"No cause for any anxiety on rubber prices"
Mumbai, Aug 30
As the import duty on rubber continues to be 20 per cent and there is moderate increase in international rubber prices, growers need not be anxious, said Mr Sajen Peter, Chairman, Rubber Board, in a press release.
If calculated on the basis of international price on Monday (Rs 160.96), a kg of rubber could be imported only at Rs 186including import duty, handling charges and other taxes.
SPURT
Production has comedown slightly at the global level and the increase in Chinese procurement are the reasons for the spurt in the international price now, he informed.
Unfortunately, baseless and conflicting reports and propaganda are circulating.
The Government has already accepted the recommendations of the expert committee that the import duty should not be reduced from 20 per cent and as long as domestic price rules more than the international price, maximum duty should be fixed at Rs 20.46.
Therefore, there is no cause for any anxiety in the matter, he exhorted the growers.
Rubber Board allays concerns
‘No change in import duty'
Duty to remain at 20 per cent: Sajen Peter
Expert panel recommendations accepted
KOTTAYAM: Rubber Board chairman Sajen Peter has assured growers that there is no need for apprehension on the possibility of import of natural rubber (NR) under present circumstances.
In a press note here on Monday, Mr. Peter said the government had not made any change in import duty. It was unfortunate that baseless and contradictory reports were emanating from various quarters.
The government had approved and implemented the recommendations of the expert committee in this regard. As per the recommendations of the committee, import duty would remain at 20 per cent.
However, in the face of the spurt in rubber prices in the international market it had been capped at Rs.20.46.
Mr. Peter said that on Monday, NR prices in the international market ruled at Rs.160.96 a kg.
“This means, importers will have to pay at least Rs.186 a kg, under the present duty regime.”
Mr. Peter pointed out that a marginal fall in global NR production and the entry of China into the international market to buy NR resulted in the current spurt in prices.
The Rubber Board chairman called upon stakeholders to desist from creating confusion over import duty as it may harm the interests of the growers in the long run.
Mixed trend in rubber
Kottayam, Aug 30
Rubber prices were mixed on Monday.
The market continued to suffer from short supply but the absence of buyers kept sheet rubber under pressure during the session.
According to dealers, the grade slipped to Rs 167 from Rs 168 a kg in the main marketing centres.
The Board's rate weakened to Rs 170 (171) a kg for RSS 4. Meanwhile, ungraded rubber and RSS 5 finished flat but latex 60 per cent improved further on supply concerns.
The volumes were dull.
RSS 4 weakened at the September series to Rs 168.17 (168.44), and October to Rs 164.28 (164.58) while the November series moved up to Rs 163.52 (163.45) and December to Rs 164.26 (164.00) a kg on the National Multi Commodity Exchange.
The volumes totalled 3460 lots and turnover Rs 58.05 crores.
The open interest in all series was 4,561 lots.
Futures gain
The September futures for RSS 3 increased marginally to ¥319.7/Rs 177.15 (¥319.6) a kg during the day session but declined to ¥313.5 (Rs 173.77) during the night session on the Tokyo Commodity Exchange. The grade (spot) improved to Rs 160.96 (158.08) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 167 (168); RSS-5: 162.50 (162.50); ungraded: 156 (156); ISNR 20: 150 (150) and latex 60 per cent: 114 (113).
LDF launches protest against rubber import duty cut
Central farm policies harmful, says Pinarayi
KOTTAYAM: The Left Democratic Front (LDF), on Monday, launched a protest against the Union government's decision to relax the import norms for natural rubber.
Inaugurating a dharna in front of the Rubber Board headquarters here on Monday, Communist Party of India-Marxist (CPI-M) State secretary Pinarayi Vijayan said the Centre's agricultural policies would strike a blow to the progressive initiatives being implemented by the LDF government in the State. The LDF had come to power at a time when farmers' suicides were the order of the day under the United Democratic Front rule. Farmers were a dejected lot and faced perpetual crises owing to the Centre's policies and the apathy of then ruling dispensation.
The LDF government's initiatives had made a major difference in the condition of the farming community. However, the new policies being introduced by the Centre would return the farm sector to the conditions that prevailed earlier.
The decision to slash the import duty on natural rubber from 20 per cent to 13 per cent effectively was one such move. Aimed at bringing down the growth registered in the sector, it would affect the lives of lakhs of small farmers, Mr. Vijayan said.
The decision not to include cashew and coir in the export promotion drive too was part of the ‘anti-farmer' and ‘anti-people' policies of the Centre, he said. Such policies would deeply affect the plantation sector which was the backbone of the State's economy, he said.
The regional trade agreements being entered into by the Union government were aimed at boosting the prospects of the corporate sector at the cost of the farm sector, Mr. Vijayan said. Kerala would be hit the worst from the provisions of such pacts.
Mr. Vijayan said even the Congress' coalition partners were finding it difficult to support the party in its ‘anti-farmer' policies.
Criticising the reported statement of Leader of the Opposition Oommen Chandy that the new policy on the import duty of natural rubber was being introduced on a court directive, Mr. Vijayan said Mr. Chandy was misleading the public and trying to protect the Centre. Pannian Ravindran of the Communist Party of India, C.K. Nanu of the Janata Dal-S, P.C. Thomas of the Kerala Congress-Thomas, among others, spoke. Earlier, activists of the LDF took out a march from Thirunakkara that culminated in the dharna.
Tuesday, August 31, 2010
Saturday, August 28, 2010
Rubber Gains to Four-Month High as Japan Car Sales Improve Demand Outlook
Rubber Gains to Four-Month High as Japan Car Sales Improve Demand Outlook
Posted: 27 Aug 2010 12:03 AM PDT
Rubber gained for a second day, climbing to the highest level since April 30, as expanding car sales in Japan raised speculation that demand for the commodity used to make tires may increase.
Futures climbed as much as 1.7 percent, heading for a second weekly increase, after the Nikkei newspaper reported that Japan’s new car sales from Aug. 1 to Aug. 23 surged by 73 percent from the same period last year to more than 149,000.
Sales increased as consumers sought to benefit from a government subsidy program for fuel-efficient cars, which is scheduled to finish at the end of September, said Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co. Demand for rubber and other raw materials used in cars may be sustained at least until the program expires, he said.
“Consumers are advancing car purchases to take advantage of the subsidy program, which appears to have had a positive impact on raw-material demand,” Saito said today by phone.
The February-delivery contract rose to as high as 298.9 yen per kilogram ($3,538 a metric ton) before trading at 298.8 yen on the Tokyo Commodity Exchange at 1:35 p.m.
Gains in futures were limited as Asian stocks declined, curbing investor appetite for riskier assets, Saito said. Equities and crude oil dropped amid speculation that the U.S. government will cut its estimate for second-quarter growth.
U.S. Outlook
A U.S. report today will show gross domestic product grew 1.4 percent in the second quarter, compared with the 2.4 percent the government estimated last month, according to the median forecast in a Bloomberg News survey of economists.
Bernanke will discuss the outlook for the economy and possible policy responses tomorrow at the central bank’s annual symposium in Jackson Hole, Wyoming.
Cash rubber prices in Thailand, the largest producer, climbed 0.8 percent to 105.6 baht ($3.36) per kilogram, the Rubber Research Institute of Thailand said yesterday. The gain was driven by demand from rubber processors and limited supply availability, it said.
Heavy rainfall is likely across Thailand until the end of August, according to the Thai Meteorological Department. Rain disrupts tapping rubber trees, leading to output declines.
January-delivery rubber on the Shanghai Futures Exchange dropped 0.3 percent to 25,435 yuan ($3,741) a ton at the 11:30 a.m. local-time trading break.
(bloomberg.com)
Growers, traders cool to duty cap on rubber imports
Panel's recommendations on levy termed ‘fair'.
Kochi, Aug. 27
The decision of the Union Commerce Ministry to impose a duty cap of Rs 20.46 a kg on rubber imports or a customs duty of 20 per cent, whichever is lower, has found all round acceptance among the rubber growers and traders. The decision was based on the report of a high-level panel constituted by the Government and headed by the Rubber Board Chairman, Mr Sajen Peter. Rubber prices have fallen from their recent peaks after the Commerce Ministry announced the non-advalorem duty cap on rubber imports.
We have tried to be impartial and fair in our recommendations to all segments of the rubber sector, be it the grower, trader or the consuming industry, sources in the Rubber Board said.
Without the industry the Indian rubber farmer would not survive and without the farmer the Indian rubber industry would not survive. We have tried to ensure the survival and growth of all stakeholders, they added.
Fair decision
Terming the decision fair, a source in Harrisons Malayalam, the largest rubber plantations group in the country, said that the cap would start working only if domestic prices rule higher than the international prices. The new ruling is likely to deter unhindered growth in rubber prices while at the same time offering more competitive prices to the industry.
Historically the demand for rubber has invariably been in sync with supply and close 98 per cent of domestic demand being met from domestic production. When the protection meted out to industry and rubber growers were withdrawn during the last decade, Indian and international prices were expected to narrow down and become uniform. However, domestic rubber prices were persistently quoting below global prices during the last five years but for the year 2009, Mr J.K. Thomas, former President of the United Planters Association of Southern India, said.
This was partly because the domestic rubber industry was dominated by some major players who accounted for 50-55 per cent of the domestic consumption. The production segment was dominated by small and medium-scale growers who accounted for 90 per cent of the Indian rubber production. In this background, Mr Thomas advocated strict vigil by the Government on imports stating that specific quantities could be imported at specific prices to contain major price disparities. An annual review on import duty cap would also be beneficial to the grower and the industry.
Review prices
After the decision to impose 20 per cent duty was taken in 2004, it was high time that a review of the prices and duties on natural rubber was undertaken, Mr N. Radhakrishnan, former President of the Cochin Rubber Merchants Association said. The average rubber prices were Rs 55.71 and the import duty worked out to Rs 11.42 a kg in 2004. By 2010, the prices peaked over Rs 180 and the duty rose to Rs 30 a kg. He felt that the reduction in duty to Rs 20.46/kg would be in favour of the industry, which was evident in the recent fall in prices. With the demand for natural rubber poised to overtake domestic supply, remunerative prices to the farmer were mandatory to ensure faster extension and accelerated production of this vital crop.
Buyer resistance weakens spot rubber
Kottayam, Aug. 27
Spot rubber turned weak on Friday. According to sources, the prices fell on buyer resistance though there were no quantity sellers in the main marketing centres. Sheet rubber fell sharply to Rs 170 from Rs 174 a kg following the declines in the domestic rubber futures on the National Multi Commodity Exchange. Meanwhile, ungraded rubber ended flat amidst dull volumes but latex 60 per cent improved on supply concerns. The Board's rate weakened to Rs 173 (174) a kg for RSS 4.
Futures decline
In the futures, the September series declined to Rs 168.90 (173.38), October to Rs 165.10 (167.91), November to Rs 164.01 (166.08) and December to Rs 164 (166.23) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 improved at its September futures to ¥319.6/Rs 177.09 (¥314.3) a kg during the day session but then slipped to ¥319.4 (Rs 176.98) during the night session on the Tokyo Commodity Exchange. The grade (spot) firmed up to Rs 158.08 (157.64) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 172 (174); RSS-5: 164 (165); ungraded: 162.00 (159.50); ISNR 20: 151 (151) and latex 60 per cent: 113 (112).
Posted: 27 Aug 2010 12:03 AM PDT
Rubber gained for a second day, climbing to the highest level since April 30, as expanding car sales in Japan raised speculation that demand for the commodity used to make tires may increase.
Futures climbed as much as 1.7 percent, heading for a second weekly increase, after the Nikkei newspaper reported that Japan’s new car sales from Aug. 1 to Aug. 23 surged by 73 percent from the same period last year to more than 149,000.
Sales increased as consumers sought to benefit from a government subsidy program for fuel-efficient cars, which is scheduled to finish at the end of September, said Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co. Demand for rubber and other raw materials used in cars may be sustained at least until the program expires, he said.
“Consumers are advancing car purchases to take advantage of the subsidy program, which appears to have had a positive impact on raw-material demand,” Saito said today by phone.
The February-delivery contract rose to as high as 298.9 yen per kilogram ($3,538 a metric ton) before trading at 298.8 yen on the Tokyo Commodity Exchange at 1:35 p.m.
Gains in futures were limited as Asian stocks declined, curbing investor appetite for riskier assets, Saito said. Equities and crude oil dropped amid speculation that the U.S. government will cut its estimate for second-quarter growth.
U.S. Outlook
A U.S. report today will show gross domestic product grew 1.4 percent in the second quarter, compared with the 2.4 percent the government estimated last month, according to the median forecast in a Bloomberg News survey of economists.
Bernanke will discuss the outlook for the economy and possible policy responses tomorrow at the central bank’s annual symposium in Jackson Hole, Wyoming.
Cash rubber prices in Thailand, the largest producer, climbed 0.8 percent to 105.6 baht ($3.36) per kilogram, the Rubber Research Institute of Thailand said yesterday. The gain was driven by demand from rubber processors and limited supply availability, it said.
Heavy rainfall is likely across Thailand until the end of August, according to the Thai Meteorological Department. Rain disrupts tapping rubber trees, leading to output declines.
January-delivery rubber on the Shanghai Futures Exchange dropped 0.3 percent to 25,435 yuan ($3,741) a ton at the 11:30 a.m. local-time trading break.
(bloomberg.com)
Growers, traders cool to duty cap on rubber imports
Panel's recommendations on levy termed ‘fair'.
Kochi, Aug. 27
The decision of the Union Commerce Ministry to impose a duty cap of Rs 20.46 a kg on rubber imports or a customs duty of 20 per cent, whichever is lower, has found all round acceptance among the rubber growers and traders. The decision was based on the report of a high-level panel constituted by the Government and headed by the Rubber Board Chairman, Mr Sajen Peter. Rubber prices have fallen from their recent peaks after the Commerce Ministry announced the non-advalorem duty cap on rubber imports.
We have tried to be impartial and fair in our recommendations to all segments of the rubber sector, be it the grower, trader or the consuming industry, sources in the Rubber Board said.
Without the industry the Indian rubber farmer would not survive and without the farmer the Indian rubber industry would not survive. We have tried to ensure the survival and growth of all stakeholders, they added.
Fair decision
Terming the decision fair, a source in Harrisons Malayalam, the largest rubber plantations group in the country, said that the cap would start working only if domestic prices rule higher than the international prices. The new ruling is likely to deter unhindered growth in rubber prices while at the same time offering more competitive prices to the industry.
Historically the demand for rubber has invariably been in sync with supply and close 98 per cent of domestic demand being met from domestic production. When the protection meted out to industry and rubber growers were withdrawn during the last decade, Indian and international prices were expected to narrow down and become uniform. However, domestic rubber prices were persistently quoting below global prices during the last five years but for the year 2009, Mr J.K. Thomas, former President of the United Planters Association of Southern India, said.
This was partly because the domestic rubber industry was dominated by some major players who accounted for 50-55 per cent of the domestic consumption. The production segment was dominated by small and medium-scale growers who accounted for 90 per cent of the Indian rubber production. In this background, Mr Thomas advocated strict vigil by the Government on imports stating that specific quantities could be imported at specific prices to contain major price disparities. An annual review on import duty cap would also be beneficial to the grower and the industry.
Review prices
After the decision to impose 20 per cent duty was taken in 2004, it was high time that a review of the prices and duties on natural rubber was undertaken, Mr N. Radhakrishnan, former President of the Cochin Rubber Merchants Association said. The average rubber prices were Rs 55.71 and the import duty worked out to Rs 11.42 a kg in 2004. By 2010, the prices peaked over Rs 180 and the duty rose to Rs 30 a kg. He felt that the reduction in duty to Rs 20.46/kg would be in favour of the industry, which was evident in the recent fall in prices. With the demand for natural rubber poised to overtake domestic supply, remunerative prices to the farmer were mandatory to ensure faster extension and accelerated production of this vital crop.
Buyer resistance weakens spot rubber
Kottayam, Aug. 27
Spot rubber turned weak on Friday. According to sources, the prices fell on buyer resistance though there were no quantity sellers in the main marketing centres. Sheet rubber fell sharply to Rs 170 from Rs 174 a kg following the declines in the domestic rubber futures on the National Multi Commodity Exchange. Meanwhile, ungraded rubber ended flat amidst dull volumes but latex 60 per cent improved on supply concerns. The Board's rate weakened to Rs 173 (174) a kg for RSS 4.
Futures decline
In the futures, the September series declined to Rs 168.90 (173.38), October to Rs 165.10 (167.91), November to Rs 164.01 (166.08) and December to Rs 164 (166.23) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 improved at its September futures to ¥319.6/Rs 177.09 (¥314.3) a kg during the day session but then slipped to ¥319.4 (Rs 176.98) during the night session on the Tokyo Commodity Exchange. The grade (spot) firmed up to Rs 158.08 (157.64) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 172 (174); RSS-5: 164 (165); ungraded: 162.00 (159.50); ISNR 20: 151 (151) and latex 60 per cent: 113 (112).
Thursday, August 26, 2010
Rubber Futures Jump as China's Physical Demand, Weaker Yen Boost Appeal
Spot rubber prices improve
Aravindan
Kottayam, Aug 26
Spot rubber improved on Thursday. According to sources, prices ruled firm following the news that the Union Minister for Commerce and Industry, Mr Anand Sharma, has ruled out any cut in import duty of rubber from 20 per cent. The sentiments were also catalysed by the bullish international indices. In spot, sheet rubber increased further to Rs 174 from Rs 173.5 a kg on fresh buying and short covering.
The trend was mixed as ISNR 20 and latex 60 per cent finished flat amidst dull volumes. The Board's rate was firm at Rs 174 (173) a kg for RSS 4.
Futures gain
In futures, the September series for RSS 4 moved up to Rs 173.5 (173.05), October to Rs 168.1 (166.73), November to Rs 166.1 (165.34) and December to Rs 166 (165.72) a kg on the National Multi Commodity Exchange. RSS 3 flared up at its September futures to ¥314.3/Rs 174.22 (¥304.5) during the day session and to ¥316 (Rs 175.27) a kg during the night session on the Tokyo Commodity Exchange. The grade (spot) improved to Rs 157.64 (155.92) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 175 (173.5); RSS-5: 165 (164); ungraded: 162.50(158); ISNR 20: 151 (151) and latex 60 per cent: 112 (112).
Rubber Futures Jump as China's Physical Demand, Weaker Yen Boost Appeal
Posted: 26 Aug 2010 12:54 AM PDT
Rubber climbed for the first time in five days as buying demand from China, a weaker Japanese currency and crude oil gains enhanced the appeal of the commodity used to make tires.
Rubber futures surged as much as 2.8 percent after retreating to one-week low yesterday. The January-delivery contract gained as much as 7.9 yen to 294.2 yen per kilogram ($3,475 a metric ton) on the Tokyo Commodity Exchange, before trading at 293.7 yen at 11:17 a.m.
“Physical buying coming from China gives the strength to the market,” Felix Yeo, trading manager at the Singapore unit of Marubeni Corp., said by phone today. Rising oil prices and a weakening yen also provide the support, he said.
The Japanese currency weakened for a second day against the dollar and the euro amid speculation policy makers will take measures to curb an advance. The yen fell to 84.89 per dollar in Asia, from 84.58 in New York yesterday.
Crude oil rose for a second day as U.S. equities climbed yesterday after a report that sales of new homes dropped in July to the lowest level on record. Rising oil prices improve rubber’s competitiveness against its synthetic rival.
China’s natural rubber inventories expanded for a fourth week, growing by 2,858 tons to 24,733 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said Aug. 20.
The country is expected to import 135,000 tons of natural rubber in August and another 130,000 tons in September, the Association of Natural Rubber Producing Countries said in its newsletter this month. China’s gross imports this year may rise 5 percent to 1.67 million tons, the association said.
Rains Disrupt
“Thailand and Malaysia have been affected by some rains, raising supply concern,” Yeo said from Singapore. Rainfall disrupts tapping, lowering rubber output.
Heavy rainfall is likely across Thailand until the end of August, the Thai Meteorological Department said on its website.
In the cash market, Thai rubber prices fell 0.7 percent to 104.8 baht ($3.33) per kilogram yesterday, the Rubber Research Institute of Thailand said on its website. Supply availability remains limited because of persistent rainfall in rubber plantation areas, it said yesterday.
January-delivery rubber on the Shanghai Futures Exchange advanced 1.6 percent to 25,235 yuan ($3,710) a ton.
(bloomberg.com)
China's NR Imports in July
Posted: 26 Aug 2010 12:52 AM PDT
By Siwaporn Bumroongpan
China’s NR imports in July grew 28% from 115,752 tons in June to 147,902 tons, according to the General Administration of Customs.
The July import, however, was 11% less compared with the same month last year. For the January-July period, China imported 983,996 tons of NR, down 1% compared with the same period last year.
(Irco.biz)
Govt to retain duty on imports - Rubber Board
Posted: 26 Aug 2010 12:50 AM PDT
MUMBAI (Reuters) – The government will not cut import duty on natural rubber imports, Trade Minister Anand Sharma told to a group of ministers from Kerala in a meeting on Wednesday, Rubber Board chairman Sajen Peter, said in a statement.
Kerala is the biggest rubber-producing state in the country.
Peter, who attended the meeting, said the minister has assured the delegation that the twenty percent import duty would stay and if the government decides to cut the duty it will implement the recommendations of expert panel constituted under the directive of Delhi High Court.
The panel had recommended that the import duty be retained at 20 per cent, but a maximum ceiling of 20.46 rupees be fixed, which is based on the average domestic price of rubber for the last three fiscals.
Rubber consumers have been demanding lower tax on imports after domestic prices jumped on robust demand from tyre industry and the gap between local and international prices widened.
(in.reuters.com)
Entrepreneurs welcome cut in rubber import duty
High rubber price was affecting small, medium industries, say dealers
KOCHI: Rubber farmers might see red over the cut in import duty of rubber, but entrepreneurs in the small and medium sectors are happy with the development.
A respite from unbridled price rise has meant a lot to the manufacturers of rubber-based products.
There are about 100 rubber-based small-scale manufacturing units which are struggling for survival, says G. Krishnakumar, who heads such a unit, based in Palakkad.
The manufacturers are under pressure to increase the prices of the products because of the rising cost of raw materials.
But they cannot do so as the same range of products, imported from China, is available in the market at a cheaper rate. An increase in the price of the local products will lead to foreign products occupying the market, pushing the indigenous industry to peril.
A reasonable price for rubber is essential for the Kerala economy, but it is inappropriate to say that the prices should remain high, says P.M. Mathew, Director of Institute of Small Enterprises and Development. Increase in rubber prices will benefit the farmers, but it can harm entrepreneurship.
Those who lament the State's slow industrial progress should study the situation closely, he says.
To Tamil Nadu, Punjab
Only 2 or 3 per cent of the rubber produced in the State is being utilised by the small-scale manufacturers. Several of them get the products made elsewhere, so as to take advantage of the lower tax rate there.
There are rubber-based product manufacturing units in Ambattur in Tamil Nadu and Jalandhar in Punjab. Many barrels of latex are being transported to those places from Kerala, he points out.
Several private companies and cooperatives process raw rubber in the State, but they do not manufacture rubber-based products. Political lobbies support the cooperatives, but the small scale manufacturer's struggle for survival is neglected.
Tyre manufacturers and non-tyre manufacturing industry consume rubber almost equally. The non-tyre manufacturing units are situated mostly in North Indian States. While Kerala makes over 90 per cent of the rubber, its consumption is too low. The ground for setting up rubber-based industrial units should be prepared by ensuring a balanced price for rubber, he says.
Retaining the stock over a long period in anticipation of higher prices has been the main reason behind the scarcity of natural rubber in the domestic market, says N. Radhakrishnan, a dealer and former president of Cochin Rubber Merchants' Association. The supply-demand position was changed by creating an artificial shortage, he says.
Case in China
It should be noted that China is allowed to import rubber at 7.5 per cent duty and the Chinese-made tyres have been reaching India.
With a high domestic price for rubber in India, the situation would be congenial for the Chinese manufacturer to export the product to India. It is nothing but indirect import of rubber, he points out.(The Hindu)
Aravindan
Kottayam, Aug 26
Spot rubber improved on Thursday. According to sources, prices ruled firm following the news that the Union Minister for Commerce and Industry, Mr Anand Sharma, has ruled out any cut in import duty of rubber from 20 per cent. The sentiments were also catalysed by the bullish international indices. In spot, sheet rubber increased further to Rs 174 from Rs 173.5 a kg on fresh buying and short covering.
The trend was mixed as ISNR 20 and latex 60 per cent finished flat amidst dull volumes. The Board's rate was firm at Rs 174 (173) a kg for RSS 4.
Futures gain
In futures, the September series for RSS 4 moved up to Rs 173.5 (173.05), October to Rs 168.1 (166.73), November to Rs 166.1 (165.34) and December to Rs 166 (165.72) a kg on the National Multi Commodity Exchange. RSS 3 flared up at its September futures to ¥314.3/Rs 174.22 (¥304.5) during the day session and to ¥316 (Rs 175.27) a kg during the night session on the Tokyo Commodity Exchange. The grade (spot) improved to Rs 157.64 (155.92) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 175 (173.5); RSS-5: 165 (164); ungraded: 162.50(158); ISNR 20: 151 (151) and latex 60 per cent: 112 (112).
Rubber Futures Jump as China's Physical Demand, Weaker Yen Boost Appeal
Posted: 26 Aug 2010 12:54 AM PDT
Rubber climbed for the first time in five days as buying demand from China, a weaker Japanese currency and crude oil gains enhanced the appeal of the commodity used to make tires.
Rubber futures surged as much as 2.8 percent after retreating to one-week low yesterday. The January-delivery contract gained as much as 7.9 yen to 294.2 yen per kilogram ($3,475 a metric ton) on the Tokyo Commodity Exchange, before trading at 293.7 yen at 11:17 a.m.
“Physical buying coming from China gives the strength to the market,” Felix Yeo, trading manager at the Singapore unit of Marubeni Corp., said by phone today. Rising oil prices and a weakening yen also provide the support, he said.
The Japanese currency weakened for a second day against the dollar and the euro amid speculation policy makers will take measures to curb an advance. The yen fell to 84.89 per dollar in Asia, from 84.58 in New York yesterday.
Crude oil rose for a second day as U.S. equities climbed yesterday after a report that sales of new homes dropped in July to the lowest level on record. Rising oil prices improve rubber’s competitiveness against its synthetic rival.
China’s natural rubber inventories expanded for a fourth week, growing by 2,858 tons to 24,733 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said Aug. 20.
The country is expected to import 135,000 tons of natural rubber in August and another 130,000 tons in September, the Association of Natural Rubber Producing Countries said in its newsletter this month. China’s gross imports this year may rise 5 percent to 1.67 million tons, the association said.
Rains Disrupt
“Thailand and Malaysia have been affected by some rains, raising supply concern,” Yeo said from Singapore. Rainfall disrupts tapping, lowering rubber output.
Heavy rainfall is likely across Thailand until the end of August, the Thai Meteorological Department said on its website.
In the cash market, Thai rubber prices fell 0.7 percent to 104.8 baht ($3.33) per kilogram yesterday, the Rubber Research Institute of Thailand said on its website. Supply availability remains limited because of persistent rainfall in rubber plantation areas, it said yesterday.
January-delivery rubber on the Shanghai Futures Exchange advanced 1.6 percent to 25,235 yuan ($3,710) a ton.
(bloomberg.com)
China's NR Imports in July
Posted: 26 Aug 2010 12:52 AM PDT
By Siwaporn Bumroongpan
China’s NR imports in July grew 28% from 115,752 tons in June to 147,902 tons, according to the General Administration of Customs.
The July import, however, was 11% less compared with the same month last year. For the January-July period, China imported 983,996 tons of NR, down 1% compared with the same period last year.
(Irco.biz)
Govt to retain duty on imports - Rubber Board
Posted: 26 Aug 2010 12:50 AM PDT
MUMBAI (Reuters) – The government will not cut import duty on natural rubber imports, Trade Minister Anand Sharma told to a group of ministers from Kerala in a meeting on Wednesday, Rubber Board chairman Sajen Peter, said in a statement.
Kerala is the biggest rubber-producing state in the country.
Peter, who attended the meeting, said the minister has assured the delegation that the twenty percent import duty would stay and if the government decides to cut the duty it will implement the recommendations of expert panel constituted under the directive of Delhi High Court.
The panel had recommended that the import duty be retained at 20 per cent, but a maximum ceiling of 20.46 rupees be fixed, which is based on the average domestic price of rubber for the last three fiscals.
Rubber consumers have been demanding lower tax on imports after domestic prices jumped on robust demand from tyre industry and the gap between local and international prices widened.
(in.reuters.com)
Entrepreneurs welcome cut in rubber import duty
High rubber price was affecting small, medium industries, say dealers
KOCHI: Rubber farmers might see red over the cut in import duty of rubber, but entrepreneurs in the small and medium sectors are happy with the development.
A respite from unbridled price rise has meant a lot to the manufacturers of rubber-based products.
There are about 100 rubber-based small-scale manufacturing units which are struggling for survival, says G. Krishnakumar, who heads such a unit, based in Palakkad.
The manufacturers are under pressure to increase the prices of the products because of the rising cost of raw materials.
But they cannot do so as the same range of products, imported from China, is available in the market at a cheaper rate. An increase in the price of the local products will lead to foreign products occupying the market, pushing the indigenous industry to peril.
A reasonable price for rubber is essential for the Kerala economy, but it is inappropriate to say that the prices should remain high, says P.M. Mathew, Director of Institute of Small Enterprises and Development. Increase in rubber prices will benefit the farmers, but it can harm entrepreneurship.
Those who lament the State's slow industrial progress should study the situation closely, he says.
To Tamil Nadu, Punjab
Only 2 or 3 per cent of the rubber produced in the State is being utilised by the small-scale manufacturers. Several of them get the products made elsewhere, so as to take advantage of the lower tax rate there.
There are rubber-based product manufacturing units in Ambattur in Tamil Nadu and Jalandhar in Punjab. Many barrels of latex are being transported to those places from Kerala, he points out.
Several private companies and cooperatives process raw rubber in the State, but they do not manufacture rubber-based products. Political lobbies support the cooperatives, but the small scale manufacturer's struggle for survival is neglected.
Tyre manufacturers and non-tyre manufacturing industry consume rubber almost equally. The non-tyre manufacturing units are situated mostly in North Indian States. While Kerala makes over 90 per cent of the rubber, its consumption is too low. The ground for setting up rubber-based industrial units should be prepared by ensuring a balanced price for rubber, he says.
Retaining the stock over a long period in anticipation of higher prices has been the main reason behind the scarcity of natural rubber in the domestic market, says N. Radhakrishnan, a dealer and former president of Cochin Rubber Merchants' Association. The supply-demand position was changed by creating an artificial shortage, he says.
Case in China
It should be noted that China is allowed to import rubber at 7.5 per cent duty and the Chinese-made tyres have been reaching India.
With a high domestic price for rubber in India, the situation would be congenial for the Chinese manufacturer to export the product to India. It is nothing but indirect import of rubber, he points out.(The Hindu)
India retains rubber imports duty
India retains rubber imports duty
MUMBAI (Commodity Online): India’s Union Trade Minister Anand Sharma has ruled out any cut in import duty for natural rubber from the existing 20%, said Rubber Board Chairman Sajen Peter in a statement on Wednesday.
The government would implement the recommendations of the expert panel constituted under the directive of the Delhi High Court on import duty, he said.
The expert panel has recommended the import duty be retained at 20%, but a maximum ceiling of Rs.20.46/ kg be fixed, he added. Trade Secretary Rahul Khulla and Board Chairman Peter also attended the meeting.
The minister also said the import duty cap will be allowed only in a phased manner in lots of 25,000 tn, the statement said. The rubber consuming sector has been demanding a cut in rubber import duty to 7.5% from 20% in view of the high prices of the commodity.
A few days ago, reports said the commerce ministry had allowed import of 100,000 tn natural rubber at 7.5% duty to tide over the current high prices and tight supply.
In an unprecedented move the commerce ministry has accepted to review an export application from a Chinese radial bus and truck tyre exporter from China, thus, giving hope to over 300 Chinese tyre companies waiting to tap the Indian market.
MUMBAI (Commodity Online): India’s Union Trade Minister Anand Sharma has ruled out any cut in import duty for natural rubber from the existing 20%, said Rubber Board Chairman Sajen Peter in a statement on Wednesday.
The government would implement the recommendations of the expert panel constituted under the directive of the Delhi High Court on import duty, he said.
The expert panel has recommended the import duty be retained at 20%, but a maximum ceiling of Rs.20.46/ kg be fixed, he added. Trade Secretary Rahul Khulla and Board Chairman Peter also attended the meeting.
The minister also said the import duty cap will be allowed only in a phased manner in lots of 25,000 tn, the statement said. The rubber consuming sector has been demanding a cut in rubber import duty to 7.5% from 20% in view of the high prices of the commodity.
A few days ago, reports said the commerce ministry had allowed import of 100,000 tn natural rubber at 7.5% duty to tide over the current high prices and tight supply.
In an unprecedented move the commerce ministry has accepted to review an export application from a Chinese radial bus and truck tyre exporter from China, thus, giving hope to over 300 Chinese tyre companies waiting to tap the Indian market.
Wednesday, August 25, 2010
India rules out duty-cut for rubber imports
Only import duty cap: Rubber Board chief
Staff Reporter
KOTTAYAM: Rubber Board chairman Sajen Peter says that the Union Commerce Ministry has ruled out any cut in the import duty of natural rubber from the present 20 per cent.
Mr. Peter said here on Wednesday that the assurance was given by Union Commerce Minister Anand Sharma to a group of MPs from Kerala who met him in the morning.
According to him, in the case of import duty, the Union government will be implementing the recommendations of an expert panel constituted by the government on a directive of the Delhi High Court to look into the demands raised in a petition filed by organisations representing rubber consuming industries.
The expert committee had made a recommendation to retain the import duty at 20 per cent, but to fix a ceiling of Rs. 20.46 a kg.
The panel had arrived at this figure considering the average price of natural rubber during the past three years, which is Rs.102.32 a kg. According to Mr. Peter, the Minister said the import duty cap would be allowed in a phased manner, in lots of 25,000 tonnes.
The expert committee had finalised its recommendations after hearing the views of organisations representing growers. These recommendations were welcomed by a meeting of the Rubber Board on July 31.The natural rubber consuming industry had approached the Delhi High Court on the import duty issue in the light of the soaring prices in the internal and international markets.
In the internal market, prices had touched a whopping Rs.186 a kg during the first week of August, forcing the consuming industry to shell out up to Rs. 37.20 a kg as import duty which remained at 20 per cent.
This had also upset the price integration of natural rubber in the internal and international markets.
Earlier reports of the Commerce Ministry slashing the import duty to 7.5 per cent had created panic in the internal market, which witnessed a steep fall in the price of natural rubber, generating sharp reactions from political parties, especially the Left and Kerala Congress factions.
Meanwhile, Kerala Congress(M) leader Jose K. Mani, MP, said his party was not satisfied with the new decision by the Commerce Ministry and that there was no need to put a cap on import duty.
India rules out duty-cut for rubber imports
KOTTAYAM (Commodity Online): In a major development in the domestic rubber industry, the Union Minister for Commerce and Industry today informed that there would not be any cut in the import duty of natural rubber imports, as had been demanded by the rubber consumer lobby.
The Rubber Board Chairman, Sajen Peter maintained that the Union Minister for Commerce & Industry Anand Sharma has ruled out any cut in the import duty of rubber from the present 20%.
The minister has given this assurance to a team of MPs from Kerala, who visited him this morning. He also said that, in the case of import duty, the government would be implementing the recommendation of the expert panel constituted under the directive of Delhi High Court to look into the demands raised in a petition by rubber consuming organizations, Peter informed in a statement issued today.
The rubber users had been demanding import duty relaxation in the wake of stiff supply constraints in the domestic markets. This led to an exorbitant price rise in natural rubber in a short span of time.
The expert panel had recommended that the import duty be retained at 20%, but a maximum ceiling of Rs.20.46 be fixed, which is based on the average domestic price of rubber for the last three fiscals. The recommendation was made by the expert panel after hearing the views of the organizations and submissions by grower organisations.
This recommendation was welcomed by the Rubber Board in its meeting held on 31 July 2010.
The Union Minister, in a meeting, where Rahul Khullar, Commerce Secretary and Mr. Sajen Peter, Rubber Board Chairman were also present, maintained that import with the duty cap would be allowed only in a phased manner, in lots of 25,000 tonnes.
No shortage of natural rubber
Staff Reporter
Rubber Board projects closing stock of 1.89 lakh tonnes
Figures show rise in rubber production
Consumption up by 6.8 per cent
KOCHI: The Rubber Board predicts that though there will be a production-consumption gap of 85,000 tonnes of natural rubber (NR) during the current financial year, there will be no shortage of the commodity in the domestic market as the opening stock for 2010-11 was 2.53 lakh tonnes compared to 1.96 lakh tonnes during 2009-10.
The projected closing stock of 2010-11 is 1.89 lakh tonnes.
The Board also projects that natural rubber production in the country will be in the range of 8.93 lakh tonnes during 2010-11 compared to 8.31 lakh tonnes during 2009-10.
Provisional figures show natural rubber production during April-July period as 2.23 lakh tonnes, up 6.5 per cent compared to the same period last financial year. Natural rubber production during 2009-10 was lower by 3.8 per cent compared to 2008-09, largely due to adverse weather conditions, growing stock of old plantations and intense harvesting in 2008.
Rubber import
Rubber import for the period between April and July this year has been provisionally put at more than 48,000 tonnes, whereas during the whole of 2009-10 natural rubber import was 1.76 lakh tonnes. It is estimated that imports will be around 70,000 tonnes for the whole of 2010-11.
It has also been projected that there will be a stock of 1.89 lakh tonnes at the end of 2010-11 compared to the carryover stock of 2.53 lakh tonnes at the end of the last financial year.
Consumption of NR in the country went up by 6.8 per cent during the last financial year compared to 2008-09. The projected NR consumption for the current year is 9.78 lakh tonnes and consumption went up 3.3 per cent during the April-July period this year.
Automotive industry's use of natural rubber grew 5.4 per cent between April and July this year compared to the same period last year. Tyre production in the country grew by 33 per cent during the same period. Non-tyre sector showed a decline in use by 0.3 per cent during the period.
The Rubber Board figures also say that export of NR during April-July 2010 amounted to 4,335 tonnes as compared to 926 tonnes during the same period last year.
Spot rubber improves on covering purchases
Aravindan
Kottayam, Aug 25
Spot rubber improved on Wednesday. The market gained further strength on the information that the Union Minister for Commerce and Industry has ruled out any cut in import duty of rubber from the present 20 per cent. Sheet rubber firmed up to Rs 173.50 from Rs 173 a kg mainly on covering purchases. The Rubber Board's rate was steady at Rs 173 a kg for RSS 4. There were no quantity buyers on any grade as the market remained in a holiday mood being Sri Narayana Guru Jayanthi.
Futures firm
The September series closed at Rs 172.53 (172.24), October at Rs 166.55 (167.10), November at Rs 165.79 (165.48) and December at Rs 165.52 (166.01) a kg for RSS 4 on National Multi Commodity Exchange (NMCE). The volumes totalled 8506 lots and turnover Rs 146.23 crore. The open interest in all series was 4,363 lots. The August futures for RSS 3 expired at ¥338.3/Rs 187.73 (¥328.2) a kg while the September futures slipped to ¥304.5 (¥305.7) during the day session and then improved to ¥309 during the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) moved down to Rs 155.92 (156.27) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 173.50 (173); RSS-5: 164 (163.50); ungraded: 158 (157.50); ISNR 20: 151 (150) and latex 60 per cent: 112 (112).
Anand Sharma rules out cut in import duty on rubber
Kottayam, Aug 25
The Union Minister for Commerce and Industry, Mr Anand Sharma, has ruled out cut in the import duty on rubber from 20 per cent, said Mr Sajen Peter, Chairman of the Rubber Board.
The Minister gave this assurance to a team of MPs from Kerala that called on him this morning.
EXPERT PANEL
However, he said that the Government would be implementing the recommendations of the expert panel constituted under the directive of the Delhi High Court to look into the demands raised in a petition by rubber consuming organisations.
The expert panel had recommended that the import duty be retained at 20 per cent, but a maximum ceiling of Rs 20.46 be fixed which is based on the average domestic price of rubber during the last three financial years.
The recommendation was made by the expert panel after hearing the views of the organisations and submissions by grower organisations.
This recommendation was welcomed by the Rubber Board meeting held on July 31.
PHASED MANNER
The Minister also said that import with the duty cap would be allowed only in a phased manner in lots of 25,000 tonnes.
Dr Rahul Khullar, Union Commerce Secretary, and Mr Sajen Peter, Rubber Board Chairman, too attended the meeting with the Commerce Minister.
Staff Reporter
KOTTAYAM: Rubber Board chairman Sajen Peter says that the Union Commerce Ministry has ruled out any cut in the import duty of natural rubber from the present 20 per cent.
Mr. Peter said here on Wednesday that the assurance was given by Union Commerce Minister Anand Sharma to a group of MPs from Kerala who met him in the morning.
According to him, in the case of import duty, the Union government will be implementing the recommendations of an expert panel constituted by the government on a directive of the Delhi High Court to look into the demands raised in a petition filed by organisations representing rubber consuming industries.
The expert committee had made a recommendation to retain the import duty at 20 per cent, but to fix a ceiling of Rs. 20.46 a kg.
The panel had arrived at this figure considering the average price of natural rubber during the past three years, which is Rs.102.32 a kg. According to Mr. Peter, the Minister said the import duty cap would be allowed in a phased manner, in lots of 25,000 tonnes.
The expert committee had finalised its recommendations after hearing the views of organisations representing growers. These recommendations were welcomed by a meeting of the Rubber Board on July 31.The natural rubber consuming industry had approached the Delhi High Court on the import duty issue in the light of the soaring prices in the internal and international markets.
In the internal market, prices had touched a whopping Rs.186 a kg during the first week of August, forcing the consuming industry to shell out up to Rs. 37.20 a kg as import duty which remained at 20 per cent.
This had also upset the price integration of natural rubber in the internal and international markets.
Earlier reports of the Commerce Ministry slashing the import duty to 7.5 per cent had created panic in the internal market, which witnessed a steep fall in the price of natural rubber, generating sharp reactions from political parties, especially the Left and Kerala Congress factions.
Meanwhile, Kerala Congress(M) leader Jose K. Mani, MP, said his party was not satisfied with the new decision by the Commerce Ministry and that there was no need to put a cap on import duty.
India rules out duty-cut for rubber imports
KOTTAYAM (Commodity Online): In a major development in the domestic rubber industry, the Union Minister for Commerce and Industry today informed that there would not be any cut in the import duty of natural rubber imports, as had been demanded by the rubber consumer lobby.
The Rubber Board Chairman, Sajen Peter maintained that the Union Minister for Commerce & Industry Anand Sharma has ruled out any cut in the import duty of rubber from the present 20%.
The minister has given this assurance to a team of MPs from Kerala, who visited him this morning. He also said that, in the case of import duty, the government would be implementing the recommendation of the expert panel constituted under the directive of Delhi High Court to look into the demands raised in a petition by rubber consuming organizations, Peter informed in a statement issued today.
The rubber users had been demanding import duty relaxation in the wake of stiff supply constraints in the domestic markets. This led to an exorbitant price rise in natural rubber in a short span of time.
The expert panel had recommended that the import duty be retained at 20%, but a maximum ceiling of Rs.20.46 be fixed, which is based on the average domestic price of rubber for the last three fiscals. The recommendation was made by the expert panel after hearing the views of the organizations and submissions by grower organisations.
This recommendation was welcomed by the Rubber Board in its meeting held on 31 July 2010.
The Union Minister, in a meeting, where Rahul Khullar, Commerce Secretary and Mr. Sajen Peter, Rubber Board Chairman were also present, maintained that import with the duty cap would be allowed only in a phased manner, in lots of 25,000 tonnes.
No shortage of natural rubber
Staff Reporter
Rubber Board projects closing stock of 1.89 lakh tonnes
Figures show rise in rubber production
Consumption up by 6.8 per cent
KOCHI: The Rubber Board predicts that though there will be a production-consumption gap of 85,000 tonnes of natural rubber (NR) during the current financial year, there will be no shortage of the commodity in the domestic market as the opening stock for 2010-11 was 2.53 lakh tonnes compared to 1.96 lakh tonnes during 2009-10.
The projected closing stock of 2010-11 is 1.89 lakh tonnes.
The Board also projects that natural rubber production in the country will be in the range of 8.93 lakh tonnes during 2010-11 compared to 8.31 lakh tonnes during 2009-10.
Provisional figures show natural rubber production during April-July period as 2.23 lakh tonnes, up 6.5 per cent compared to the same period last financial year. Natural rubber production during 2009-10 was lower by 3.8 per cent compared to 2008-09, largely due to adverse weather conditions, growing stock of old plantations and intense harvesting in 2008.
Rubber import
Rubber import for the period between April and July this year has been provisionally put at more than 48,000 tonnes, whereas during the whole of 2009-10 natural rubber import was 1.76 lakh tonnes. It is estimated that imports will be around 70,000 tonnes for the whole of 2010-11.
It has also been projected that there will be a stock of 1.89 lakh tonnes at the end of 2010-11 compared to the carryover stock of 2.53 lakh tonnes at the end of the last financial year.
Consumption of NR in the country went up by 6.8 per cent during the last financial year compared to 2008-09. The projected NR consumption for the current year is 9.78 lakh tonnes and consumption went up 3.3 per cent during the April-July period this year.
Automotive industry's use of natural rubber grew 5.4 per cent between April and July this year compared to the same period last year. Tyre production in the country grew by 33 per cent during the same period. Non-tyre sector showed a decline in use by 0.3 per cent during the period.
The Rubber Board figures also say that export of NR during April-July 2010 amounted to 4,335 tonnes as compared to 926 tonnes during the same period last year.
Spot rubber improves on covering purchases
Aravindan
Kottayam, Aug 25
Spot rubber improved on Wednesday. The market gained further strength on the information that the Union Minister for Commerce and Industry has ruled out any cut in import duty of rubber from the present 20 per cent. Sheet rubber firmed up to Rs 173.50 from Rs 173 a kg mainly on covering purchases. The Rubber Board's rate was steady at Rs 173 a kg for RSS 4. There were no quantity buyers on any grade as the market remained in a holiday mood being Sri Narayana Guru Jayanthi.
Futures firm
The September series closed at Rs 172.53 (172.24), October at Rs 166.55 (167.10), November at Rs 165.79 (165.48) and December at Rs 165.52 (166.01) a kg for RSS 4 on National Multi Commodity Exchange (NMCE). The volumes totalled 8506 lots and turnover Rs 146.23 crore. The open interest in all series was 4,363 lots. The August futures for RSS 3 expired at ¥338.3/Rs 187.73 (¥328.2) a kg while the September futures slipped to ¥304.5 (¥305.7) during the day session and then improved to ¥309 during the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) moved down to Rs 155.92 (156.27) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 173.50 (173); RSS-5: 164 (163.50); ungraded: 158 (157.50); ISNR 20: 151 (150) and latex 60 per cent: 112 (112).
Anand Sharma rules out cut in import duty on rubber
Kottayam, Aug 25
The Union Minister for Commerce and Industry, Mr Anand Sharma, has ruled out cut in the import duty on rubber from 20 per cent, said Mr Sajen Peter, Chairman of the Rubber Board.
The Minister gave this assurance to a team of MPs from Kerala that called on him this morning.
EXPERT PANEL
However, he said that the Government would be implementing the recommendations of the expert panel constituted under the directive of the Delhi High Court to look into the demands raised in a petition by rubber consuming organisations.
The expert panel had recommended that the import duty be retained at 20 per cent, but a maximum ceiling of Rs 20.46 be fixed which is based on the average domestic price of rubber during the last three financial years.
The recommendation was made by the expert panel after hearing the views of the organisations and submissions by grower organisations.
This recommendation was welcomed by the Rubber Board meeting held on July 31.
PHASED MANNER
The Minister also said that import with the duty cap would be allowed only in a phased manner in lots of 25,000 tonnes.
Dr Rahul Khullar, Union Commerce Secretary, and Mr Sajen Peter, Rubber Board Chairman, too attended the meeting with the Commerce Minister.
Tuesday, August 24, 2010
AIKS criticises govt move to cut import tariff on rubber
AIKS criticises govt move to cut import tariff on rubber
Posted: 23 Aug 2010 10:28 PM PDT
NEW DELHI: A CPI-M backed farmers body, All India Kisan Sabha (AIKS), today condemned the government's move of reducing import tariff on natural rubber from 20 per cent to 7.5 per cent, describing it as "anti-farmer".
In a statement issued here, the organisation said, "This move is going to lead to dumping of cheap natural rubber from the ASEAN countries. This will have a cascading effect on the prices of natural rubber and the prices in the domestic market will fall drastically."
Seeking that the retrograde move be immediately scrapped and steps be taken to reinstate restrictions on dumping of rubber in the Indian market, the body called upon the farmers to protest against this move.
"AIKS will unleash protests against this anti-farmer move," the statement said.
The farmers' body said that instead of increasing import tariffs and restricting import of natural rubber, the Government has resorted to cutting it drastically only to please the tyre manufacturers lobby and big players in the automobile industry.
"This step will intensify the acute agrarian crisis in the major rubber growing states and put the lives of lakhs of farmers in peril," it added.
The farmers' body further said that the decision would affect the livelihoods of lakhs of rubber growers, especially in Kerala, which produces 90 per cent of rubber in India, as well as other such states.
AIKS said that this cut must also be seen in the context of the India-ASEAN FTA and the Congress-led UPA government's claims of protecting the farmers' interests.
"The Centre had willfully misled and betrayed the farmers' interests by claiming that rubber had been put in the exclusion list. This exposes their double-speak and hollowness of their claims that the India-ASEAN FTA would not affect Indian farmers adversely," it said.
(economictimes.indiatimes.com)
Spot rubber firms up on covering purchases
Kottayam, Aug 24
Spot rubber prices improved on Tuesday. Covering purchases at lower levels kept the market firm after three day's fall from Rs 184/kg for sheet rubber. The grade recovered to Rs 173 from Rs 170/kg on supply concerns. The trend was mixed.
Import sops opposed
“It is unfortunate that the Ministry has rejected the recommendations of the Rubber Board and ordered for import of 1,00,000 tonnes giving concessions. This is highly detrimental to the interests of the rubber growers in the country,” Mr George Waly President of the Indian Rubber Dealers Federation, told Business Line.
“It will have serious repercussions to the rubber planting sector as a whole in the country, he said.” In futures, the September series improved to Rs 172.39 (169.93), October to Rs 167.2 (165.17), November to Rs 165.8 (164.33) and December to Rs 166.03 (165)/kg for RSS 4 on the National Multi Commodity Exchange. The August futures for RSS 3 slipped to ¥328.2/Rs 182.69 (¥328.5)/kg during the day session but improved to ¥330 (Rs 183.67) during the night session on Tokyo Commodity Exchange . RSS 3 (spot) improved to Rs 156.56 (156.27)/kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 173 (170); RSS-5: 163.5 (161); ungraded: 157.5 (156); ISNR 20: 150 (150) and latex 60 per cent: 112 (111).
Rubber import duty cut: P.C. Thomas alleges corruption
Staff Reporter
KOTTAYAM: Kerala Congress (Thomas) chairman P.C. Thomas has alleged massive corruption in the Union government's decision to reduce the import duty on natural rubber from 20 per cent to 7.5 per cent.
Speaking to mediapersons here on Tuesday, Mr. Thomas termed the move ‘unjust' and ‘anti-farmer.' He alleged that it was influenced by a lobby of tyre manufacturers. Calling for an immediate review of the decision, Mr. Thomas said the majority of the farmers affected would be from the State.
He alleged that the move, ignoring even the recommendations of the Rubber Board to the contrary, smacked of corruption. He said the Union government had earlier given an undertaking in the Delhi High Court that internal production of natural rubber could meet 94 per cent of the country's consumption needs.
As part of the protests, party workers will take out torchlight processions in all Assembly segments in Central Kerala on Thursday.
The State leadership of the party will hold a mass fast in front of the Raj Bhavan on September 9. E.P. Mathew, general secretary, and T.O. Abraham, treasurer, were present at the press conference.(The Hindu)
Cheap Chinese Tyres May Flood Indian Markets
August 24: Like most electronic appliances, China made tyres too, could soon be available in Indian domestic market. In an unprecedented move the commerce ministry has accepted to review an export application from a Chinese radial bus and truck tyre exporter from China, thus, giving hope to over 300 Chinese tyre companies waiting to tap the Indian market.
NDTV has learnt from sources that Wei Fang Huadong Rubber Co Ltd had filed an application to export radial tyres to India. They have the capacity to export 10,000 tyres every month, much more than the average 2500 tyres capacity in the domestic market. Wei Fang Huadong Rubber Co also plans to sell it in the Indian market for at least $49 cheaper than the domestic manufacturers.
The Chinese company's lawyer refused to comment saying: Due to attorney-client confidentiality, we cannot respond to your queries. Also, we will not respond to market speculation."
It is the domestic industry that will be the worst impacted with rubber prices expected to go up and their repeated requests to the government to allow zero duty imports to access cheap Chinese tyres being shot down by the ministry. It will be damning for the industry and will have long standing repercussions for the industry," Ravi Budhhiraja of Tyres Manufacturers Association said.
The radial bus and truck industry in India has investments worth Rs. 120 billion in the pipeline and all are geared at ramping up production in the bus and truck segment. The segment may take a direct hit if the government allows Chinese exports without allowing the domestic industry to outsource from China.
Source: ANRPC quoting NDTV Profit, India.
India may cut rubber import tax this week
MUMBAI (Commodity Online): India is likely to cut an import tax on natural rubber this week as bulk consumers are facing a shortage of the raw material.
The decision to cut the import tax on will be taken only after assessing the extent of the shortfall this week, but a formal notification may take some time, said the trade ministry official, who didn't want to be named.
Two senior trade officials from Kerala, the country's largest producing state, said the government may cut the import tax on natural rubber to 7.5%, in line with tire makers' demands.
Tire makers account for more than 60% of India's total natural rubber consumption and have been under pressure because of high domestic prices. But the lower tax rate may be limited initially to only 100,000 metric tons of natural rubber imports.
Earlier this month, Junior Finance Minister S.S. Palanimanickam told Parliament the government was considering allowing limited natural rubber imports at a lower tax. A cut in the import tax by India, the world's second-largest consumer, will help local tire makers take advantage of lower global prices and import more from major producers such as Thailand, Indonesia and Malaysia.
An industry estimate has put the local shortfall at more than150, 000 tons in the fiscal year that started April 1, while the state run Rubber Board has pegged the deficit at 85,000 tons.
The country expects to produce 893, tons in 2010-11. Local prices have exceeded the global level for the most part in the past one one-and-a-half years due to higher vehicle sales, prompting tire makers to lobby for the lower import tax.
Posted: 23 Aug 2010 10:28 PM PDT
NEW DELHI: A CPI-M backed farmers body, All India Kisan Sabha (AIKS), today condemned the government's move of reducing import tariff on natural rubber from 20 per cent to 7.5 per cent, describing it as "anti-farmer".
In a statement issued here, the organisation said, "This move is going to lead to dumping of cheap natural rubber from the ASEAN countries. This will have a cascading effect on the prices of natural rubber and the prices in the domestic market will fall drastically."
Seeking that the retrograde move be immediately scrapped and steps be taken to reinstate restrictions on dumping of rubber in the Indian market, the body called upon the farmers to protest against this move.
"AIKS will unleash protests against this anti-farmer move," the statement said.
The farmers' body said that instead of increasing import tariffs and restricting import of natural rubber, the Government has resorted to cutting it drastically only to please the tyre manufacturers lobby and big players in the automobile industry.
"This step will intensify the acute agrarian crisis in the major rubber growing states and put the lives of lakhs of farmers in peril," it added.
The farmers' body further said that the decision would affect the livelihoods of lakhs of rubber growers, especially in Kerala, which produces 90 per cent of rubber in India, as well as other such states.
AIKS said that this cut must also be seen in the context of the India-ASEAN FTA and the Congress-led UPA government's claims of protecting the farmers' interests.
"The Centre had willfully misled and betrayed the farmers' interests by claiming that rubber had been put in the exclusion list. This exposes their double-speak and hollowness of their claims that the India-ASEAN FTA would not affect Indian farmers adversely," it said.
(economictimes.indiatimes.com)
Spot rubber firms up on covering purchases
Kottayam, Aug 24
Spot rubber prices improved on Tuesday. Covering purchases at lower levels kept the market firm after three day's fall from Rs 184/kg for sheet rubber. The grade recovered to Rs 173 from Rs 170/kg on supply concerns. The trend was mixed.
Import sops opposed
“It is unfortunate that the Ministry has rejected the recommendations of the Rubber Board and ordered for import of 1,00,000 tonnes giving concessions. This is highly detrimental to the interests of the rubber growers in the country,” Mr George Waly President of the Indian Rubber Dealers Federation, told Business Line.
“It will have serious repercussions to the rubber planting sector as a whole in the country, he said.” In futures, the September series improved to Rs 172.39 (169.93), October to Rs 167.2 (165.17), November to Rs 165.8 (164.33) and December to Rs 166.03 (165)/kg for RSS 4 on the National Multi Commodity Exchange. The August futures for RSS 3 slipped to ¥328.2/Rs 182.69 (¥328.5)/kg during the day session but improved to ¥330 (Rs 183.67) during the night session on Tokyo Commodity Exchange . RSS 3 (spot) improved to Rs 156.56 (156.27)/kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 173 (170); RSS-5: 163.5 (161); ungraded: 157.5 (156); ISNR 20: 150 (150) and latex 60 per cent: 112 (111).
Rubber import duty cut: P.C. Thomas alleges corruption
Staff Reporter
KOTTAYAM: Kerala Congress (Thomas) chairman P.C. Thomas has alleged massive corruption in the Union government's decision to reduce the import duty on natural rubber from 20 per cent to 7.5 per cent.
Speaking to mediapersons here on Tuesday, Mr. Thomas termed the move ‘unjust' and ‘anti-farmer.' He alleged that it was influenced by a lobby of tyre manufacturers. Calling for an immediate review of the decision, Mr. Thomas said the majority of the farmers affected would be from the State.
He alleged that the move, ignoring even the recommendations of the Rubber Board to the contrary, smacked of corruption. He said the Union government had earlier given an undertaking in the Delhi High Court that internal production of natural rubber could meet 94 per cent of the country's consumption needs.
As part of the protests, party workers will take out torchlight processions in all Assembly segments in Central Kerala on Thursday.
The State leadership of the party will hold a mass fast in front of the Raj Bhavan on September 9. E.P. Mathew, general secretary, and T.O. Abraham, treasurer, were present at the press conference.(The Hindu)
Cheap Chinese Tyres May Flood Indian Markets
August 24: Like most electronic appliances, China made tyres too, could soon be available in Indian domestic market. In an unprecedented move the commerce ministry has accepted to review an export application from a Chinese radial bus and truck tyre exporter from China, thus, giving hope to over 300 Chinese tyre companies waiting to tap the Indian market.
NDTV has learnt from sources that Wei Fang Huadong Rubber Co Ltd had filed an application to export radial tyres to India. They have the capacity to export 10,000 tyres every month, much more than the average 2500 tyres capacity in the domestic market. Wei Fang Huadong Rubber Co also plans to sell it in the Indian market for at least $49 cheaper than the domestic manufacturers.
The Chinese company's lawyer refused to comment saying: Due to attorney-client confidentiality, we cannot respond to your queries. Also, we will not respond to market speculation."
It is the domestic industry that will be the worst impacted with rubber prices expected to go up and their repeated requests to the government to allow zero duty imports to access cheap Chinese tyres being shot down by the ministry. It will be damning for the industry and will have long standing repercussions for the industry," Ravi Budhhiraja of Tyres Manufacturers Association said.
The radial bus and truck industry in India has investments worth Rs. 120 billion in the pipeline and all are geared at ramping up production in the bus and truck segment. The segment may take a direct hit if the government allows Chinese exports without allowing the domestic industry to outsource from China.
Source: ANRPC quoting NDTV Profit, India.
India may cut rubber import tax this week
MUMBAI (Commodity Online): India is likely to cut an import tax on natural rubber this week as bulk consumers are facing a shortage of the raw material.
The decision to cut the import tax on will be taken only after assessing the extent of the shortfall this week, but a formal notification may take some time, said the trade ministry official, who didn't want to be named.
Two senior trade officials from Kerala, the country's largest producing state, said the government may cut the import tax on natural rubber to 7.5%, in line with tire makers' demands.
Tire makers account for more than 60% of India's total natural rubber consumption and have been under pressure because of high domestic prices. But the lower tax rate may be limited initially to only 100,000 metric tons of natural rubber imports.
Earlier this month, Junior Finance Minister S.S. Palanimanickam told Parliament the government was considering allowing limited natural rubber imports at a lower tax. A cut in the import tax by India, the world's second-largest consumer, will help local tire makers take advantage of lower global prices and import more from major producers such as Thailand, Indonesia and Malaysia.
An industry estimate has put the local shortfall at more than150, 000 tons in the fiscal year that started April 1, while the state run Rubber Board has pegged the deficit at 85,000 tons.
The country expects to produce 893, tons in 2010-11. Local prices have exceeded the global level for the most part in the past one one-and-a-half years due to higher vehicle sales, prompting tire makers to lobby for the lower import tax.
Mixed trend in rubber futures
Mixed trend in rubber futures
Kottayam, Aug 23
Rubber futures witnessed a mixed trend on Monday.
The September series improved to Rs 170.30 (168.20), October to Rs 165.30 (164.14) and November to Rs 164.75 (164.17) while the December series slipped to Rs 165 (165.36) a kg for RSS 4 on the National Multi Commodity Exchange.
The volumes totalled 1,732 lots and turnover Rs 29.25 crore.
The open interest in all series was 4,060 lots.
August futures for RSS 3 weakened to ¥328.5/Rs 179.95 (¥ 332) a kg during the day session and closed unchanged during the night session on the Tokyo Commodity Exchange (TOCOM).
The spot rubber market remained closed owing to Onam.
India's NR import Above 110,000 tonnes
Posted: 22 Aug 2010 10:55 PM PDT
India may possibly import 110,000 tonnes of natural rubber in the financial year 2010/11 because record-high local prices are forcing tyre makers to buy more natural rubber from abroad.
This is higher than the Indian Rubber Board’s estimate in April of 70,000 tonnes of import for the year, when spot rubber price was at US $ 3.45 per kilogram.
Industry officials, however, said the imports in the financial year 2010/11 would be higher than 110,000 tonnes as rubber is much cheaper in the international market and domestic demand is very strong. Spot prices in early August hit a record high of US $ 4.00 per kilogram, widening the difference between global and domestic prices.
(irco.biz)
Kerala raises concern over move to slash rubber import duty
Posted: 22 Aug 2010 10:54 PM PDT
THIRUVANANTHAPURAM: Both ruling LDF and opposition UDF in Kerala expressed concern over Centre's reported move to slash import duty on natural rubber, holding it would deal a blow to the state, which accounts for 90% of the production in the country.
Talking to reporters here, state finance minister T M Thomas Isaac alleged the duty was being reduced from 20 per cent to 7.5% under pressure from powerful lobby of rubber industries, including Association of Tyre Manufacturers (ATMA), without bothering about "adverse consequences" it would have on the farmers in Kerala.
A delegation of Congress-led UDF MPs met Union Commerce Minister Anand Sharma in New Delhi today seeking reversal of the decision of the Finance Ministry which was expected to be approved by the Union cabinet shortly.
Idukki MP P T Thomas said, Sharma assured the delegation that price situation would be reviewed every fortnight and remedial measures would be taken if there was any drastic fall in domestic price.
However, LDF Government was not willing to take such an assurance seriously arguing that past experience in matters like this did not give much hope.
Isaac said the decision would lead to sharp crash in the price of the domestic output at a time when it was fetching around Rs 185 a kg in the Indian market.
Though international price was less by just Rs 10 to Rs 15, reduction in import duty would still lead to largescale dumping of natural rubber into the country to the peril of the domestic growers, Isaac said.
CPI-M state Secretary Pinarayi Vijayan said slashing of import duty when huge quantities of rubber was piling up in Kerala would lead to largescale import from countries like Thailand, Indonesia and Malaysia.
This would be a great disservice to the domestic producers, he said in a statement.
According to official figures, India produced about 7-8 lakh tonnes of rubber a year, of which Kerala accounted for over 90 per cent.
Read more: Kerala raises concern over move to slash rubber import duty - Thiruvananthapuram - City - The Times of India http://timesofindia.indiatimes.com/city/thiruvananthapuram/Kerala-raises-concern-over-move-to-slash-rubber-import-duty-/articleshow/6383216.cms#ixzz0xPDKndhW
(timesofindia.indiatimes.com)
Centre betrayed the rubber farmers: BJP
Posted: 22 Aug 2010 10:52 PM PDT
Bharatiya Janata Party (BJP) Kerala unit, today alleged that the Union government had betrayed the over 11 lakh rubber farmers in the state by their decision to reduce rubber import duty to 7.5%.
Speaking to mediapersons here, AN Radhakrishnan, general
secretary, BJP state unit, said alleged that the agriculture sector has been totally destroyed as a result of the anti-people policies pursued by both the ruling LDF as well as the congress-led UDF.
The state government was getting Rs 400 crore as tax from the rubber sector in Kerala, he said.
The Centre's decision would adversely affect the farmers in Kerala, he said, adding the state government should raise strong protest against the reduction of import duty.
Since over 92% of the national production of rubber was produced from Kerala, the state government and Rubber Board has moral responsibility to safeguard the interests of the rubber farmers in the state, he said.
BJP demands the Centre to reconsider their decision to reduce the import duty, he said.
(dnaindia.com)
Spot rubber ends weak
Posted: 22 Aug 2010 10:51 PM PDT
On Saturday (21 August 2010), the spot rubber prices ended weak as the market appeared to be in a holiday mood prior to Onam. Sheet rubber declined further to Rs 170 from Rs 171 per kg on buyer resistance.
The September futures for RSS 4 rose to Rs 168.20 (167.24), October to Rs 164.14 (163.19), November to Rs 164.17 (163.81) and December to Rs 165.36 (163.81) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 170 (171); RSS-5: 161 (162); ungraded: 156 (156); ISNR 20: 150 (150) and latex 60 per cent: 111 (111).
(indiainfoline.com)
Rubber Declines for Second Day on Concern Slower Economy to Curtail Demand
Posted: 22 Aug 2010 10:58 PM PDT
Rubber declined for a second day, extending a retreat from a three-month high, on concern that the economic recovery is faltering, capping demand for the commodity used to make tires.
Futures in Tokyo declined as much as 1.2 percent after climbing 3.7 percent last week. The price reached 295.2 yen per kilogram ($3,459 per metric ton) on Aug. 20, the highest level since May 6.
Most Asian stocks fell amid mounting concern that the global economy may be faltering after calls by a European Central Bank official to maintain stimulus measures. Purchases of U.S. new and existing houses dropped 12 percent to a 5.01 million annual pace, the lowest since March 2009, according to the median forecast of 54 economists surveyed by Bloomberg News.
“Worries about economies sapped investor appetite for riskier assets,” leading to sales of industrial commodities including rubber, Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone.
January-delivery rubber dropped as much as 3.5 yen to 287.6 yen per kilogram on the Tokyo Commodity Exchange before trading at 287.8 yen at 11:27 a.m.
Japan’s Nikkei 225 Stock Average slumped to a nine-month low after European Central Bank council member Axel Weber said emergency lending should be extended, indicating that the region’s debt crisis may take longer to solve.
Weber said on Aug. 20 that the ECB should help banks through end-of-year liquidity tensions before determining in the first quarter when to withdraw emergency-lending measures. The comments on the need to keep open the flow of emergency funds go beyond what ECB President Jean-Claude Trichet has announced.
Cash-rubber prices in Thailand, the world’s largest exporter, stayed unchanged at 105.5 baht ($3.35) per kilogram, as supply remained limited because of rainfalls in many estate areas, the Rubber Research Institute of Thailand said Aug. 20.
January-delivery rubber on the Shanghai Futures Exchange lost 1.2 percent to 25,130 yuan ($3,697) a ton at 10:15 a.m. local time.
(bloomberg.com)
Kottayam, Aug 23
Rubber futures witnessed a mixed trend on Monday.
The September series improved to Rs 170.30 (168.20), October to Rs 165.30 (164.14) and November to Rs 164.75 (164.17) while the December series slipped to Rs 165 (165.36) a kg for RSS 4 on the National Multi Commodity Exchange.
The volumes totalled 1,732 lots and turnover Rs 29.25 crore.
The open interest in all series was 4,060 lots.
August futures for RSS 3 weakened to ¥328.5/Rs 179.95 (¥ 332) a kg during the day session and closed unchanged during the night session on the Tokyo Commodity Exchange (TOCOM).
The spot rubber market remained closed owing to Onam.
India's NR import Above 110,000 tonnes
Posted: 22 Aug 2010 10:55 PM PDT
India may possibly import 110,000 tonnes of natural rubber in the financial year 2010/11 because record-high local prices are forcing tyre makers to buy more natural rubber from abroad.
This is higher than the Indian Rubber Board’s estimate in April of 70,000 tonnes of import for the year, when spot rubber price was at US $ 3.45 per kilogram.
Industry officials, however, said the imports in the financial year 2010/11 would be higher than 110,000 tonnes as rubber is much cheaper in the international market and domestic demand is very strong. Spot prices in early August hit a record high of US $ 4.00 per kilogram, widening the difference between global and domestic prices.
(irco.biz)
Kerala raises concern over move to slash rubber import duty
Posted: 22 Aug 2010 10:54 PM PDT
THIRUVANANTHAPURAM: Both ruling LDF and opposition UDF in Kerala expressed concern over Centre's reported move to slash import duty on natural rubber, holding it would deal a blow to the state, which accounts for 90% of the production in the country.
Talking to reporters here, state finance minister T M Thomas Isaac alleged the duty was being reduced from 20 per cent to 7.5% under pressure from powerful lobby of rubber industries, including Association of Tyre Manufacturers (ATMA), without bothering about "adverse consequences" it would have on the farmers in Kerala.
A delegation of Congress-led UDF MPs met Union Commerce Minister Anand Sharma in New Delhi today seeking reversal of the decision of the Finance Ministry which was expected to be approved by the Union cabinet shortly.
Idukki MP P T Thomas said, Sharma assured the delegation that price situation would be reviewed every fortnight and remedial measures would be taken if there was any drastic fall in domestic price.
However, LDF Government was not willing to take such an assurance seriously arguing that past experience in matters like this did not give much hope.
Isaac said the decision would lead to sharp crash in the price of the domestic output at a time when it was fetching around Rs 185 a kg in the Indian market.
Though international price was less by just Rs 10 to Rs 15, reduction in import duty would still lead to largescale dumping of natural rubber into the country to the peril of the domestic growers, Isaac said.
CPI-M state Secretary Pinarayi Vijayan said slashing of import duty when huge quantities of rubber was piling up in Kerala would lead to largescale import from countries like Thailand, Indonesia and Malaysia.
This would be a great disservice to the domestic producers, he said in a statement.
According to official figures, India produced about 7-8 lakh tonnes of rubber a year, of which Kerala accounted for over 90 per cent.
Read more: Kerala raises concern over move to slash rubber import duty - Thiruvananthapuram - City - The Times of India http://timesofindia.indiatimes.com/city/thiruvananthapuram/Kerala-raises-concern-over-move-to-slash-rubber-import-duty-/articleshow/6383216.cms#ixzz0xPDKndhW
(timesofindia.indiatimes.com)
Centre betrayed the rubber farmers: BJP
Posted: 22 Aug 2010 10:52 PM PDT
Bharatiya Janata Party (BJP) Kerala unit, today alleged that the Union government had betrayed the over 11 lakh rubber farmers in the state by their decision to reduce rubber import duty to 7.5%.
Speaking to mediapersons here, AN Radhakrishnan, general
secretary, BJP state unit, said alleged that the agriculture sector has been totally destroyed as a result of the anti-people policies pursued by both the ruling LDF as well as the congress-led UDF.
The state government was getting Rs 400 crore as tax from the rubber sector in Kerala, he said.
The Centre's decision would adversely affect the farmers in Kerala, he said, adding the state government should raise strong protest against the reduction of import duty.
Since over 92% of the national production of rubber was produced from Kerala, the state government and Rubber Board has moral responsibility to safeguard the interests of the rubber farmers in the state, he said.
BJP demands the Centre to reconsider their decision to reduce the import duty, he said.
(dnaindia.com)
Spot rubber ends weak
Posted: 22 Aug 2010 10:51 PM PDT
On Saturday (21 August 2010), the spot rubber prices ended weak as the market appeared to be in a holiday mood prior to Onam. Sheet rubber declined further to Rs 170 from Rs 171 per kg on buyer resistance.
The September futures for RSS 4 rose to Rs 168.20 (167.24), October to Rs 164.14 (163.19), November to Rs 164.17 (163.81) and December to Rs 165.36 (163.81) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 170 (171); RSS-5: 161 (162); ungraded: 156 (156); ISNR 20: 150 (150) and latex 60 per cent: 111 (111).
(indiainfoline.com)
Rubber Declines for Second Day on Concern Slower Economy to Curtail Demand
Posted: 22 Aug 2010 10:58 PM PDT
Rubber declined for a second day, extending a retreat from a three-month high, on concern that the economic recovery is faltering, capping demand for the commodity used to make tires.
Futures in Tokyo declined as much as 1.2 percent after climbing 3.7 percent last week. The price reached 295.2 yen per kilogram ($3,459 per metric ton) on Aug. 20, the highest level since May 6.
Most Asian stocks fell amid mounting concern that the global economy may be faltering after calls by a European Central Bank official to maintain stimulus measures. Purchases of U.S. new and existing houses dropped 12 percent to a 5.01 million annual pace, the lowest since March 2009, according to the median forecast of 54 economists surveyed by Bloomberg News.
“Worries about economies sapped investor appetite for riskier assets,” leading to sales of industrial commodities including rubber, Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone.
January-delivery rubber dropped as much as 3.5 yen to 287.6 yen per kilogram on the Tokyo Commodity Exchange before trading at 287.8 yen at 11:27 a.m.
Japan’s Nikkei 225 Stock Average slumped to a nine-month low after European Central Bank council member Axel Weber said emergency lending should be extended, indicating that the region’s debt crisis may take longer to solve.
Weber said on Aug. 20 that the ECB should help banks through end-of-year liquidity tensions before determining in the first quarter when to withdraw emergency-lending measures. The comments on the need to keep open the flow of emergency funds go beyond what ECB President Jean-Claude Trichet has announced.
Cash-rubber prices in Thailand, the world’s largest exporter, stayed unchanged at 105.5 baht ($3.35) per kilogram, as supply remained limited because of rainfalls in many estate areas, the Rubber Research Institute of Thailand said Aug. 20.
January-delivery rubber on the Shanghai Futures Exchange lost 1.2 percent to 25,130 yuan ($3,697) a ton at 10:15 a.m. local time.
(bloomberg.com)
Sunday, August 22, 2010
Spot rubber turns weak
Spot rubber turns weak
Kottayam, Aug. 21
Spot rubber closed weak on Saturday. The market appeared to be in a holiday mood prior to Onam.
Sheet rubber surrendered further to Rs 170 from Rs 171 a kg on buyer resistance.
The general trend was mixed as ungraded rubber, ISNR 20 and latex finished flat amidst comparatively thin volumes.
Futures improve
The September futures for RSS 4 improved to Rs 168.20 (167.24), October to Rs 164.14 (163.19), November to Rs 164.17 (162.78) and December to Rs 165.36 (163.81) a kg on National Multi Commodity Exchange (NMCE).
The volumes totalled 2576 lots and turnover 43.03 crores. The open interest in all series was 4083 lots .
Spot rate
Spot rates were (Rs/kg): RSS-4: 170 (171); RSS-5: 161 (162); ungraded: 156 (156); ISNR 20: 150 (150) and latex 60 per cent: 111 (111).
Rubber prices take a plunge
‘Psychological impact' of reduction of import duty
International prices make steady climb
Arrivals continue to be scarce
KOTTAYAM: With the Union government slashing the import duty of Natural Rubber (NR) from 20 per cent to 7.5 per cent, the NR prices took a plunge to Rs.174 a kg from the dizzy heights of Rs.186 a kg it had soared during the first week of the month.
In fact, the month opened at Rs.184 a kg and quickly climbed to the all-time high at Rs.186 a kg ($402.40 for 100 kg) and held the price for two consecutive days before tapering off to Rs.180 a kg ($385.95 for 100 kg) on Thursday, before plummeting to Rs.174 a kg ($373.05 for 100 kg) on Friday. This denotes a loss of $1,978 per 100 kg during the week.
However, the international prices at the same time made a steady climb during the week which opened at Rs.152.33 a kg ($ 327.05) at the Bangkok market. The week closed at Rs.156.19 a kg ($334.90) denoting a gain of Rs.3.85 a kg ($.7.85 per 100 kg)
According to George Valy, president, Indian Rubber Dealer Federation, the sudden fall in price is only a result of the psychological impact of the news on slash in import duty. The decision of the tyre manufacturers to keep away from the market and pressure on the growers to go in for Onam festival selling too might have impacted the fall in the prices. With the rain continuing for at least another week, the arrivals would continue to be scarce, though it may pick up in September, he said.
Optimism
In spite of the political hue and cry, many believe the internal rubber industry would be able to withstand its adverse effects on account of the ground realities prevailing in the Indian market which is blessed with an unprecedented boom in automotive industry and the tyre industry.
The projected consumption of NR in the country for the current fiscal is expected to be 9.78 lakh tonnes, according to conservative estimates, while the production is expected to reach an all-time high mark of 8.93 lakh tonnes – denoting a gap of 85,000 tonnes.
However, Rubber Board authorities point out that this deficit would not result in a scarcity as there is already a stock of 2,30,420 tonnes of NR by May end.
Problem for UDF
But, the Centre' decision has given the Left Democratic Front yet another stick to beat the Congress-led United Democratic Front in the latter's stronghold where rubber prices are as sensitive a political issue as it is an economic issue. With the Centre agreeing to a monthly review of the situation and imposing various stipulations on the import, the growers may take a wait and see attitude to the new development.
Kottayam, Aug. 21
Spot rubber closed weak on Saturday. The market appeared to be in a holiday mood prior to Onam.
Sheet rubber surrendered further to Rs 170 from Rs 171 a kg on buyer resistance.
The general trend was mixed as ungraded rubber, ISNR 20 and latex finished flat amidst comparatively thin volumes.
Futures improve
The September futures for RSS 4 improved to Rs 168.20 (167.24), October to Rs 164.14 (163.19), November to Rs 164.17 (162.78) and December to Rs 165.36 (163.81) a kg on National Multi Commodity Exchange (NMCE).
The volumes totalled 2576 lots and turnover 43.03 crores. The open interest in all series was 4083 lots .
Spot rate
Spot rates were (Rs/kg): RSS-4: 170 (171); RSS-5: 161 (162); ungraded: 156 (156); ISNR 20: 150 (150) and latex 60 per cent: 111 (111).
Rubber prices take a plunge
‘Psychological impact' of reduction of import duty
International prices make steady climb
Arrivals continue to be scarce
KOTTAYAM: With the Union government slashing the import duty of Natural Rubber (NR) from 20 per cent to 7.5 per cent, the NR prices took a plunge to Rs.174 a kg from the dizzy heights of Rs.186 a kg it had soared during the first week of the month.
In fact, the month opened at Rs.184 a kg and quickly climbed to the all-time high at Rs.186 a kg ($402.40 for 100 kg) and held the price for two consecutive days before tapering off to Rs.180 a kg ($385.95 for 100 kg) on Thursday, before plummeting to Rs.174 a kg ($373.05 for 100 kg) on Friday. This denotes a loss of $1,978 per 100 kg during the week.
However, the international prices at the same time made a steady climb during the week which opened at Rs.152.33 a kg ($ 327.05) at the Bangkok market. The week closed at Rs.156.19 a kg ($334.90) denoting a gain of Rs.3.85 a kg ($.7.85 per 100 kg)
According to George Valy, president, Indian Rubber Dealer Federation, the sudden fall in price is only a result of the psychological impact of the news on slash in import duty. The decision of the tyre manufacturers to keep away from the market and pressure on the growers to go in for Onam festival selling too might have impacted the fall in the prices. With the rain continuing for at least another week, the arrivals would continue to be scarce, though it may pick up in September, he said.
Optimism
In spite of the political hue and cry, many believe the internal rubber industry would be able to withstand its adverse effects on account of the ground realities prevailing in the Indian market which is blessed with an unprecedented boom in automotive industry and the tyre industry.
The projected consumption of NR in the country for the current fiscal is expected to be 9.78 lakh tonnes, according to conservative estimates, while the production is expected to reach an all-time high mark of 8.93 lakh tonnes – denoting a gap of 85,000 tonnes.
However, Rubber Board authorities point out that this deficit would not result in a scarcity as there is already a stock of 2,30,420 tonnes of NR by May end.
Problem for UDF
But, the Centre' decision has given the Left Democratic Front yet another stick to beat the Congress-led United Democratic Front in the latter's stronghold where rubber prices are as sensitive a political issue as it is an economic issue. With the Centre agreeing to a monthly review of the situation and imposing various stipulations on the import, the growers may take a wait and see attitude to the new development.
Saturday, August 21, 2010
My Predictions
1)I had predicted 4 monthe before to all of my regular buyers that after 15th Aug,2010,rubber prices will start falling down. The results are in front of you,prices nosedives.In November 2009(when ruling rubber prices were only 85 to 90), I made predictions that rubber will cross 150 before monsoon, 190 during monsoon,that also came right.
2)Spot rubber nosedives
Kottayam, Aug. 20
Spot rubber nosedived on Friday. The market continued its downward journey reacting to the decision of the Ministry of Commerce to reduce the import duty of natural rubber from 20 per cent to 7.5 per cent. RSS-4 declined sharply to Rs 171 from Rs 180 a kg in the main marketing centres.
According to observers, there has been visible selling pressure from dealers. The board's rate moved down to Rs 174 from Rs 180 a kg for sheet rubber.
The market may remain subdued during the weekend session on Saturday prior to the Onam holidays. The September futures moved down to Rs 167.31 (172.38), October to Rs 163.50 (166.25), November to Rs 162.78 (165.64) and December to Rs 164.25 (166.54) a kg for RSS 4 on the National Multi Commodity Exchange.
The volumes stood at 6,462 lots. RSS-3 weakened at its August futures to ¥332.0/Rs 181.65 (¥334.3) a kg during the day session and closed unchanged during the night session on the Tokyo Commodity Exchange.
The grade (spot) improved to Rs 156.19 (155.67) a kg at Bangkok. Physical rubber rates per kg were: RSS-4 Rs 171(180); RSS-5 Rs 162 (170); Ungraded Rs 156 (160); ISNR 20 Rs 150 (154) and Latex 60% Rs 111 (114).
3)Panel wants Customs duty cut on rubber imports
Suggests duty of Rs 20.46/kg or 20 per cent.
The ultimate objective of fixing the cap would be to harmonise the domestic rubber prices with international prices.
Kochi, Aug. 20
The Government-appointed panel to look into the problems of the rubber industry has recommended that the Customs duty on natural rubber imports be brought down to either Rs 20.46 for a kg or 20 per cent, whichever is lower. This comes as a major relief to the consuming industry which has seen a widening divide between the Indian and international price of natural rubber.
The duty of Rs 20.46 for a kg was arrived at by calculating the last three-year average price of natural rubber in Indian markets, which worked out to Rs 102.32 for a kg. As the price of natural rubber soared in the Indian and international markets, the industry was constrained to pay as much as Rs 30-32 for a kg. As the Customs duty continued to remain at 20 per cent, it had hampered imports which resulted in differentials between Indian and international prices widening to as much as Rs 30 for a kg.
The cap on non-ad valorem duty shall be subjected to annual revision based on the trends in natural rubber prices, production, consumption and external trade in rubber and in rubber products, the panel has recommended. The ultimate objective of fixing the cap would be to harmonise the domestic rubber prices with international prices and would be fixed only if the average price in the domestic market remained higher than that of comparable grade in the international market.
Prices
The panel was of the opinion that minimum and maximum price for natural rubber shall not be notified except in an emergency situation as they cannot be enforced without infringing upon the commitments of the Government of India under the WTO agreement. The demand for banning futures trade in rubber also did not find favour. But it was thought prudent that the Forwards Markets Commission be directed to re-examine the Daily Cap. On the question whether the rubber cess should come under Cenvat, the panel left the final decision to the Union Ministry of Finance.
The panel which was headed by the Rubber Board Chairman, Mr Sajen Peter, and had expert members as well as a nominee from the Forward Market Commission, was concerned about the rubber consuming units in the country. However, the market for natural rubber had a handful of major tyre manufacturing units dominating the purchase side and numerous marginal/small farmers on the supply side.
Withheld stocks
While powerful sections of the consuming industry had been reportedly influencing rubber prices earlier, the current complaints have been that the producers and traders have been withholding stock to jack up prices. It was in this background that the panel felt that some sort of tariff concessions should be accorded to the rubber consuming industry at least on an ad hoc basis. This, it was believed, would lead to greater harmonisation and integration of domestic and international prices of natural rubber.
The integration of rubber market with the world market which culminated in the lifting of quantitative restrictions in April 2001, led to the harmonisation of the Indian and international prices of rubber.
During the 1980s, domestic prices on an average were about 50 per cent higher than international rubber prices. However, the higher domestic rubber prices could be absorbed by the Indian industry by virtue of the domestic market orientation and protection from external competition.
This changed dramatically by 1990s when domestic prices ruled just 6.5 per cent above global prices. Even that trend was reversed during the current decade when domestic prices were lower by 2.8 per cent from global prices. The panel felt that the time had come bring non-advalorem duty as the protection extended to the domestic rubber manufacturing industry has been substantially eroded and the sector has to face intense competition especially from Chinese manufacturers.
4)Natural rubber prices fall in anticipation of lower duty
Posted: 19 Aug 2010 08:26 PM PDT
Natural rubber prices plummeted in the local market today, following the commerce ministry decision to reduce import duty on NR to 7.5 per cent from 20 per cent.
The price of the benchmark grade, RSS 4, fell to Rs 180 a kg from Rs 184 on Wednesday. The ministry had proposed to reduce the duty as the country was facing serious shortage resulting in the price rise.
The rubber-based industry, especially tyre manufacturers had been asking the ministry to reduce duty. Even after the dip in prices, the Indian market is higher by Rs 25 a kg to global market rates. The Bangkok market today quoted Rs 155.
The decision, however, still awaits a formal announcement from the ministry of Finance and Cabinet approval. The rubber-based industry has been pressing this demand for some time now, with the surging prices during the last 5-6 months. Though the Rubber Board data ensures a stock of more than 200,000 tonnes, the local market is experiencing serious shortage.
From June onwards, local prices were higher than the global market and import might have been a temporary solution. But the exorbitantly high duty was the main hurdle to import rubber.
Refuting the board’s data, Automotive Tyre Manufacturers Association (Atma) said the local stock would not be more than 100,000 tonnes. A recent direction of the Delhi High court to ensure supply of rubber in the country, had also prompted the government to ensure supply through the import route.
The various organisations of the industry, including Atma, had demanded that the duty be reduced to 7.5 per cent as import duty on rubber-based finished products, including tyre, was 10 per cent.
However, the 11-lakh rubber growers in Kerala – 92 per cent of rubber is produced in the state – are waiting to see whether the Cabinet approves the reduction in duty as local prices could drop as a consequence.
MPs from the state, cutting across party lines, have protested the decision as the local body elections are approaching. But, this time, they feel that there will be a reduction in duty.
George John, a farmer from Ernakulam district said the decision of the commerce ministry is unfair as farmers are getting the ‘high’ prices only for the last three-four months. The average price in 2009 was Rs 97. “After long periods of suffering and hardship we are getting a good price and the government is damaging the prospects even of this temporary advantage by favouring the industry.”
P V Ajith, a Thiruvananthapuram farmer told Business Standard that the government should also consider the concerns of the farmers. He said that the price hike is only a ‘temporary bonus’ to the growers.
In India, consumption is increasing at a much faster pace – with growing demands for rubber based goods, especially tyres – than production, hence the demand-supply gap is widening in recent years. Industry associations are of the view that import is the effective way to meet the increasing demand.
The government’s decision will also pave the way for a political battle, as the state is now gearing up for local body elections. A section of the media, with affinity to the Left had already kicked off a debate on the issue. Athough the decision is economic, the political repercussions would be deeper and wider.
(business-standard.com)
5)State opposes cut in rubber import duty
SPECIAL CORRESPONDENT
The State government will communicate its protest against the reduction of import duty on rubber to the Centre, Finance Minister T.M. Thomas Isaac has said.
The Minister told a press conference here on Friday that the Central government had ignored the recommendation of its own committee in reducing the import duty to 7.5 per cent. The committee, appointed by the Centre to review the import policy and headed by the chairman of the Rubber Board, had suggested a duty of 20 per cent ad valorem. If the duty based on prevailing price was not available, importers had the choice of opting for a duty rate of Rs.20.46 a kg.
Under the Association of South-East Asian Nations (ASEAN) trade agreement, India could impose duty of up to 25 per cent on rubber. However, the Centre had now chosen to bring it down to 7.5 per cent which would gravely affect the farmers of the State. Kerala should raise strong protest against that, he said.
The Minister said the domestic prices for rubber, which ruled at Rs.185 a kg, had dropped following the announcement of the reduction in duty. Current international prices of rubber ranged from Rs.150 a kg to Rs.155 a kg. So, it would be possible to import rubber at prices lower than in the domestic market. It was to be noted in this regard that domestic prices used to be 50 per cent higher than the international prices before the signing of the ASEAN agreement. The Centre was bringing down the duty rates under pressure from importers and exporters in other countries.(THE HINDU)
Natural rubber imports rise sharply on duty cut
Source: Business Times Dial | Last Updated 10:11 (29/07/10)
Tire industry in the past month from rising demand for natural rubber prices in the domestic market has appreciated by 7.6 per cent is. Kottayam in Kerala on Wednesday -5 RSS and RSS-4 price increase respectively were 178 and 183 kg. Natural rubber prices in the futures market has risen 6.8 per cent. During the Singapore Commodity Exchange (Sicoma) in natural rubber prices declined 12.3 percent. Imports are expected to rise in coming days because the current is increasingly likely to stay.
Rubber Merchants Association Secretary Ashok Khurana said the tire industry demand for natural rubber prices rising trend remains up. RSS RSS -4 -5 and prices in Kottayam on June 28 were 168 and 170 kg, which increased on Wednesday respectively were 178 and 183 kg. Natural rubber prices in the far abroad were strong, making imports was reduced. But in the past month, prices in foreign markets has fallen nearly 12.3 percent. Singapore Commodity Exchange (Sicoma) Natural rubber prices in the Rs 169-170 per kg on June 28 (Indian currency) was reduced to 148-149 kg, which left on Wednesday. Overseas markets than in India, nearly 34 kg less than its price in the coming days why imports are expected to rise. Natural rubber in the domestic market's current boom could take breaks.
According to the Indian Rubber Board in June 9255 tonnes of natural rubber imports is already 20 250 tonnes imported last year was in June. In June, domestic natural rubber production has increased by five per cent. Domestic production increased during this period was 57,000 tonnes in the same month last year while only 54 255 tonnes was produced. Consumption has also increased during this period. Natural rubber consumption in June of the current year was 75,000 tons in the same month last year while the consumption was 74 220 tonnes.
National Multi Commodity Exchange (NMCE), the August futures contract for natural rubber prices close 6.8 per cent in the past month has come fast. Investors purchase futures contracts in August to rise in prices of natural rubber kg were increased to 187 on Wednesday. In August, the futures contract on June 28 the price was 175 kg. Herisns Malayalam Ltd Managing Director Pankaj Kapur, said to be less consumed than natural rubber production is the sharp increase in prices. In fiscal 2010-11 Natural rubber consumption in the country is estimated at Rs 9.78 lakh tonnes. During this period, while production is estimated to be 8.93 million tonnes.
Of sense in the futures market futures 6.8 per cent in August Natural kg in a month has risen to 187. But rising imports coming forward spot in the softening effect might seem.(Dainik Bhaskar)
2)Spot rubber nosedives
Kottayam, Aug. 20
Spot rubber nosedived on Friday. The market continued its downward journey reacting to the decision of the Ministry of Commerce to reduce the import duty of natural rubber from 20 per cent to 7.5 per cent. RSS-4 declined sharply to Rs 171 from Rs 180 a kg in the main marketing centres.
According to observers, there has been visible selling pressure from dealers. The board's rate moved down to Rs 174 from Rs 180 a kg for sheet rubber.
The market may remain subdued during the weekend session on Saturday prior to the Onam holidays. The September futures moved down to Rs 167.31 (172.38), October to Rs 163.50 (166.25), November to Rs 162.78 (165.64) and December to Rs 164.25 (166.54) a kg for RSS 4 on the National Multi Commodity Exchange.
The volumes stood at 6,462 lots. RSS-3 weakened at its August futures to ¥332.0/Rs 181.65 (¥334.3) a kg during the day session and closed unchanged during the night session on the Tokyo Commodity Exchange.
The grade (spot) improved to Rs 156.19 (155.67) a kg at Bangkok. Physical rubber rates per kg were: RSS-4 Rs 171(180); RSS-5 Rs 162 (170); Ungraded Rs 156 (160); ISNR 20 Rs 150 (154) and Latex 60% Rs 111 (114).
3)Panel wants Customs duty cut on rubber imports
Suggests duty of Rs 20.46/kg or 20 per cent.
The ultimate objective of fixing the cap would be to harmonise the domestic rubber prices with international prices.
Kochi, Aug. 20
The Government-appointed panel to look into the problems of the rubber industry has recommended that the Customs duty on natural rubber imports be brought down to either Rs 20.46 for a kg or 20 per cent, whichever is lower. This comes as a major relief to the consuming industry which has seen a widening divide between the Indian and international price of natural rubber.
The duty of Rs 20.46 for a kg was arrived at by calculating the last three-year average price of natural rubber in Indian markets, which worked out to Rs 102.32 for a kg. As the price of natural rubber soared in the Indian and international markets, the industry was constrained to pay as much as Rs 30-32 for a kg. As the Customs duty continued to remain at 20 per cent, it had hampered imports which resulted in differentials between Indian and international prices widening to as much as Rs 30 for a kg.
The cap on non-ad valorem duty shall be subjected to annual revision based on the trends in natural rubber prices, production, consumption and external trade in rubber and in rubber products, the panel has recommended. The ultimate objective of fixing the cap would be to harmonise the domestic rubber prices with international prices and would be fixed only if the average price in the domestic market remained higher than that of comparable grade in the international market.
Prices
The panel was of the opinion that minimum and maximum price for natural rubber shall not be notified except in an emergency situation as they cannot be enforced without infringing upon the commitments of the Government of India under the WTO agreement. The demand for banning futures trade in rubber also did not find favour. But it was thought prudent that the Forwards Markets Commission be directed to re-examine the Daily Cap. On the question whether the rubber cess should come under Cenvat, the panel left the final decision to the Union Ministry of Finance.
The panel which was headed by the Rubber Board Chairman, Mr Sajen Peter, and had expert members as well as a nominee from the Forward Market Commission, was concerned about the rubber consuming units in the country. However, the market for natural rubber had a handful of major tyre manufacturing units dominating the purchase side and numerous marginal/small farmers on the supply side.
Withheld stocks
While powerful sections of the consuming industry had been reportedly influencing rubber prices earlier, the current complaints have been that the producers and traders have been withholding stock to jack up prices. It was in this background that the panel felt that some sort of tariff concessions should be accorded to the rubber consuming industry at least on an ad hoc basis. This, it was believed, would lead to greater harmonisation and integration of domestic and international prices of natural rubber.
The integration of rubber market with the world market which culminated in the lifting of quantitative restrictions in April 2001, led to the harmonisation of the Indian and international prices of rubber.
During the 1980s, domestic prices on an average were about 50 per cent higher than international rubber prices. However, the higher domestic rubber prices could be absorbed by the Indian industry by virtue of the domestic market orientation and protection from external competition.
This changed dramatically by 1990s when domestic prices ruled just 6.5 per cent above global prices. Even that trend was reversed during the current decade when domestic prices were lower by 2.8 per cent from global prices. The panel felt that the time had come bring non-advalorem duty as the protection extended to the domestic rubber manufacturing industry has been substantially eroded and the sector has to face intense competition especially from Chinese manufacturers.
4)Natural rubber prices fall in anticipation of lower duty
Posted: 19 Aug 2010 08:26 PM PDT
Natural rubber prices plummeted in the local market today, following the commerce ministry decision to reduce import duty on NR to 7.5 per cent from 20 per cent.
The price of the benchmark grade, RSS 4, fell to Rs 180 a kg from Rs 184 on Wednesday. The ministry had proposed to reduce the duty as the country was facing serious shortage resulting in the price rise.
The rubber-based industry, especially tyre manufacturers had been asking the ministry to reduce duty. Even after the dip in prices, the Indian market is higher by Rs 25 a kg to global market rates. The Bangkok market today quoted Rs 155.
The decision, however, still awaits a formal announcement from the ministry of Finance and Cabinet approval. The rubber-based industry has been pressing this demand for some time now, with the surging prices during the last 5-6 months. Though the Rubber Board data ensures a stock of more than 200,000 tonnes, the local market is experiencing serious shortage.
From June onwards, local prices were higher than the global market and import might have been a temporary solution. But the exorbitantly high duty was the main hurdle to import rubber.
Refuting the board’s data, Automotive Tyre Manufacturers Association (Atma) said the local stock would not be more than 100,000 tonnes. A recent direction of the Delhi High court to ensure supply of rubber in the country, had also prompted the government to ensure supply through the import route.
The various organisations of the industry, including Atma, had demanded that the duty be reduced to 7.5 per cent as import duty on rubber-based finished products, including tyre, was 10 per cent.
However, the 11-lakh rubber growers in Kerala – 92 per cent of rubber is produced in the state – are waiting to see whether the Cabinet approves the reduction in duty as local prices could drop as a consequence.
MPs from the state, cutting across party lines, have protested the decision as the local body elections are approaching. But, this time, they feel that there will be a reduction in duty.
George John, a farmer from Ernakulam district said the decision of the commerce ministry is unfair as farmers are getting the ‘high’ prices only for the last three-four months. The average price in 2009 was Rs 97. “After long periods of suffering and hardship we are getting a good price and the government is damaging the prospects even of this temporary advantage by favouring the industry.”
P V Ajith, a Thiruvananthapuram farmer told Business Standard that the government should also consider the concerns of the farmers. He said that the price hike is only a ‘temporary bonus’ to the growers.
In India, consumption is increasing at a much faster pace – with growing demands for rubber based goods, especially tyres – than production, hence the demand-supply gap is widening in recent years. Industry associations are of the view that import is the effective way to meet the increasing demand.
The government’s decision will also pave the way for a political battle, as the state is now gearing up for local body elections. A section of the media, with affinity to the Left had already kicked off a debate on the issue. Athough the decision is economic, the political repercussions would be deeper and wider.
(business-standard.com)
5)State opposes cut in rubber import duty
SPECIAL CORRESPONDENT
The State government will communicate its protest against the reduction of import duty on rubber to the Centre, Finance Minister T.M. Thomas Isaac has said.
The Minister told a press conference here on Friday that the Central government had ignored the recommendation of its own committee in reducing the import duty to 7.5 per cent. The committee, appointed by the Centre to review the import policy and headed by the chairman of the Rubber Board, had suggested a duty of 20 per cent ad valorem. If the duty based on prevailing price was not available, importers had the choice of opting for a duty rate of Rs.20.46 a kg.
Under the Association of South-East Asian Nations (ASEAN) trade agreement, India could impose duty of up to 25 per cent on rubber. However, the Centre had now chosen to bring it down to 7.5 per cent which would gravely affect the farmers of the State. Kerala should raise strong protest against that, he said.
The Minister said the domestic prices for rubber, which ruled at Rs.185 a kg, had dropped following the announcement of the reduction in duty. Current international prices of rubber ranged from Rs.150 a kg to Rs.155 a kg. So, it would be possible to import rubber at prices lower than in the domestic market. It was to be noted in this regard that domestic prices used to be 50 per cent higher than the international prices before the signing of the ASEAN agreement. The Centre was bringing down the duty rates under pressure from importers and exporters in other countries.(THE HINDU)
Natural rubber imports rise sharply on duty cut
Source: Business Times Dial | Last Updated 10:11 (29/07/10)
Tire industry in the past month from rising demand for natural rubber prices in the domestic market has appreciated by 7.6 per cent is. Kottayam in Kerala on Wednesday -5 RSS and RSS-4 price increase respectively were 178 and 183 kg. Natural rubber prices in the futures market has risen 6.8 per cent. During the Singapore Commodity Exchange (Sicoma) in natural rubber prices declined 12.3 percent. Imports are expected to rise in coming days because the current is increasingly likely to stay.
Rubber Merchants Association Secretary Ashok Khurana said the tire industry demand for natural rubber prices rising trend remains up. RSS RSS -4 -5 and prices in Kottayam on June 28 were 168 and 170 kg, which increased on Wednesday respectively were 178 and 183 kg. Natural rubber prices in the far abroad were strong, making imports was reduced. But in the past month, prices in foreign markets has fallen nearly 12.3 percent. Singapore Commodity Exchange (Sicoma) Natural rubber prices in the Rs 169-170 per kg on June 28 (Indian currency) was reduced to 148-149 kg, which left on Wednesday. Overseas markets than in India, nearly 34 kg less than its price in the coming days why imports are expected to rise. Natural rubber in the domestic market's current boom could take breaks.
According to the Indian Rubber Board in June 9255 tonnes of natural rubber imports is already 20 250 tonnes imported last year was in June. In June, domestic natural rubber production has increased by five per cent. Domestic production increased during this period was 57,000 tonnes in the same month last year while only 54 255 tonnes was produced. Consumption has also increased during this period. Natural rubber consumption in June of the current year was 75,000 tons in the same month last year while the consumption was 74 220 tonnes.
National Multi Commodity Exchange (NMCE), the August futures contract for natural rubber prices close 6.8 per cent in the past month has come fast. Investors purchase futures contracts in August to rise in prices of natural rubber kg were increased to 187 on Wednesday. In August, the futures contract on June 28 the price was 175 kg. Herisns Malayalam Ltd Managing Director Pankaj Kapur, said to be less consumed than natural rubber production is the sharp increase in prices. In fiscal 2010-11 Natural rubber consumption in the country is estimated at Rs 9.78 lakh tonnes. During this period, while production is estimated to be 8.93 million tonnes.
Of sense in the futures market futures 6.8 per cent in August Natural kg in a month has risen to 187. But rising imports coming forward spot in the softening effect might seem.(Dainik Bhaskar)
Friday, August 20, 2010
Steep fall in rubber on import duty cut
Steep fall in rubber on import duty cut
Kottayam, Aug. 19
Physical rubber prices declined sharply on Thursday. The news that the import duty of natural rubber has been reduced from 20 per cent to 7.5 per cent has created a panic situation in the market circles.
Sheet rubber nosedived to Rs 180 from Rs 184 a kg on buyer resistance. The Board's rate fell to Rs 180 from Rs 183 a kg for RSS 4. The September futures weakened to Rs 171.30 (172.27), while the October futures improved to Rs 165.51 (165.38), November to Rs 164.50 (163.74) and December to Rs 166 (165.22) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
The volumes were 6,238 lots. The total open interest in all series was 3,795 lots and turnover Rs 106.33 crore. The Tokyo rubber futures firmed up catalysed by the Yen's fall against the dollar and a retreat in oil prices. RSS 3 improved at its August futures to ¥ 334.3/Rs 181.17 ( ¥330) a kg during the day session and to ¥334.9 (Rs 181.49) during the night session on the Tokyo Commodity Exchange (TOCOM).
RSS 3 (spot) increased to Rs 155.67 (Rs 154.78) a kg at Bangkok. The spot rubber rates per kg were: RSS-4 Rs 180 (184); RSS-5 Rs 170 (174); Ungraded Rs 160 (164); ISNR 20 Rs 154 (156) and Latex 60% Rs 114 (114).
Rubber price rise hits non-tyre sector
Posted: 18 Aug 2010 03:56 PM PDT
Kochi: Non-tyre rubber industry, which mostly produces footwear, conveyor belts, hoses and tubes, is facing a serious crisis due to steep rise in prices of natural rubber.
More than 200 firms producing rubber-based products have shut shop last year due to higher input price of rubber and the inverted duty structure, which favours import of finished products, TK Mukherjee, president, All India Rubber Industries Association (AIRIA), said.
Non-tyre rubber industries consume 60% of the natural rubber produced in the country with automotive tyre manufacturers consuming the rest.
Demand for natural rubber over strips supply by almost 2 lakh tonne per annum and imports are necessary to keep the industry running, he said.
Local rubber prices have nearly doubled in the past year on a drop in output due to drought coupled with rising demand from tyremakers. RSS 4 prices touched Rs 186 per kg last week in the Kottayam market while the comparable international price hovered around Rs 150 per kg.
Tyre manufactures and non-tyre industries have been asking the government to allow duty free imports of 2 lakh tonne of natural rubber to cool the domestic market.
“But the inverted duty structure, where rubber imports are taxed 20% while finished rubber products are taxed less than 10% works against the interest of the domestic industry. It is cheaper to import finished products,” he said.
Demand for products like transmission belts, conveyor belts, hoses, tubes, cables and wires are increasing rapidly with good growth in the mining and infrastructure industry. “But importing a conveyor belt from China works out to be cheaper than buying one from India,” he added.
Domestic tyre manufactures are also claiming large-scale imports of Chinese tyre into India due to the current duty structure.
(financialexpress.com)
Kottayam, Aug. 19
Physical rubber prices declined sharply on Thursday. The news that the import duty of natural rubber has been reduced from 20 per cent to 7.5 per cent has created a panic situation in the market circles.
Sheet rubber nosedived to Rs 180 from Rs 184 a kg on buyer resistance. The Board's rate fell to Rs 180 from Rs 183 a kg for RSS 4. The September futures weakened to Rs 171.30 (172.27), while the October futures improved to Rs 165.51 (165.38), November to Rs 164.50 (163.74) and December to Rs 166 (165.22) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
The volumes were 6,238 lots. The total open interest in all series was 3,795 lots and turnover Rs 106.33 crore. The Tokyo rubber futures firmed up catalysed by the Yen's fall against the dollar and a retreat in oil prices. RSS 3 improved at its August futures to ¥ 334.3/Rs 181.17 ( ¥330) a kg during the day session and to ¥334.9 (Rs 181.49) during the night session on the Tokyo Commodity Exchange (TOCOM).
RSS 3 (spot) increased to Rs 155.67 (Rs 154.78) a kg at Bangkok. The spot rubber rates per kg were: RSS-4 Rs 180 (184); RSS-5 Rs 170 (174); Ungraded Rs 160 (164); ISNR 20 Rs 154 (156) and Latex 60% Rs 114 (114).
Rubber price rise hits non-tyre sector
Posted: 18 Aug 2010 03:56 PM PDT
Kochi: Non-tyre rubber industry, which mostly produces footwear, conveyor belts, hoses and tubes, is facing a serious crisis due to steep rise in prices of natural rubber.
More than 200 firms producing rubber-based products have shut shop last year due to higher input price of rubber and the inverted duty structure, which favours import of finished products, TK Mukherjee, president, All India Rubber Industries Association (AIRIA), said.
Non-tyre rubber industries consume 60% of the natural rubber produced in the country with automotive tyre manufacturers consuming the rest.
Demand for natural rubber over strips supply by almost 2 lakh tonne per annum and imports are necessary to keep the industry running, he said.
Local rubber prices have nearly doubled in the past year on a drop in output due to drought coupled with rising demand from tyremakers. RSS 4 prices touched Rs 186 per kg last week in the Kottayam market while the comparable international price hovered around Rs 150 per kg.
Tyre manufactures and non-tyre industries have been asking the government to allow duty free imports of 2 lakh tonne of natural rubber to cool the domestic market.
“But the inverted duty structure, where rubber imports are taxed 20% while finished rubber products are taxed less than 10% works against the interest of the domestic industry. It is cheaper to import finished products,” he said.
Demand for products like transmission belts, conveyor belts, hoses, tubes, cables and wires are increasing rapidly with good growth in the mining and infrastructure industry. “But importing a conveyor belt from China works out to be cheaper than buying one from India,” he added.
Domestic tyre manufactures are also claiming large-scale imports of Chinese tyre into India due to the current duty structure.
(financialexpress.com)
Thursday, August 19, 2010
India rubber industry hopes cut in import duty
India rubber industry hopes cut in import duty
MUMBAI (Commodity Online): The rubber industry is optimistic that import duty on natural rubber would be cut to 7.5% from the current 20% due to the sharp rise in domestic prices said by All India Rubber Industries Association.
According to Vietnam Rubber Association, Vietnam exported 324,000 tons rubber in the first seven months of the calendar year, down 3.4% over the year.
China's tire output in July rose 9.50% from a year earlier to 63.08 million units, reported by the National Bureau of Statistics. Total output in the January-July period rose 25.30% from the same period last year to 444.64 million units.
China's natural rubber imports in July fell 11.8% from a year earlier to 150,000 metric tons, but were 15.4% higher than the preceding month, the General Administration of Customs said Tuesday. Total imports between January and July decreased 1% to 980,000 tons.
TOCOM decided to decrease the delivery unit from 10 tonnes to 5 tonnes in order to meet the needs of commercials and improve the convenience of the market. The Exchange received an approval from the Minister of Economy, Trade and Industry to execute the necessary amendments to its Market Rules, which prescribe the delivery unit of each futures contract. Changes in the delivery unit of rubber futures will be applied from the March 2011 contract.
Vietnam rubber exports rebound in July
HANOI (Commodity Online) : World’s fifth largest rubber producer, Vietnam said its exports have shown positive signs as the volume and turnover have risen respectively by 2.3 and 92.4 percent in July compared the same period of 2009.
According to statistics of Ministry of Industry and Trade, in July, exports of natural rubber of Vietnam reached nearly 85,000 tonnes, worth $237 million, up by 46.7 percent in volume and 44.5 percent in value, compared to June 2010.
Compared to the same period of 2009, the export volume rose up by 2.3 percent, and value went up by 92.4 percent
Thus, in the first seven months of the year, exports of natural rubber reached 324,000 tonnes, worth $893million.
Although there was a slight decrease of about 3.4 percent in volume, value still increased significantly by about 85 percent compared to the same period of last year.
Till the first week of August 2010, natural rubber price has gone up compared to July 2010, since Chinese importers have again started to look for source of supply, after tightening imports in May and June 2010.
In addition, many other markets also enhanced the import of rubber such as Malaysia, Korea, Taiwan, and India, etc.
Meanwhile, supplies from countries such as Thailand, Malaysia and Indonesia grew slowly due to unfavourable weather conditions.
From June 2009, rubber price has risen continuously and hit a record of $410 per tonne in April 2010. However, in early May 2010, rubber price suddenly declined strongly, and then started going up again from mid June.
Vietnam Rubber Association said rubber exports of the country decreased in both volume and price in April and May 2010, since the rubber exploitation began, and the weather was not favourable.
An additional reason is Chinese authorities banned rubber exports across the border, and at the same time, China sold a large amount of rubber in stock. China is currently the biggest importer of Vietnamese rubber, holding 60 percent export market shares.
In the current situation, VRA said, exports of rubber materials would reach the planned target. The country's supply volume of latex is expected to reach 770,000 tonnes, up by 6.4 percent, compared to 2009.
Vietnam's export turnover of rubber may reach nearly $1.5 billion, up by about 22.3 percent compared to 2009.
Markets that increasingly import rubber from Vietnam are Malaysia, Taiwan, Korea, Germany, the US, Russia, and India, etc.
Notably, in addition to rubber material exports, exports of rubber products have also shown significant growth.
In the first seven months of 2010, rubber product exports reached $145 million, up by about 87 percent compared to the same period of last year.
Of that, value of tyres exported accounted for 70 to 80 percent the total export value of rubber products.
Import of rubber products of Vietnam in the first seven months of 2010 rose up slightly by 24.3 percent compared to the same period of last year.
Rubber Climbs to Three-Month High as Rains Curb Asian Supplies
Aug. 19 (Bloomberg) -- Rubber advanced for a third day to the highest level in more than three months on concern that rainfall in key producing countries will reduce supply, boosting the appeal of the commodity used to make tires.
The January-delivery contract advanced as much as 1.7 percent to 294.3 yen a kilogram ($3,430 a metric ton) on the Tokyo Commodity Exchange, the highest level since May 6, before settling at 293.8 yen.
“A lot of rain in Southeast Asia this year has affected supply,” Gu Jiong, an analyst at commodity broker Yutaka Shoji Co., said by phone from Tokyo. The top three producers, Thailand, Indonesia and Malaysia, account for about 70 percent of output.
Heavy rain is expected across Thailand, the largest producer, this week and next, the Thai Meteorological Department said on its website today. In Indonesia, rains are forecast in Sumatra, Kalimantan and parts of Sulawesi and Java this month and next, the Climatology and Geophysics Agency said on Aug. 11.
A La Nina weather event, which can bring above-average rainfall to parts of Asia, may persist until at least the end of this year, Australia’s Bureau of Meteorology said on its website yesterday.
Cash prices in Thailand gained 0.5 percent to 105.5 baht ($3.34) per kilogram as limited supply came onto the market after the rains, the Rubber Research Institute of Thailand said today on its website. January-delivery rubber in Shanghai rose 1.8 percent to close at 25,820 yuan ($3,803) a ton.
New Tax
“Some tiremakers began to buy rubber before a new tax in Thailand takes effect,” said Jiong at Yutaka Shoji. “From now to Sept. 30, we will see more buyers from Asia and the U.S.”
A higher levy on Thai exports ranging from 0.9 baht to 5 baht a kilogram, based on a sliding scale of free-on-board prices, will take effect from Oct. 1, replacing the existing levy that ranges from 0.9 baht a kilo to 1.4 baht.
A weaker yen and gains in Asian equities helped to support rubber today, said Hiroyuki Kikukawa, general manager of research at Tokyo-based IDO Securities Co. The yen fell to 85.92 per dollar from 85.46 yesterday, boosting the appeal of contracts denominated in the Japanese currency.
Buying also gained as some investors are worried supplies can’t be covered during upcoming holidays in producing countries, Yutaka Shoji’s Jiong said.
Markets in Indonesia, the second-largest exporter, will be closed for holidays from Sept. 9 to Sept. 13. Malaysia will have three public holidays next month.
Natural-rubber inventories in China expanded for a third week by 1,667 tons to 21,875 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said Aug. 13. Stockpiles in Japanese warehouses climbed 3.7 percent to 3,396 tons on Aug. 10, according to data from the Rubber Trade Association of Japan.
Top Glove Corp., the biggest rubber-glove maker, expects demand to grow 8 to 10 percent annually, spurred by health-care demand, Executive Director Lim Cheong Guan said on Aug. 18.
MUMBAI (Commodity Online): The rubber industry is optimistic that import duty on natural rubber would be cut to 7.5% from the current 20% due to the sharp rise in domestic prices said by All India Rubber Industries Association.
According to Vietnam Rubber Association, Vietnam exported 324,000 tons rubber in the first seven months of the calendar year, down 3.4% over the year.
China's tire output in July rose 9.50% from a year earlier to 63.08 million units, reported by the National Bureau of Statistics. Total output in the January-July period rose 25.30% from the same period last year to 444.64 million units.
China's natural rubber imports in July fell 11.8% from a year earlier to 150,000 metric tons, but were 15.4% higher than the preceding month, the General Administration of Customs said Tuesday. Total imports between January and July decreased 1% to 980,000 tons.
TOCOM decided to decrease the delivery unit from 10 tonnes to 5 tonnes in order to meet the needs of commercials and improve the convenience of the market. The Exchange received an approval from the Minister of Economy, Trade and Industry to execute the necessary amendments to its Market Rules, which prescribe the delivery unit of each futures contract. Changes in the delivery unit of rubber futures will be applied from the March 2011 contract.
Vietnam rubber exports rebound in July
HANOI (Commodity Online) : World’s fifth largest rubber producer, Vietnam said its exports have shown positive signs as the volume and turnover have risen respectively by 2.3 and 92.4 percent in July compared the same period of 2009.
According to statistics of Ministry of Industry and Trade, in July, exports of natural rubber of Vietnam reached nearly 85,000 tonnes, worth $237 million, up by 46.7 percent in volume and 44.5 percent in value, compared to June 2010.
Compared to the same period of 2009, the export volume rose up by 2.3 percent, and value went up by 92.4 percent
Thus, in the first seven months of the year, exports of natural rubber reached 324,000 tonnes, worth $893million.
Although there was a slight decrease of about 3.4 percent in volume, value still increased significantly by about 85 percent compared to the same period of last year.
Till the first week of August 2010, natural rubber price has gone up compared to July 2010, since Chinese importers have again started to look for source of supply, after tightening imports in May and June 2010.
In addition, many other markets also enhanced the import of rubber such as Malaysia, Korea, Taiwan, and India, etc.
Meanwhile, supplies from countries such as Thailand, Malaysia and Indonesia grew slowly due to unfavourable weather conditions.
From June 2009, rubber price has risen continuously and hit a record of $410 per tonne in April 2010. However, in early May 2010, rubber price suddenly declined strongly, and then started going up again from mid June.
Vietnam Rubber Association said rubber exports of the country decreased in both volume and price in April and May 2010, since the rubber exploitation began, and the weather was not favourable.
An additional reason is Chinese authorities banned rubber exports across the border, and at the same time, China sold a large amount of rubber in stock. China is currently the biggest importer of Vietnamese rubber, holding 60 percent export market shares.
In the current situation, VRA said, exports of rubber materials would reach the planned target. The country's supply volume of latex is expected to reach 770,000 tonnes, up by 6.4 percent, compared to 2009.
Vietnam's export turnover of rubber may reach nearly $1.5 billion, up by about 22.3 percent compared to 2009.
Markets that increasingly import rubber from Vietnam are Malaysia, Taiwan, Korea, Germany, the US, Russia, and India, etc.
Notably, in addition to rubber material exports, exports of rubber products have also shown significant growth.
In the first seven months of 2010, rubber product exports reached $145 million, up by about 87 percent compared to the same period of last year.
Of that, value of tyres exported accounted for 70 to 80 percent the total export value of rubber products.
Import of rubber products of Vietnam in the first seven months of 2010 rose up slightly by 24.3 percent compared to the same period of last year.
Rubber Climbs to Three-Month High as Rains Curb Asian Supplies
Aug. 19 (Bloomberg) -- Rubber advanced for a third day to the highest level in more than three months on concern that rainfall in key producing countries will reduce supply, boosting the appeal of the commodity used to make tires.
The January-delivery contract advanced as much as 1.7 percent to 294.3 yen a kilogram ($3,430 a metric ton) on the Tokyo Commodity Exchange, the highest level since May 6, before settling at 293.8 yen.
“A lot of rain in Southeast Asia this year has affected supply,” Gu Jiong, an analyst at commodity broker Yutaka Shoji Co., said by phone from Tokyo. The top three producers, Thailand, Indonesia and Malaysia, account for about 70 percent of output.
Heavy rain is expected across Thailand, the largest producer, this week and next, the Thai Meteorological Department said on its website today. In Indonesia, rains are forecast in Sumatra, Kalimantan and parts of Sulawesi and Java this month and next, the Climatology and Geophysics Agency said on Aug. 11.
A La Nina weather event, which can bring above-average rainfall to parts of Asia, may persist until at least the end of this year, Australia’s Bureau of Meteorology said on its website yesterday.
Cash prices in Thailand gained 0.5 percent to 105.5 baht ($3.34) per kilogram as limited supply came onto the market after the rains, the Rubber Research Institute of Thailand said today on its website. January-delivery rubber in Shanghai rose 1.8 percent to close at 25,820 yuan ($3,803) a ton.
New Tax
“Some tiremakers began to buy rubber before a new tax in Thailand takes effect,” said Jiong at Yutaka Shoji. “From now to Sept. 30, we will see more buyers from Asia and the U.S.”
A higher levy on Thai exports ranging from 0.9 baht to 5 baht a kilogram, based on a sliding scale of free-on-board prices, will take effect from Oct. 1, replacing the existing levy that ranges from 0.9 baht a kilo to 1.4 baht.
A weaker yen and gains in Asian equities helped to support rubber today, said Hiroyuki Kikukawa, general manager of research at Tokyo-based IDO Securities Co. The yen fell to 85.92 per dollar from 85.46 yesterday, boosting the appeal of contracts denominated in the Japanese currency.
Buying also gained as some investors are worried supplies can’t be covered during upcoming holidays in producing countries, Yutaka Shoji’s Jiong said.
Markets in Indonesia, the second-largest exporter, will be closed for holidays from Sept. 9 to Sept. 13. Malaysia will have three public holidays next month.
Natural-rubber inventories in China expanded for a third week by 1,667 tons to 21,875 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said Aug. 13. Stockpiles in Japanese warehouses climbed 3.7 percent to 3,396 tons on Aug. 10, according to data from the Rubber Trade Association of Japan.
Top Glove Corp., the biggest rubber-glove maker, expects demand to grow 8 to 10 percent annually, spurred by health-care demand, Executive Director Lim Cheong Guan said on Aug. 18.
Spot rubber stays firm on supply crunch
Spot rubber stays firm on supply crunch
Kottayam, Aug. 18
Spot rubber continued to rule steady on Wednesday. The market seemed to be suffering from acute short supplies. Practically there were no buyers or sellers in the main trading centres to give a definite direction to sheet rubber.
According to dealers, the grade finished unchanged at Rs 184 a kg amidst thin volumes. The Board's rate was also steady at Rs 183 a kg for RSS 4.
Futures decline
In futures, the September series declined sharply to Rs 171.20 (176.38), October Rs 164.49 (169.36), November Rs 163.90 (166.74) and December Rs 164.75 (167.50) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE). The benchmark Tokyo rubber futures contract improved nearly 3 per cent to a three-month high following a relative stability in Japanese stocks and a pause in the Yen's advance against dollar.
The August futures for RSS 3 moved up to ¥330/Rs 180.22 (¥325.7) a kg during the day session on the Tokyo Commodity Exchange (TOCOM). The grade finished steady at ¥330 during the night session. RSS 3 (spot) increased to Rs 154.78 (Rs 153.45) a kg at Bangkok. Spot rates were: RSS-4: 184 (184); RSS-5: 174 (174); ungraded: 164 (164); ISNR 20: 156 (156) and latex 60 per cent: 114 (114).
Rubber Board chief calls for steps to boost supply.
Our Bureau
Kochi, Aug. 18
Mr Sajen Peter, Chairman, Rubber Board, has called for promotion of replanting and new planting in order to augment supply and check further rise in prices of natural rubber.
The growers and consumers should come together to address common issues and share information and technology, he said while inaugurating the second edition of India Rubber Summit and Dinner organised by Rubber Asia, a premier rubber magazine here.
Annual award
Mr P.C. Cyriac, former Chairman of the Indian Rubber Board and former Chief Secretary of Tamil Nadu, said that Rubber Asia will institute an annual award after late Dr B.C. Sekhar, the world-renowned rubber scientist and administrator who contributed immensely to the global rubber industry.
The award will be given to a person from Asia who has contributed most for the development of the rubber industry.
About 350 delegates from India and countries such as China, Malaysia, Indonesia, Singapore, Sri Lanka, Laos and Vietnam attended the summit organised in association with All India Rubber Industries Association and Automotive Tyre Manufacturers Association.
In his keynote address, Dr Stephen V. Evans, Secretary General of International Rubber Study Group, said that the supply of natural rubber may match demand in the coming decade if normal circumstances prevailed. Dr James Jacob, Director, Rubber Research Institute of India, said that climate change will have a serious impact on rubber production and cautioned the industry to factor in the uncertainty prevailing on the production front.
Mr Ertugrul Yilmaz, a reputed tyre technologist, said the radialisation of truck and bus tyres, which needs natural rubber in large quantities, will further push up the demand for natural rubber.
In his welcome address, Mr Kurian Abraham, Editor and Managing Director, Rubber Asia, said that re-emergence of China and India as global economic powers would throw up new challenges to the rubber industry, especially on the supply side.
Mr John S. Powath, Executive Director, Rubber Asia, said that the Rubber Summit and Dinner would be made an annual event and the next edition would take place on August 13, 2011.
Rubber insurance scheme modified
Kottayam, Aug. 18
The Rubber Plantation Insurance Scheme for mature holdings jointly implemented by the Rubber Board and the National Insurance Company has been modified. The modifications are applicable to mature plantings in the age group of eight to 40 years.
Planted areas up to five hectares in the traditional areas and 20 hectares in non-traditional areas are eligible for the scheme. The sum insured has also been raised to Rs 250,000 a hectare, in case of complete loss of the plantation. The rate of premium including service tax is Rs 2,206 for a period of three years.
In case of partial damage of the holding, the amount of compensation per tree in the age groups of eight to 11, 12 to 15 and 16 to 22 years are Rs 800, Rs 840 and Rs 900, respectively. The amount of compensation is Rs 900 for trees under low frequency tapping in the age group of 23 to 40 years also. The maximum number of trees per hectare will be taken as 450 for consideration of settlement of the claim.
The proposal for insurance coverage of plantations under low frequency tapping is subjected to the recommendation of the inspecting officers form the Rubber Production Department of the Board.
In addition to damage from fire, wind, flood and landslide, the attack by wild animals is also now included. The scheme for plantations in the age group of one to eight years, with a compensation up to Rs 1,00,000 for a premium of Rs 938 for a period of eight years continues to be in operation. More details can be had from regional offices of the Board.
Kottayam, Aug. 18
Spot rubber continued to rule steady on Wednesday. The market seemed to be suffering from acute short supplies. Practically there were no buyers or sellers in the main trading centres to give a definite direction to sheet rubber.
According to dealers, the grade finished unchanged at Rs 184 a kg amidst thin volumes. The Board's rate was also steady at Rs 183 a kg for RSS 4.
Futures decline
In futures, the September series declined sharply to Rs 171.20 (176.38), October Rs 164.49 (169.36), November Rs 163.90 (166.74) and December Rs 164.75 (167.50) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE). The benchmark Tokyo rubber futures contract improved nearly 3 per cent to a three-month high following a relative stability in Japanese stocks and a pause in the Yen's advance against dollar.
The August futures for RSS 3 moved up to ¥330/Rs 180.22 (¥325.7) a kg during the day session on the Tokyo Commodity Exchange (TOCOM). The grade finished steady at ¥330 during the night session. RSS 3 (spot) increased to Rs 154.78 (Rs 153.45) a kg at Bangkok. Spot rates were: RSS-4: 184 (184); RSS-5: 174 (174); ungraded: 164 (164); ISNR 20: 156 (156) and latex 60 per cent: 114 (114).
Rubber Board chief calls for steps to boost supply.
Our Bureau
Kochi, Aug. 18
Mr Sajen Peter, Chairman, Rubber Board, has called for promotion of replanting and new planting in order to augment supply and check further rise in prices of natural rubber.
The growers and consumers should come together to address common issues and share information and technology, he said while inaugurating the second edition of India Rubber Summit and Dinner organised by Rubber Asia, a premier rubber magazine here.
Annual award
Mr P.C. Cyriac, former Chairman of the Indian Rubber Board and former Chief Secretary of Tamil Nadu, said that Rubber Asia will institute an annual award after late Dr B.C. Sekhar, the world-renowned rubber scientist and administrator who contributed immensely to the global rubber industry.
The award will be given to a person from Asia who has contributed most for the development of the rubber industry.
About 350 delegates from India and countries such as China, Malaysia, Indonesia, Singapore, Sri Lanka, Laos and Vietnam attended the summit organised in association with All India Rubber Industries Association and Automotive Tyre Manufacturers Association.
In his keynote address, Dr Stephen V. Evans, Secretary General of International Rubber Study Group, said that the supply of natural rubber may match demand in the coming decade if normal circumstances prevailed. Dr James Jacob, Director, Rubber Research Institute of India, said that climate change will have a serious impact on rubber production and cautioned the industry to factor in the uncertainty prevailing on the production front.
Mr Ertugrul Yilmaz, a reputed tyre technologist, said the radialisation of truck and bus tyres, which needs natural rubber in large quantities, will further push up the demand for natural rubber.
In his welcome address, Mr Kurian Abraham, Editor and Managing Director, Rubber Asia, said that re-emergence of China and India as global economic powers would throw up new challenges to the rubber industry, especially on the supply side.
Mr John S. Powath, Executive Director, Rubber Asia, said that the Rubber Summit and Dinner would be made an annual event and the next edition would take place on August 13, 2011.
Rubber insurance scheme modified
Kottayam, Aug. 18
The Rubber Plantation Insurance Scheme for mature holdings jointly implemented by the Rubber Board and the National Insurance Company has been modified. The modifications are applicable to mature plantings in the age group of eight to 40 years.
Planted areas up to five hectares in the traditional areas and 20 hectares in non-traditional areas are eligible for the scheme. The sum insured has also been raised to Rs 250,000 a hectare, in case of complete loss of the plantation. The rate of premium including service tax is Rs 2,206 for a period of three years.
In case of partial damage of the holding, the amount of compensation per tree in the age groups of eight to 11, 12 to 15 and 16 to 22 years are Rs 800, Rs 840 and Rs 900, respectively. The amount of compensation is Rs 900 for trees under low frequency tapping in the age group of 23 to 40 years also. The maximum number of trees per hectare will be taken as 450 for consideration of settlement of the claim.
The proposal for insurance coverage of plantations under low frequency tapping is subjected to the recommendation of the inspecting officers form the Rubber Production Department of the Board.
In addition to damage from fire, wind, flood and landslide, the attack by wild animals is also now included. The scheme for plantations in the age group of one to eight years, with a compensation up to Rs 1,00,000 for a premium of Rs 938 for a period of eight years continues to be in operation. More details can be had from regional offices of the Board.
Wednesday, August 18, 2010
Spot rubber rules steady
Spot rubber rules steady
Kottayam, Aug 17
Spot rubber prices closed unchanged on Tuesday. According to observers, the market remained neutral in tune with an almost similar mood in the major futures markets. Sheet rubber finished flat at Rs 184 a kg amidst scattered transactions. The Rubber Board's rate was also steady at Rs 183 a kg for RSS 4. Volumes were low.
Futures mixed
The domestic rubber futures showed a mixed trend on the National Multi Commodity Exchange. The September series closed at Rs 176.49 (176.64), October at Rs 169.25 (169.33), November at Rs 167.10 (166.50) and December at Rs 167.60 (166.97) a kg for RSS 4.
In the international market, Tokyo rubber futures closed slightly higher, followed by a slowdown in yen's appreciation against dollar. Transactions were in a low key due to the summer holiday season and uncertainties over the outlook for Japanese currency. The August futures for RSS 3 improved marginally to ¥325.7/Rs 178.03 (¥325.4) during the day session and to ¥326.8 (Rs 178.61) a kg during the night session on the Tokyo Commodity Exchange (TOCOM). The grade (spot) closed firm at Rs 153.45 (Rs 152.77) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 184 (184); RSS-5: 174 (174); ungraded: 164 (164); ISNR 20: 156 (156) and latex 60 per cent: 114 (114).
Malaysia’s rubber output falls by 12% in June
MUMBAI (Commodity Online): Malaysia's natural rubber production in June fell 12% from a year earlier to 70,745 metric tons, data from Malaysia's Department of Statistics showed Friday. Rubber stocks at the end of June totaled 117,226 tons, down 8.5% from a year earlier.
Rubber exports rose 24% to 71,339 tons, while imports fell 35% to 49,679 tons. Domestic rubber consumption fell 11% on year to 35,977 tons. Around 70% of Malaysia's rubber consumption is in the glove industry, which mainly uses latex concentrate.
U.S. imports of technically specified natural rubber rose 9.9% in June from the previous month, and was up 138.9% from the previous year, the Commerce Department reported Wednesday.
According to Vietnam Rubber Association, Vietnam exported 324,000 mt rubber in the first seven months of the calendar year, down 3.4% over the year. China's tire output in July rose 9.50% from a year earlier to 63.08 million units, the National Bureau of Statistics reported on Wednesday. Total output in the January-July period rose 25.30% from the same period last year to 444.64 million units.
China's natural rubber imports in July fell 11.8% from a year earlier to 150,000 metric tons, but were 15.4% higher than the preceding month, the General Administration of Customs said Tuesday. Total imports between January and July decreased 1% to 980,000 tons.
TOCOM decided to decrease the delivery unit from 10 tonnes to 5 tonnes in order to meet the needs of commercials and improve the convenience of the market.
Yesterday the Exchange received an approval from the Minister of Economy, Trade an Industry to execute the necessary amendments to its Market Rules, which prescribe the delivery unit of each futures contract. Changes in the delivery unit of rubber futures will be applied from the March 2011 contract that will start trading on September 27, 2010.
US rubber imports rises by 9.9% in June
MUMBAI (Commodity Online): U.S. imports of technically specified natural rubber rose 9.9% in June from the previous month, and was up 138.9% from the previous year, the Commerce Department reported Wednesday.
According to Vietnam Rubber Association, Vietnam exported 324,000 tn rubber in the first seven months of the calendar year, down 3.4% over the year.
China's tire output in July rose 9.50% from a year earlier to 63.08 million units, the National Bureau of Statistics reported on Wednesday. Total output in the January-July period rose 25.30% from the same period last year to 444.64 million units.
China's natural rubber imports in July fell 11.8% from a year earlier to 150,000 metric tons, but were 15.4% higher than the preceding month, the General Administration of Customs said Tuesday. Total imports between January and July decreased 1% to 980,000 tons TOCOM decided to decrease the delivery unit from 10 tonnes to 5 tonnes in order to meet the needs of commercials and improve the convenience of the market.
Yesterday the Exchange received an approval from the Minister of Economy, Trade and
Industry to execute the necessary amendments to its Market Rules, which prescribe the delivery unit of each futures contract. Changes in the delivery unit of rubber futures will be applied from the March 2011 contract that will start trading on September 27, 2010.
Car sales in India rose in July by an annual 38 percent, Firms sold 158,764 cars in the month, compared with 115,084 units a year ago, data from the Society of Indian Automobile Manufacturers (SIAM) showed. Sales of trucks and buses, a barometer of economic activity, rose 37 percent to 51,481 units in July.
Kottayam, Aug 17
Spot rubber prices closed unchanged on Tuesday. According to observers, the market remained neutral in tune with an almost similar mood in the major futures markets. Sheet rubber finished flat at Rs 184 a kg amidst scattered transactions. The Rubber Board's rate was also steady at Rs 183 a kg for RSS 4. Volumes were low.
Futures mixed
The domestic rubber futures showed a mixed trend on the National Multi Commodity Exchange. The September series closed at Rs 176.49 (176.64), October at Rs 169.25 (169.33), November at Rs 167.10 (166.50) and December at Rs 167.60 (166.97) a kg for RSS 4.
In the international market, Tokyo rubber futures closed slightly higher, followed by a slowdown in yen's appreciation against dollar. Transactions were in a low key due to the summer holiday season and uncertainties over the outlook for Japanese currency. The August futures for RSS 3 improved marginally to ¥325.7/Rs 178.03 (¥325.4) during the day session and to ¥326.8 (Rs 178.61) a kg during the night session on the Tokyo Commodity Exchange (TOCOM). The grade (spot) closed firm at Rs 153.45 (Rs 152.77) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 184 (184); RSS-5: 174 (174); ungraded: 164 (164); ISNR 20: 156 (156) and latex 60 per cent: 114 (114).
Malaysia’s rubber output falls by 12% in June
MUMBAI (Commodity Online): Malaysia's natural rubber production in June fell 12% from a year earlier to 70,745 metric tons, data from Malaysia's Department of Statistics showed Friday. Rubber stocks at the end of June totaled 117,226 tons, down 8.5% from a year earlier.
Rubber exports rose 24% to 71,339 tons, while imports fell 35% to 49,679 tons. Domestic rubber consumption fell 11% on year to 35,977 tons. Around 70% of Malaysia's rubber consumption is in the glove industry, which mainly uses latex concentrate.
U.S. imports of technically specified natural rubber rose 9.9% in June from the previous month, and was up 138.9% from the previous year, the Commerce Department reported Wednesday.
According to Vietnam Rubber Association, Vietnam exported 324,000 mt rubber in the first seven months of the calendar year, down 3.4% over the year. China's tire output in July rose 9.50% from a year earlier to 63.08 million units, the National Bureau of Statistics reported on Wednesday. Total output in the January-July period rose 25.30% from the same period last year to 444.64 million units.
China's natural rubber imports in July fell 11.8% from a year earlier to 150,000 metric tons, but were 15.4% higher than the preceding month, the General Administration of Customs said Tuesday. Total imports between January and July decreased 1% to 980,000 tons.
TOCOM decided to decrease the delivery unit from 10 tonnes to 5 tonnes in order to meet the needs of commercials and improve the convenience of the market.
Yesterday the Exchange received an approval from the Minister of Economy, Trade an Industry to execute the necessary amendments to its Market Rules, which prescribe the delivery unit of each futures contract. Changes in the delivery unit of rubber futures will be applied from the March 2011 contract that will start trading on September 27, 2010.
US rubber imports rises by 9.9% in June
MUMBAI (Commodity Online): U.S. imports of technically specified natural rubber rose 9.9% in June from the previous month, and was up 138.9% from the previous year, the Commerce Department reported Wednesday.
According to Vietnam Rubber Association, Vietnam exported 324,000 tn rubber in the first seven months of the calendar year, down 3.4% over the year.
China's tire output in July rose 9.50% from a year earlier to 63.08 million units, the National Bureau of Statistics reported on Wednesday. Total output in the January-July period rose 25.30% from the same period last year to 444.64 million units.
China's natural rubber imports in July fell 11.8% from a year earlier to 150,000 metric tons, but were 15.4% higher than the preceding month, the General Administration of Customs said Tuesday. Total imports between January and July decreased 1% to 980,000 tons TOCOM decided to decrease the delivery unit from 10 tonnes to 5 tonnes in order to meet the needs of commercials and improve the convenience of the market.
Yesterday the Exchange received an approval from the Minister of Economy, Trade and
Industry to execute the necessary amendments to its Market Rules, which prescribe the delivery unit of each futures contract. Changes in the delivery unit of rubber futures will be applied from the March 2011 contract that will start trading on September 27, 2010.
Car sales in India rose in July by an annual 38 percent, Firms sold 158,764 cars in the month, compared with 115,084 units a year ago, data from the Society of Indian Automobile Manufacturers (SIAM) showed. Sales of trucks and buses, a barometer of economic activity, rose 37 percent to 51,481 units in July.
Sunday, August 15, 2010
Spot rubber stays steady
Spot rubber stays steady
Kottayam, Aug. 14
Spot rubber continued to rule unchanged on Saturday. The weekend session was rather calm and inactive as most of the traders were hesitant to enlarge their commitments. Sheet rubber closed unchanged at Rs 184 a kg amidst scattered transactions. The volumes were extremely low.
Futures gain
In futures, the August series increased to Rs 184.11 (183.43), September to Rs 174.43 (173.55), October to Rs 166.54 (164.63) and November to Rs 163.27 (161.51) a kg for RSS 4 on the National Multi Commodity Exchange. The volumes totalled 1538 lots. The total open interest in all series was 4149 lots and turnover 26.84 crores.
Spot rates were (Rs/kg): RSS-4: 184 (184); RSS-5: 174 (174); ungraded: 164.50 (164.50); ISNR 20: 156 (156) and latex 60 per cent: 110 (110).
Kottayam, Aug. 14
Spot rubber continued to rule unchanged on Saturday. The weekend session was rather calm and inactive as most of the traders were hesitant to enlarge their commitments. Sheet rubber closed unchanged at Rs 184 a kg amidst scattered transactions. The volumes were extremely low.
Futures gain
In futures, the August series increased to Rs 184.11 (183.43), September to Rs 174.43 (173.55), October to Rs 166.54 (164.63) and November to Rs 163.27 (161.51) a kg for RSS 4 on the National Multi Commodity Exchange. The volumes totalled 1538 lots. The total open interest in all series was 4149 lots and turnover 26.84 crores.
Spot rates were (Rs/kg): RSS-4: 184 (184); RSS-5: 174 (174); ungraded: 164.50 (164.50); ISNR 20: 156 (156) and latex 60 per cent: 110 (110).
Saturday, August 14, 2010
Spot rubber prices rule steady
Physical rubber prices finished unchanged on Friday. Most of the traders remained inactive as they preferred to wait and watch during the weekend session, possibly fearing to expand their commitments.
Sheet rubber closed unchanged at Rs 184 a kg amidst scattered transactions. The Rubber Board's rate for the grade was steady at Rs 183 a kg. The trend was mixed as ISNR-20 slipped on low demand.
In the international market, Tokyo rubber futures bounced back as the dollar recovered against yen and a rise in NYMEX crude oil futures encouraged traders to cover their positions. The domestic futures saw an overall rise in prices with its September series hitting a high of Rs 175 and low of Rs 173.36 a kg on the National Multi Commodity Exchange.
Futures up
The August series improved to Rs 183.50 (182.89), September to Rs 173.89 (173.31), October to Rs 164.45 (164.19) and November to Rs 161.51 (161.16) a kg for RSS 4. The volumes totalled 3582 lots. The total open interest in all series was 4093 lots and turnover 62.37 crores.
RSS 3 firmed with the August futures rising to ¥330/Rs 180.13 (¥323.5) during the day session but slipped to ¥328.2 (Rs 179.15) a kg during the night session on the Tokyo Commodity Exchange.
Spot rates were: RSS-4: 184 (184); RSS-5: 174 (174); ungraded: 164.50 (164.50); ISNR 20: 156 (156) and latex 60 per cent: 110 (110).
Malaysian Natural Rubber Production Rises In June
Posted: 13 Aug 2010 12:11 AM PDT
RTTNews) - Malaysian natural rubber production rose 8.4% in June from May to 70,745 tonnes, data from the Department of Statistics showed Friday. Meanwhile, production recorded an annual 12.3% fall. The main portion of production was contributed by the small holding sector with 93.6%, while the estate sector accounted for remaining 6.4%.
Export of natural rubber totaled 71,339 tonnes, up by 11.1% from May. Annually, exports increased strongly by 23.7%. Standard Malaysian Rubber continued to be the main contributor to exports. Some of the major destinations of natural rubber were China, Germany, Republic of Korea, U.S.A., and Brazil.
On the other hand, import of natural rubber dropped 0.2% month-on-month and 35.2% annually. Malaysia imported natural rubber mainly from Thailand, Vietnam, Myanmar, Philippines and Indonesia. Total imports from these five nations accounted for 91.7% of total imports.
Domestic consumption of natural rubber in June was 35,977 tonnes. Consumption was down 11.4% from May and dipped 10.9% from June 2009.
(dailymarkets.com)
Rubber Rallies for First Time in Five Days on Crude Oil Gain, Yen Decline
Posted: 13 Aug 2010 12:07 AM PDT
Rubber climbed for the first time in five days, trimming this week’s loss, as crude oil rallied and the yen dropped, boosting the appeal of the commodity used to make tires.
January-delivery rubber in Tokyo gained as much as 2.1 percent to 281.9 yen a kilogram ($3,277 a metric ton) on the Tokyo Commodity Exchange and traded at 278.6 yen at 11:59 a.m. local time. The contract has lost 1.3 percent this week, the first weekly drop in four.
“It’s a technical rebound backed by a weaker yen and a rally in oil prices,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. “Lower stockpiles have also lent support to the market.”
Crude oil rallied from a one-month low and traded at $76.35 a barrel in New York after falling as U.S. applications for unemployment benefits rose. Initial jobless claims in the U.S. rose by 2,000 to 484,000 last week, the highest level since February. Lower oil prices make natural rubber less attractive than rival synthetic products made from petroleum.
The yen fell for a second day after comments by Japanese officials stoked speculation they’ll act to curb the currency’s gains to protect the nation’s economic recovery. A stronger Japanese currency reduces the appetite for yen-based contracts.
The yen slipped to 86.12 per dollar at 11:47 a.m. in Tokyo from 85.90 in New York yesterday. It reached 84.73 on Aug. 11, the strongest since July 1995.
Natural rubber stockpiles in Japan expanded to 3,275 tons as of July 31 from a record low of 2,628 tons on July 20, according to data from the Rubber Trade Association of Japan.
“Even though stockpiles increased at the end of last month, it is still considered very low,” Sugata said. Inventories were at 7,288 tons at the end of January.
Natural rubber prices are likely to remain near current levels at $3 a kilogram for the next two months because of tight supply and increasing demand, according to the International Rubber Consortium Ltd.
January-delivery rubber in Shanghai rose 0.6 percent to 24,610 yuan ($3,625 a ton), the first gain in three days.
(bloomberg.com)
Natural Rubber Production Up 8.4 Per Cent In June 2010
Posted: 13 Aug 2010 12:05 AM PDT
KUALA LUMPUR, August 13 (Bernama) -- Natural rubber production rose by 5,491 tonnes or 8.4 per cent to 70,745 tonnes in June this year compared to the previous month.
Production, however, dropped by 9,954 tonnes from 80,699 tonnes on a year-on-year basis, said the Statistics Department in a statement Friday.
The main portion of natural rubber production was contributed by the smallholding sector with 93.6 per cent while the estate sector accounted for only 6.4 per cent, it said.
Natural rubber exports in June 2010 increased by 11.1 per cent when compared to the previous month while exports on a year-on-year basis rose strongly by 23.7 per cent, the department said.
Standard Malaysian Rubber (SMR) continued to be the main contributor to exports and recorded a total of 68,051 tonnes, of which 49.7 per cent was SMR20, it said.
Major destinations for Malaysia's natural rubber were China with 40.4 per cent, Germany with 13.5 per cent and South Korea with 5.8 per cent.
Malaysia imported 49,679 tonnes of natural rubber whereby latex concentrate accounted for 53.2 per cent of total imports.
The imported natural rubber came mainly from Thailand with 70.5 per cent, Vietnam with 10.2 per cent and Myanmar with 5.1 per cent.
Natural rubber stocks declined by 3,550 tonnes or 2.9 per cent to 117,226 tonnes when compared to the previous month while year-on-year comparison showed that the level of stocks decreased by 8.5 per cent.
Domestic consumption for natural rubber was at 35,977 tonnes, down by 11.4 per cent when compared to the previous month and a drop of 10.9 per cent in a while year-on-year comparison.
The main natural rubber consuming industry was rubber gloves at 70.3 per cent, followed by rubber thread at eight per cent as well as tyres and tubes at 7.9 per cent, the department said.
These three industries consumed 30,995 tonnes or 86.2 per cent of the total domestic consumption of natural rubber, it added.
(bernama.com)
Decline in spot rubber prices
Posted: 13 Aug 2010 12:04 AM PDT
On Thursday (12 August 2010), the spot rubber prices declined following the decline in the domestic futures and on new of imports. Sheet rubber declined to Rs 184 from Rs 185 per kg on buyer resistance coupled with selling by dealers.
The August futures for RSS 4 declined to Rs 183.4175 (186.89) and September to Rs 173.11 (173.21), while the October futures increased marginally to Rs 163.90 (163.75) and November to Rs 161.05 (161) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 184 (185); RSS-5: 174 (175); ungraded: 164.50 (165); ISNR 20: 156 (157) and latex 60 per cent: 110 (110).
(indiainfoline.com)
Sheet rubber closed unchanged at Rs 184 a kg amidst scattered transactions. The Rubber Board's rate for the grade was steady at Rs 183 a kg. The trend was mixed as ISNR-20 slipped on low demand.
In the international market, Tokyo rubber futures bounced back as the dollar recovered against yen and a rise in NYMEX crude oil futures encouraged traders to cover their positions. The domestic futures saw an overall rise in prices with its September series hitting a high of Rs 175 and low of Rs 173.36 a kg on the National Multi Commodity Exchange.
Futures up
The August series improved to Rs 183.50 (182.89), September to Rs 173.89 (173.31), October to Rs 164.45 (164.19) and November to Rs 161.51 (161.16) a kg for RSS 4. The volumes totalled 3582 lots. The total open interest in all series was 4093 lots and turnover 62.37 crores.
RSS 3 firmed with the August futures rising to ¥330/Rs 180.13 (¥323.5) during the day session but slipped to ¥328.2 (Rs 179.15) a kg during the night session on the Tokyo Commodity Exchange.
Spot rates were: RSS-4: 184 (184); RSS-5: 174 (174); ungraded: 164.50 (164.50); ISNR 20: 156 (156) and latex 60 per cent: 110 (110).
Malaysian Natural Rubber Production Rises In June
Posted: 13 Aug 2010 12:11 AM PDT
RTTNews) - Malaysian natural rubber production rose 8.4% in June from May to 70,745 tonnes, data from the Department of Statistics showed Friday. Meanwhile, production recorded an annual 12.3% fall. The main portion of production was contributed by the small holding sector with 93.6%, while the estate sector accounted for remaining 6.4%.
Export of natural rubber totaled 71,339 tonnes, up by 11.1% from May. Annually, exports increased strongly by 23.7%. Standard Malaysian Rubber continued to be the main contributor to exports. Some of the major destinations of natural rubber were China, Germany, Republic of Korea, U.S.A., and Brazil.
On the other hand, import of natural rubber dropped 0.2% month-on-month and 35.2% annually. Malaysia imported natural rubber mainly from Thailand, Vietnam, Myanmar, Philippines and Indonesia. Total imports from these five nations accounted for 91.7% of total imports.
Domestic consumption of natural rubber in June was 35,977 tonnes. Consumption was down 11.4% from May and dipped 10.9% from June 2009.
(dailymarkets.com)
Rubber Rallies for First Time in Five Days on Crude Oil Gain, Yen Decline
Posted: 13 Aug 2010 12:07 AM PDT
Rubber climbed for the first time in five days, trimming this week’s loss, as crude oil rallied and the yen dropped, boosting the appeal of the commodity used to make tires.
January-delivery rubber in Tokyo gained as much as 2.1 percent to 281.9 yen a kilogram ($3,277 a metric ton) on the Tokyo Commodity Exchange and traded at 278.6 yen at 11:59 a.m. local time. The contract has lost 1.3 percent this week, the first weekly drop in four.
“It’s a technical rebound backed by a weaker yen and a rally in oil prices,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. “Lower stockpiles have also lent support to the market.”
Crude oil rallied from a one-month low and traded at $76.35 a barrel in New York after falling as U.S. applications for unemployment benefits rose. Initial jobless claims in the U.S. rose by 2,000 to 484,000 last week, the highest level since February. Lower oil prices make natural rubber less attractive than rival synthetic products made from petroleum.
The yen fell for a second day after comments by Japanese officials stoked speculation they’ll act to curb the currency’s gains to protect the nation’s economic recovery. A stronger Japanese currency reduces the appetite for yen-based contracts.
The yen slipped to 86.12 per dollar at 11:47 a.m. in Tokyo from 85.90 in New York yesterday. It reached 84.73 on Aug. 11, the strongest since July 1995.
Natural rubber stockpiles in Japan expanded to 3,275 tons as of July 31 from a record low of 2,628 tons on July 20, according to data from the Rubber Trade Association of Japan.
“Even though stockpiles increased at the end of last month, it is still considered very low,” Sugata said. Inventories were at 7,288 tons at the end of January.
Natural rubber prices are likely to remain near current levels at $3 a kilogram for the next two months because of tight supply and increasing demand, according to the International Rubber Consortium Ltd.
January-delivery rubber in Shanghai rose 0.6 percent to 24,610 yuan ($3,625 a ton), the first gain in three days.
(bloomberg.com)
Natural Rubber Production Up 8.4 Per Cent In June 2010
Posted: 13 Aug 2010 12:05 AM PDT
KUALA LUMPUR, August 13 (Bernama) -- Natural rubber production rose by 5,491 tonnes or 8.4 per cent to 70,745 tonnes in June this year compared to the previous month.
Production, however, dropped by 9,954 tonnes from 80,699 tonnes on a year-on-year basis, said the Statistics Department in a statement Friday.
The main portion of natural rubber production was contributed by the smallholding sector with 93.6 per cent while the estate sector accounted for only 6.4 per cent, it said.
Natural rubber exports in June 2010 increased by 11.1 per cent when compared to the previous month while exports on a year-on-year basis rose strongly by 23.7 per cent, the department said.
Standard Malaysian Rubber (SMR) continued to be the main contributor to exports and recorded a total of 68,051 tonnes, of which 49.7 per cent was SMR20, it said.
Major destinations for Malaysia's natural rubber were China with 40.4 per cent, Germany with 13.5 per cent and South Korea with 5.8 per cent.
Malaysia imported 49,679 tonnes of natural rubber whereby latex concentrate accounted for 53.2 per cent of total imports.
The imported natural rubber came mainly from Thailand with 70.5 per cent, Vietnam with 10.2 per cent and Myanmar with 5.1 per cent.
Natural rubber stocks declined by 3,550 tonnes or 2.9 per cent to 117,226 tonnes when compared to the previous month while year-on-year comparison showed that the level of stocks decreased by 8.5 per cent.
Domestic consumption for natural rubber was at 35,977 tonnes, down by 11.4 per cent when compared to the previous month and a drop of 10.9 per cent in a while year-on-year comparison.
The main natural rubber consuming industry was rubber gloves at 70.3 per cent, followed by rubber thread at eight per cent as well as tyres and tubes at 7.9 per cent, the department said.
These three industries consumed 30,995 tonnes or 86.2 per cent of the total domestic consumption of natural rubber, it added.
(bernama.com)
Decline in spot rubber prices
Posted: 13 Aug 2010 12:04 AM PDT
On Thursday (12 August 2010), the spot rubber prices declined following the decline in the domestic futures and on new of imports. Sheet rubber declined to Rs 184 from Rs 185 per kg on buyer resistance coupled with selling by dealers.
The August futures for RSS 4 declined to Rs 183.4175 (186.89) and September to Rs 173.11 (173.21), while the October futures increased marginally to Rs 163.90 (163.75) and November to Rs 161.05 (161) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 184 (185); RSS-5: 174 (175); ungraded: 164.50 (165); ISNR 20: 156 (157) and latex 60 per cent: 110 (110).
(indiainfoline.com)
Thursday, August 12, 2010
Rubber Retreats as Falling Crude Oil Prices, Strengthening Yen Cut Appeal
Rubber Retreats as Falling Crude Oil Prices, Strengthening Yen Cut Appeal
Posted: 11 Aug 2010 12:14 AM PDT
Rubber dropped as a decline in crude oil prices and a strengthening Japanese currency reduced the appeal of the commodity used to make tires.
January-delivery rubber in Tokyo fell as much as 1.2 percent to 278.6 yen a kilogram ($3,263 a metric ton) before trading at 281.8 yen at 11:45 a.m. local time. The contract dropped for a third day, the longest losing streak in a month.
The yen gained against all 16 major counterparts after reports today showed U.K. consumer confidence dropped for a third month and Japan’s machine orders rose less than forecast in June.
“A combination of a falling crude oil price and a stronger yen is pressuring the market, lowering rubber prices,” Varut Rungkhum, an analyst at Agro Wealth Ltd., said today by phone from Bangkok.
Oil dropped to a seven-day low yesterday as the U.S. Labor Department said the country’s economy lost momentum heading into the second year of the recovery from the worst recession since World War II. Crude oil for September delivery was unchanged at $80.25 a barrel after dropping as much as 0.6 percent on the New York Mercantile Exchange earlier.
Losses are likely to be limited as prices are supported by forecasts for growth in vehicle sales in China, said Varut.
Auto sales in China, the world’s biggest market, may rise to 16 million this year, a manufacturers’ group said, boosting its forecast from a previous estimate of 15 million. Vehicle sales will be higher than previously expected judging by deliveries in the first half of the year, Beijing-based Dong Yang, vice president of the China Association of Automobile Manufacturers, said in an interview yesterday.
January-delivery rubber in Shanghai gained 0.4 percent to 24,970 yuan ($3,687) a ton.
(bloomberg.com)
Rubber Futures in Tokyo Decline as Much as 1.2% to 278.6 Yen Per Kilogram
Posted: 11 Aug 2010 12:13 AM PDT
Rubber futures in Tokyo declined as much as 1.2 percent to 278.6 yen per kilogram. The January- delivery contract traded at 280 yen at 9:03 a.m.
(bloomberg.com)
Rubber exporters enjoy windfall
Posted: 11 Aug 2010 12:12 AM PDT
HCM CITY — The country exported 324,000 tonnes of rubber worth US$893 million in the first seven months of the year, according to the Viet Nam Rubber Association.
The figure represented a 3.4 per cent decrease in volume but 85 per cent increase in revenue since rubber prices rose last year, the association's general secretary, Tran Thuy Hoa, said.
The average export price in the first seven months was $2,744 a tonne, 92.7 per cent higher than in the same period last year, according to the VRA.
Global prices increased between January and April due to a recovery in demand from many industries and a fall in supply, she said, though prices edged down in May and June.
Global consumption of natural rubber is expected to be 10.43 million tonnes this year, 8 per cent higher than last, she said.
With output unlikely to rise significantly this year, prices are forecast to rise again in the remaining months of the year, she said. They are hovering at $3,038 a tonne now.
China is the largest buyer of Vietnamese rubber, accounting for two-thirds of the country's total rubber exports. Of last year's exports of $1.2 billion, $800 million was to China.
Chinese market
Of Viet Nam's 216 exporters, 125 trade with China, mostly across the border.
Thus, when authorities there curtailed rubber imports in April, Vietnamese exports plunged for the next two months, Hoa said, pulling down overall exports inordinately.
In June, exports to China resumed after authorities loosened the ban.
To avoid a similar scenario in future and depending too much on that market, rubber exporters have begun to explore other markets, she said.
As a result, exports to several markets like Malaysia, Taiwan, Germany and Russia have shot up this year.
The EU is considered a lucrative market though very difficult to penetrate since it requires high quality while most Vietnamese rubber products are of medium quality. — VNS
(vietnamnews.vnagency.com.vn)
Rubber import likely to surge on high domestic prices
Posted: 11 Aug 2010 12:11 AM PDT
Mumbai: India is likely to import 110,000 tonne of natural rubber in 2010-11 as record-high local prices forced tyre makers to source more raw material from abroad, a Rubber Board official said.
This is higher than the board's April estimate of 70,000 tonne of imports for the year, but lower than 2009-10's imports of 1,71,000 tonne, according to Rubber Board data.
“Going by the current trend, we are expecting imports of over 110,000 tonne this year,” a senior Rubber Board official, who declined to be named, said on Tuesday.
“The world's fourth-biggest rubber producer has imported 57,872 tonne of natural rubber between April 1 and August 7,” the official said.
Local rubber prices have nearly doubled in the past year on a drop in output due to drought coupled with rising demand from from tyre-makers struggling to cope with a boom in the auto industry.
India usually imports rubber from Thailand, Malaysia and Indonesia.
The Board had in April estimated imports for the year at 70,000 tonne, when the spot rubber price was Rs 16,000 ($345) per 100 kg.
The price last week hit a record high of Rs 18,600, widening the difference between Indian and global prices.
Industry officials, however, said the imports in 2010-11 would be even higher than 110,000 tonne as rubber is much cheaper in the overseas markets and domestic demand is also robust.
“International prices are Rs 30-35 (a kg) lower than domestic prices. Imported rubber is cheaper despite a 20% import duty,” George Valy, president of The Indian Rubber Dealers Federation, said.
“Imports would be very high if government cuts import duty. They may rise to 200,000 tonne,” he added.
The Rubber Board estimates output in India to rise by 7.5% to 893,000 tonne in 2010-11 and consumption by 5% to 978,000 tonne.
Tokyo's benchmark rubber contract slipped a little on Tuesday as a weak oil price triggered stop-loss selling, but a pause in the yen's rise against the dollar helped limit losses, dealers said.
(financialexpress.com)
TOCOM To Halve Rubber Delivery Unit To 5 Tonnes To Meet Needs Of Smaller Commercial
Posted: 11 Aug 2010 12:10 AM PDT
Tokyo Commodity Exchange, Inc. (“TOCOM” or the "Exchange") today announced that the Exchange would halve the delivery unit of Rubber futures to 5 tonnes in order to enhance the convenience of the market. TOCOM received an approval for this change from the Minister of Economy, Trade and Industry today and will apply this change from the March 2011 contract that will start trading on September 27, 2010.
Currently on the TOCOM Rubber futures market, the delivery unit is 10 tonnes while the contract unit is 5 tonnes. In the spot market, however, the delivery unit is generally smaller, at less than 10 tonnes. Therefore a number of commercial players have requested that the Exchange adjusts its delivery rules to match spot market practices.
TOCOM decided to decrease the delivery unit from 10 tonnes to 5 tonnes in order to meet the needs of commercials and improve the convenience of the market. Today the Exchange received an approval from the Minister of Economy, Trade and Industry to execute the necessary amendments to its Market Rules, which prescribe the delivery unit of each futures contract. Changes in the delivery unit of rubber futures will be applied from September 27, 2010 onward when the March 2011 contract will commence trading.
TOCOM will continue to make efforts to improve the credibility and convenience of its market.
[Summary of Rubber Futures Contract Specifications]
Contract Months Up to February 2011 Contract From March 2011 Contract onward
Type of Trade Physically Delivered Futures Transaction
Standard Ribbed Smoked Sheet (RSS) No.3
Contract Unit 5,000 kg (5 tonnes) / contract
Delivery Unit 10,000 kg (10 tonnes) 5,000 kg (5 tonnes)
(Delivery unit = 2 contract units) (Delivery unit = 1 contract unit)
(mondovisione.com)
Rise in spot rubber prices
Posted: 11 Aug 2010 12:05 AM PDT
On Tuesday (10 August 2010), the spot rubber prices rose mainly on supply concerns. Sheet rubber increased to Rs 186 from Rs 185 per kg, though there were no fresh enquiries from major consuming industries.
The August futures for RSS 4 rose to Rs 190.75 (189.57), September to Rs 174.65 (174.55), October to Rs 165.10 (164.93) and November to Rs 162.50 (162.29) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 186 (185); RSS-5: 177 (175); ungraded: 166 (166); ISNR 20: 157 (157) and latex 60 per cent: 109.50 (107.50).
(indiainfoline.com)
Posted: 11 Aug 2010 12:14 AM PDT
Rubber dropped as a decline in crude oil prices and a strengthening Japanese currency reduced the appeal of the commodity used to make tires.
January-delivery rubber in Tokyo fell as much as 1.2 percent to 278.6 yen a kilogram ($3,263 a metric ton) before trading at 281.8 yen at 11:45 a.m. local time. The contract dropped for a third day, the longest losing streak in a month.
The yen gained against all 16 major counterparts after reports today showed U.K. consumer confidence dropped for a third month and Japan’s machine orders rose less than forecast in June.
“A combination of a falling crude oil price and a stronger yen is pressuring the market, lowering rubber prices,” Varut Rungkhum, an analyst at Agro Wealth Ltd., said today by phone from Bangkok.
Oil dropped to a seven-day low yesterday as the U.S. Labor Department said the country’s economy lost momentum heading into the second year of the recovery from the worst recession since World War II. Crude oil for September delivery was unchanged at $80.25 a barrel after dropping as much as 0.6 percent on the New York Mercantile Exchange earlier.
Losses are likely to be limited as prices are supported by forecasts for growth in vehicle sales in China, said Varut.
Auto sales in China, the world’s biggest market, may rise to 16 million this year, a manufacturers’ group said, boosting its forecast from a previous estimate of 15 million. Vehicle sales will be higher than previously expected judging by deliveries in the first half of the year, Beijing-based Dong Yang, vice president of the China Association of Automobile Manufacturers, said in an interview yesterday.
January-delivery rubber in Shanghai gained 0.4 percent to 24,970 yuan ($3,687) a ton.
(bloomberg.com)
Rubber Futures in Tokyo Decline as Much as 1.2% to 278.6 Yen Per Kilogram
Posted: 11 Aug 2010 12:13 AM PDT
Rubber futures in Tokyo declined as much as 1.2 percent to 278.6 yen per kilogram. The January- delivery contract traded at 280 yen at 9:03 a.m.
(bloomberg.com)
Rubber exporters enjoy windfall
Posted: 11 Aug 2010 12:12 AM PDT
HCM CITY — The country exported 324,000 tonnes of rubber worth US$893 million in the first seven months of the year, according to the Viet Nam Rubber Association.
The figure represented a 3.4 per cent decrease in volume but 85 per cent increase in revenue since rubber prices rose last year, the association's general secretary, Tran Thuy Hoa, said.
The average export price in the first seven months was $2,744 a tonne, 92.7 per cent higher than in the same period last year, according to the VRA.
Global prices increased between January and April due to a recovery in demand from many industries and a fall in supply, she said, though prices edged down in May and June.
Global consumption of natural rubber is expected to be 10.43 million tonnes this year, 8 per cent higher than last, she said.
With output unlikely to rise significantly this year, prices are forecast to rise again in the remaining months of the year, she said. They are hovering at $3,038 a tonne now.
China is the largest buyer of Vietnamese rubber, accounting for two-thirds of the country's total rubber exports. Of last year's exports of $1.2 billion, $800 million was to China.
Chinese market
Of Viet Nam's 216 exporters, 125 trade with China, mostly across the border.
Thus, when authorities there curtailed rubber imports in April, Vietnamese exports plunged for the next two months, Hoa said, pulling down overall exports inordinately.
In June, exports to China resumed after authorities loosened the ban.
To avoid a similar scenario in future and depending too much on that market, rubber exporters have begun to explore other markets, she said.
As a result, exports to several markets like Malaysia, Taiwan, Germany and Russia have shot up this year.
The EU is considered a lucrative market though very difficult to penetrate since it requires high quality while most Vietnamese rubber products are of medium quality. — VNS
(vietnamnews.vnagency.com.vn)
Rubber import likely to surge on high domestic prices
Posted: 11 Aug 2010 12:11 AM PDT
Mumbai: India is likely to import 110,000 tonne of natural rubber in 2010-11 as record-high local prices forced tyre makers to source more raw material from abroad, a Rubber Board official said.
This is higher than the board's April estimate of 70,000 tonne of imports for the year, but lower than 2009-10's imports of 1,71,000 tonne, according to Rubber Board data.
“Going by the current trend, we are expecting imports of over 110,000 tonne this year,” a senior Rubber Board official, who declined to be named, said on Tuesday.
“The world's fourth-biggest rubber producer has imported 57,872 tonne of natural rubber between April 1 and August 7,” the official said.
Local rubber prices have nearly doubled in the past year on a drop in output due to drought coupled with rising demand from from tyre-makers struggling to cope with a boom in the auto industry.
India usually imports rubber from Thailand, Malaysia and Indonesia.
The Board had in April estimated imports for the year at 70,000 tonne, when the spot rubber price was Rs 16,000 ($345) per 100 kg.
The price last week hit a record high of Rs 18,600, widening the difference between Indian and global prices.
Industry officials, however, said the imports in 2010-11 would be even higher than 110,000 tonne as rubber is much cheaper in the overseas markets and domestic demand is also robust.
“International prices are Rs 30-35 (a kg) lower than domestic prices. Imported rubber is cheaper despite a 20% import duty,” George Valy, president of The Indian Rubber Dealers Federation, said.
“Imports would be very high if government cuts import duty. They may rise to 200,000 tonne,” he added.
The Rubber Board estimates output in India to rise by 7.5% to 893,000 tonne in 2010-11 and consumption by 5% to 978,000 tonne.
Tokyo's benchmark rubber contract slipped a little on Tuesday as a weak oil price triggered stop-loss selling, but a pause in the yen's rise against the dollar helped limit losses, dealers said.
(financialexpress.com)
TOCOM To Halve Rubber Delivery Unit To 5 Tonnes To Meet Needs Of Smaller Commercial
Posted: 11 Aug 2010 12:10 AM PDT
Tokyo Commodity Exchange, Inc. (“TOCOM” or the "Exchange") today announced that the Exchange would halve the delivery unit of Rubber futures to 5 tonnes in order to enhance the convenience of the market. TOCOM received an approval for this change from the Minister of Economy, Trade and Industry today and will apply this change from the March 2011 contract that will start trading on September 27, 2010.
Currently on the TOCOM Rubber futures market, the delivery unit is 10 tonnes while the contract unit is 5 tonnes. In the spot market, however, the delivery unit is generally smaller, at less than 10 tonnes. Therefore a number of commercial players have requested that the Exchange adjusts its delivery rules to match spot market practices.
TOCOM decided to decrease the delivery unit from 10 tonnes to 5 tonnes in order to meet the needs of commercials and improve the convenience of the market. Today the Exchange received an approval from the Minister of Economy, Trade and Industry to execute the necessary amendments to its Market Rules, which prescribe the delivery unit of each futures contract. Changes in the delivery unit of rubber futures will be applied from September 27, 2010 onward when the March 2011 contract will commence trading.
TOCOM will continue to make efforts to improve the credibility and convenience of its market.
[Summary of Rubber Futures Contract Specifications]
Contract Months Up to February 2011 Contract From March 2011 Contract onward
Type of Trade Physically Delivered Futures Transaction
Standard Ribbed Smoked Sheet (RSS) No.3
Contract Unit 5,000 kg (5 tonnes) / contract
Delivery Unit 10,000 kg (10 tonnes) 5,000 kg (5 tonnes)
(Delivery unit = 2 contract units) (Delivery unit = 1 contract unit)
(mondovisione.com)
Rise in spot rubber prices
Posted: 11 Aug 2010 12:05 AM PDT
On Tuesday (10 August 2010), the spot rubber prices rose mainly on supply concerns. Sheet rubber increased to Rs 186 from Rs 185 per kg, though there were no fresh enquiries from major consuming industries.
The August futures for RSS 4 rose to Rs 190.75 (189.57), September to Rs 174.65 (174.55), October to Rs 165.10 (164.93) and November to Rs 162.50 (162.29) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 186 (185); RSS-5: 177 (175); ungraded: 166 (166); ISNR 20: 157 (157) and latex 60 per cent: 109.50 (107.50).
(indiainfoline.com)
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