We are thinking about it," Commerce Secretary Rahul Khullar said when asked whether the government is considering the industry's proposal to reduce import duty on natural rubber.
At present, customs duty on natural rubber, the main raw-material for tyres, is 20 per cent, whereas the customs duty on tyres (the finished product) is 10 per cent.
The tyre industry has been demanding a reduction in import duty on natural rubber from the current 20 per cent to 7.5 per cent in view of high domestic prices, which have been ruling in the range of Rs 170-180 a kg. In the global market, prices of natural rubber (RSS-3 variety) are ruling at Rs 153.73 per kg.
According to the Rubber Board, consumption of the commodity has been increasing on account of rising production of tyres.
The production of truck and bus tyres increased by 15 per cent and 21 per cent respectively during 2009-10 over the year-ago period.
According to the Board, imports of natural rubber was estimated to fall to 70,000 tonnes in the current financial year from 1.7 lakh tonnes in the previous fiscal.
Last month, imports declined by more than half at 9,255 tonnes due to higher global prices.
In 2010-11, the consumption of the commodity was estimated at 9.78 lakh tonnes and production at 8.93 lakh tonnes.
India, after China, is the second largest consumer of natural rubber.
(business-standard.com)
Spot rubber prices rule unchanged
Our Correspondent
Kottayam, July 19
Spot rubber prices continued to rule unchanged on Monday. The market was mostly inactive as the leading Tokyo Commodity Exchange remained closed on account of Ocean Day. Sheet rubber closed flat at Rs 180a kg amidst scattered transactions.
Among other developments it is reported that more than 30,000 tonnes of imported rubber would be available in the country during August to depress prices.
FUTURES UP
Rubber futures on the NMCE shot up hitting the upper price limit in the near series on early trades. The August series finished higher at Rs 174.70 (Rs 170.44), Septemberat Rs 163.90 (Rs 160.38), October at Rs 160.20 (Rs 157.91) and November at Rs 159(Rs 161) a kg for RSS 4.
The most actively traded August 2010 contract was traded within a range of Rs 176.50 and Rs 172.25. Thetotal volume has been 10,534 lots and turnover 181.13 crores. The total open interest in all series was 5,412. RSS 3 (spot) moved up marginally to Rs 153.73 (Rs 153.02) a kg at Bangkok.
Spot rubber rates (Rs/kg) were : RSS-4: 180(180)RSS-5 : 175(175)ungraded: 170(171)ISNR 20:159(159) and latex 60 per cent 125(126)
The government today said it is considering cutting import duty on natural rubber, a long pending demand of tyre manufacturers.
"Yes, I have seen requests ... We are thinking about it," Commerce Secretary Rahul Khullar said when asked whether the government is considering the industry's proposal to reduce import duty on natural rubber.
At present, customs duty on natural rubber, the main raw-material for tyres, is 20 per cent, whereas the customs duty on tyres (the finished product) is 10 per cent.
The tyre industry has been demanding a reduction in import duty on natural rubber from the current 20 per cent to 7.5 per cent in view of high domestic prices, which have been ruling in the range of Rs 170-180 a kg. In the global market, prices of natural rubber (RSS-3 variety) are ruling at Rs 153.73 per kg.
According to the Rubber Board, consumption of the commodity has been increasing on account of rising production of tyres.
The production of truck and bus tyres increased by 15 per cent and 21 per cent respectively during 2009-10 over the year-ago period.
According to the Board, imports of natural rubber was estimated to fall to 70,000 tonnes in the current financial year from 1.7 lakh tonnes in the previous fiscal.
Last month, imports declined by more than half at 9,255 tonnes due to higher global prices.
In 2010-11, the consumption of the commodity was estimated at 9.78 lakh tonnes and production at 8.93 lakh tonnes.
India, after China, is the second largest consumer of natural rubber.
(business-standard.com)
Spot rubber prices rule unchanged
Our Correspondent
Kottayam, July 19
Spot rubber prices continued to rule unchanged on Monday. The market was mostly inactive as the leading Tokyo Commodity Exchange remained closed on account of Ocean Day. Sheet rubber closed flat at Rs 180a kg amidst scattered transactions.
Among other developments it is reported that more than 30,000 tonnes of imported rubber would be available in the country during August to depress prices.
FUTURES UP
Rubber futures on the NMCE shot up hitting the upper price limit in the near series on early trades. The August series finished higher at Rs 174.70 (Rs 170.44), Septemberat Rs 163.90 (Rs 160.38), October at Rs 160.20 (Rs 157.91) and November at Rs 159(Rs 161) a kg for RSS 4.
The most actively traded August 2010 contract was traded within a range of Rs 176.50 and Rs 172.25. Thetotal volume has been 10,534 lots and turnover 181.13 crores. The total open interest in all series was 5,412. RSS 3 (spot) moved up marginally to Rs 153.73 (Rs 153.02) a kg at Bangkok.
Spot rubber rates (Rs/kg) were : RSS-4: 180(180)RSS-5 : 175(175)ungraded: 170(171)ISNR 20:159(159) and latex 60 per cent 125(126)
Spot rubber rules steady
Spot rubber rules steady
Kottayam, July 17
The physical rubber prices were almost unchanged on Saturday.
The market managed to sustain at Friday's closing levels in most of the grades though the domestic futures finished lower in all contracts.
Sheet rubber closed flat at Rs 180 a kg amidst scattered transactions. There were no quantity sellers in the market and the trend was mixed.
Futures decline
Rubber futures declined further on NMCE.
The August series moved down to Rs 170.44 (173.88), September to Rs 160.38 (164.66) October to Rs 157.91 (160.58) and November to Rs 157.92 (161) a kg for RSS 4.
Spot rates were: RSS-4: 180 (180); RSS-5: 175 (175); ungraded: 170 (171); ISNR 20: 159 (159) and latex 60 per cent: 125 (126).
Kottayam, July 17
The physical rubber prices were almost unchanged on Saturday.
The market managed to sustain at Friday's closing levels in most of the grades though the domestic futures finished lower in all contracts.
Sheet rubber closed flat at Rs 180 a kg amidst scattered transactions. There were no quantity sellers in the market and the trend was mixed.
Futures decline
Rubber futures declined further on NMCE.
The August series moved down to Rs 170.44 (173.88), September to Rs 160.38 (164.66) October to Rs 157.91 (160.58) and November to Rs 157.92 (161) a kg for RSS 4.
Spot rates were: RSS-4: 180 (180); RSS-5: 175 (175); ungraded: 170 (171); ISNR 20: 159 (159) and latex 60 per cent: 125 (126).
Saturday, July 17, 2010
Buyer resistance pulls down spot rubber
Buyer resistance pulls down spot rubber
Aravindan
Kottayam, July 16
Rubber prices declined sharply on Friday. In the spot, the prices dropped following fall in domestic rubber futures. Sheet rubber weakened to Rs 180 from Rs 184.25 a kg on buyer resistance. According to reports, the record-high rubber prices are set to soften in the next two months on improved supplies following imports and a rise in domestic arrivals. However, the prices are unlikely to go back to the mid-2009 levels as demand continues to outstrip supply.
Futures weak
Rubber futures hit the lower circuit on Firday losing Rs 350-508 in various series traded on the NMCE. The August series dived to Rs 173.80 (179.81), September to Rs 164.20 (170.73) and October to Rs 160.50 (165.40) while the November futures finished the debut trading at Rs 161 a kg for RSS 4. RSS 3 improved with the July futures rising to ¥355\Rs 191.45 (¥347.8), August to ¥296.9 (¥293.9), September to ¥285.4 (¥282.8), October to ¥270.5 (¥268.8), November to ¥265.3 (¥264.1), and December to ¥263.9 (¥262.4) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 153.02 (153.05) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 180 (184.25); RSS-5: 175 (179); ungraded: 171 (173.50); ISNR 20: 159 (161.50) and latex 60 per cent: 126 (128).
Rubber Advances as Nearby Contract Surges on Low Stockpiles Due to Weather
Posted: 16 Jul 2010 05:58 AM PDT
Rubber futures climbed, led by a rally in the nearby contract amid speculation that low stockpiles in Japan may make physical delivery difficult at its expiry this month.
Futures in Tokyo gained for the second time this week. The nearby contract, which will expire on July 26, jumped as much as 2.8 percent, widening the price differential with the December- delivery futures, the most-active contract.
Natural rubber stockpiles monitored by the Tokyo Commodity Exchange dropped by 6.2 percent to 1,880 metric tons on June 30, nearing a record low of 1,408 tons reached in October 2008, according to exchange spokesman Seiki Ichimura. Supply decreased after rain disrupted tapping in Thailand, the world’s largest producer and exporter, said Kazuhiko Saito, an analyst at Tokyo- based broker Fujitomi Co.
“Tight supply is spurring a short-covering rally,” Saito said by phone today. Speculators with short, or sell, positions in the July contract must buy them back by July 26, the expiry date, unless they can deliver the raw material.
December-delivery rubber gained as much as 1.6 percent to 266.5 yen per kilogram ($3,056 a ton) before settling at 263.9 yen on the Tokyo Commodity Exchange. The price lost 3.3 percent this week, the second drop in three weeks.
July-delivery rubber gained as much as 2.8 percent to 357.5 yen before settling at 355 yen. Last month, the June-delivery contract expired at 372 yen.
Gains in futures were limited amid concern that a slowdown in economic growth in China, the largest consumer, may curb demand for the commodity used in tires, Saito at Fujitomi said.
Economic growth in China slowed to 10.3 percent in the second quarter from 11.9 percent in January-March, data showed yesterday. China’s expansion eased after the government tempered credit expansion, investment spending and property speculation.
November-delivery rubber on the Shanghai Futures Exchange gained 0.8 percent to 21,525 yuan ($3,177) a ton at 2:53 p.m. local time.
(bloomberg.com)
NMCE Rubber Quotes Lower In Afternoon Trades
Posted: 16 Jul 2010 05:57 AM PDT
Rubber futures in the domestic futures market traded with high volatility in today's trading sessions. The benchmark August contract on NMCE fell to the session low of Rs 17920 after hitting the high of Rs 18140 per 100 kg during the early trading session. The counter is now trading lower at Rs 18021, down Rs 57 from the last close.
TOCOM Commodity Exchange Rubber ended the morning session lower with benchmark December futures ending the session lower by 1.80 Yen at 262.40 Yen a kg. Futures rebounded from the losses in the later trading sessions on some buying interest. December futures contract is currently quoting in the TOCOM commodity exchange higher by 1.60 yen at 264 yen a kg.
The ANRPC lowered its forecast of growth for global supply of natural rubber for 2010 to 5.2% from the 6.1% rate anticipated in May, according to its June monthly bulletin released recently. The ANRPC had earlier in March anticipated a 6.3% rate of growth and had even then cautioned it to be an optimistic rate and pointed out a host of constraints in its achievement.
According to government and industry sources, India's imports of natural rubber will likely rise in the current fiscal year as local production is growing at a much slower pace than demand, mainly from tire makers.
Auto sales in both the U.S. and China continued to rise in June but at a slower pace than the previous month. China's auto sales surged 30.45% year on year to 7.18 million units in the first half of the year, keeping China's position as the world's largest auto market intact. U.S. auto sales also grew in June from thedepressed level of year earlier. Light vehicle sales rose 14% to 983,738 units in June compared to the last year.
(indiainfoline.com)
Decline in spot rubber prices
Posted: 16 Jul 2010 05:56 AM PDT
On Thursday (15 July 2010), the spot rubber prices declined as the trend setting domestic and international markers were bearish. Sheet rubber declined to Rs 184.25 from Rs 185 per kg, while the remaining grades except latex 60% also declined in with the day's sentiments.
The July futures for RSS 4 expired at Rs 187 (192.31), while the August series declined to Rs 179.95 (180.78), September to Rs 170.75 (171.86) and October to Rs 165.40 (166.51) a kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 184.25 (185); RSS-5: 179 (179.50); ungraded: 173.50 (174.50); ISNR 20: 161.50 (162) and latex 60 per cent: 128 (128).
(indiainfoline.com)
Aravindan
Kottayam, July 16
Rubber prices declined sharply on Friday. In the spot, the prices dropped following fall in domestic rubber futures. Sheet rubber weakened to Rs 180 from Rs 184.25 a kg on buyer resistance. According to reports, the record-high rubber prices are set to soften in the next two months on improved supplies following imports and a rise in domestic arrivals. However, the prices are unlikely to go back to the mid-2009 levels as demand continues to outstrip supply.
Futures weak
Rubber futures hit the lower circuit on Firday losing Rs 350-508 in various series traded on the NMCE. The August series dived to Rs 173.80 (179.81), September to Rs 164.20 (170.73) and October to Rs 160.50 (165.40) while the November futures finished the debut trading at Rs 161 a kg for RSS 4. RSS 3 improved with the July futures rising to ¥355\Rs 191.45 (¥347.8), August to ¥296.9 (¥293.9), September to ¥285.4 (¥282.8), October to ¥270.5 (¥268.8), November to ¥265.3 (¥264.1), and December to ¥263.9 (¥262.4) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 153.02 (153.05) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 180 (184.25); RSS-5: 175 (179); ungraded: 171 (173.50); ISNR 20: 159 (161.50) and latex 60 per cent: 126 (128).
Rubber Advances as Nearby Contract Surges on Low Stockpiles Due to Weather
Posted: 16 Jul 2010 05:58 AM PDT
Rubber futures climbed, led by a rally in the nearby contract amid speculation that low stockpiles in Japan may make physical delivery difficult at its expiry this month.
Futures in Tokyo gained for the second time this week. The nearby contract, which will expire on July 26, jumped as much as 2.8 percent, widening the price differential with the December- delivery futures, the most-active contract.
Natural rubber stockpiles monitored by the Tokyo Commodity Exchange dropped by 6.2 percent to 1,880 metric tons on June 30, nearing a record low of 1,408 tons reached in October 2008, according to exchange spokesman Seiki Ichimura. Supply decreased after rain disrupted tapping in Thailand, the world’s largest producer and exporter, said Kazuhiko Saito, an analyst at Tokyo- based broker Fujitomi Co.
“Tight supply is spurring a short-covering rally,” Saito said by phone today. Speculators with short, or sell, positions in the July contract must buy them back by July 26, the expiry date, unless they can deliver the raw material.
December-delivery rubber gained as much as 1.6 percent to 266.5 yen per kilogram ($3,056 a ton) before settling at 263.9 yen on the Tokyo Commodity Exchange. The price lost 3.3 percent this week, the second drop in three weeks.
July-delivery rubber gained as much as 2.8 percent to 357.5 yen before settling at 355 yen. Last month, the June-delivery contract expired at 372 yen.
Gains in futures were limited amid concern that a slowdown in economic growth in China, the largest consumer, may curb demand for the commodity used in tires, Saito at Fujitomi said.
Economic growth in China slowed to 10.3 percent in the second quarter from 11.9 percent in January-March, data showed yesterday. China’s expansion eased after the government tempered credit expansion, investment spending and property speculation.
November-delivery rubber on the Shanghai Futures Exchange gained 0.8 percent to 21,525 yuan ($3,177) a ton at 2:53 p.m. local time.
(bloomberg.com)
NMCE Rubber Quotes Lower In Afternoon Trades
Posted: 16 Jul 2010 05:57 AM PDT
Rubber futures in the domestic futures market traded with high volatility in today's trading sessions. The benchmark August contract on NMCE fell to the session low of Rs 17920 after hitting the high of Rs 18140 per 100 kg during the early trading session. The counter is now trading lower at Rs 18021, down Rs 57 from the last close.
TOCOM Commodity Exchange Rubber ended the morning session lower with benchmark December futures ending the session lower by 1.80 Yen at 262.40 Yen a kg. Futures rebounded from the losses in the later trading sessions on some buying interest. December futures contract is currently quoting in the TOCOM commodity exchange higher by 1.60 yen at 264 yen a kg.
The ANRPC lowered its forecast of growth for global supply of natural rubber for 2010 to 5.2% from the 6.1% rate anticipated in May, according to its June monthly bulletin released recently. The ANRPC had earlier in March anticipated a 6.3% rate of growth and had even then cautioned it to be an optimistic rate and pointed out a host of constraints in its achievement.
According to government and industry sources, India's imports of natural rubber will likely rise in the current fiscal year as local production is growing at a much slower pace than demand, mainly from tire makers.
Auto sales in both the U.S. and China continued to rise in June but at a slower pace than the previous month. China's auto sales surged 30.45% year on year to 7.18 million units in the first half of the year, keeping China's position as the world's largest auto market intact. U.S. auto sales also grew in June from thedepressed level of year earlier. Light vehicle sales rose 14% to 983,738 units in June compared to the last year.
(indiainfoline.com)
Decline in spot rubber prices
Posted: 16 Jul 2010 05:56 AM PDT
On Thursday (15 July 2010), the spot rubber prices declined as the trend setting domestic and international markers were bearish. Sheet rubber declined to Rs 184.25 from Rs 185 per kg, while the remaining grades except latex 60% also declined in with the day's sentiments.
The July futures for RSS 4 expired at Rs 187 (192.31), while the August series declined to Rs 179.95 (180.78), September to Rs 170.75 (171.86) and October to Rs 165.40 (166.51) a kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 184.25 (185); RSS-5: 179 (179.50); ungraded: 173.50 (174.50); ISNR 20: 161.50 (162) and latex 60 per cent: 128 (128).
(indiainfoline.com)
Friday, July 16, 2010
Spot rubber prices weaken
Spot rubber prices weaken
Our Correspondent
Kottayam, July 15
Spot rubber prices weakened on Thursday. The market remained under pressure as the trend setting domestic and international markets were bearish.
Sheet rubber declined to Rs 184.25 from Rs 185 a kg, while the remaining grades except latex 60 per cent also slipped in tune with the day's sentiments. The July series for RSS 4 expired at Rs 187 (Rs 192.31), while the August series slipped to Rs 179.95 (Rs 180.78), September to Rs 170.75 (Rs 171.86) and October to Rs 165.40 (Rs 166.64) a kg on the National Multi-Commodity Exchange.
TOCOM FUTURES UP
RSS 3 improved with the July futures rising to ¥347.8 \ Rs 184.01 (¥343) while the August futures weakened to ¥293.9 (¥296.8), September to ¥ 282.8 (¥284.8), October to ¥ 268.8 (¥270.2), November to ¥ 264.1 (265.7), and December to ¥ 262.4 (264.2) a kg during the day session on the Tokyo Commodity Exchange.
RSS 3 (spot) fell further to Rs 153.05 (Rs 155.27) a kg at Bangkok.
Spot rubber rates (Rs/kg) were: RSS-4: 184.25 (185); RSS-5: 179 (Rs 179.50); ungraded: Rs 173.50 (Rs 174.50); ISNR 20: Rs 161.50 (Rs 162.00) and latex 60%: Rs 126 (Rs 128).
Rubber industry seeks level playing field from Govt panel
“The domestic natural rubber prices are ruling higher in the case of block rubber and sheet rubber. But the industry cannot benefit from the lower international prices in view of the hefty import duty of 20 per cent.”
Our Bureau
Kochi, July 15
Various sections of the rubber industry have reiterated their demand for reduction in import duty on natural rubber so that they can be on an equal footing with the Chinese manufacturers in accessing natural rubber at cheaper rates.
The All India Rubber Industries Association (AIRIA), Automotive Tyre Manufacturers' Association (ATMA) and Indian Cycle and Rickshaw Tyre Manufacturers (ICRTMA), which together account for 100 per cent of rubber consumption in the country, have just completed their hearing with the Government appointed panel, headed by Mr Sajen Peter, Chairman of Rubber Board. The panel is slated to submit the report by July 19.
According to Mr Rajiv Budhraja, Director-General of ATMA, the domestic natural rubber prices are ruling higher in the case of block rubber and sheet rubber.
But the industry cannot benefit from the lower international prices in view of the hefty import duty of 20 per cent, which at current prices works out to around Rs 35 a kg.
Stiff competition
“China, on the other hand, has lowered the import duty drastically and it currently stands at just 6.8 per cent. Accordingly, Chinese manufacturers are able to access natural rubber at much lower prices, in the process reducing their production cost. “On the other hand, high production cost in view of exorbitant natural rubber prices is eroding the cost competitiveness of Indian manufacturers,” Mr Budhraja added.
Now that the Government has lifted the restrictions on tyre imports, not only are Indian exports threatened by the cheaply made Chinese tyres but they are also poised to swarm the Indian markets. The three associations had petitioned the Delhi High Court to impress upon the Government to regulate natural rubber prices.
The High Court had directed the Ministry of Commerce and/or the Rubber Board to consider the representations made by different sections of the rubber industry, a press release has said.
The court is of the considered view that the Ministry of Commerce and/or the Rubber Board should consider the several representations made by the petitioners. Preferably, the representations of each of the petitioners shall be given a hearing, and thereafter a detailed order be passed on the representations giving the reasons for the decision, the High Court said.
Rubber production expected to rebound with 9% growth
Posted: 14 Jul 2010 11:32 PM PDT
RUBBER PRODUCTION in the country is expected to increase by 9% this year in the face of revived demand, an Agriculture official said yesterday.
High Value Commercial Crops program director Rene Rafael C. Espino told reporters that "this year, rubber is seen to increase 9% [because of] high demand."
The increase is being projected even after rubber production dropped by 8.58% in the first quarter of the year to 58,240 metric tons (MT) from the 63,710 MT recorded in the same period in 2009, data from the Bureau of Agricultural Statistics (BAS) show. In 2009, production dipped 0.83% to 407,640 MT from 411,040 MT, the data showed.
Mr. Espino attributed the slump in the industry to dampened demand amid a global economic crisis. He said revived demand from recovering overseas markets is expected to be reflected in industry sales this semester.
Officers of the Philippine Rubber Industries Association, Inc. could not be reached to validate the department’s forecast, though the government reported last month that production of rubber and plastic products grew 22.5% in April.
Still, Mr. Espino cited the need to improve product quality. He said, the department plans to buy modern rubber processing equipment to help producers upgrade their products. "We are now trying to get equipment for the village-level processing in order for us to have better quality products," Mr. Espino said.
Mr. Espino said the department will purchase processing equipment that will transform cup lumps, which make up bulk of the country’s rubber products, into higher-value rubber sheets. This, in turn, is expected to raise demand for them for industrial and automotive use.
Mr. Espino said that most of the rubber plantations in the country are located in Mindanao, and that the department is looking at other areas. "We’re scouting for areas that will be very suitable for rubber now, we’re looking at Palawan as a potential area for expansion," Mr. Espino said.
He added that rubber plantations require investments of $2,500-$3,000 per hectare, which cover planting, harvesting and processing of the product.
To be sure, the government has long recognized the need to upgrade the country’s rubber products.
Last May, former president and now Pampanga Rep. Gloria M. Arroyo (2nd District) signed into law Republic Act No. 10089, forming the Philippine Rubber Research Institute -- to be based at the Mindanao State University in Naga, Zamboanga de Sibugay -- to provide research and development support to the industry.
Agriculture department data showed that the country’s rubber industry supplied just 1.05% of global demand in 2004. The industry lags behind counterparts in Indonesia and Malaysia, which started to plant rubber in 1905 -- around the same time as the Philippines.
(bworldonline.com)
ANRPC lowers global rubber supply outlook for 2010
Posted: 14 Jul 2010 11:31 PM PDT
MUMBAI (Commodity Online): The ANRPC lowered its forecast of growth for global supply of natural rubber for 2010 to 5.2% from the 6.1% rate anticipated in May, according to its June monthly bulletin released recently.
The ANRPC had earlier in March anticipated a 6.3% rate of growth and had even then cautioned it to be an optimistic rate and pointed out a host of constraints in its achievement.
Auto sales in both the U.S. and China continued to rise in June but at a slower pace than the previous month. China’s auto sales surged 30.45% year on year to 7.18 million units in the first half of the year, keeping Chinas position as the world's largest auto market intact. U.S. auto sales also grew in June from the depressed level of year earlier.
Light vehicle sales rose 14% to 983,738 units in June up from last year, Vietnam exported 239,000 tonnes of rubber worth US$656 million in the first half of the year, with earnings 82.5 per cent higher year-on-year, according to the general secretary of the Viet Nam Rubber Association.
Tata Motors and Ashok Leyland have blamed the shortage of tyres in Indian market for increasing imports from China. The average monthly off take by OEMs in fiscal 2008 was 218 thousand tyres, which fell to about 144 thousand in fiscal 2009 due to the global slowdown. The figure recovered to 187 thousand in the last fiscal and for the first two months of the current year, demand has been at 230 thousand tyres a month.
(commodityonline.com)
Rubber may continue trade down on weak technical
Posted: 14 Jul 2010 11:30 PM PDT
INTERNATIONAL
Crude is above the crucial resistance at $76.50 and likely to test $81 in the near term. Weak dollar has helped the natural rubber futures to trade higher on the opening note, but weak technical pulled down the prices towards 267.30.
The ongoing technical correction may extend to few more trading sessions on Tokyo futures markets. It has minor support at 267, 266 and 263.50. Minor recovery can be expected in the later part of the day.
DOMESTIC
On the domestic front the technical correction which has started yesterday may continue. The poor monsoon showers and lower enquiries from end users can dampen the sentiments. The August contract has support at 179.25 and 178.10.
Movements below 177.60 can cause further down trend and it can bring down the prices towards 176.14. Resistance for the August contract can be seen at 179.98 and 181.20. If it can open lower then one can expect side ways movement till noon. Value buying is expected at lower levels.
Analysis of Tokyo rubber market as on July 13
The market lost grounds three days in a row to finish at 260.1 yen with a loss of 5.4 yen as losses in the other commodities and plunging Shanghai rubber market spurred selling below 260 yen in the end.
Selling pressure from the last trading continued during the night session on lower other commodity prices and the day session opened at unchanged level, after which it slowly declined on falling oil prices.
When the Shanghai rubber market showed a drop after the opening, selling pressure gathered momentum and Tokyo market fell down to around 260 yen by loss cut selling. Although it hovered at around 261.0 yen on a quite tone for a while, falling Shanghai market subdued it just before the closing as low as 259.6 yen, the lowest price since December contract debuted.
The Shanghai rubber market plummeted by technical selling as RSI is showing “Dead Cross” as well as losses in stock and copper market, finishing down 820 yuan at 20,985 yuan.
Falling as low as 259.6 yen to break below 260.3 yen, the low price marked on 2nd of July, it can be said that the market is turning into lower side now. Gains in early July were reversed as a result but until it breaks below 250.9 yen, the lower side of the range, contrarian position is recommended.
(commodityonline.com)
Our Correspondent
Kottayam, July 15
Spot rubber prices weakened on Thursday. The market remained under pressure as the trend setting domestic and international markets were bearish.
Sheet rubber declined to Rs 184.25 from Rs 185 a kg, while the remaining grades except latex 60 per cent also slipped in tune with the day's sentiments. The July series for RSS 4 expired at Rs 187 (Rs 192.31), while the August series slipped to Rs 179.95 (Rs 180.78), September to Rs 170.75 (Rs 171.86) and October to Rs 165.40 (Rs 166.64) a kg on the National Multi-Commodity Exchange.
TOCOM FUTURES UP
RSS 3 improved with the July futures rising to ¥347.8 \ Rs 184.01 (¥343) while the August futures weakened to ¥293.9 (¥296.8), September to ¥ 282.8 (¥284.8), October to ¥ 268.8 (¥270.2), November to ¥ 264.1 (265.7), and December to ¥ 262.4 (264.2) a kg during the day session on the Tokyo Commodity Exchange.
RSS 3 (spot) fell further to Rs 153.05 (Rs 155.27) a kg at Bangkok.
Spot rubber rates (Rs/kg) were: RSS-4: 184.25 (185); RSS-5: 179 (Rs 179.50); ungraded: Rs 173.50 (Rs 174.50); ISNR 20: Rs 161.50 (Rs 162.00) and latex 60%: Rs 126 (Rs 128).
Rubber industry seeks level playing field from Govt panel
“The domestic natural rubber prices are ruling higher in the case of block rubber and sheet rubber. But the industry cannot benefit from the lower international prices in view of the hefty import duty of 20 per cent.”
Our Bureau
Kochi, July 15
Various sections of the rubber industry have reiterated their demand for reduction in import duty on natural rubber so that they can be on an equal footing with the Chinese manufacturers in accessing natural rubber at cheaper rates.
The All India Rubber Industries Association (AIRIA), Automotive Tyre Manufacturers' Association (ATMA) and Indian Cycle and Rickshaw Tyre Manufacturers (ICRTMA), which together account for 100 per cent of rubber consumption in the country, have just completed their hearing with the Government appointed panel, headed by Mr Sajen Peter, Chairman of Rubber Board. The panel is slated to submit the report by July 19.
According to Mr Rajiv Budhraja, Director-General of ATMA, the domestic natural rubber prices are ruling higher in the case of block rubber and sheet rubber.
But the industry cannot benefit from the lower international prices in view of the hefty import duty of 20 per cent, which at current prices works out to around Rs 35 a kg.
Stiff competition
“China, on the other hand, has lowered the import duty drastically and it currently stands at just 6.8 per cent. Accordingly, Chinese manufacturers are able to access natural rubber at much lower prices, in the process reducing their production cost. “On the other hand, high production cost in view of exorbitant natural rubber prices is eroding the cost competitiveness of Indian manufacturers,” Mr Budhraja added.
Now that the Government has lifted the restrictions on tyre imports, not only are Indian exports threatened by the cheaply made Chinese tyres but they are also poised to swarm the Indian markets. The three associations had petitioned the Delhi High Court to impress upon the Government to regulate natural rubber prices.
The High Court had directed the Ministry of Commerce and/or the Rubber Board to consider the representations made by different sections of the rubber industry, a press release has said.
The court is of the considered view that the Ministry of Commerce and/or the Rubber Board should consider the several representations made by the petitioners. Preferably, the representations of each of the petitioners shall be given a hearing, and thereafter a detailed order be passed on the representations giving the reasons for the decision, the High Court said.
Rubber production expected to rebound with 9% growth
Posted: 14 Jul 2010 11:32 PM PDT
RUBBER PRODUCTION in the country is expected to increase by 9% this year in the face of revived demand, an Agriculture official said yesterday.
High Value Commercial Crops program director Rene Rafael C. Espino told reporters that "this year, rubber is seen to increase 9% [because of] high demand."
The increase is being projected even after rubber production dropped by 8.58% in the first quarter of the year to 58,240 metric tons (MT) from the 63,710 MT recorded in the same period in 2009, data from the Bureau of Agricultural Statistics (BAS) show. In 2009, production dipped 0.83% to 407,640 MT from 411,040 MT, the data showed.
Mr. Espino attributed the slump in the industry to dampened demand amid a global economic crisis. He said revived demand from recovering overseas markets is expected to be reflected in industry sales this semester.
Officers of the Philippine Rubber Industries Association, Inc. could not be reached to validate the department’s forecast, though the government reported last month that production of rubber and plastic products grew 22.5% in April.
Still, Mr. Espino cited the need to improve product quality. He said, the department plans to buy modern rubber processing equipment to help producers upgrade their products. "We are now trying to get equipment for the village-level processing in order for us to have better quality products," Mr. Espino said.
Mr. Espino said the department will purchase processing equipment that will transform cup lumps, which make up bulk of the country’s rubber products, into higher-value rubber sheets. This, in turn, is expected to raise demand for them for industrial and automotive use.
Mr. Espino said that most of the rubber plantations in the country are located in Mindanao, and that the department is looking at other areas. "We’re scouting for areas that will be very suitable for rubber now, we’re looking at Palawan as a potential area for expansion," Mr. Espino said.
He added that rubber plantations require investments of $2,500-$3,000 per hectare, which cover planting, harvesting and processing of the product.
To be sure, the government has long recognized the need to upgrade the country’s rubber products.
Last May, former president and now Pampanga Rep. Gloria M. Arroyo (2nd District) signed into law Republic Act No. 10089, forming the Philippine Rubber Research Institute -- to be based at the Mindanao State University in Naga, Zamboanga de Sibugay -- to provide research and development support to the industry.
Agriculture department data showed that the country’s rubber industry supplied just 1.05% of global demand in 2004. The industry lags behind counterparts in Indonesia and Malaysia, which started to plant rubber in 1905 -- around the same time as the Philippines.
(bworldonline.com)
ANRPC lowers global rubber supply outlook for 2010
Posted: 14 Jul 2010 11:31 PM PDT
MUMBAI (Commodity Online): The ANRPC lowered its forecast of growth for global supply of natural rubber for 2010 to 5.2% from the 6.1% rate anticipated in May, according to its June monthly bulletin released recently.
The ANRPC had earlier in March anticipated a 6.3% rate of growth and had even then cautioned it to be an optimistic rate and pointed out a host of constraints in its achievement.
Auto sales in both the U.S. and China continued to rise in June but at a slower pace than the previous month. China’s auto sales surged 30.45% year on year to 7.18 million units in the first half of the year, keeping Chinas position as the world's largest auto market intact. U.S. auto sales also grew in June from the depressed level of year earlier.
Light vehicle sales rose 14% to 983,738 units in June up from last year, Vietnam exported 239,000 tonnes of rubber worth US$656 million in the first half of the year, with earnings 82.5 per cent higher year-on-year, according to the general secretary of the Viet Nam Rubber Association.
Tata Motors and Ashok Leyland have blamed the shortage of tyres in Indian market for increasing imports from China. The average monthly off take by OEMs in fiscal 2008 was 218 thousand tyres, which fell to about 144 thousand in fiscal 2009 due to the global slowdown. The figure recovered to 187 thousand in the last fiscal and for the first two months of the current year, demand has been at 230 thousand tyres a month.
(commodityonline.com)
Rubber may continue trade down on weak technical
Posted: 14 Jul 2010 11:30 PM PDT
INTERNATIONAL
Crude is above the crucial resistance at $76.50 and likely to test $81 in the near term. Weak dollar has helped the natural rubber futures to trade higher on the opening note, but weak technical pulled down the prices towards 267.30.
The ongoing technical correction may extend to few more trading sessions on Tokyo futures markets. It has minor support at 267, 266 and 263.50. Minor recovery can be expected in the later part of the day.
DOMESTIC
On the domestic front the technical correction which has started yesterday may continue. The poor monsoon showers and lower enquiries from end users can dampen the sentiments. The August contract has support at 179.25 and 178.10.
Movements below 177.60 can cause further down trend and it can bring down the prices towards 176.14. Resistance for the August contract can be seen at 179.98 and 181.20. If it can open lower then one can expect side ways movement till noon. Value buying is expected at lower levels.
Analysis of Tokyo rubber market as on July 13
The market lost grounds three days in a row to finish at 260.1 yen with a loss of 5.4 yen as losses in the other commodities and plunging Shanghai rubber market spurred selling below 260 yen in the end.
Selling pressure from the last trading continued during the night session on lower other commodity prices and the day session opened at unchanged level, after which it slowly declined on falling oil prices.
When the Shanghai rubber market showed a drop after the opening, selling pressure gathered momentum and Tokyo market fell down to around 260 yen by loss cut selling. Although it hovered at around 261.0 yen on a quite tone for a while, falling Shanghai market subdued it just before the closing as low as 259.6 yen, the lowest price since December contract debuted.
The Shanghai rubber market plummeted by technical selling as RSI is showing “Dead Cross” as well as losses in stock and copper market, finishing down 820 yuan at 20,985 yuan.
Falling as low as 259.6 yen to break below 260.3 yen, the low price marked on 2nd of July, it can be said that the market is turning into lower side now. Gains in early July were reversed as a result but until it breaks below 250.9 yen, the lower side of the range, contrarian position is recommended.
(commodityonline.com)
Wednesday, July 14, 2010
Rubber Prices May Extend Drop on Vietnam-China Trade Resumption
Mixed trend in rubber
Aravindan
Kottayam, July 14
Spot rubber prices witnessed a mixed mood on Wednesday. A difference of around Rs 30 with the Bangkok spot market put the prices under pressure during the day. But sheet rubber managed to close unchanged at Rs 185 a kg as there were no quantity sellers on the grade while RSS 5 and ungraded rubber slipped amidst scattered transactions.
Futures firm
Rubber futures were firm on the National Multi Commodity Exchange. Highly traded August series witnessed a high of Rs 18,075 and a low of Rs 17,826 a quintal. The total volume was 5730 lots and turnover 102.58 crores. The total open interest was 5273. The July series improved to Rs 192.70 (189.05), August to Rs 180.70 (179.18) and September to Rs 171.78 (171.17) while the October series finished flat at Rs 166.51 (166.51) a kg for RSS 4. RSS 3 weakened at its July futures to ¥343\Rs 181.03 (¥344.4), August to ¥296.8 (¥302.7), September to ¥284.8 (¥290.8), and October to ¥270.2 (¥274.4) while the November futures improved to ¥265.7 (¥263.6) and December to ¥264.2 (¥260.1) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) declined sharply to Rs 155.27 (159.37) a kg at Bangkok.Spot rates were (Rs/kg): RSS-4: 185 (185); RSS-5: 179.50 (180); ungraded: 174.50 (175); ISNR 20: 162 (162) and latex 60%: 128 (128).
Rubber Prices May Extend Drop on Vietnam-China Trade Resumption
Posted: 14 Jul 2010 12:34 AM PDT
By Bloomberg News
July 14 (Bloomberg) -- Natural rubber futures in Tokyo and Shanghai may extend recent declines if Vietnam, the fifth- biggest producer, resumes full border trade with China after it was halted last month to combat smuggling, analysts said.
Anti-smuggling efforts by the Chinese and Vietnamese governments have cut off supplies for several weeks, Li Shiqiang, general manager at Sri Trang (Shanghai) Ltd., a unit of Thailand’s largest publicly traded rubber exporter, said in a phone interview.
“For the past few months, the border gates to China have been sometimes open, sometimes closed. Prices were unstable, causing a lot of difficulty for Vietnam’s rubber companies,” Dinh Thi Thanh Tam, deputy director at Hoa Thuan Co., a natural rubber producer and exporter, said from Ho Chi Minh City.
A rise in supply from Vietnam may increase pressure on prices amid concern that demand is weakening as auto sales in China slow and uncertainty lingers about the strength of the global economic recovery, Guo Cheng, analyst at Yongan Futures Co., said by phone from Beijing.
Tokyo rubber tumbled to the lowest in more than a month yesterday, dropping 2 percent to 260.1 yen a kilogram ($2,923 a metric ton) on concern that demand may be slowing as supplies increase from Thailand, the world’s biggest producer. The most- active contract in Shanghai declined 2 percent to 20,985 yuan ($3,099) a ton.
December-delivery rubber climbed 1.7 percent to 264.5 yen a kilo at 9:58 a.m. in Tokyo. The price more than doubled last year as China’s auto sales surged to 13.6 million, supplanting the U.S. as the biggest vehicle market.
Border Gates
“We have heard that some tire makers have secured some natural rubber shipments from Vietnam lately, a sign that supply is to resume from that country,” Guo said. Vietnam exports about half a million tons of natural rubber a year, almost all of it to China, he said.
Chinese businesses typically prefer border trade over official trade because it has a lower import tax and doesn’t require quality control certificates, said Tran Thi Thuy Hoa, Secretary-General of the Vietnam Rubber Association.
Rubber exports to China have the potential to expand this month as supplies from Vietnam increase and businesses in China “still have demand,” Ho Chi Minh City-based Hoa said in a phone interview. “The association has suggested rubber exporters improve quality so they can export via official trade, instead of border trade, and be less dependent on China’s policy,” she said, referring to border closures.
Car Sales
“The cheap price of Vietnam rubber and its proximity to China always make it popular among Chinese buyers, so a resumption of trade will definitely increase supply into China,” Yongan Futures’ Guo said yesterday.
The interrupted border trade has helped create a backwardation, where cash prices are more expensive than contracts for delivery in future months, typically indicating an immediate supply shortage, Li said.
Still, China’s passenger-car sales to dealerships grew at the slowest pace in 15 months in June as inflation reduced purchasing power and economic growth showed signs of cooling, pressuring rubber prices.
Sales of cars, sport-utility vehicles and multipurpose vehicles in the world’s largest auto market rose 19 percent from a year earlier to 1.04 million last month, the China Association of Automobile Manufacturers said on July 9. It was the smallest increase since March 2009.
“Slower growth in auto sales has affected the tire makers,” Li said. “The Chinese tire makers are not aggressive buyers these days; they are only buying raw materials hand-to- mouth because their end-product inventory is quite high.”
Damped Sentiment
China is not short of natural rubber at the moment as the country imported 120,000 metric tons in June, a gain of 33 percent from a year ago, the customs bureau said on July 10. Rubber inventories increased 3,429 tons to 19,411 tons, based on a survey of 10 warehouses, the Shanghai Futures Exchange said on July 9.
“Improved supply in southern Thailand amid an absence of orders from China also damped market sentiment,” said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co. An average of 300 tons a day of ribbed smoked sheets is bring traded in Thailand’s southern province markets this month, compared with about 100 tons a day last month, Chaiwat said.
Vietnam is the world’s fifth-biggest rubber producer, after Thailand, Indonesia, Malaysia and India. The country may produce 770,000 million tons this year, up from 723,700 tons last year, according to the Association of Natural Rubber Producing Countries in its June newsletter.
(bloomberg.com)
Rubber Recovers From One-Month Low as Equities Rally, Yen Drops
Posted: 14 Jul 2010 12:33 AM PDT
By Aya Takada
July 14 (Bloomberg) -- Rubber recovered from a one-month low as a rally in global stocks boosted investor confidence in the economic recovery and a weaker Japanese currency raised the appeal of yen-based contracts.
Futures in Tokyo gained as much as 2.9 percent after reaching the lowest level since June 9. The price advanced for the first time in four days.
Asian stocks rose, pushing the region’s benchmark index to a three-week high, after Intel Corp. reported record second- quarter sales and Singapore raised its 2010 economic growth forecast. The yen declined against the dollar on signs of growth in U.S. companies.
“Market sentiment improved as stocks rallied on good corporate earnings,” boosting investor appetite for riskier assets, Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone.
December-delivery rubber gained as much as 7.5 yen to 267.6 yen per kilogram ($3,009 a metric ton) before trading at 263.3 yen on the Tokyo Commodity Exchange at 12:04 p.m.
The MSCI Asia-Pacific Index gained 1.5 percent to 117.81 as of 11:14 a.m. in Tokyo, reaching the highest level since June 22. Singapore said its economy will grow between 13 percent and 15 percent this year, adding to confidence in the economic recovery after Greece sold bonds at a rate below what the country pays for European aid.
Gains Limited
Gains in rubber futures were limited amid concern that demand in China, the world’s largest consumer, may weaken after car sales growth slowed, Sugata said.
November-delivery rubber on the Shanghai Futures Exchange fell as much as 1 percent to 20,985 yuan ($3,098) a ton before trading at 21,290 yuan at 11:08 a.m. local time.
The price may extend declines if Vietnam, the fifth-biggest producer, resumes full border trade with China after a halt last month to combat smuggling, analysts said.
Anti-smuggling efforts by the Chinese and Vietnamese governments have cut off supplies for several weeks, Li Shiqiang, general manager at Sri Trang (Shanghai) Ltd., a unit of Thailand’s largest publicly traded rubber exporter, said in a phone interview.
“For the past few months, the border gates to China have been sometimes open, sometimes closed. Prices were unstable, causing a lot of difficulty for Vietnam’s rubber companies,” Dinh Thi Thanh Tam, deputy director at Hoa Thuan Co., a natural rubber producer and exporter, said from Ho Chi Minh City.
Sales of cars, sport-utility vehicles and multipurpose vehicles in China, the largest auto market, grew 19 percent from a year earlier to 1.04 million last month, the China Association of Automobile Manufacturers said July 9. It was the slowest pace since March 2009 as dealers’ inventories increased.
(bloomberg.com)
Asian Stocks, Currencies Climb on Intel Sales, Singapore Growth
Posted: 14 Jul 2010 12:32 AM PDT
By Lisa Pham and Frances Yoon
July 14 (Bloomberg) -- Asian stocks rose to a three-week high, and emerging-market currencies climbed after Intel Corp. reported record second-quarter sales and Singapore raised its 2010 economic growth forecast.
The MSCI Asia-Pacific Index gained 1.3 percent to 117.50 as of 4 p.m. in Tokyo, reaching the highest level since June 22. The Stoxx Europe 600 advanced 0.2 percent to 256.60. Futures for the Standard & Poor’s 500 Index increased 0.6 percent. The Korean won strengthened 0.8 percent to 1,202.33 per dollar, snapping a two-day drop. Rubber futures in Tokyo climbed as much as 2.9 percent on speculation that demand may increase.
Singapore said its economy will grow between 13 percent and 15 percent this year, adding to optimism in the world’s recovery after Greece sold bonds at a rate below what the country pays for European aid. Intel, the world’s biggest chipmaker, said third-quarter sales will be $11.6 billion, exceeding analyst estimates of $10.9 billion in a Bloomberg survey.
“The positive outlook for earnings is easing investors’ perception of risk,” said Tomomi Yamashita, a fund manager in Tokyo at Shinkin Asset Management Co., which oversees about $6 billion. “Economic growth needs to become sustainable. We are looking for strong economic data from the U.S.”
Advancing stocks beat decliners by 8 to 1 in the MSCI Asia Pacific Index and a gauge of technology stocks rallied 2.2 percent, the most among 10 industry groups. Japan’s Nikkei 225 Stock Average surged 2.7 percent, the biggest gainer among major indexes. South Korea’s Kospi jumped 1.3 percent.
Komatsu Forecast
Komatsu Ltd., the world’s second-largest maker of construction equipment, rallied 5.4 percent after raising its first-half net income forecast by 41 percent to 52 billion yen on rising demand from Asia and Latin America.
Samsung Electronics Co., Asia’s biggest semiconductor maker, and Hynix Semiconductor Inc. both gained more than 3.4 percent. Advantest Corp., the world’s largest maker of chip-testing equipment, leapt 5.7 percent. Intel shares climbed 7 percent in extended trading after the New York close yesterday.
“It’s hugely significant that Intel, which represents high-tech companies, should report stronger than estimated results,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc.
Profits for S&P 500 companies probably increased 34 percent in the April-June period, according to analysts’ estimates compiled by Bloomberg. Sales at U.S. retailers fell 0.3 percent in June following a 1.2 percent drop in May, according to the median estimate of 75 economists.
BHP, Rio
Commodity companies rose after the London Metal Exchange Index of six metals gained 1.1 percent yesterday, while crude oil futures jumped 2.9 percent. BHP Billiton Ltd., the world’s largest mining company and Australia’s largest oil producer, increased 2.1 percent in Sydney, while Rio Tinto Group, the world’s third-biggest mining company advanced 1.3 percent.
Oil fell from a two-week high in New York, dropping 0.1 percent to $77.07 a barrel, as investors sold contracts to lock in gains after an industry report showed U.S. crude inventories gained. Oil surged 7.2 percent from July 6 through yesterday on signs the global economic expansion will spur fuel demand following reports of second-quarter profits at U.S. companies. U.S. crude, distillate and gasoline stockpiles gained last week, the American Petroleum Institute said yesterday. The Energy Department will release its inventory report today.
“The market has gone up the past few days. It may be overbought so some short-term profit taking has come into the market and that will cap prices,” said Tetsu Emori, a commodity fund manager at Astmax Ltd. “If the DOE numbers follow the API, that will be a very bearish factor.”
Bond Risk
The cost of protecting Asia bonds from default fell to the lowest level in more than three weeks, according to traders of credit-default swaps. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan dropped 2 basis points to 122.5 basis points, according to ICAP Plc. That’s the lowest since June 21, according to CMA.
The yen weakened 0.1 percent to 112.99 per euro and the euro was little changed near a two-month high at $1.2701. The pound rallied to $1.5243, the highest since May 4, before trading at $1.5191. The Greek government sold 1.625 billion euros ($2.05 billion) of 26-week Treasury bills at a yield of 4.65 percent.
Bonds fell with the yield on Australian 10-year debt climbing five basis points to 5.16 percent and that on Indian notes rising two basis points to 7.64 percent. Treasury yields were at 3.12 percent, the highest level in two weeks before an auction of $13 billion of 30-year bonds today, the last of three sales this week totaling $69 billion.
“Robust profit reports reinforce risk sentiment, which was battered recently by concerns for a global recovery,” said Masahide Tanaka, a senior strategist in Tokyo at Mizuho Trust & Banking Co., a unit of Japan’s second-largest bank. “Revived risk sentiment will trigger a shift of allocation back into higher-yielding assets away from safer assets such as the yen.”
(bloomberg.com)
Summer Rubber: Testing performance tires from Hankook and Kumho
Posted: 14 Jul 2010 12:31 AM PDT
With summer in full swing, you've probably already been to an autocross or an open track day this year. And you're either glad you picked up that new set of tires--or really bummed that you didn't. As any performance driver will tell you, tires are the single most important factor in determining how well or how poorly a car performs.
So if you're a racer who attempted to squeeze another season out of some tired rubber with disappointing results, you can still spring for new tires now and salvage the second half of the year.
Over the past few months, we were invited to sample some performance tire offerings from Hankook and Kumho and came away contemplating making one of them the next tire we put on our own weekend racer.
Hankook Ventus V12 evo
Hankook has been making plenty of headway in the tire industry winning OE supplier contracts with the likes of Ford, GM, Hyundai, Kia, Volkswagen and Chrysler, but it's also been active in the performance and motorsports arenas. In the past, it's participated in the American Le Mans Series and continues to support drifting with its Ventus family of tires.
We tested the Hankook Ventus V12 evo against the Bridgestone Potenza RE760 Sport on a dry autocross course with a lane change section, slalom, 180-degree turn and fast sweeping right- and left-handers on identical Mustang GTs. Through all the exercises, the Hankooks were more predictable, responded faster to steering inputs and offered more grip through the fast portions of the course. The Bridgestones still offered respectable performance, but compared to the Hankooks, they understeered more and weren't as quick to change direction.
Hankook's explanation for its superior performance comes down to a number of things. Engineers first credited the V12 evo's 3D tread block edges and continuous center rib which provides optimal ground contact pressure to improve response and brake performance. Much credit also went to the evo's construction, which utilizes twin steel belts reinforced with two-ply nylon and a lower side wall made from hard rubber with steel reinforcement (Bridgestone only uses hard rubber for its lower side wall).
We didn't get a chance to test the V12 evo's wet weather performance, but Hankook says the tread's wide linear grooves and Y-shaped pattern make it efficiently channel water away from the tire for good wet weather performance.
On top of all that, Hankook representatives say that the Ventus V12 evo retails on average between 15 to 20 percent cheaper than the Bridgestone, which makes it a mighty enticing tire for both its performance and value.
Kumho Ecsta XS
Another high-performance Korean tire that we strongly suggest checking out is Kumho's Ecsta XS, which launched last fall to replace the aging Ecsta MX. Changes to the XS include an asymmetric tread design, flatter center tread design for a maximum footprint and an ultra fine carbon black tread compound for improved traction and better heat management. Additional features include a solid center tread rib for better steering response and rim protector bars on all size tires.
We spent a day wringing out the XS at Mid-Ohio Sports Car Course on an autocross and hot lapping the 2.4-mile road course. We also got the chance to sample the older MX to compare the new against the old. On the autocross, we drove Acura TSXs and Honda S2000s and could easily pick up the differences. The XS offered much more grip in the corners with better response at turn-in. After only a few loops around the course, we were pushing it really hard. The XS did not disappoint and were noticeably quieter giving off less tire squeal when pushed to the limit compared to the MX. In the S2000, we ended up being 0.8-seconds faster around the short autocross on the XS than on the MX.
For the hot laps, we really put the improved heat management of the tread compound to the test. In addition to the heavy flogging, the tires had to deal with hot outside temps. After roughly 10 laps of the road course, the tires showed no signs of going away and stayed consistently good the entire time. The stellar performance allowed us to build a good amount of confidence behind the wheel at a track we had never been on prior and do surprisingly well.
One of the tires Kumho cited as a main competitor is the Falken Azenis RT-615, which happen to be the tires on this writer's personal 1994 Mazda RX-7. We were so impressed with the Ecsta XS that they probably will be replacing our Falkens soon. Count us as a conquest sale.
(autoweek.com)
Natural Rubber Output Soars By 19.7 Per Cent In May
Posted: 14 Jul 2010 12:24 AM PDT
KUALA LUMPUR, July 14 (Bernama) -- Malaysia's natural rubber output rose to 65,254 tonnes in May this year, an increase of 19.7 per cent or 10,724 tonnes from the previous month's production.
Year-on-year, the production increased 9.2 per cent or by 5,521 tonnes, while exports increased 35.6 per cent for the month, the Department of Statistics said.
However, the export of natural rubber in May this year decreased by 6.2 per cent to 64,232 tonnes when compared with exports in the month of April.
The level of stocks also decreased by 17,782 tonnes to 120,731 tonnes in May when compared with the previous month, but year-on-year the stocks rose by 13.9 per cent.
Imports in May meanwhile was down by 15.7 per cent when compared with the corresponding period of last year. The imports were however marginally up by 0.8 per cent at 49,734 tonnes when compared with imports in April this year.
(bernama.com)
Slower Growth in NR Supply
Posted: 14 Jul 2010 12:23 AM PDT
By Anant Thawatchaipracha
12 July 2010 – The ANRPC lowered its forecast of growth for global supply of natural rubber for 2010 to 5.2% from the 6.1% rate anticipated in May, according to its June monthly bulletin released recently.
The ANRPC had earlier in March anticipated a 6.3% rate of growth and had even then cautioned it to be an optimistic rate and pointed out a host of constraints in its achievement.
Two of the major constraints, it said, were that existing yielding rubber trees in major producing countries were largely planted during 1980’s and they have now reached senile stage having low yield. Secondly, the anticipated rate assumed a favourable climate during the whole year.
It further said that the revised 5.2% rate is subject to further downward revisions in view of constraints related to farmers delaying replanting because of the high rubber prices, the age-structure of rubber threes causing lower yield outputs, effect of unusual rains on Indonesia’s output in June, effect of an extended wintering on Thailand’s production and a revised lower forecast for India’s output.
(irco.biz)
Aravindan
Kottayam, July 14
Spot rubber prices witnessed a mixed mood on Wednesday. A difference of around Rs 30 with the Bangkok spot market put the prices under pressure during the day. But sheet rubber managed to close unchanged at Rs 185 a kg as there were no quantity sellers on the grade while RSS 5 and ungraded rubber slipped amidst scattered transactions.
Futures firm
Rubber futures were firm on the National Multi Commodity Exchange. Highly traded August series witnessed a high of Rs 18,075 and a low of Rs 17,826 a quintal. The total volume was 5730 lots and turnover 102.58 crores. The total open interest was 5273. The July series improved to Rs 192.70 (189.05), August to Rs 180.70 (179.18) and September to Rs 171.78 (171.17) while the October series finished flat at Rs 166.51 (166.51) a kg for RSS 4. RSS 3 weakened at its July futures to ¥343\Rs 181.03 (¥344.4), August to ¥296.8 (¥302.7), September to ¥284.8 (¥290.8), and October to ¥270.2 (¥274.4) while the November futures improved to ¥265.7 (¥263.6) and December to ¥264.2 (¥260.1) a kg during the day session on the Tokyo Commodity Exchange. RSS 3 (spot) declined sharply to Rs 155.27 (159.37) a kg at Bangkok.Spot rates were (Rs/kg): RSS-4: 185 (185); RSS-5: 179.50 (180); ungraded: 174.50 (175); ISNR 20: 162 (162) and latex 60%: 128 (128).
Rubber Prices May Extend Drop on Vietnam-China Trade Resumption
Posted: 14 Jul 2010 12:34 AM PDT
By Bloomberg News
July 14 (Bloomberg) -- Natural rubber futures in Tokyo and Shanghai may extend recent declines if Vietnam, the fifth- biggest producer, resumes full border trade with China after it was halted last month to combat smuggling, analysts said.
Anti-smuggling efforts by the Chinese and Vietnamese governments have cut off supplies for several weeks, Li Shiqiang, general manager at Sri Trang (Shanghai) Ltd., a unit of Thailand’s largest publicly traded rubber exporter, said in a phone interview.
“For the past few months, the border gates to China have been sometimes open, sometimes closed. Prices were unstable, causing a lot of difficulty for Vietnam’s rubber companies,” Dinh Thi Thanh Tam, deputy director at Hoa Thuan Co., a natural rubber producer and exporter, said from Ho Chi Minh City.
A rise in supply from Vietnam may increase pressure on prices amid concern that demand is weakening as auto sales in China slow and uncertainty lingers about the strength of the global economic recovery, Guo Cheng, analyst at Yongan Futures Co., said by phone from Beijing.
Tokyo rubber tumbled to the lowest in more than a month yesterday, dropping 2 percent to 260.1 yen a kilogram ($2,923 a metric ton) on concern that demand may be slowing as supplies increase from Thailand, the world’s biggest producer. The most- active contract in Shanghai declined 2 percent to 20,985 yuan ($3,099) a ton.
December-delivery rubber climbed 1.7 percent to 264.5 yen a kilo at 9:58 a.m. in Tokyo. The price more than doubled last year as China’s auto sales surged to 13.6 million, supplanting the U.S. as the biggest vehicle market.
Border Gates
“We have heard that some tire makers have secured some natural rubber shipments from Vietnam lately, a sign that supply is to resume from that country,” Guo said. Vietnam exports about half a million tons of natural rubber a year, almost all of it to China, he said.
Chinese businesses typically prefer border trade over official trade because it has a lower import tax and doesn’t require quality control certificates, said Tran Thi Thuy Hoa, Secretary-General of the Vietnam Rubber Association.
Rubber exports to China have the potential to expand this month as supplies from Vietnam increase and businesses in China “still have demand,” Ho Chi Minh City-based Hoa said in a phone interview. “The association has suggested rubber exporters improve quality so they can export via official trade, instead of border trade, and be less dependent on China’s policy,” she said, referring to border closures.
Car Sales
“The cheap price of Vietnam rubber and its proximity to China always make it popular among Chinese buyers, so a resumption of trade will definitely increase supply into China,” Yongan Futures’ Guo said yesterday.
The interrupted border trade has helped create a backwardation, where cash prices are more expensive than contracts for delivery in future months, typically indicating an immediate supply shortage, Li said.
Still, China’s passenger-car sales to dealerships grew at the slowest pace in 15 months in June as inflation reduced purchasing power and economic growth showed signs of cooling, pressuring rubber prices.
Sales of cars, sport-utility vehicles and multipurpose vehicles in the world’s largest auto market rose 19 percent from a year earlier to 1.04 million last month, the China Association of Automobile Manufacturers said on July 9. It was the smallest increase since March 2009.
“Slower growth in auto sales has affected the tire makers,” Li said. “The Chinese tire makers are not aggressive buyers these days; they are only buying raw materials hand-to- mouth because their end-product inventory is quite high.”
Damped Sentiment
China is not short of natural rubber at the moment as the country imported 120,000 metric tons in June, a gain of 33 percent from a year ago, the customs bureau said on July 10. Rubber inventories increased 3,429 tons to 19,411 tons, based on a survey of 10 warehouses, the Shanghai Futures Exchange said on July 9.
“Improved supply in southern Thailand amid an absence of orders from China also damped market sentiment,” said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co. An average of 300 tons a day of ribbed smoked sheets is bring traded in Thailand’s southern province markets this month, compared with about 100 tons a day last month, Chaiwat said.
Vietnam is the world’s fifth-biggest rubber producer, after Thailand, Indonesia, Malaysia and India. The country may produce 770,000 million tons this year, up from 723,700 tons last year, according to the Association of Natural Rubber Producing Countries in its June newsletter.
(bloomberg.com)
Rubber Recovers From One-Month Low as Equities Rally, Yen Drops
Posted: 14 Jul 2010 12:33 AM PDT
By Aya Takada
July 14 (Bloomberg) -- Rubber recovered from a one-month low as a rally in global stocks boosted investor confidence in the economic recovery and a weaker Japanese currency raised the appeal of yen-based contracts.
Futures in Tokyo gained as much as 2.9 percent after reaching the lowest level since June 9. The price advanced for the first time in four days.
Asian stocks rose, pushing the region’s benchmark index to a three-week high, after Intel Corp. reported record second- quarter sales and Singapore raised its 2010 economic growth forecast. The yen declined against the dollar on signs of growth in U.S. companies.
“Market sentiment improved as stocks rallied on good corporate earnings,” boosting investor appetite for riskier assets, Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone.
December-delivery rubber gained as much as 7.5 yen to 267.6 yen per kilogram ($3,009 a metric ton) before trading at 263.3 yen on the Tokyo Commodity Exchange at 12:04 p.m.
The MSCI Asia-Pacific Index gained 1.5 percent to 117.81 as of 11:14 a.m. in Tokyo, reaching the highest level since June 22. Singapore said its economy will grow between 13 percent and 15 percent this year, adding to confidence in the economic recovery after Greece sold bonds at a rate below what the country pays for European aid.
Gains Limited
Gains in rubber futures were limited amid concern that demand in China, the world’s largest consumer, may weaken after car sales growth slowed, Sugata said.
November-delivery rubber on the Shanghai Futures Exchange fell as much as 1 percent to 20,985 yuan ($3,098) a ton before trading at 21,290 yuan at 11:08 a.m. local time.
The price may extend declines if Vietnam, the fifth-biggest producer, resumes full border trade with China after a halt last month to combat smuggling, analysts said.
Anti-smuggling efforts by the Chinese and Vietnamese governments have cut off supplies for several weeks, Li Shiqiang, general manager at Sri Trang (Shanghai) Ltd., a unit of Thailand’s largest publicly traded rubber exporter, said in a phone interview.
“For the past few months, the border gates to China have been sometimes open, sometimes closed. Prices were unstable, causing a lot of difficulty for Vietnam’s rubber companies,” Dinh Thi Thanh Tam, deputy director at Hoa Thuan Co., a natural rubber producer and exporter, said from Ho Chi Minh City.
Sales of cars, sport-utility vehicles and multipurpose vehicles in China, the largest auto market, grew 19 percent from a year earlier to 1.04 million last month, the China Association of Automobile Manufacturers said July 9. It was the slowest pace since March 2009 as dealers’ inventories increased.
(bloomberg.com)
Asian Stocks, Currencies Climb on Intel Sales, Singapore Growth
Posted: 14 Jul 2010 12:32 AM PDT
By Lisa Pham and Frances Yoon
July 14 (Bloomberg) -- Asian stocks rose to a three-week high, and emerging-market currencies climbed after Intel Corp. reported record second-quarter sales and Singapore raised its 2010 economic growth forecast.
The MSCI Asia-Pacific Index gained 1.3 percent to 117.50 as of 4 p.m. in Tokyo, reaching the highest level since June 22. The Stoxx Europe 600 advanced 0.2 percent to 256.60. Futures for the Standard & Poor’s 500 Index increased 0.6 percent. The Korean won strengthened 0.8 percent to 1,202.33 per dollar, snapping a two-day drop. Rubber futures in Tokyo climbed as much as 2.9 percent on speculation that demand may increase.
Singapore said its economy will grow between 13 percent and 15 percent this year, adding to optimism in the world’s recovery after Greece sold bonds at a rate below what the country pays for European aid. Intel, the world’s biggest chipmaker, said third-quarter sales will be $11.6 billion, exceeding analyst estimates of $10.9 billion in a Bloomberg survey.
“The positive outlook for earnings is easing investors’ perception of risk,” said Tomomi Yamashita, a fund manager in Tokyo at Shinkin Asset Management Co., which oversees about $6 billion. “Economic growth needs to become sustainable. We are looking for strong economic data from the U.S.”
Advancing stocks beat decliners by 8 to 1 in the MSCI Asia Pacific Index and a gauge of technology stocks rallied 2.2 percent, the most among 10 industry groups. Japan’s Nikkei 225 Stock Average surged 2.7 percent, the biggest gainer among major indexes. South Korea’s Kospi jumped 1.3 percent.
Komatsu Forecast
Komatsu Ltd., the world’s second-largest maker of construction equipment, rallied 5.4 percent after raising its first-half net income forecast by 41 percent to 52 billion yen on rising demand from Asia and Latin America.
Samsung Electronics Co., Asia’s biggest semiconductor maker, and Hynix Semiconductor Inc. both gained more than 3.4 percent. Advantest Corp., the world’s largest maker of chip-testing equipment, leapt 5.7 percent. Intel shares climbed 7 percent in extended trading after the New York close yesterday.
“It’s hugely significant that Intel, which represents high-tech companies, should report stronger than estimated results,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc.
Profits for S&P 500 companies probably increased 34 percent in the April-June period, according to analysts’ estimates compiled by Bloomberg. Sales at U.S. retailers fell 0.3 percent in June following a 1.2 percent drop in May, according to the median estimate of 75 economists.
BHP, Rio
Commodity companies rose after the London Metal Exchange Index of six metals gained 1.1 percent yesterday, while crude oil futures jumped 2.9 percent. BHP Billiton Ltd., the world’s largest mining company and Australia’s largest oil producer, increased 2.1 percent in Sydney, while Rio Tinto Group, the world’s third-biggest mining company advanced 1.3 percent.
Oil fell from a two-week high in New York, dropping 0.1 percent to $77.07 a barrel, as investors sold contracts to lock in gains after an industry report showed U.S. crude inventories gained. Oil surged 7.2 percent from July 6 through yesterday on signs the global economic expansion will spur fuel demand following reports of second-quarter profits at U.S. companies. U.S. crude, distillate and gasoline stockpiles gained last week, the American Petroleum Institute said yesterday. The Energy Department will release its inventory report today.
“The market has gone up the past few days. It may be overbought so some short-term profit taking has come into the market and that will cap prices,” said Tetsu Emori, a commodity fund manager at Astmax Ltd. “If the DOE numbers follow the API, that will be a very bearish factor.”
Bond Risk
The cost of protecting Asia bonds from default fell to the lowest level in more than three weeks, according to traders of credit-default swaps. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan dropped 2 basis points to 122.5 basis points, according to ICAP Plc. That’s the lowest since June 21, according to CMA.
The yen weakened 0.1 percent to 112.99 per euro and the euro was little changed near a two-month high at $1.2701. The pound rallied to $1.5243, the highest since May 4, before trading at $1.5191. The Greek government sold 1.625 billion euros ($2.05 billion) of 26-week Treasury bills at a yield of 4.65 percent.
Bonds fell with the yield on Australian 10-year debt climbing five basis points to 5.16 percent and that on Indian notes rising two basis points to 7.64 percent. Treasury yields were at 3.12 percent, the highest level in two weeks before an auction of $13 billion of 30-year bonds today, the last of three sales this week totaling $69 billion.
“Robust profit reports reinforce risk sentiment, which was battered recently by concerns for a global recovery,” said Masahide Tanaka, a senior strategist in Tokyo at Mizuho Trust & Banking Co., a unit of Japan’s second-largest bank. “Revived risk sentiment will trigger a shift of allocation back into higher-yielding assets away from safer assets such as the yen.”
(bloomberg.com)
Summer Rubber: Testing performance tires from Hankook and Kumho
Posted: 14 Jul 2010 12:31 AM PDT
With summer in full swing, you've probably already been to an autocross or an open track day this year. And you're either glad you picked up that new set of tires--or really bummed that you didn't. As any performance driver will tell you, tires are the single most important factor in determining how well or how poorly a car performs.
So if you're a racer who attempted to squeeze another season out of some tired rubber with disappointing results, you can still spring for new tires now and salvage the second half of the year.
Over the past few months, we were invited to sample some performance tire offerings from Hankook and Kumho and came away contemplating making one of them the next tire we put on our own weekend racer.
Hankook Ventus V12 evo
Hankook has been making plenty of headway in the tire industry winning OE supplier contracts with the likes of Ford, GM, Hyundai, Kia, Volkswagen and Chrysler, but it's also been active in the performance and motorsports arenas. In the past, it's participated in the American Le Mans Series and continues to support drifting with its Ventus family of tires.
We tested the Hankook Ventus V12 evo against the Bridgestone Potenza RE760 Sport on a dry autocross course with a lane change section, slalom, 180-degree turn and fast sweeping right- and left-handers on identical Mustang GTs. Through all the exercises, the Hankooks were more predictable, responded faster to steering inputs and offered more grip through the fast portions of the course. The Bridgestones still offered respectable performance, but compared to the Hankooks, they understeered more and weren't as quick to change direction.
Hankook's explanation for its superior performance comes down to a number of things. Engineers first credited the V12 evo's 3D tread block edges and continuous center rib which provides optimal ground contact pressure to improve response and brake performance. Much credit also went to the evo's construction, which utilizes twin steel belts reinforced with two-ply nylon and a lower side wall made from hard rubber with steel reinforcement (Bridgestone only uses hard rubber for its lower side wall).
We didn't get a chance to test the V12 evo's wet weather performance, but Hankook says the tread's wide linear grooves and Y-shaped pattern make it efficiently channel water away from the tire for good wet weather performance.
On top of all that, Hankook representatives say that the Ventus V12 evo retails on average between 15 to 20 percent cheaper than the Bridgestone, which makes it a mighty enticing tire for both its performance and value.
Kumho Ecsta XS
Another high-performance Korean tire that we strongly suggest checking out is Kumho's Ecsta XS, which launched last fall to replace the aging Ecsta MX. Changes to the XS include an asymmetric tread design, flatter center tread design for a maximum footprint and an ultra fine carbon black tread compound for improved traction and better heat management. Additional features include a solid center tread rib for better steering response and rim protector bars on all size tires.
We spent a day wringing out the XS at Mid-Ohio Sports Car Course on an autocross and hot lapping the 2.4-mile road course. We also got the chance to sample the older MX to compare the new against the old. On the autocross, we drove Acura TSXs and Honda S2000s and could easily pick up the differences. The XS offered much more grip in the corners with better response at turn-in. After only a few loops around the course, we were pushing it really hard. The XS did not disappoint and were noticeably quieter giving off less tire squeal when pushed to the limit compared to the MX. In the S2000, we ended up being 0.8-seconds faster around the short autocross on the XS than on the MX.
For the hot laps, we really put the improved heat management of the tread compound to the test. In addition to the heavy flogging, the tires had to deal with hot outside temps. After roughly 10 laps of the road course, the tires showed no signs of going away and stayed consistently good the entire time. The stellar performance allowed us to build a good amount of confidence behind the wheel at a track we had never been on prior and do surprisingly well.
One of the tires Kumho cited as a main competitor is the Falken Azenis RT-615, which happen to be the tires on this writer's personal 1994 Mazda RX-7. We were so impressed with the Ecsta XS that they probably will be replacing our Falkens soon. Count us as a conquest sale.
(autoweek.com)
Natural Rubber Output Soars By 19.7 Per Cent In May
Posted: 14 Jul 2010 12:24 AM PDT
KUALA LUMPUR, July 14 (Bernama) -- Malaysia's natural rubber output rose to 65,254 tonnes in May this year, an increase of 19.7 per cent or 10,724 tonnes from the previous month's production.
Year-on-year, the production increased 9.2 per cent or by 5,521 tonnes, while exports increased 35.6 per cent for the month, the Department of Statistics said.
However, the export of natural rubber in May this year decreased by 6.2 per cent to 64,232 tonnes when compared with exports in the month of April.
The level of stocks also decreased by 17,782 tonnes to 120,731 tonnes in May when compared with the previous month, but year-on-year the stocks rose by 13.9 per cent.
Imports in May meanwhile was down by 15.7 per cent when compared with the corresponding period of last year. The imports were however marginally up by 0.8 per cent at 49,734 tonnes when compared with imports in April this year.
(bernama.com)
Slower Growth in NR Supply
Posted: 14 Jul 2010 12:23 AM PDT
By Anant Thawatchaipracha
12 July 2010 – The ANRPC lowered its forecast of growth for global supply of natural rubber for 2010 to 5.2% from the 6.1% rate anticipated in May, according to its June monthly bulletin released recently.
The ANRPC had earlier in March anticipated a 6.3% rate of growth and had even then cautioned it to be an optimistic rate and pointed out a host of constraints in its achievement.
Two of the major constraints, it said, were that existing yielding rubber trees in major producing countries were largely planted during 1980’s and they have now reached senile stage having low yield. Secondly, the anticipated rate assumed a favourable climate during the whole year.
It further said that the revised 5.2% rate is subject to further downward revisions in view of constraints related to farmers delaying replanting because of the high rubber prices, the age-structure of rubber threes causing lower yield outputs, effect of unusual rains on Indonesia’s output in June, effect of an extended wintering on Thailand’s production and a revised lower forecast for India’s output.
(irco.biz)
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