Spot rubber prices steady
Kottayam, Sept 29
Physical rubber prices ruled steady on Wednesday. The market managed to sustain at current levels mainly on supply concerns. Sheet rubber closed flat at Rs 168.5 a kg in main marketing centres. The transactions were low. According to observers, domestic rubber prices are likely to rise as heavy showers are affecting the production. Tapping usually slows down during rainy season in Kerala. The State may receive more rains in the next couple of days as per weather forecasts.
Futures weak
In futures, the October series weakened further to Rs 171.5 (172.37), November to Rs 173.3 (175.23), December to Rs 176.04 (177.19) and January to Rs 178.25 (179.17) a kg for RSS 4 on the National Multi Commodity Exchange. The volumes totalled 3,216 lots and open interest 4,059 lots. The turnover was Rs 55.98 crore.
RSS 3 improved marginally at its October futures to ¥297.3 (Rs 159.49) from ¥295 during the day session and then to ¥298.8 (Rs 160.45) a kg during the night session on Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 161.45 (161.26) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 168.5 (168.5); RSS-5: 165 (165); ungraded: 162 (162); ISNR 20: 163 (163) and latex 60 per cent: 115.5 (115.5).
Thursday, September 30, 2010
Wednesday, September 29, 2010
Spot rubber improves on short supply
Spot rubber improves on short supply
Kottayam, Sept 28
Spot rubber improved further on Tuesday. The prices firmed up on acute short supply following continuous rains in the plantation areas. The absence of major consuming industries failed to make any impact over the market. The volumes were poor.
Sheet rubber closed at Rs 168.5 (168) a kg in the main marketing centres. The grade price was quoted at Rs 168 (167.5) a kg on the Board's official Web site.
Futures slip
RSS 4 slipped with October futures slipping to Rs 172.45 (172.18), November to Rs 175.4 (175.02), December to Rs 177.24 (177.16) and January to Rs 179.15 (179.08) a kg on the National Multi Commodity Exchange.The volumes totalled 5,406 lots and open interest 4,126 lots. The turnover was Rs 94.31 crore.
October futures for RSS 3 weakened to ¥295 (Rs 158.39) from ¥298 during the day session and then recovered partially to ¥296 (Rs 158.93) a kg during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) declined Rs 161.26 (162.27) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 168.5 (168); RSS-5: 165 (164); ungraded: 162 (161); ISNR 20: 163 (161.5) and latex 60 per cent: 115.5 (115).
Rolling on rubber
Lower input costs:A cart puller carrying a load of tyres in Kolkata. According to reports, Indian tyre companies made a steady run as rubber prices fell in the last two months. Prices have dropped Rs 18,000 a tonne after a Government panel recommended a duty of Rs 20.46 a kg on imports..
'Encourage rubber exports'
Kottayam, Sept 28
To enable the domestic rubber growers to get at least the price similar to the international price in the country, rubber export should be encouraged, said Mr George Valy, President of the Indian Rubber Dealers Federation (IRDF), speaking at the annual general body meeting of the rubber dealers. He exhorted the trading community to enhance the rubber export for the common good of all the stake holders, especially the rubber growers. The meeting elected Mr E. T. Varghese, Mr George Valy and Mr C. J. Augustine, as the Patron, President and General Secretary, respectively, for another term. — Our Bureau
Rubber Board announces financial aid to form producers' societies
Our Correspondent
Kottayam, Sept. 28
The Rubber Board has announced financial assistance to support formation of Rubber Producers' Societies (RPSs) and Self Help Groups (SHGs).
The scheme has also provision to support special programmes aimed at the socio-economic development of the poor farmers and their families.
The scheme is meant for the development of the small holding sector, which is responsible for the lion's share of natural rubber production in the country.
It is intended to promote group approach for the effective modernisation and improvement of the NR sector, as individual approach is not practical owing to the large number of such holdings.
The rate of assistance is Rs 6,000 for the formation of new RPSs and Rs 3,000 for SHGs.
Such RPSs/SHGs will be provided with 150 budded stumps and 200 metres of budwood at 50 per cent cost fixed by the Board or Rs 2,500 a RPS/SHG, whichever is less for raising rubber nursery.
Fifty per cent of the actual expenditure or Rs 5,000, whichever is less will also be granted to these RPSs/SHGs for conducting medical camps.
Details are available from the regional offices and field stations of the Board.
Rubber shortfall: India to consider tax cut on imports
MUMBAI (Commodity Online): Considering continued to demand from the domestic tyre industry, Indian Commerce Ministry has recommended for a reliable tax system on natural rubber imports.
An official in the Ministry said it has proposed the Finance Ministry to cut import tax by 7.5% for up to 100,000 tons or a flat tax of Rs 20 a kilogram in all imports. The Ministry said that unavailability of raw rubber in the domestic market is hurting bulk consumers such as tyre manufactures.
According to the Automotive Tyre Manufacturers Association, India's demand for natural rubber is growing by around 12% a year, but production is rising at just 5%-6%.
The trade ministry's latest proposals follow a series of meetings between a government panel and industry executives, including tire-makers lobbying for a lower import tax as domestic natural rubber prices have risen above global levels.
Kottayam, Sept 28
Spot rubber improved further on Tuesday. The prices firmed up on acute short supply following continuous rains in the plantation areas. The absence of major consuming industries failed to make any impact over the market. The volumes were poor.
Sheet rubber closed at Rs 168.5 (168) a kg in the main marketing centres. The grade price was quoted at Rs 168 (167.5) a kg on the Board's official Web site.
Futures slip
RSS 4 slipped with October futures slipping to Rs 172.45 (172.18), November to Rs 175.4 (175.02), December to Rs 177.24 (177.16) and January to Rs 179.15 (179.08) a kg on the National Multi Commodity Exchange.The volumes totalled 5,406 lots and open interest 4,126 lots. The turnover was Rs 94.31 crore.
October futures for RSS 3 weakened to ¥295 (Rs 158.39) from ¥298 during the day session and then recovered partially to ¥296 (Rs 158.93) a kg during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) declined Rs 161.26 (162.27) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 168.5 (168); RSS-5: 165 (164); ungraded: 162 (161); ISNR 20: 163 (161.5) and latex 60 per cent: 115.5 (115).
Rolling on rubber
Lower input costs:A cart puller carrying a load of tyres in Kolkata. According to reports, Indian tyre companies made a steady run as rubber prices fell in the last two months. Prices have dropped Rs 18,000 a tonne after a Government panel recommended a duty of Rs 20.46 a kg on imports..
'Encourage rubber exports'
Kottayam, Sept 28
To enable the domestic rubber growers to get at least the price similar to the international price in the country, rubber export should be encouraged, said Mr George Valy, President of the Indian Rubber Dealers Federation (IRDF), speaking at the annual general body meeting of the rubber dealers. He exhorted the trading community to enhance the rubber export for the common good of all the stake holders, especially the rubber growers. The meeting elected Mr E. T. Varghese, Mr George Valy and Mr C. J. Augustine, as the Patron, President and General Secretary, respectively, for another term. — Our Bureau
Rubber Board announces financial aid to form producers' societies
Our Correspondent
Kottayam, Sept. 28
The Rubber Board has announced financial assistance to support formation of Rubber Producers' Societies (RPSs) and Self Help Groups (SHGs).
The scheme has also provision to support special programmes aimed at the socio-economic development of the poor farmers and their families.
The scheme is meant for the development of the small holding sector, which is responsible for the lion's share of natural rubber production in the country.
It is intended to promote group approach for the effective modernisation and improvement of the NR sector, as individual approach is not practical owing to the large number of such holdings.
The rate of assistance is Rs 6,000 for the formation of new RPSs and Rs 3,000 for SHGs.
Such RPSs/SHGs will be provided with 150 budded stumps and 200 metres of budwood at 50 per cent cost fixed by the Board or Rs 2,500 a RPS/SHG, whichever is less for raising rubber nursery.
Fifty per cent of the actual expenditure or Rs 5,000, whichever is less will also be granted to these RPSs/SHGs for conducting medical camps.
Details are available from the regional offices and field stations of the Board.
Rubber shortfall: India to consider tax cut on imports
MUMBAI (Commodity Online): Considering continued to demand from the domestic tyre industry, Indian Commerce Ministry has recommended for a reliable tax system on natural rubber imports.
An official in the Ministry said it has proposed the Finance Ministry to cut import tax by 7.5% for up to 100,000 tons or a flat tax of Rs 20 a kilogram in all imports. The Ministry said that unavailability of raw rubber in the domestic market is hurting bulk consumers such as tyre manufactures.
According to the Automotive Tyre Manufacturers Association, India's demand for natural rubber is growing by around 12% a year, but production is rising at just 5%-6%.
The trade ministry's latest proposals follow a series of meetings between a government panel and industry executives, including tire-makers lobbying for a lower import tax as domestic natural rubber prices have risen above global levels.
Tuesday, September 28, 2010
Spot rubber gains on short covering
Kottayam, Sept 27
Rubber prices improved on Monday. Continues rains during the past couple of days have disrupted the tapping process in almost all the plantation areas. In spot, the market moved up on fresh buying and short covering following the positive mood on the National Multi Commodity Exchange. Sheet rubber increased to Rs 168 (166) a kg, according to trading circles.
The grade closed firm at Rs 167.5 (166) a kg according to rates quoted on Rubber Board's official Web site. RSS 4 improved at with October futures rising to Rs 172.37 (169.91), November to Rs 175.29 (171.93), December to Rs 177.5 (174.17) and January to Rs 179.4 (176.55) a kg on the NMCE. The turnover was Rs 83.68 crores.
Futures slip
The October futures for RSS 3 slipped to ¥298 (Rs 159.39) from ¥300 during the day session and then to ¥297 (Rs 158.86) a kg during the night session on Tokyo Commodity Exchange. RSS 3 (spot) closed weak at Rs 162.27 (162.9) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 168 (166); RSS-5: 164 (162.5); ungraded: 161 (160); ISNR 20: 161.5 (159.5) and latex 60 per cent: 115 (114.5).
Rubber futures get a silent invocation from tyre companies
AHMEDABAD (Commodity Online): As the tyre companies face one of the sever-most raw material shortages over past several years, the industry has remained apprehensive of adopting the cost management mechanism under the price hedging of the key raw materials for the industry, i.e. natural rubber. However, some tyre makers are apparently found practicing hedging via futures trades, but silently.
Key tyre companies worldwide have expressed their reluctance to participating into futures trade in the plant crop, rubber. However, not many have the strong reason to stay averse.
World’s largest tyre maker by sales, Bridgestone Corp has recently revised its end product prices upwards, more than one-time in the year so as to match the rising costs. America’s another large tyre maker; Goodyear Tire & Rubber Co too has resorted to price hike of its products, sighting the reason of rise in raw material costs.
Apparently, the situation in real sense has been dampening for the rubber consuming industries as the plant crop is in severe shortage across the world. And constantly rising demand is jacking up the prices.
However, in a recent study, the International Rubber Study Group (IRSG) has revised its forecast for global rubber consumption downward due to uncertainties in the world economy such as the euro-zone debt crisis.
The estimation for the natural rubber consumption in 2010 was reduced to 10.2 million tonnes, from 10.4 million tonnes projected earlier this year. However, the new forecast is still higher by 8.6% than the last year's actual consumption.
The rising demand has called for revision of end-products by the manufacturers. Not many from the rubber consuming industries have been seen participating in the rubber futures so as to hedge against the inflation in the commodity.
A senior officer from Goodyear has expressed the company’s unwillingness to do raw-material hedging. However, he has remained silent about the hedging on the exchanges, but the industry players have remained in a denial mode to take active part in futures trade in rubber.
A senior officer of diversified tyre maker, informed Commodity Online on condition of anonymity that some of the companies do hedge in rubber to take advantage of the futures markets, but remain silent about their participation as they are the ones who also demand a ban on futures trading, when the prices start burning.
“Some of the tyre companies do trade in futures markets to hedge their raw material costs. The futures markets do offer an opportunity to manage your costs. But not many companies are into it; hence those who are the participants on rubber futures can not reveal their identity as it would create a distrust among other stakeholders of the same group,” the officer who looks after the purchases told Commodityonline.
However, industry experts are of the opinion that this type of participation of the tyre makers would harm not only the interest of the other tyre makers but also the consumers of those tyre companies as they would be charged higher in the name of the high raw material costs, while the company would silently be hedging their costs.
Silent participation from the tyre makers seems to be giving them higher margin from the goods sold by their other peers. Experts call it an unfair competition on the part of the select tyre companies.
Elaborating more on the issue, Anil Mishra, MD and CEO, National Multi Commodity Exchange (NMCE) maintained that most of the tyre companies held wrong feeling about the futures trades in rubber and hence remained at bay from participating.
“I can't comment on the risk management style of any particular company but in my interaction with tyre companies I have found that they have wrong feeling that they would add to the price rise in the futures price if they fully participate in the futures market whereas the truth is that their suppliers participate in the futures market and thus they, rather than tyre companies, are able to influence the futures price as well as physical price,” explained Mishra adding that their position or buying secrecy was not maintained and market got to know it and there is multiplier effect because same order moves in the market through many suppliers and thus fuels the price. Sighting his personal experience at his previous engagement as a Senior Trader for a Multi National Company (MNC), Mishra said, “From my personal experience, we were able to manage the risk; when we were able to buy in physical form, when market was rallying; and able to buy futures when market was crashing, thus we were able to buy cheaper over all,” he added.
The additional benefit, according to Mishra, would be that it could demand top quality because there would be very few buyers, when there are plenty of suppliers.
The tyre makers are also found to have wrong perception that they can't get enough delivery from the exchanges, but the exchanges are mainly treated as a place to manage the prices.
“They (rubber consumers) should be aware that exchange is for price risk management and not for delivery. Threat of delivery keeps futures price aligned with physical price. When there is no buyer, exchange becomes the buyer where physical sellers could give delivery. Giving delivery and taking delivery from the exchange has additional cost, therefore prudent buyers use exchange for hedging their price risk and take delivery from the exchange,” he maintained.
However, on the silent participation from the tyre makers, Mishra accepted that “some tyre companies have understood this and we see their increased participation now.” But he reasoned their muted activeness saying, “Nobody likes to share the secret of his success and risk management technique. They have right to match price with the market and increase its profitability or they may increase the market share if they don't increase the price. It is the individual decision of the company,” Mishra added.
According to him, “Futures market would always be defamed because one group would benefit and other group would lose because exchange has a zero sum effect. The losing group would defame and gaining group would remain silent. With increased knowledge all stakeholders would understand the truth.”
The rubber consumer industry had cried foul to the government demanding a suspension of futures trading in rubber, accusing it to be a factor escalating prices.
The industry experts opined that the growth in auto sales would further increase the demand for tyres and resultantly rubber. But looking at the sluggish pace of the global economic recovery the shortage of rubber is believed to ease somewhat with demand contracting owing to falling economic activities.
In the coming quarter, the overall supply of rubber will be relatively better with arrival of new production. Experts anticipate a stable position given the demand being more-or-less constant.
Heavier rainfall hits China’s rubber imports
MUMBAI (Commodity Online): General Administration of Customs reported that China’s natural rubber imports have been hit by heavier rainfall accompanying the La Nina weather event in the last few weeks.
Rubber tapping in major producing countries especially in Southeast Asia is also disrupted due to La Nina weather phenomenon. The Association of Natural Rubber Producing Countries reported that Thai rubber output in July fell 23% on year following extended wintering and early rains. Thai rubber exports are estimated to be around 2.7 million metric tons this year, little changed from last year's level.
Indonesian production fell 10.4% on year in June and in Malaysia, production fell 2.2% in July to 81,083 tons, data from the Department of Statistics.
Kuala Lumpur based Association of Natural Rubber Producing Countries said that growth in natural rubber demand in three major consuming nations China, India and Malaysia has slowed down progressively from the first quarter to the third quarter this year.
Based on data available up to August, it said on a year-on-year basis, demand growth in China slowed down drastically to an estimated 4.4% in the third quarter from 18.7% in the second quarter and 28.2% in Jan-Mar.
Kottayam, Sept 27
Rubber prices improved on Monday. Continues rains during the past couple of days have disrupted the tapping process in almost all the plantation areas. In spot, the market moved up on fresh buying and short covering following the positive mood on the National Multi Commodity Exchange. Sheet rubber increased to Rs 168 (166) a kg, according to trading circles.
The grade closed firm at Rs 167.5 (166) a kg according to rates quoted on Rubber Board's official Web site. RSS 4 improved at with October futures rising to Rs 172.37 (169.91), November to Rs 175.29 (171.93), December to Rs 177.5 (174.17) and January to Rs 179.4 (176.55) a kg on the NMCE. The turnover was Rs 83.68 crores.
Futures slip
The October futures for RSS 3 slipped to ¥298 (Rs 159.39) from ¥300 during the day session and then to ¥297 (Rs 158.86) a kg during the night session on Tokyo Commodity Exchange. RSS 3 (spot) closed weak at Rs 162.27 (162.9) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 168 (166); RSS-5: 164 (162.5); ungraded: 161 (160); ISNR 20: 161.5 (159.5) and latex 60 per cent: 115 (114.5).
Rubber futures get a silent invocation from tyre companies
AHMEDABAD (Commodity Online): As the tyre companies face one of the sever-most raw material shortages over past several years, the industry has remained apprehensive of adopting the cost management mechanism under the price hedging of the key raw materials for the industry, i.e. natural rubber. However, some tyre makers are apparently found practicing hedging via futures trades, but silently.
Key tyre companies worldwide have expressed their reluctance to participating into futures trade in the plant crop, rubber. However, not many have the strong reason to stay averse.
World’s largest tyre maker by sales, Bridgestone Corp has recently revised its end product prices upwards, more than one-time in the year so as to match the rising costs. America’s another large tyre maker; Goodyear Tire & Rubber Co too has resorted to price hike of its products, sighting the reason of rise in raw material costs.
Apparently, the situation in real sense has been dampening for the rubber consuming industries as the plant crop is in severe shortage across the world. And constantly rising demand is jacking up the prices.
However, in a recent study, the International Rubber Study Group (IRSG) has revised its forecast for global rubber consumption downward due to uncertainties in the world economy such as the euro-zone debt crisis.
The estimation for the natural rubber consumption in 2010 was reduced to 10.2 million tonnes, from 10.4 million tonnes projected earlier this year. However, the new forecast is still higher by 8.6% than the last year's actual consumption.
The rising demand has called for revision of end-products by the manufacturers. Not many from the rubber consuming industries have been seen participating in the rubber futures so as to hedge against the inflation in the commodity.
A senior officer from Goodyear has expressed the company’s unwillingness to do raw-material hedging. However, he has remained silent about the hedging on the exchanges, but the industry players have remained in a denial mode to take active part in futures trade in rubber.
A senior officer of diversified tyre maker, informed Commodity Online on condition of anonymity that some of the companies do hedge in rubber to take advantage of the futures markets, but remain silent about their participation as they are the ones who also demand a ban on futures trading, when the prices start burning.
“Some of the tyre companies do trade in futures markets to hedge their raw material costs. The futures markets do offer an opportunity to manage your costs. But not many companies are into it; hence those who are the participants on rubber futures can not reveal their identity as it would create a distrust among other stakeholders of the same group,” the officer who looks after the purchases told Commodityonline.
However, industry experts are of the opinion that this type of participation of the tyre makers would harm not only the interest of the other tyre makers but also the consumers of those tyre companies as they would be charged higher in the name of the high raw material costs, while the company would silently be hedging their costs.
Silent participation from the tyre makers seems to be giving them higher margin from the goods sold by their other peers. Experts call it an unfair competition on the part of the select tyre companies.
Elaborating more on the issue, Anil Mishra, MD and CEO, National Multi Commodity Exchange (NMCE) maintained that most of the tyre companies held wrong feeling about the futures trades in rubber and hence remained at bay from participating.
“I can't comment on the risk management style of any particular company but in my interaction with tyre companies I have found that they have wrong feeling that they would add to the price rise in the futures price if they fully participate in the futures market whereas the truth is that their suppliers participate in the futures market and thus they, rather than tyre companies, are able to influence the futures price as well as physical price,” explained Mishra adding that their position or buying secrecy was not maintained and market got to know it and there is multiplier effect because same order moves in the market through many suppliers and thus fuels the price. Sighting his personal experience at his previous engagement as a Senior Trader for a Multi National Company (MNC), Mishra said, “From my personal experience, we were able to manage the risk; when we were able to buy in physical form, when market was rallying; and able to buy futures when market was crashing, thus we were able to buy cheaper over all,” he added.
The additional benefit, according to Mishra, would be that it could demand top quality because there would be very few buyers, when there are plenty of suppliers.
The tyre makers are also found to have wrong perception that they can't get enough delivery from the exchanges, but the exchanges are mainly treated as a place to manage the prices.
“They (rubber consumers) should be aware that exchange is for price risk management and not for delivery. Threat of delivery keeps futures price aligned with physical price. When there is no buyer, exchange becomes the buyer where physical sellers could give delivery. Giving delivery and taking delivery from the exchange has additional cost, therefore prudent buyers use exchange for hedging their price risk and take delivery from the exchange,” he maintained.
However, on the silent participation from the tyre makers, Mishra accepted that “some tyre companies have understood this and we see their increased participation now.” But he reasoned their muted activeness saying, “Nobody likes to share the secret of his success and risk management technique. They have right to match price with the market and increase its profitability or they may increase the market share if they don't increase the price. It is the individual decision of the company,” Mishra added.
According to him, “Futures market would always be defamed because one group would benefit and other group would lose because exchange has a zero sum effect. The losing group would defame and gaining group would remain silent. With increased knowledge all stakeholders would understand the truth.”
The rubber consumer industry had cried foul to the government demanding a suspension of futures trading in rubber, accusing it to be a factor escalating prices.
The industry experts opined that the growth in auto sales would further increase the demand for tyres and resultantly rubber. But looking at the sluggish pace of the global economic recovery the shortage of rubber is believed to ease somewhat with demand contracting owing to falling economic activities.
In the coming quarter, the overall supply of rubber will be relatively better with arrival of new production. Experts anticipate a stable position given the demand being more-or-less constant.
Heavier rainfall hits China’s rubber imports
MUMBAI (Commodity Online): General Administration of Customs reported that China’s natural rubber imports have been hit by heavier rainfall accompanying the La Nina weather event in the last few weeks.
Rubber tapping in major producing countries especially in Southeast Asia is also disrupted due to La Nina weather phenomenon. The Association of Natural Rubber Producing Countries reported that Thai rubber output in July fell 23% on year following extended wintering and early rains. Thai rubber exports are estimated to be around 2.7 million metric tons this year, little changed from last year's level.
Indonesian production fell 10.4% on year in June and in Malaysia, production fell 2.2% in July to 81,083 tons, data from the Department of Statistics.
Kuala Lumpur based Association of Natural Rubber Producing Countries said that growth in natural rubber demand in three major consuming nations China, India and Malaysia has slowed down progressively from the first quarter to the third quarter this year.
Based on data available up to August, it said on a year-on-year basis, demand growth in China slowed down drastically to an estimated 4.4% in the third quarter from 18.7% in the second quarter and 28.2% in Jan-Mar.
Saturday, September 25, 2010
Spot rubber gains on covering purchase
Spot rubber gains on covering purchase
Kottayam, Sept 24
Physical rubber rates improved on Friday. Widespread rains during the past 24 hours kept the buyers active during the session. Partially weak closing on the National Multi Commodity Exchange (NMCE) failed to make any visible impact in the day's sentiments. The trend was mixed and volume low. Sheet rubber increased to Rs 166 from Rs 165 a kg on covering purchases. The grade closed firm at Rs 166 (164.75) a kg on the Board's website.
Futures firm
In futures, the October series closed at Rs 168.5 (169.02), November at Rs 169.8 (169.45), December at Rs 172.47 (172.24) and January at Rs 175 (175.02) a kg for RSS 4 on the NMCE. The volumes totalled 4,504 lots and open interest 3,575 lots. The turnover was Rs 76.93 crore. The September futures for RSS 3 expired at ¥295.8 (Rs 158.89) on the Tokyo Commodity Exchange. The October futures improved to ¥300 (Rs 161.16) from ¥298.7 during the day session and then to ¥301.2 (Rs 161.79) a kg during the night session. RSS 3 (spot) improved to Rs 162.9 (162.36) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 166 (165); RSS-5: 162.5 (161.5); ungraded: 160 (160); ISNR 20: 159.5 (158) and latex 60 per cent: 114.5 (114).
Kottayam, Sept 24
Physical rubber rates improved on Friday. Widespread rains during the past 24 hours kept the buyers active during the session. Partially weak closing on the National Multi Commodity Exchange (NMCE) failed to make any visible impact in the day's sentiments. The trend was mixed and volume low. Sheet rubber increased to Rs 166 from Rs 165 a kg on covering purchases. The grade closed firm at Rs 166 (164.75) a kg on the Board's website.
Futures firm
In futures, the October series closed at Rs 168.5 (169.02), November at Rs 169.8 (169.45), December at Rs 172.47 (172.24) and January at Rs 175 (175.02) a kg for RSS 4 on the NMCE. The volumes totalled 4,504 lots and open interest 3,575 lots. The turnover was Rs 76.93 crore. The September futures for RSS 3 expired at ¥295.8 (Rs 158.89) on the Tokyo Commodity Exchange. The October futures improved to ¥300 (Rs 161.16) from ¥298.7 during the day session and then to ¥301.2 (Rs 161.79) a kg during the night session. RSS 3 (spot) improved to Rs 162.9 (162.36) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 166 (165); RSS-5: 162.5 (161.5); ungraded: 160 (160); ISNR 20: 159.5 (158) and latex 60 per cent: 114.5 (114).
Friday, September 24, 2010
Spot rubber ends firm
Spot rubber ends firm
Kottayam, Sept 23
Spot rubber closed firm on Thursday. The market opened weak but recovered during closing hours following the sharp gains on the National Multi Commodity Exchange (NMCE). Sheet rubber finished unchanged at Rs 165 a kg after hitting a low of Rs 164.5 a kg on early trades. The grade was quoted weak at Rs 164.75 (165) a kg on the Board's Web site. The trend was mixed.
Futures gain
In futures, the October series flared up to Rs 168.5 (165.49), November to Rs 169 (165.54), December to Rs 172.35 (168.1) and January to Rs 175 (170.48) a kg for RSS 4 on the NMCE. The volumes totalled 3,580 lots and open interest 3,510 lots. The turnover was Rs 60.18 crore.
RSS 3 (spot) improved to Rs 162.36 (161.41) a kg at Bangkok. The Tokyo Commodity Exchange remained closed on account of ‘Autumnal Equinox Day'.
Spot rates were (Rs/kg): RSS-4: 165 (165); RSS-5: 161.5 (161.5); ungraded: 160 (158); ISNR 20: 158 (157) and latex 60 per cent: 114 (114).
Kottayam, Sept 23
Spot rubber closed firm on Thursday. The market opened weak but recovered during closing hours following the sharp gains on the National Multi Commodity Exchange (NMCE). Sheet rubber finished unchanged at Rs 165 a kg after hitting a low of Rs 164.5 a kg on early trades. The grade was quoted weak at Rs 164.75 (165) a kg on the Board's Web site. The trend was mixed.
Futures gain
In futures, the October series flared up to Rs 168.5 (165.49), November to Rs 169 (165.54), December to Rs 172.35 (168.1) and January to Rs 175 (170.48) a kg for RSS 4 on the NMCE. The volumes totalled 3,580 lots and open interest 3,510 lots. The turnover was Rs 60.18 crore.
RSS 3 (spot) improved to Rs 162.36 (161.41) a kg at Bangkok. The Tokyo Commodity Exchange remained closed on account of ‘Autumnal Equinox Day'.
Spot rates were (Rs/kg): RSS-4: 165 (165); RSS-5: 161.5 (161.5); ungraded: 160 (158); ISNR 20: 158 (157) and latex 60 per cent: 114 (114).
Thursday, September 23, 2010
Spot rubber rules steady
Aravindan
Kottayam, Sept. 22
Physical rubber prices closed unchanged on Wednesday. There were no quantity buyers or sellers in the main marketing centres. The market lost its steam as the domestic futures also finished almost steady on the National Multi-Commodity Exchange (NMCE) with minor variations on either side. The volumes were dull. Sheet rubber finished steady at Rs 165 a kg, according to dealers. The grade slipped to Rs 165 from Rs 165.5 a kg on the Board's Web site.
Futures firm
The October series closed at Rs 165.53 (165.93), November at Rs 165.5 (165.99), December at Rs 168.25 (168.04) and January at Rs 170.65 (170) a kg for RSS 4 on the NMCE. The volumes totalled 2,112 lots and open interest 3,430 lots. The turnover was Rs 35.21 crore. The September futures for RSS 3 firmed up to ¥293 (Rs 157.84) from ¥288 during the day session but then slipped to ¥292.5 (Rs 157.57) a kg during the night session on Tokyo Commodity Exchange . RSS 3 (spot) increased to Rs 161.41 (160) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 165 (165); RSS-5: 161.5 (161.5); ungraded: 158 (158); ISNR 20: 157 (157) and latex 60 per cent: 114 (114).
Rubber Advances to Five-Month High on Outlook for Improvement in Demand
Posted: 22 Sep 2010 04:58 AM PDT
Rubber gained for a third day to the highest price in almost five months after the Federal Reserve said it may ease monetary policy further to spur growth, boosting the demand outlook for the commodity used in tires.
Futures in Tokyo advanced as much as 2 percent to 311.5 yen per kilogram ($3,669 a metric ton), the highest level since April 28. The price jumped 3 percent yesterday, the largest gain in two months, on expectations that the global market is set for the worst shortage in four years next year.
The Federal Open Market Committee said yesterday that it is “prepared to provide additional accommodation if needed to support the economic recovery.” The dollar weakened and gold climbed to a record for a fifth day on speculation Chairman Ben S. Bernanke will purchase additional U.S. government securities in the coming months in a bid to lower long-term interest rates.
“The statement boosted speculation that the Fed may ease monetary policy further to support the economy, which is positive for commodities,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone.
February-delivery rubber rose as much as 6.1 yen, before settling at 309.7 yen on the Tokyo Commodity Exchange.
“The Fed’s remarks spurred optimism that demand for the rubber may grow,” said Sureerat Kunthongjun, an analyst at Agrow Enterprise Ltd. “Supplies remain limited in top producing nations as rains disrupted tapping, lowering production,” she said by phone from Bangkok.
Heavy Rains
The cash price in Thailand, the largest exporter, advanced for a third day, rising 0.7 percent to 108.35 baht ($3.54) per kilogram as rains continue in the country’s main plantation areas, limiting supply availability, the Rubber Research Institute of Thailand said on its website today. Some companies accelerated purchases to ensure they meet delivery commitments, the institute said.
Drought earlier this year followed by heavy rains have hampered tree-tapping across plantations in Asia, according to Pongsak Kerdvongbundit, managing director of Phuket, Thailand- based Von Bundit Co.
Persistent rains will probably continue across the country in the second half of September, the Thai weather office said on its website.
Natural-rubber consumption will outpace supply by 127,000 tons next year, the widest production deficit since 2007, according to Goldman Sachs Group Inc. Stockpiles will drop 12 percent to 67 days of demand in 2011, the lowest level in at least 11 years, the bank estimated in a report this month.
“While supply remains tight throughout this year, the possibility of change is remote in 2011 also,” Jom Jacob, senior economist at the Association of Natural Rubber Producing Countries, said in a monthly statement yesterday.
The Shanghai rubber market is closed today for a holiday. The March-delivery contract advanced to 26,920 yuan ($4,024) a ton yesterday, the highest level since July 2008.
(bloomberg.com)
Rubber shortage driving up tire prices
Posted: 22 Sep 2010 04:57 AM PDT
Goodyear Tire & Rubber and Cooper Tire & Rubber, the two largest U.S. tiremakers, will raise tire prices as much as 6.5% next month -- after already raising prices in June -- because of a worldwide shortage that has pushed up rubber costs, according to a report here by Bloomberg News.
And Bridgestone, the worlds biggest tire seller, is raising prices 6% in Europe, the second rise this year, thanks to the biggest shortage of raw material -- which also is used in gloves and condoms -- since 2007.
"Drought earlier this year and heavy rains later on hampered tree-tapping across Asian plantations," Pongsak Kerdvongbundit, managing director of Thailand-based Von Bundit, the largest natural-rubber producer and exporter, told Bloomberg. Thailand and Indonesia are the world's top rubber countries. "Global production will lag behind soaring demand for at least another two years."
While it may not seem like it in the U.S., economies are picking up steam elsewhere in the world and expected to push rubber consumption up 9.4% this year to 10.31 million tons, the fastest increase since 2004, the Singapore-based International Rubber Study Group told Bloomberg. Driving that in part will be an 8% rise in world auto sales this year and 7.2% next year, according to Ashvin Chotai, London-based managing director at Intelligence Automotive Asia.
Tiremakers are passing on the higher costs:
"We don't do a lot of raw-material hedging" said Keith Price, a spokesman for Akron, Ohio-based Goodyear. Raw-material costs are expected rise 30%-35% this quarter from a year ago and another 30% in the fourth quarter, the company said on a conference call July 29.
Current prices of $3,370 a ton for so-called Technically Specified Rubber used in tiremaking now are 53% more expensive than synthetic alternatives made from oil, data compiled by Bloomberg show. But it's impossible for tiremakers to substitute immediately synthetic for natural rubber, said Yuichiro Isayama of Goldman Sachs in Tokyo.
(usatoday.com)
Decline in spot rubber prices
Posted: 22 Sep 2010 04:56 AM PDT
On Tuesday (21 September 2010), the spot rubber declined as the market was in a holiday mood owing to Sree Narayana Guru Samadhi day. Also, the reports from the domestic futures were not promising though the National Multi Exchange contracts gained marginally during the closing hours. The trend was partially mixed as ISNR 20 rose due to better demand. Sheet rubber declined to Rs 165 from Rs 165.50 per kg amidst scattered transactions.
The October futures for RSS 4 rose marginally to Rs 165.97 (165.21), November to Rs 166 (165.43), December to Rs 168.23 (167.60) and January to Rs 170 (169.53) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 165 (165.50); RSS-5: 161.50 (162); ungraded: 158 (159); ISNR 20: 157 (156) and latex 60 per cent: 114 (115).
(indiainfoline.com)
China's Tire Output Up 11.50% in August
Posted: 22 Sep 2010 04:55 AM PDT
China's tire output rose 11.50% to 68.02 million units in August from the previous year. For the January-August period, the total tire output grew by 23.90% year-on-year to 512.16 million units, according to China's National Bureau of Statistics.
(Irco.biz)
Aravindan
Kottayam, Sept. 22
Physical rubber prices closed unchanged on Wednesday. There were no quantity buyers or sellers in the main marketing centres. The market lost its steam as the domestic futures also finished almost steady on the National Multi-Commodity Exchange (NMCE) with minor variations on either side. The volumes were dull. Sheet rubber finished steady at Rs 165 a kg, according to dealers. The grade slipped to Rs 165 from Rs 165.5 a kg on the Board's Web site.
Futures firm
The October series closed at Rs 165.53 (165.93), November at Rs 165.5 (165.99), December at Rs 168.25 (168.04) and January at Rs 170.65 (170) a kg for RSS 4 on the NMCE. The volumes totalled 2,112 lots and open interest 3,430 lots. The turnover was Rs 35.21 crore. The September futures for RSS 3 firmed up to ¥293 (Rs 157.84) from ¥288 during the day session but then slipped to ¥292.5 (Rs 157.57) a kg during the night session on Tokyo Commodity Exchange . RSS 3 (spot) increased to Rs 161.41 (160) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 165 (165); RSS-5: 161.5 (161.5); ungraded: 158 (158); ISNR 20: 157 (157) and latex 60 per cent: 114 (114).
Rubber Advances to Five-Month High on Outlook for Improvement in Demand
Posted: 22 Sep 2010 04:58 AM PDT
Rubber gained for a third day to the highest price in almost five months after the Federal Reserve said it may ease monetary policy further to spur growth, boosting the demand outlook for the commodity used in tires.
Futures in Tokyo advanced as much as 2 percent to 311.5 yen per kilogram ($3,669 a metric ton), the highest level since April 28. The price jumped 3 percent yesterday, the largest gain in two months, on expectations that the global market is set for the worst shortage in four years next year.
The Federal Open Market Committee said yesterday that it is “prepared to provide additional accommodation if needed to support the economic recovery.” The dollar weakened and gold climbed to a record for a fifth day on speculation Chairman Ben S. Bernanke will purchase additional U.S. government securities in the coming months in a bid to lower long-term interest rates.
“The statement boosted speculation that the Fed may ease monetary policy further to support the economy, which is positive for commodities,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone.
February-delivery rubber rose as much as 6.1 yen, before settling at 309.7 yen on the Tokyo Commodity Exchange.
“The Fed’s remarks spurred optimism that demand for the rubber may grow,” said Sureerat Kunthongjun, an analyst at Agrow Enterprise Ltd. “Supplies remain limited in top producing nations as rains disrupted tapping, lowering production,” she said by phone from Bangkok.
Heavy Rains
The cash price in Thailand, the largest exporter, advanced for a third day, rising 0.7 percent to 108.35 baht ($3.54) per kilogram as rains continue in the country’s main plantation areas, limiting supply availability, the Rubber Research Institute of Thailand said on its website today. Some companies accelerated purchases to ensure they meet delivery commitments, the institute said.
Drought earlier this year followed by heavy rains have hampered tree-tapping across plantations in Asia, according to Pongsak Kerdvongbundit, managing director of Phuket, Thailand- based Von Bundit Co.
Persistent rains will probably continue across the country in the second half of September, the Thai weather office said on its website.
Natural-rubber consumption will outpace supply by 127,000 tons next year, the widest production deficit since 2007, according to Goldman Sachs Group Inc. Stockpiles will drop 12 percent to 67 days of demand in 2011, the lowest level in at least 11 years, the bank estimated in a report this month.
“While supply remains tight throughout this year, the possibility of change is remote in 2011 also,” Jom Jacob, senior economist at the Association of Natural Rubber Producing Countries, said in a monthly statement yesterday.
The Shanghai rubber market is closed today for a holiday. The March-delivery contract advanced to 26,920 yuan ($4,024) a ton yesterday, the highest level since July 2008.
(bloomberg.com)
Rubber shortage driving up tire prices
Posted: 22 Sep 2010 04:57 AM PDT
Goodyear Tire & Rubber and Cooper Tire & Rubber, the two largest U.S. tiremakers, will raise tire prices as much as 6.5% next month -- after already raising prices in June -- because of a worldwide shortage that has pushed up rubber costs, according to a report here by Bloomberg News.
And Bridgestone, the worlds biggest tire seller, is raising prices 6% in Europe, the second rise this year, thanks to the biggest shortage of raw material -- which also is used in gloves and condoms -- since 2007.
"Drought earlier this year and heavy rains later on hampered tree-tapping across Asian plantations," Pongsak Kerdvongbundit, managing director of Thailand-based Von Bundit, the largest natural-rubber producer and exporter, told Bloomberg. Thailand and Indonesia are the world's top rubber countries. "Global production will lag behind soaring demand for at least another two years."
While it may not seem like it in the U.S., economies are picking up steam elsewhere in the world and expected to push rubber consumption up 9.4% this year to 10.31 million tons, the fastest increase since 2004, the Singapore-based International Rubber Study Group told Bloomberg. Driving that in part will be an 8% rise in world auto sales this year and 7.2% next year, according to Ashvin Chotai, London-based managing director at Intelligence Automotive Asia.
Tiremakers are passing on the higher costs:
"We don't do a lot of raw-material hedging" said Keith Price, a spokesman for Akron, Ohio-based Goodyear. Raw-material costs are expected rise 30%-35% this quarter from a year ago and another 30% in the fourth quarter, the company said on a conference call July 29.
Current prices of $3,370 a ton for so-called Technically Specified Rubber used in tiremaking now are 53% more expensive than synthetic alternatives made from oil, data compiled by Bloomberg show. But it's impossible for tiremakers to substitute immediately synthetic for natural rubber, said Yuichiro Isayama of Goldman Sachs in Tokyo.
(usatoday.com)
Decline in spot rubber prices
Posted: 22 Sep 2010 04:56 AM PDT
On Tuesday (21 September 2010), the spot rubber declined as the market was in a holiday mood owing to Sree Narayana Guru Samadhi day. Also, the reports from the domestic futures were not promising though the National Multi Exchange contracts gained marginally during the closing hours. The trend was partially mixed as ISNR 20 rose due to better demand. Sheet rubber declined to Rs 165 from Rs 165.50 per kg amidst scattered transactions.
The October futures for RSS 4 rose marginally to Rs 165.97 (165.21), November to Rs 166 (165.43), December to Rs 168.23 (167.60) and January to Rs 170 (169.53) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 165 (165.50); RSS-5: 161.50 (162); ungraded: 158 (159); ISNR 20: 157 (156) and latex 60 per cent: 114 (115).
(indiainfoline.com)
China's Tire Output Up 11.50% in August
Posted: 22 Sep 2010 04:55 AM PDT
China's tire output rose 11.50% to 68.02 million units in August from the previous year. For the January-August period, the total tire output grew by 23.90% year-on-year to 512.16 million units, according to China's National Bureau of Statistics.
(Irco.biz)
Wednesday, September 22, 2010
Spot rubber prices weaken
Spot rubber prices weaken
Kottayam, Sept 21
Spot rubber weakened on Tuesday. According to observers, the market was in a holiday mood owing to Sree Narayana Guru Samadhi day, while it lost the charm since the reports from the domestic futures were not so promising though the National Multi Commodity Exchange (NMCE) contracts gained marginally during closing hours. The trend was partially mixed as ISNR 20 improved on better demand.
Among other news, there were reports that the domestic prices are likely to ease this week on improvement in supplies from imports. Sheet rubber slipped to Rs 165 from Rs 165.5 a kg amidst scattered transactions. The grade was quoted weak at Rs 165.5 from Rs 166.5 a kg on the Board's Web site.
Futures gain
In futures, the October series improved marginally to Rs 165.97 (165.21), November to Rs 166 (165.43), December to Rs 168.23 (167.6) and January to Rs 170 (169.53) a kg for RSS 4 on the NMCE. The September futures for RSS 3 increased to ¥288 (Rs 153.77) from ¥286 during the day session and then to ¥294 (Rs 156.98) a kg during the night session on Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 160 (159.81) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 165 (165.5); RSS-5: 161.5 (162); ungraded: 158 (159); ISNR 20: 157 (156) and latex 60 per cent: 114 (115).
Global rubber shortage at record high: Prices eyed
NEW YORK/MUMBAI (Commodity Online): Tyre makers are feeling the heat of severe shortage of rubber, a key ingredient for the tyre industry. The shortage has led to the exorbitant rise in the input costs of the companies.
The plant crop is all set to witness one of the most critical rubber shortages since 2007. Tyre producers world over, including Bridgestone Corp and Goodyear Tire & Rubber Co are shifting the pain to the customers as the companies have revised the prices upwards in a very narrow interval during a year. The tyre industry consumes 60% of the global rubber output.
Further, looking into the production scenario, the output for the next season is seen dismal on the back of aging trees causing reduced yields and slackened output. This would further put pressure on the supply side.
The Association of Natural Rubber Producing Countries also sees less improvement in the coming season 2011. Further, the price escalation is believed to continue as two top rubber growing countries Thailand and Indonesia witnessed sustained rains disrupting rubber output.
Industry analysts peg a 3.9% dip in rubber production during third and fourth quarters, compared with the same period last year. Thailand’s output has fallen by 23% in July because of extended wintering, which takes place during February to April and rains.
Although, Industry estimates suggest that Thailand’s output will remain at around 3.28 million metric tonnes this year, up from 3.16 million tons last year. Meanwhile, Indonesia will have a 2.59 million tonnes of rubber output against 2.44 million tonnes.
On the demand side, the world consumption of rubber will continue to soar, especially at a time when emerging economies like India and China pose a potential growth of over 8% annually. Further, considering the pace of consumption of automobiles in the developing world, the tyre shortage is sure to shoot up in days to come.
India, China and Malaysia account for 47% of the global demand of natural rubber. These countries have been a tight situation for the domestic demand and supply of rubber. This will further disrupt the global balance of demand and supplies, pushing up the commodity prices.
According to fresh estimates, the global rubber consumption is seen overtaking supplies by 127,000 metric tonnes, which is the widest mismatch since 2007.
Looking at the price outlook on the commodity bourses, the futures in Singapore may jump 20% by March, leading to a record USD 4.20 a kilogram. The prices have already been on the boil as the Futures had hit a record USD 4.11 a kg in April, while recently the prices have been quoted at USD 3.50.
Conversely, auto sales in the US during August had been one of the worst for the months in 28 years. This indicated that the recovery in the economy is slack, and prompts for negative sentiment among the consumers.
The woes for the rubber industry might not just be over as the global scenario still remains unpredictable. Although some cues from the countries like India and China could fuel prices, while dismal scenario in the US and UK economy would continue to dampen the inflating price situation.
China, India, Malaysia rubber demands dip
MUMBAI (Commodity Online): Demand from China, India and Malaysia which combined to account for 47% of the global natural demand in 2009 slowed between the first quarter and the third quarter this year, According to Association of Natural Rubber Producing Countries.
China's consumption of natural rubber grew 28% in the first quarter compared with the same period last year, then slowed to 18.7% and 4.3%, respectively, in the second and third quarters. China is the world's top consumer and importer of natural rubber. In India, the world's second largest natural rubber consumer, consumption growth slowed from 12% to 1.0% in the first and third quarters, respectively.
Growth in imports also fell in the three countries over the three quarters. In China the General Administration of Customs reported that China's natural rubber imports in August declined 0.2% compared with the same period a year earlier, to 1.14 million tons.
The ANRPC estimates global production of natural rubber will rise 6.3% to 9.5 million tons this year, with average annual growth from 2007 to 2010 at just 0.7%.The ANRPC noted that the age structure of rubber trees is contributing to the supply crunch.
Large-scale replanting will begin in most major producing countries in 2011, which will cut productive area until the replanted trees start yielding rubber. China's 2010 production forecast has been revised downward by 2.9%, to 660,000 metric tons.
Rubber consumption zooms in China, slows in India
According to Association of Natural Rubber Producing Countries the demand from China, India and Malaysia which combined to account for 47% of the global natural demand in 2009 slowed between the first quarter and the third quarter this year.
China's consumption of natural rubber grew 28% in the first quarter compared with the same period last year, then slowed to 18.7% and 4.3%, respectively, in the second and third quarters.
China is the world's top consumer and importer of natural rubber. In India, the world's second largest natural rubber consumer, consumption growth slowed from 12% to 1.0% in the first and third quarters, respectively. Growth in imports also fell in the three countries over the three quarters.
In China the General Administration of Customs reported that China's natural rubber imports 22 September 2010 in August declined 0.2% compared with the same period a year earlier, to 1.14 million tons.
The ANRPC estimates global production of natural rubber will rise 6.3% to 9.5 million tons this year, with average annual growth from 2007 to 2010 at just 0.7%.The ANRPC noted that the age structure of rubber trees is contributing to the supply crunch.
Large-scale replanting will begin in most major producing countries in 2011, which will cut productive area until the replanted trees start yielding rubber.
China's 2010 production forecast has been revised downward by 2.9%, to 660,000 metric tons.
General Administration of Customs reported that China's natural rubber imports in August rose 4.9% from a year earlier to 158,589 metric tons.
The data showed that August natural rubber imports were up 7.2% from July, when 147,902 tons were imported. In the January-August period, natural rubber imports dropped 0.2% compared with the same period a year earlier, to 1.14 million tons.
China is the world's biggest importer of natural rubber and sources most of its supplies from the world's leading natural rubber producers like Thailand, Indonesia and Malaysia.
Kottayam, Sept 21
Spot rubber weakened on Tuesday. According to observers, the market was in a holiday mood owing to Sree Narayana Guru Samadhi day, while it lost the charm since the reports from the domestic futures were not so promising though the National Multi Commodity Exchange (NMCE) contracts gained marginally during closing hours. The trend was partially mixed as ISNR 20 improved on better demand.
Among other news, there were reports that the domestic prices are likely to ease this week on improvement in supplies from imports. Sheet rubber slipped to Rs 165 from Rs 165.5 a kg amidst scattered transactions. The grade was quoted weak at Rs 165.5 from Rs 166.5 a kg on the Board's Web site.
Futures gain
In futures, the October series improved marginally to Rs 165.97 (165.21), November to Rs 166 (165.43), December to Rs 168.23 (167.6) and January to Rs 170 (169.53) a kg for RSS 4 on the NMCE. The September futures for RSS 3 increased to ¥288 (Rs 153.77) from ¥286 during the day session and then to ¥294 (Rs 156.98) a kg during the night session on Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 160 (159.81) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 165 (165.5); RSS-5: 161.5 (162); ungraded: 158 (159); ISNR 20: 157 (156) and latex 60 per cent: 114 (115).
Global rubber shortage at record high: Prices eyed
NEW YORK/MUMBAI (Commodity Online): Tyre makers are feeling the heat of severe shortage of rubber, a key ingredient for the tyre industry. The shortage has led to the exorbitant rise in the input costs of the companies.
The plant crop is all set to witness one of the most critical rubber shortages since 2007. Tyre producers world over, including Bridgestone Corp and Goodyear Tire & Rubber Co are shifting the pain to the customers as the companies have revised the prices upwards in a very narrow interval during a year. The tyre industry consumes 60% of the global rubber output.
Further, looking into the production scenario, the output for the next season is seen dismal on the back of aging trees causing reduced yields and slackened output. This would further put pressure on the supply side.
The Association of Natural Rubber Producing Countries also sees less improvement in the coming season 2011. Further, the price escalation is believed to continue as two top rubber growing countries Thailand and Indonesia witnessed sustained rains disrupting rubber output.
Industry analysts peg a 3.9% dip in rubber production during third and fourth quarters, compared with the same period last year. Thailand’s output has fallen by 23% in July because of extended wintering, which takes place during February to April and rains.
Although, Industry estimates suggest that Thailand’s output will remain at around 3.28 million metric tonnes this year, up from 3.16 million tons last year. Meanwhile, Indonesia will have a 2.59 million tonnes of rubber output against 2.44 million tonnes.
On the demand side, the world consumption of rubber will continue to soar, especially at a time when emerging economies like India and China pose a potential growth of over 8% annually. Further, considering the pace of consumption of automobiles in the developing world, the tyre shortage is sure to shoot up in days to come.
India, China and Malaysia account for 47% of the global demand of natural rubber. These countries have been a tight situation for the domestic demand and supply of rubber. This will further disrupt the global balance of demand and supplies, pushing up the commodity prices.
According to fresh estimates, the global rubber consumption is seen overtaking supplies by 127,000 metric tonnes, which is the widest mismatch since 2007.
Looking at the price outlook on the commodity bourses, the futures in Singapore may jump 20% by March, leading to a record USD 4.20 a kilogram. The prices have already been on the boil as the Futures had hit a record USD 4.11 a kg in April, while recently the prices have been quoted at USD 3.50.
Conversely, auto sales in the US during August had been one of the worst for the months in 28 years. This indicated that the recovery in the economy is slack, and prompts for negative sentiment among the consumers.
The woes for the rubber industry might not just be over as the global scenario still remains unpredictable. Although some cues from the countries like India and China could fuel prices, while dismal scenario in the US and UK economy would continue to dampen the inflating price situation.
China, India, Malaysia rubber demands dip
MUMBAI (Commodity Online): Demand from China, India and Malaysia which combined to account for 47% of the global natural demand in 2009 slowed between the first quarter and the third quarter this year, According to Association of Natural Rubber Producing Countries.
China's consumption of natural rubber grew 28% in the first quarter compared with the same period last year, then slowed to 18.7% and 4.3%, respectively, in the second and third quarters. China is the world's top consumer and importer of natural rubber. In India, the world's second largest natural rubber consumer, consumption growth slowed from 12% to 1.0% in the first and third quarters, respectively.
Growth in imports also fell in the three countries over the three quarters. In China the General Administration of Customs reported that China's natural rubber imports in August declined 0.2% compared with the same period a year earlier, to 1.14 million tons.
The ANRPC estimates global production of natural rubber will rise 6.3% to 9.5 million tons this year, with average annual growth from 2007 to 2010 at just 0.7%.The ANRPC noted that the age structure of rubber trees is contributing to the supply crunch.
Large-scale replanting will begin in most major producing countries in 2011, which will cut productive area until the replanted trees start yielding rubber. China's 2010 production forecast has been revised downward by 2.9%, to 660,000 metric tons.
Rubber consumption zooms in China, slows in India
According to Association of Natural Rubber Producing Countries the demand from China, India and Malaysia which combined to account for 47% of the global natural demand in 2009 slowed between the first quarter and the third quarter this year.
China's consumption of natural rubber grew 28% in the first quarter compared with the same period last year, then slowed to 18.7% and 4.3%, respectively, in the second and third quarters.
China is the world's top consumer and importer of natural rubber. In India, the world's second largest natural rubber consumer, consumption growth slowed from 12% to 1.0% in the first and third quarters, respectively. Growth in imports also fell in the three countries over the three quarters.
In China the General Administration of Customs reported that China's natural rubber imports 22 September 2010 in August declined 0.2% compared with the same period a year earlier, to 1.14 million tons.
The ANRPC estimates global production of natural rubber will rise 6.3% to 9.5 million tons this year, with average annual growth from 2007 to 2010 at just 0.7%.The ANRPC noted that the age structure of rubber trees is contributing to the supply crunch.
Large-scale replanting will begin in most major producing countries in 2011, which will cut productive area until the replanted trees start yielding rubber.
China's 2010 production forecast has been revised downward by 2.9%, to 660,000 metric tons.
General Administration of Customs reported that China's natural rubber imports in August rose 4.9% from a year earlier to 158,589 metric tons.
The data showed that August natural rubber imports were up 7.2% from July, when 147,902 tons were imported. In the January-August period, natural rubber imports dropped 0.2% compared with the same period a year earlier, to 1.14 million tons.
China is the world's biggest importer of natural rubber and sources most of its supplies from the world's leading natural rubber producers like Thailand, Indonesia and Malaysia.
Tuesday, September 21, 2010
Biggest Rubber Shortage in Four Years Means 20% Rise in Tiremaker Expenses
Biggest Rubber Shortage in Four Years Means 20% Rise in Tiremaker Expenses
Bridgestone Corp., the largest tiremaker by sales, is raising European prices for the second time this year and Goodyear Tire & Rubber Co. is charging more as rubber gains on prospects for the biggest shortage since 2007.
“Drought earlier this year and heavy rains later on hampered tree-tapping across Asian plantations,” said Pongsak Kerdvongbundit, managing director of Phuket, Thailand-based Von Bundit Co., the largest natural-rubber producer and exporter in the world’s biggest supplier. “Global production will lag behind soaring demand for at least another two years.”
Stockpiles of the raw material, also used in gloves and condoms, will drop 12 percent to 67 days of demand next year, the lowest level in at least 11 years, according to Goldman Sachs Group Inc. Consumption will outpace supply by 127,000 metric tons, the most since 2007, the bank estimates. Futures traded in Singapore may jump 20 percent by March, said Makoto Sugitani, a senior director at Newedge Japan Inc., who correctly predicted the rally in January. Based on the Sept. 14 forecast, that would mean a record of about $4.20 a kilogram (2.2 pounds).
Sales of rubber are increasing the most in six years, helped by what the International Monetary Fund says will be the fastest global economic growth since 2007. Rain and flooding in Thailand and Indonesia, the top producers, drenched farms and curbed harvesting. Michelin & Cie., the world’s second-biggest tiremaker, said in July that commodity costs would cut full-year earnings by as much as 650 million euros ($850 million).
Shrinking Stockpiles
Futures may climb as much as 14 percent to $4 a kilogram by March on the Singapore Commodity Exchange, according to the median estimate of nine brokers and analysts surveyed by Bloomberg. Prices reached a record $4.11 on April 15 and closed at $3.50 on Sept. 20, for an advance of 22 percent this year.
Inventories will drop almost 6 percent to 2.05 million tons next year, for a third annual decline,Yuichiro Isayama and three other analysts at Goldman Sachs in Tokyo said in a report Sept. 3. La Nina, a phenomenon linked to extreme weather, is likely to intensify at the end of the year, according to the Thai weather office. That may cause higher-than-normal rainfall in the south, which has 68 percent of the country’s plantations.
Global consumption will climb 9.4 percent this year to 10.31 million tons, the fastest increase since 2004, according to the Singapore-based International Rubber Study Group, which says it has 16 countries and the European Union as contributing members. Demand will exceed output by 60,000 tons, from a surplus of 237,000 tons last year.
Commodity Advance
Bridgestone announced European price increases Aug. 30. Goodyear and Cooper Tire & Rubber Co., the two largest U.S. tiremakers, confirmed Sept. 17 they would raise U.S. prices from next month to recoup higher raw-material costs. Both companies said they last raised retail prices in June.
World auto sales will increase 8 percent to 68.5 million units this year and 7.2 percent to 73.4 million units next year, according to Ashvin Chotai, London-based managing director at Intelligence Automotive Asia Ltd. The economy in China, the biggest auto market, will expand 8.9 percent next year, more than three times the pace of the U.S., according to the median of as many as 60 economists’ estimates compiled by Bloomberg.
Even as governments fret about deflation, or declining consumer prices, extreme weather from drought in Russia and Ukraine to flooding in Pakistan and Canada is driving commodity costs higher. Wheat as much as doubled since June, while corn rallied to a 23-month high, coffee reached a 13-year peak and cotton advanced to its most expensive since 1995. A United Nations price-index of 55 foods rose to its highest level since September 2008 last month.
‘Chase a Rally’
“Rubber may chase a rally in grains and soft commodities as investors are searching for better places to put their money,” said Tokyo-based Sugitani of Newedge.
The U.S. producer price index increased 0.4 percent in August, the most in five months and twice the gain in July, the Labor Department reported Sept. 16.
Growth in demand for rubber may be undermined by a faltering recovery. Global economic expansion will probably slow in the second half of this year and in the first half of 2011, IMF economists said in a report Sept. 10.
Confidence among U.S. consumers unexpectedly dropped to a one-year low in September. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment fell to 66.6 from 68.9 in August, the group said Sept. 17, while U.S. unemployment is close to a 26-year high.
Cooling Economies
U.S. industrial output increased 0.2 percent in August after a 0.6 percent gain in July, the Federal Reserve said Sept. 15. Manufacturing in the New York region grew this month at the slowest pace in more than a year, said another Fed report.
Auto sales in the U.S. in August were the worst for the month in 28 years, according to Autodata Corp., a researcher in Woodcliff Lake, New Jersey. Passenger-car deliveries to Chinese dealerships in July gained at the slowest pace in 16 months, the China Association of Automobile Manufacturers reported. Almost 60 percent of the world’s rubber is consumed by the tire industry, according to the International Rubber Study Group.
The Standard & Poor’s 500 Index dropped 7.7 percent from this year’s high of 1,219.80 on April 26 on concern the recovery is slowing, while the Standard & Poor’s GSCI Index of 24 commodity futures declined 4.9 percent since the gauge reached 555.729 on May 3. Treasuries returned 5.5 percent since then.
Demand from China and India may have peaked as governments seek to cool their economies and deflate property bubbles, said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co. Rubber futures declined 12 percent since advancing to a 21-month high of 338.5 yen a kilogram on April 16 on the Tokyo Commodity Exchange. They gained 8.5 percent this year.
Bridgestone, Goodyear
Tiremakers are passing on the higher costs. Bridgestone said Aug. 30 that it will raise tire prices in Europe from October by as much as 6 percent. Increases by Goodyear and Cooper were for as much as 6.5 percent starting next month.
“We don’t do a lot of raw-material hedging” said Keith Price, a spokesman for Akron, Ohio-based Goodyear. Raw-material costs are expected to jump by 30 percent to 35 percent in the third quarter from a year earlier and by about 30 percent in the following quarter, Chief Financial Officer Darren R. Wells said on a conference call July 29.
Top Glove Corp., based in Selangor, Malaysia, and the world’s biggest rubber-glove maker, passes on “the majority” of higher costs, Executive Director Lim Cheong Guan said.
Rising costs are “a headache,” said Sakae Kubota, managing director of Okamoto Industries Inc., Japan’s biggest condom maker. Competition and demand mean the company is absorbing the extra expense, the executive said.
Tumbling Inventories
Prices of $3,370 a ton for so-called Technically Specified Rubber used in tire manufacturing are 53 percent more expensive than alternatives made from oil, data compiled by Bloomberg show.
Goldman Sachs’s Isayama said it’s impossible for tiremakers to substitute immediately synthetic for natural rubber, and even if substitution occurs, the volume should be limited to several percent of total consumption.
Stockpiles monitored by the Shanghai Futures Exchange and the Tokyo Commodity Exchange have slumped. Shanghai inventories plunged 72 percent in the past year while those reported by Tocom tumbled about 47 percent.
Thailand’s production may drop as much as 5 percent to 3 million tons this year as rain disrupts tapping, according to Pongsak. Output in Indonesia, the second-largest grower, may total 2.4 million tons, less than an earlier estimate of 2.6 million tons, said Suharto Honggokusumo, executive director of the country’s rubber association.
“Demand keeps expanding and supplies are at risk,” said Tetsu Emori, a commodity fund manager at Astmax Co. in Tokyo, who says prices may reach a record by early next year. “The situation may reach a critical point.”
(Bloomberg.com)
Bridgestone Corp., the largest tiremaker by sales, is raising European prices for the second time this year and Goodyear Tire & Rubber Co. is charging more as rubber gains on prospects for the biggest shortage since 2007.
“Drought earlier this year and heavy rains later on hampered tree-tapping across Asian plantations,” said Pongsak Kerdvongbundit, managing director of Phuket, Thailand-based Von Bundit Co., the largest natural-rubber producer and exporter in the world’s biggest supplier. “Global production will lag behind soaring demand for at least another two years.”
Stockpiles of the raw material, also used in gloves and condoms, will drop 12 percent to 67 days of demand next year, the lowest level in at least 11 years, according to Goldman Sachs Group Inc. Consumption will outpace supply by 127,000 metric tons, the most since 2007, the bank estimates. Futures traded in Singapore may jump 20 percent by March, said Makoto Sugitani, a senior director at Newedge Japan Inc., who correctly predicted the rally in January. Based on the Sept. 14 forecast, that would mean a record of about $4.20 a kilogram (2.2 pounds).
Sales of rubber are increasing the most in six years, helped by what the International Monetary Fund says will be the fastest global economic growth since 2007. Rain and flooding in Thailand and Indonesia, the top producers, drenched farms and curbed harvesting. Michelin & Cie., the world’s second-biggest tiremaker, said in July that commodity costs would cut full-year earnings by as much as 650 million euros ($850 million).
Shrinking Stockpiles
Futures may climb as much as 14 percent to $4 a kilogram by March on the Singapore Commodity Exchange, according to the median estimate of nine brokers and analysts surveyed by Bloomberg. Prices reached a record $4.11 on April 15 and closed at $3.50 on Sept. 20, for an advance of 22 percent this year.
Inventories will drop almost 6 percent to 2.05 million tons next year, for a third annual decline,Yuichiro Isayama and three other analysts at Goldman Sachs in Tokyo said in a report Sept. 3. La Nina, a phenomenon linked to extreme weather, is likely to intensify at the end of the year, according to the Thai weather office. That may cause higher-than-normal rainfall in the south, which has 68 percent of the country’s plantations.
Global consumption will climb 9.4 percent this year to 10.31 million tons, the fastest increase since 2004, according to the Singapore-based International Rubber Study Group, which says it has 16 countries and the European Union as contributing members. Demand will exceed output by 60,000 tons, from a surplus of 237,000 tons last year.
Commodity Advance
Bridgestone announced European price increases Aug. 30. Goodyear and Cooper Tire & Rubber Co., the two largest U.S. tiremakers, confirmed Sept. 17 they would raise U.S. prices from next month to recoup higher raw-material costs. Both companies said they last raised retail prices in June.
World auto sales will increase 8 percent to 68.5 million units this year and 7.2 percent to 73.4 million units next year, according to Ashvin Chotai, London-based managing director at Intelligence Automotive Asia Ltd. The economy in China, the biggest auto market, will expand 8.9 percent next year, more than three times the pace of the U.S., according to the median of as many as 60 economists’ estimates compiled by Bloomberg.
Even as governments fret about deflation, or declining consumer prices, extreme weather from drought in Russia and Ukraine to flooding in Pakistan and Canada is driving commodity costs higher. Wheat as much as doubled since June, while corn rallied to a 23-month high, coffee reached a 13-year peak and cotton advanced to its most expensive since 1995. A United Nations price-index of 55 foods rose to its highest level since September 2008 last month.
‘Chase a Rally’
“Rubber may chase a rally in grains and soft commodities as investors are searching for better places to put their money,” said Tokyo-based Sugitani of Newedge.
The U.S. producer price index increased 0.4 percent in August, the most in five months and twice the gain in July, the Labor Department reported Sept. 16.
Growth in demand for rubber may be undermined by a faltering recovery. Global economic expansion will probably slow in the second half of this year and in the first half of 2011, IMF economists said in a report Sept. 10.
Confidence among U.S. consumers unexpectedly dropped to a one-year low in September. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment fell to 66.6 from 68.9 in August, the group said Sept. 17, while U.S. unemployment is close to a 26-year high.
Cooling Economies
U.S. industrial output increased 0.2 percent in August after a 0.6 percent gain in July, the Federal Reserve said Sept. 15. Manufacturing in the New York region grew this month at the slowest pace in more than a year, said another Fed report.
Auto sales in the U.S. in August were the worst for the month in 28 years, according to Autodata Corp., a researcher in Woodcliff Lake, New Jersey. Passenger-car deliveries to Chinese dealerships in July gained at the slowest pace in 16 months, the China Association of Automobile Manufacturers reported. Almost 60 percent of the world’s rubber is consumed by the tire industry, according to the International Rubber Study Group.
The Standard & Poor’s 500 Index dropped 7.7 percent from this year’s high of 1,219.80 on April 26 on concern the recovery is slowing, while the Standard & Poor’s GSCI Index of 24 commodity futures declined 4.9 percent since the gauge reached 555.729 on May 3. Treasuries returned 5.5 percent since then.
Demand from China and India may have peaked as governments seek to cool their economies and deflate property bubbles, said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co. Rubber futures declined 12 percent since advancing to a 21-month high of 338.5 yen a kilogram on April 16 on the Tokyo Commodity Exchange. They gained 8.5 percent this year.
Bridgestone, Goodyear
Tiremakers are passing on the higher costs. Bridgestone said Aug. 30 that it will raise tire prices in Europe from October by as much as 6 percent. Increases by Goodyear and Cooper were for as much as 6.5 percent starting next month.
“We don’t do a lot of raw-material hedging” said Keith Price, a spokesman for Akron, Ohio-based Goodyear. Raw-material costs are expected to jump by 30 percent to 35 percent in the third quarter from a year earlier and by about 30 percent in the following quarter, Chief Financial Officer Darren R. Wells said on a conference call July 29.
Top Glove Corp., based in Selangor, Malaysia, and the world’s biggest rubber-glove maker, passes on “the majority” of higher costs, Executive Director Lim Cheong Guan said.
Rising costs are “a headache,” said Sakae Kubota, managing director of Okamoto Industries Inc., Japan’s biggest condom maker. Competition and demand mean the company is absorbing the extra expense, the executive said.
Tumbling Inventories
Prices of $3,370 a ton for so-called Technically Specified Rubber used in tire manufacturing are 53 percent more expensive than alternatives made from oil, data compiled by Bloomberg show.
Goldman Sachs’s Isayama said it’s impossible for tiremakers to substitute immediately synthetic for natural rubber, and even if substitution occurs, the volume should be limited to several percent of total consumption.
Stockpiles monitored by the Shanghai Futures Exchange and the Tokyo Commodity Exchange have slumped. Shanghai inventories plunged 72 percent in the past year while those reported by Tocom tumbled about 47 percent.
Thailand’s production may drop as much as 5 percent to 3 million tons this year as rain disrupts tapping, according to Pongsak. Output in Indonesia, the second-largest grower, may total 2.4 million tons, less than an earlier estimate of 2.6 million tons, said Suharto Honggokusumo, executive director of the country’s rubber association.
“Demand keeps expanding and supplies are at risk,” said Tetsu Emori, a commodity fund manager at Astmax Co. in Tokyo, who says prices may reach a record by early next year. “The situation may reach a critical point.”
(Bloomberg.com)
New Thai rubber tax: how the market might adjust
New Thai rubber tax: how the market might adjust
BANGKOK, Sept 20 (Reuters) - Thailand, the world's biggest rubber exporter, implements a new rubber export tax from Oct. 1.
The proceeds of the tax, known as the "cess money levy", will go into a fund to be used for intervening in the rubber market and for supporting farmers if domestic prices drop sharply.
The current export tax is 1.4 baht per kg, irrespective of price.
Under the new regime, the tax will be 3 baht per kg if the price stays between 80 baht and 100 baht, which is roughly the current level. If the price falls below that, the tax will be 2 baht; above 100 baht per kg, the tax will rise to 5 baht.
The tax will not be set each year, or each season. Rather, it will be set by the government twice a month in line with prevailing prices. Exporters complain that will create uncertainty about prices to set on forward deals.
Here is how the market might react from October.
HIGHER COSTS MEAN HIGHER PRICES
At the current domestic price of around 100 baht per kg, exporters would pay 3 baht per kg in tax, up from 1.4 baht now. Many exporters may simply raise offer prices to offset their tax losses.
"No one wants to absorb those higher costs. They need to push it away to others," said a trader in the Hat Yai rubber centre.
Some exporters estimate offers for benchmark Thai smoked rubber sheet (RSS3) could go up 3-5 cents per kg from the market price of $3.50 on Monday.
THAT WILL HURT THAI COMPETITIVENESS
Thai rubber prices could rise to uncompetitively high levels. Prices in Indonesia and Malaysia, the world's second-biggest and third-biggest exporters respectively, are around $3.40 per kg, traders said.
That would result in a drop in exports in the fourth quarter and into the foreseeable future.
The Thai Rubber Association expects exports in 2010 to be flat around the 2.7 million tonne sold in 2009. Thailand exported 2.8 million tonnes in 2008.
FORCE FARMERS' PRICES DOWN
In order to compete with the cheaper rubber from Indonesia and Malaysia, exporters saw very little room for prices to rise.
Instead of raising offer prices, exporters could cut production costs by pushing down the price paid to farmers for unsmoked sheet (USS3).
Although they are already paying 1.6 baht per kg in tax, some exporters are talking about cutting the price paid to farmers for unsmoked sheet by 3 baht from October, thereby recouping all their tax costs if prices remain around present levels.
As a result, farmers would get only 97 baht ($3.16) per kg, down from 100 baht now.
FARMERS MIGHT ACCEPT THIS
Farmers would get lower income but some seem prepared to accept a small drop as long as sales hold up.
"It's OK if we can earn at least 80 baht per kg," said Somdet Khemasuk, chairman of the Rubber Growers Cooperatives Federation of Thailand.
That acceptance may reflect the jump in prices enjoyed by farmers since early 2009, reflected in the pick-up in export prices from a seven-year low of $1.10 per kg in December 2008.
It may also reflect farmers' backing of the new tax regime since it will support an intervention fund. They know that if prices fall too far, the government will have the means to step in and supplement their income. ($1=30.71 Baht)
Source: Reuters
Buyer resistance pulls down sheet rubber
Kottayam, Sept 20
Rubber prices weakened on Monday. On the spot, prices slipped following the declines on the National Multi Commodity Exchange (NMCE). Market activities were comparatively dull as the trend-setting Japanese futures were on long weekend holidays. The trend was mixed. According to dealers, sheet rubber dropped to Rs 165.5 from Rs 166 a kg on buyer resistance. The grade slipped to Rs 166.5 from Rs 167 a kg on the Board's official Web site.
Futures decline
RSS 4 declined at its October series to Rs 165.4 (167.39), November to Rs 165.5 (167.32), December to Rs 167.65 (168.57) and January to Rs 169.51 (170) a kg for RSS 4 on the NMCE. RSS 3 (spot) firmed up marginally to Rs 159.81 (159.63) a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 165.5 (166); RSS-5: 162 (162.5); ungraded: 159 (159); ISNR 20: 156 (155) and latex 60 per cent: 115 (115).
‘Globalisation impacting rubber use'
Our Correspondent
Kottayam, Sept. 17
The Rubber Board Chairman, Mr Sajen Peter, has said here today that the Indian rubber industry is undergoing transformations owing to compulsions of globalisation which will, in turn, reflect in the consumption pattern of natural rubber.
The fact that, with increasing level of radialisation of tyres, there is a decreasing demand for lower grades of natural rubber, is an example of this change. He was delivering the inaugural speech in the Industry Awareness Programme conducted jointly by the Rubber Board and Bureau of Indian Standards (BIS) mainly for collecting feedback from Natural Rubber (NR) processors and product manufacturers. He has also pointed out that India, till recently, was being considered an NR producing country, which status also is now being changed as a major consuming country.
Mr K Anbarasu, Deputy Director General, Southern Region of BIS, presented the programme objectives. Mr WR Paul, Director, Thiruvananthapuram Branch Office of BIS, Mr P Arumugam, Specification Officer, Rubber Board and Mr KC Chacko, Manager (Quality Assurance, Rubber Board), made presentations on various aspects of quality control and certification for NR industries.
Mr R.C. Mathew, Director and Head, BIS, Thiruvananthapuram, welcomed the gathering and Dr M. Sunny Sebastian, Director (P&PD), Rubber Board, proposed a vote of thanks.
BANGKOK, Sept 20 (Reuters) - Thailand, the world's biggest rubber exporter, implements a new rubber export tax from Oct. 1.
The proceeds of the tax, known as the "cess money levy", will go into a fund to be used for intervening in the rubber market and for supporting farmers if domestic prices drop sharply.
The current export tax is 1.4 baht per kg, irrespective of price.
Under the new regime, the tax will be 3 baht per kg if the price stays between 80 baht and 100 baht, which is roughly the current level. If the price falls below that, the tax will be 2 baht; above 100 baht per kg, the tax will rise to 5 baht.
The tax will not be set each year, or each season. Rather, it will be set by the government twice a month in line with prevailing prices. Exporters complain that will create uncertainty about prices to set on forward deals.
Here is how the market might react from October.
HIGHER COSTS MEAN HIGHER PRICES
At the current domestic price of around 100 baht per kg, exporters would pay 3 baht per kg in tax, up from 1.4 baht now. Many exporters may simply raise offer prices to offset their tax losses.
"No one wants to absorb those higher costs. They need to push it away to others," said a trader in the Hat Yai rubber centre.
Some exporters estimate offers for benchmark Thai smoked rubber sheet (RSS3) could go up 3-5 cents per kg from the market price of $3.50 on Monday.
THAT WILL HURT THAI COMPETITIVENESS
Thai rubber prices could rise to uncompetitively high levels. Prices in Indonesia and Malaysia, the world's second-biggest and third-biggest exporters respectively, are around $3.40 per kg, traders said.
That would result in a drop in exports in the fourth quarter and into the foreseeable future.
The Thai Rubber Association expects exports in 2010 to be flat around the 2.7 million tonne sold in 2009. Thailand exported 2.8 million tonnes in 2008.
FORCE FARMERS' PRICES DOWN
In order to compete with the cheaper rubber from Indonesia and Malaysia, exporters saw very little room for prices to rise.
Instead of raising offer prices, exporters could cut production costs by pushing down the price paid to farmers for unsmoked sheet (USS3).
Although they are already paying 1.6 baht per kg in tax, some exporters are talking about cutting the price paid to farmers for unsmoked sheet by 3 baht from October, thereby recouping all their tax costs if prices remain around present levels.
As a result, farmers would get only 97 baht ($3.16) per kg, down from 100 baht now.
FARMERS MIGHT ACCEPT THIS
Farmers would get lower income but some seem prepared to accept a small drop as long as sales hold up.
"It's OK if we can earn at least 80 baht per kg," said Somdet Khemasuk, chairman of the Rubber Growers Cooperatives Federation of Thailand.
That acceptance may reflect the jump in prices enjoyed by farmers since early 2009, reflected in the pick-up in export prices from a seven-year low of $1.10 per kg in December 2008.
It may also reflect farmers' backing of the new tax regime since it will support an intervention fund. They know that if prices fall too far, the government will have the means to step in and supplement their income. ($1=30.71 Baht)
Source: Reuters
Buyer resistance pulls down sheet rubber
Kottayam, Sept 20
Rubber prices weakened on Monday. On the spot, prices slipped following the declines on the National Multi Commodity Exchange (NMCE). Market activities were comparatively dull as the trend-setting Japanese futures were on long weekend holidays. The trend was mixed. According to dealers, sheet rubber dropped to Rs 165.5 from Rs 166 a kg on buyer resistance. The grade slipped to Rs 166.5 from Rs 167 a kg on the Board's official Web site.
Futures decline
RSS 4 declined at its October series to Rs 165.4 (167.39), November to Rs 165.5 (167.32), December to Rs 167.65 (168.57) and January to Rs 169.51 (170) a kg for RSS 4 on the NMCE. RSS 3 (spot) firmed up marginally to Rs 159.81 (159.63) a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 165.5 (166); RSS-5: 162 (162.5); ungraded: 159 (159); ISNR 20: 156 (155) and latex 60 per cent: 115 (115).
‘Globalisation impacting rubber use'
Our Correspondent
Kottayam, Sept. 17
The Rubber Board Chairman, Mr Sajen Peter, has said here today that the Indian rubber industry is undergoing transformations owing to compulsions of globalisation which will, in turn, reflect in the consumption pattern of natural rubber.
The fact that, with increasing level of radialisation of tyres, there is a decreasing demand for lower grades of natural rubber, is an example of this change. He was delivering the inaugural speech in the Industry Awareness Programme conducted jointly by the Rubber Board and Bureau of Indian Standards (BIS) mainly for collecting feedback from Natural Rubber (NR) processors and product manufacturers. He has also pointed out that India, till recently, was being considered an NR producing country, which status also is now being changed as a major consuming country.
Mr K Anbarasu, Deputy Director General, Southern Region of BIS, presented the programme objectives. Mr WR Paul, Director, Thiruvananthapuram Branch Office of BIS, Mr P Arumugam, Specification Officer, Rubber Board and Mr KC Chacko, Manager (Quality Assurance, Rubber Board), made presentations on various aspects of quality control and certification for NR industries.
Mr R.C. Mathew, Director and Head, BIS, Thiruvananthapuram, welcomed the gathering and Dr M. Sunny Sebastian, Director (P&PD), Rubber Board, proposed a vote of thanks.
Friday, September 17, 2010
Rubber Set for First Gain in Three Weeks on Weaker Yen, Recovery Signs
Rubber Set for First Gain in Three Weeks on Weaker Yen, Recovery Signs
Rubber increased, heading for the first weekly gain in three weeks, as the yen weakened against the dollar and signs that economic recovery will be sustained boosted the appeal of the commodity used to make tires.
Futures in Tokyo climbed as much as 0.8 percent, gaining for the first time in three days. The price also increased as a drop in the dollar against the euro renewed investor interest in commodities as alternative assets.
The yen traded near a five-week low against the euro before reports that economists said will show German producer prices rose and U.S. consumer confidence improved, sapping demand for safer assets. Asian stocks advanced as a weak yen boosted the outlook for Japan’s exporters.
“Rubber futures draw support from the currency and equity markets,” said Takaki Shigemoto, an analyst at JSC Corp. in Tokyo. “A pessimistic view about the economy is fading as Japan took action to support a recovery.”
February-delivery rubber gained as much as 2.2 yen to 295 yen per kilogram ($3,440 a metric ton) before trading at 294.6 yen on the Tokyo Commodity Exchange at 12:16 p.m.
Yen Weakens
The yen traded at 85.73 per dollar against 85.78 in New York yesterday. Japan sold the currency this week after it climbed to 82.88, the strongest since May 1995, threatening the nation’s export-led economic recovery. Prime Minister Naoto Kan said yesterday his government won’t tolerate “rapid movements” in the yen and is ready to take “decisive measures.”
German producer prices gained 0.3 percent in August from July, when they climbed 0.5 percent, according to a Bloomberg News survey before the report today.
The Thomson Reuters/University of Michigan preliminary index of U.S. consumer sentiment advanced to 70 in September from 68.9 in August, another Bloomberg survey showed before today’s data.
Gains in rubber futures were limited as the nearest-dated contract in Tokyo extended losses amid speculation that physical deliveries may increase when the contract expires.
September-delivery rubber on the Tokyo Commodity Exchange, which will expire on Sept. 24, slumped 1.3 percent to 285.8 yen, extending losses for a third day.
Investors sold the contract amid speculation that as much as 2,570 tons of rubber may be delivered when it expires, Shigemoto said. The volume could more than double from 1,080 tons of physical delivery at the spot contract’s expiry last month, according to Norikazu Takei, a Tocom spokesman.
March-delivery rubber on the Shanghai Futures Exchange added 1.7 percent to 25,590 yuan ($3,804) a ton.
Auctioned prices in Thailand declined as a strengthening local currency made the commodity more expensive for overseas buyers, according to the Rubber Research Institute of Thailand. The price of ribbed smoked sheets dropped 0.5 percent to 104.50 baht ($3.39) per kilogram, it said yesterday.
(bloomberg.com)
Intl meet on rubber to be held in kochi in October
Posted: 16 Sep 2010 09:31 PM PDT
Government officials from 11 rubber-growing Asian countries will discuss the opportunities and challenges facing the rubber industry at a five-day international conference scheduled to take place here from October 4-8.
The conference would be the 33rd assembly of the Association of Natural Rubber Producing Countries (ANRPC) which has Cambodia, India, China, Indonesia, Malaysia, Papua New guinnea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam as its members. The association represents 94 per cent of the total rubber-growing area in the world.
According to the programme schedule, the meet on rubber will be held on October 6 with the theme 'Natural rubber industry in the new decade – Opportunities, Challenges and Working Avenues'.
Apart from discussions on various developments in rubber cultivation, production and consumption, study reports prepared by the ANRPC and the International Rubber Study Group (IRSG), covering emerging aspects of rubber cultivation in the next decade (2011-20), would be presented at the conference.
Along with the assembly, there will be meetings of the executive committee and various technical committees of ANRPC. The venue for both the meetings is the Hotel Le Meridien.
ANRPC was founded in 1970 with Kuala Lumpur (Malaysia) as its headquarters. Vietnam holds the chair of ANRPC currently while India is the vice chair.
(business-standard.com)
Rubber Drops a Second Day on Speculation Physical Deliveries May Increase
Posted: 16 Sep 2010 09:28 PM PDT
By Aya Takada and Supunnabul Suwannakij - Sep 16, 2010 3:16 PM GMT+0700
Rubber dropped for a second day, led by a slump in the nearest-dated contract, amid speculation that physical deliveries may increase when the contract expires next week.
September-delivery rubber on the Tokyo Commodity Exchange, which will expire on Sept. 24, plunged as much as 4.7 percent to 284 yen per kilogram ($3,324 a metric ton), extending yesterday’s 1.8 percent drop, before settling at 289.5 yen.
Investors sold the contract amid speculation that as much as 2,570 tons of rubber may be delivered when it expires, said Takaki Shigemoto, an analyst at JSC Corp. in Tokyo. The volume could more than double from 1,080 tons of physical delivery at the spot contract’s expiry last month, according to Norikazu Takei, a Tocom spokesman.
“The market was weighed down by concern that a larger volume of rubber deliveries may depress prices,” Shigemoto said by phone today.
February-delivery rubber, the most-active contract on the Tokyo exchange, lost as much as 1.3 percent to 292 yen per kilogram before settling at 292.8 yen.
Futures also declined as crude oil dropped, weakening the appeal of natural rubber as an alternative to synthetic products used in tires. Oil fell for a third day in New York after a U.S. government report showed fuel demand declined last week and as Enbridge Energy Partners LP prepared to restart a pipeline after repairs, easing supply concerns.
Crude for October delivery fell as much as 1.3 percent to $75 a barrel in electronic trading on the New York Mercantile Exchange in Asia.
Weak Data
Worse-than-expected economic data in the U.S. renewed concerns that the world’s largest economy may slow, hurting demand for raw materials, Shigemoto said.
Industrial production in the U.S. cooled in August to 0.2 percent after a 0.6 percent gain in July that was smaller than previously estimated, figures from the Federal Reserve showed. A separate report showed manufacturing in the New York region expanded this month at the slowest pace in more than a year.
March-delivery rubber on the Shanghai Futures Exchange dropped 0.5 percent to close at 25,170 yuan ($3,740) a ton.
Auctioned prices in Thailand declined as a strengthening local currency made the commodity more expensive for overseas buyers, according to the Rubber Research Institute of Thailand. Price of ribbed smoked sheets dropped 0.5 percent to 104.50 baht ($3.39) per kilogram, it said.
(bloomberg.com)
Rubber imports to rise 42%
Posted: 16 Sep 2010 09:24 PM PDT
India is likely to witness a 42 per cent rise in natural rubber imports as against the earlier estimate of 70,000 tonnes made by the Rubber Board of India, on the back of lower import duties and sound growth of the automotive sector.
“In all likelihood, imports will be higher than 100,000 tonnes this financial year due to higher demand in the domestic market,” Sajen Peter, the chairman of the Rubber Board said on the sidelines of the Upasi annual general meeting here.
According to data with the Rubber Board, total imports during April-August exceeded its estimate and were around 77,577 tonnes.
The country produced 831,400 tonnes rubber in 2009-2010 and is estimated to produce 7.5 per cent more over last year to 893,000 tonnes in the 2010-11 period.
On domestic pricing, Peter said, “In the last two to three months, there were concerns related to pricing as domestic prices were higher than international prices. However, domestic prices are now at the same level as international prices. In the near term, pricing will remain at this level.”
He, however, said price fluctuation in the domestic futures market remained a concern.
“There have been demands for reducing the upper cap in commodity exchanges to two per cent to check price fluctuation and discourage speculation,” he added. The present upper circuit is four per cent.
(business-standard.com)
Rubber increased, heading for the first weekly gain in three weeks, as the yen weakened against the dollar and signs that economic recovery will be sustained boosted the appeal of the commodity used to make tires.
Futures in Tokyo climbed as much as 0.8 percent, gaining for the first time in three days. The price also increased as a drop in the dollar against the euro renewed investor interest in commodities as alternative assets.
The yen traded near a five-week low against the euro before reports that economists said will show German producer prices rose and U.S. consumer confidence improved, sapping demand for safer assets. Asian stocks advanced as a weak yen boosted the outlook for Japan’s exporters.
“Rubber futures draw support from the currency and equity markets,” said Takaki Shigemoto, an analyst at JSC Corp. in Tokyo. “A pessimistic view about the economy is fading as Japan took action to support a recovery.”
February-delivery rubber gained as much as 2.2 yen to 295 yen per kilogram ($3,440 a metric ton) before trading at 294.6 yen on the Tokyo Commodity Exchange at 12:16 p.m.
Yen Weakens
The yen traded at 85.73 per dollar against 85.78 in New York yesterday. Japan sold the currency this week after it climbed to 82.88, the strongest since May 1995, threatening the nation’s export-led economic recovery. Prime Minister Naoto Kan said yesterday his government won’t tolerate “rapid movements” in the yen and is ready to take “decisive measures.”
German producer prices gained 0.3 percent in August from July, when they climbed 0.5 percent, according to a Bloomberg News survey before the report today.
The Thomson Reuters/University of Michigan preliminary index of U.S. consumer sentiment advanced to 70 in September from 68.9 in August, another Bloomberg survey showed before today’s data.
Gains in rubber futures were limited as the nearest-dated contract in Tokyo extended losses amid speculation that physical deliveries may increase when the contract expires.
September-delivery rubber on the Tokyo Commodity Exchange, which will expire on Sept. 24, slumped 1.3 percent to 285.8 yen, extending losses for a third day.
Investors sold the contract amid speculation that as much as 2,570 tons of rubber may be delivered when it expires, Shigemoto said. The volume could more than double from 1,080 tons of physical delivery at the spot contract’s expiry last month, according to Norikazu Takei, a Tocom spokesman.
March-delivery rubber on the Shanghai Futures Exchange added 1.7 percent to 25,590 yuan ($3,804) a ton.
Auctioned prices in Thailand declined as a strengthening local currency made the commodity more expensive for overseas buyers, according to the Rubber Research Institute of Thailand. The price of ribbed smoked sheets dropped 0.5 percent to 104.50 baht ($3.39) per kilogram, it said yesterday.
(bloomberg.com)
Intl meet on rubber to be held in kochi in October
Posted: 16 Sep 2010 09:31 PM PDT
Government officials from 11 rubber-growing Asian countries will discuss the opportunities and challenges facing the rubber industry at a five-day international conference scheduled to take place here from October 4-8.
The conference would be the 33rd assembly of the Association of Natural Rubber Producing Countries (ANRPC) which has Cambodia, India, China, Indonesia, Malaysia, Papua New guinnea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam as its members. The association represents 94 per cent of the total rubber-growing area in the world.
According to the programme schedule, the meet on rubber will be held on October 6 with the theme 'Natural rubber industry in the new decade – Opportunities, Challenges and Working Avenues'.
Apart from discussions on various developments in rubber cultivation, production and consumption, study reports prepared by the ANRPC and the International Rubber Study Group (IRSG), covering emerging aspects of rubber cultivation in the next decade (2011-20), would be presented at the conference.
Along with the assembly, there will be meetings of the executive committee and various technical committees of ANRPC. The venue for both the meetings is the Hotel Le Meridien.
ANRPC was founded in 1970 with Kuala Lumpur (Malaysia) as its headquarters. Vietnam holds the chair of ANRPC currently while India is the vice chair.
(business-standard.com)
Rubber Drops a Second Day on Speculation Physical Deliveries May Increase
Posted: 16 Sep 2010 09:28 PM PDT
By Aya Takada and Supunnabul Suwannakij - Sep 16, 2010 3:16 PM GMT+0700
Rubber dropped for a second day, led by a slump in the nearest-dated contract, amid speculation that physical deliveries may increase when the contract expires next week.
September-delivery rubber on the Tokyo Commodity Exchange, which will expire on Sept. 24, plunged as much as 4.7 percent to 284 yen per kilogram ($3,324 a metric ton), extending yesterday’s 1.8 percent drop, before settling at 289.5 yen.
Investors sold the contract amid speculation that as much as 2,570 tons of rubber may be delivered when it expires, said Takaki Shigemoto, an analyst at JSC Corp. in Tokyo. The volume could more than double from 1,080 tons of physical delivery at the spot contract’s expiry last month, according to Norikazu Takei, a Tocom spokesman.
“The market was weighed down by concern that a larger volume of rubber deliveries may depress prices,” Shigemoto said by phone today.
February-delivery rubber, the most-active contract on the Tokyo exchange, lost as much as 1.3 percent to 292 yen per kilogram before settling at 292.8 yen.
Futures also declined as crude oil dropped, weakening the appeal of natural rubber as an alternative to synthetic products used in tires. Oil fell for a third day in New York after a U.S. government report showed fuel demand declined last week and as Enbridge Energy Partners LP prepared to restart a pipeline after repairs, easing supply concerns.
Crude for October delivery fell as much as 1.3 percent to $75 a barrel in electronic trading on the New York Mercantile Exchange in Asia.
Weak Data
Worse-than-expected economic data in the U.S. renewed concerns that the world’s largest economy may slow, hurting demand for raw materials, Shigemoto said.
Industrial production in the U.S. cooled in August to 0.2 percent after a 0.6 percent gain in July that was smaller than previously estimated, figures from the Federal Reserve showed. A separate report showed manufacturing in the New York region expanded this month at the slowest pace in more than a year.
March-delivery rubber on the Shanghai Futures Exchange dropped 0.5 percent to close at 25,170 yuan ($3,740) a ton.
Auctioned prices in Thailand declined as a strengthening local currency made the commodity more expensive for overseas buyers, according to the Rubber Research Institute of Thailand. Price of ribbed smoked sheets dropped 0.5 percent to 104.50 baht ($3.39) per kilogram, it said.
(bloomberg.com)
Rubber imports to rise 42%
Posted: 16 Sep 2010 09:24 PM PDT
India is likely to witness a 42 per cent rise in natural rubber imports as against the earlier estimate of 70,000 tonnes made by the Rubber Board of India, on the back of lower import duties and sound growth of the automotive sector.
“In all likelihood, imports will be higher than 100,000 tonnes this financial year due to higher demand in the domestic market,” Sajen Peter, the chairman of the Rubber Board said on the sidelines of the Upasi annual general meeting here.
According to data with the Rubber Board, total imports during April-August exceeded its estimate and were around 77,577 tonnes.
The country produced 831,400 tonnes rubber in 2009-2010 and is estimated to produce 7.5 per cent more over last year to 893,000 tonnes in the 2010-11 period.
On domestic pricing, Peter said, “In the last two to three months, there were concerns related to pricing as domestic prices were higher than international prices. However, domestic prices are now at the same level as international prices. In the near term, pricing will remain at this level.”
He, however, said price fluctuation in the domestic futures market remained a concern.
“There have been demands for reducing the upper cap in commodity exchanges to two per cent to check price fluctuation and discourage speculation,” he added. The present upper circuit is four per cent.
(business-standard.com)
Thursday, September 16, 2010
India may witness sharp rise in rubber import this fiscal
India may witness sharp rise in rubber import this fiscal
MUMBAI (Commodity Online): Higher exposure in the automobile sector coupled with the cheap imports duty is expected to increase India’s natural rubber import by 42% in the current season.
According to the Rubber Board of India, the imports are expected to spurt sharply in the current season as against its earlier estimation of 70000 tons.
Talking to reporters Board Chairman, Sajen Peter said, “In all likelihood, imports will be higher than 100,000 tonnes this financial year due to higher demand in the domestic market”.
According to data with the Rubber Board, total imports during April-August exceeded its estimate and were around 77,577 tonnes. The country produced 831,400 tonnes rubber in 2009-2010 and is estimated to produce 7.5 per cent more over last year to 893,000 tonnes in the 2010-11 periods.
On domestic pricing, Indian rubber prices were higher than international prices earlier and domestic prices are now at the same level as international prices. In the near term, pricing will remain at this level.
Malaysia July rubber output falls by 2.2%
MUMBAI (Commodity Online): Malaysia's natural rubber production in July fell 2.2% from a year earlier to 81,083 metric tons, according to a data from the Department of Statistics. Rubber exports rose 23% to 75,505 tons, while imports fell 17% to 57,033 tons.
Strong demand from China provided a boost, accounting for around 35% of July rubber exports. Latex concentrate and standard rubber made up 52% and 29% respectively of the rubber imports. Domestic rubber consumption fell 8.7% on year to 38,184 tons.
The Rubber Board of India has asked the Forward Markets Commission to lower the intraday price circuit levels in rubber futures to a total of not more than 2%, a leading newspaper reported Wednesday quoting Rubber Board Chairman Sajen Peter. Currently, rubber futures prices can rise or fall 2% initially during a trading session.
After this, if the price rises or falls another 2%, then trading is frozen for the day. Rubber Board wants trading to be halted for 30 minutes once the price rises or falls 1%, and after that it can move either way by another 1% before trade is suspended for the session, the paper said.
He said India's rubber imports could go up to 1, 00,000 tons in the current financial year ending March as against the earlier estimate of 70,000 tons.
Rubber Board – BIS plans quality awareness event
KOTTAYAM (Commodity Online): The Bureau of Indian Standards (BIS) and the Rubber Board of India have jointly called for an Industrial Awareness Programme for the benefit of rubber processors and rubber goods manufacturers.
The meeting is mainly intended for collecting feedback from various stake holders and for discussing issues if any, in the mode of quality implementation and to find out whether any revision of standards are necessary to equip them to meet the challenges of global competition, a statement issued by the Board stated today.
The standard quality mark ‘ISI’ is well accepted by the industry and consumers as a symbol of assured quality. The programme will be conducted on 17th September 2010 at Silver Jubilee Hall of Rubber Research Institute of India.
Dignitaries like Sajen Peter, Chairman-Rubber Board and K Ambarasu, Dy. Director General - Southern Region of BIS will be present at the event participate in the function.
Rubber weakens on global trend
Aravindan
Kottayam, Sept 16
Rubber prices weakened on Thursday. Spot prices slipped following declines in domestic and international futures. There has been no selling pressure in the market. The trend was mixed as ISNR 20 and latex 60 per cent finished flat, while the transactions were in a low key. According to dealers, sheet rubber surrendered to Rs 166from Rs 168a kg on buyer resistance. The grade moved down to Rs 167from Rs 168.5 a kg on the Board's official Web site.
The October series weakened to Rs 166.75 (Rs 167.5), November to Rs 166.5 (Rs 167.24) and December to Rs 167.3 (Rs 168.04) a kg for RSS 4, while the January series finished its debut session at Rs 168.75 on the National Multi Commodity Exchange (NMCE).
Futures decline
The key Tokyo rubber futures fell as a sharp drop in the nearby September contract pulled down the overall market, while weakness in oil, Shanghai futures and stocks also weighed on the investor sentiments much ahead of a long weekend in Japan. The September futures for RSS 3 declined sharply to ¥289.5 (Rs 155.98) from ¥298.a kg during the day session and then to ¥286.2 (Rs 154.19) during the night session on the Tokyo Commodity Exchange . RSS 3 (spot) slipped to Rs 162.58 (Rs 162.85) a kg at Bangkok.
Spot rubber rates (Rs/kg) were: RSS-4: 166(168); RSS-5: 163(165); Ungraded: 159(160); ISNR 20: 155(155) and latex 60 per cent: 115(115)
MUMBAI (Commodity Online): Higher exposure in the automobile sector coupled with the cheap imports duty is expected to increase India’s natural rubber import by 42% in the current season.
According to the Rubber Board of India, the imports are expected to spurt sharply in the current season as against its earlier estimation of 70000 tons.
Talking to reporters Board Chairman, Sajen Peter said, “In all likelihood, imports will be higher than 100,000 tonnes this financial year due to higher demand in the domestic market”.
According to data with the Rubber Board, total imports during April-August exceeded its estimate and were around 77,577 tonnes. The country produced 831,400 tonnes rubber in 2009-2010 and is estimated to produce 7.5 per cent more over last year to 893,000 tonnes in the 2010-11 periods.
On domestic pricing, Indian rubber prices were higher than international prices earlier and domestic prices are now at the same level as international prices. In the near term, pricing will remain at this level.
Malaysia July rubber output falls by 2.2%
MUMBAI (Commodity Online): Malaysia's natural rubber production in July fell 2.2% from a year earlier to 81,083 metric tons, according to a data from the Department of Statistics. Rubber exports rose 23% to 75,505 tons, while imports fell 17% to 57,033 tons.
Strong demand from China provided a boost, accounting for around 35% of July rubber exports. Latex concentrate and standard rubber made up 52% and 29% respectively of the rubber imports. Domestic rubber consumption fell 8.7% on year to 38,184 tons.
The Rubber Board of India has asked the Forward Markets Commission to lower the intraday price circuit levels in rubber futures to a total of not more than 2%, a leading newspaper reported Wednesday quoting Rubber Board Chairman Sajen Peter. Currently, rubber futures prices can rise or fall 2% initially during a trading session.
After this, if the price rises or falls another 2%, then trading is frozen for the day. Rubber Board wants trading to be halted for 30 minutes once the price rises or falls 1%, and after that it can move either way by another 1% before trade is suspended for the session, the paper said.
He said India's rubber imports could go up to 1, 00,000 tons in the current financial year ending March as against the earlier estimate of 70,000 tons.
Rubber Board – BIS plans quality awareness event
KOTTAYAM (Commodity Online): The Bureau of Indian Standards (BIS) and the Rubber Board of India have jointly called for an Industrial Awareness Programme for the benefit of rubber processors and rubber goods manufacturers.
The meeting is mainly intended for collecting feedback from various stake holders and for discussing issues if any, in the mode of quality implementation and to find out whether any revision of standards are necessary to equip them to meet the challenges of global competition, a statement issued by the Board stated today.
The standard quality mark ‘ISI’ is well accepted by the industry and consumers as a symbol of assured quality. The programme will be conducted on 17th September 2010 at Silver Jubilee Hall of Rubber Research Institute of India.
Dignitaries like Sajen Peter, Chairman-Rubber Board and K Ambarasu, Dy. Director General - Southern Region of BIS will be present at the event participate in the function.
Rubber weakens on global trend
Aravindan
Kottayam, Sept 16
Rubber prices weakened on Thursday. Spot prices slipped following declines in domestic and international futures. There has been no selling pressure in the market. The trend was mixed as ISNR 20 and latex 60 per cent finished flat, while the transactions were in a low key. According to dealers, sheet rubber surrendered to Rs 166from Rs 168a kg on buyer resistance. The grade moved down to Rs 167from Rs 168.5 a kg on the Board's official Web site.
The October series weakened to Rs 166.75 (Rs 167.5), November to Rs 166.5 (Rs 167.24) and December to Rs 167.3 (Rs 168.04) a kg for RSS 4, while the January series finished its debut session at Rs 168.75 on the National Multi Commodity Exchange (NMCE).
Futures decline
The key Tokyo rubber futures fell as a sharp drop in the nearby September contract pulled down the overall market, while weakness in oil, Shanghai futures and stocks also weighed on the investor sentiments much ahead of a long weekend in Japan. The September futures for RSS 3 declined sharply to ¥289.5 (Rs 155.98) from ¥298.a kg during the day session and then to ¥286.2 (Rs 154.19) during the night session on the Tokyo Commodity Exchange . RSS 3 (spot) slipped to Rs 162.58 (Rs 162.85) a kg at Bangkok.
Spot rubber rates (Rs/kg) were: RSS-4: 166(168); RSS-5: 163(165); Ungraded: 159(160); ISNR 20: 155(155) and latex 60 per cent: 115(115)
Rubber weakens on global trend
Rubber weakens on global trend
Kottayam, Sept 15
Spot rubber turned weak on Wednesday. The market opened steady but lost ground towards closing hours on buyer resistance.
According to sources, there has been no selling pressure in the market as the inflow was still weak. Traders lost confidence following the sharp decline in the Japanese futures and a partially weak closing on the National Multi-Commodity Exchange (NMCE). The trend was mixed.
Sheet rubber moved down to Rs 168 from Rs 169 a kg, according to dealers.
The grade was quoted steady at Rs 168.5 a kg on the Rubber Board's official Web site.
In futures, the September series closed at Rs 169.94 (170.02), October at Rs 167.6 (167.35), November at Rs 167.3 (167.3) and December at Rs 168.04 (168.42) a kg for RSS 4 on NMCE. The volumes totalled 2,214 lots and open interest 3,608 lots. The turnover was Rs 37.17 crore. RSS 3 September futures declined to ¥ 298 (Rs.162.01) from ¥303.4 a kg during the day session and then to ¥ 292.4 (Rs.158.97) during the night session on the Tokyo Commodity Exchange . RSS 3 (spot) improved marginally to Rs 162.85 (162.36) a kg at Bangkok.
The spot rubber rates were (Rs/kg): RSS-4: 168 (169) RSS-5: 165 (165) Ungraded: 160 (161) ISNR 20: 155 (155) and Latex 60 per cent: 115 (115)
Import duty hike on finished tyre sought
Staff Reporter
This will offset inverted duty structure: board
KOTTAYAM: It has been the considered view of the Rubber Board that the import duty on finished tyre should be enhanced to offset the inverted duty structure in the sector, according to Sajen Peter, Chairman, Rubber Board.
Speaking to The Hindu on the reported move of the Union Commerce Ministry to rationalise the import duty disproportion between natural rubber and manufactured tyre, Mr. Peter said the board had discussed the matter and submitted its recommendation to the Centre.
The issue refers to the contention of tyre manufacturers that while import of finished tyre attracts duty of only 10 per cent, the import duty on natural rubber was 20 per cent. In fact, the tyre import from China and Korea attract a duty of 8.6 per cent. This had created an ‘inverted duty structure' where the duty on the raw material was higher than the duty on finished product.
The manufacturers argued that the inverted duty structure would erode competitiveness of the industry.
Mr. Peter on Wednesday said that the board had always pointed to the authorities that while the contention was relevant in the normal situation, the one that prevailed in the natural rubber sector was different.
“Natural rubber might be an industrial raw material for the manufacturers but it is an agriculture product from the point of view of lakhs of growers. We have a situation where other cash crops like pepper, tea and coffee attract 100 per cent duty while cardamom attracts 75 per cent import duty. The grower will not be able to digest the view taken by the manufacturing industry,” he said.
Contesting the claims made for import of finished tyre at highly competitive rates, Mr Peter said if encouraged, import of finished tyres would affect the domestic tyre manufacturing industry. Moreover, a study found that the natural rubber component in the tyre imported last year had accounted for 35,000 mt of natural rubber.
In other words, the import of finished tyre was impacting not only the tyre manufacturing industry but the internal natural rubber sector also, he said. Mr Peter said the hike in import duty on finished tyre would not in any way affect the provisions of existing regional trade agreements (RTS). It was only last month that the State went through a minor storm when the reports on the part of the Ministry of Commerce to cut the import duty on natural rubber from 20 per cent to 7.5 per cent appeared in the media.
Rubber, real estate fuel development
Staff Reporter
Kottayam: One of the areas that have found a lot of activity in Kottayam during the past one decade is real estate. With the early promoters facing difficulties in the late 1990s, the growth had been chequered in the segment. However, it picked up by middle of the last decade.
“True, the recession had been a dampener, but it brought out the much needed correction in the sector, which was dominated by the unprofessional ‘promoters' who had jumped into the bandwagon for the quick money,” says Mathew Kuruvilla, managing director, Chandy's Homes, which is a subsidiary of the two-decade-old Chandy's Constructions.
According to him, the recession had not impacted the professional promoters who could ensure value for money for their clients and look forward to a steady growth of the sector at least for the next quarter of a century.
According to Sunny George, executive director, Castle Homes, the sector is now dominated by local players who have to ensure quality to reach out to the prospective clients as the brand loyalty was yet to be attained for most of them.
The recession had its impact during 2008 and 2009, as most of the ‘investor' clients kept away from the market. However, the market is picking up with promoters announcing new projects for both flats and villas, he says.
The catalyst
The one single factor that ensured the growth of all the major core sectors appears to the buoyancy that existed in the core economic sector of the district - natural rubber. The NR sector, which witnessed some of the worst days in the 1990s when prices nosedived to the below-Rs.50-a-kg range, rebounded with a vengeance during the past decade. Though the decade started off on a sombre note, the prices galloped during the past few years and reached the dream level when it crossed Rs.180 a kg few months ago.
The boom in the NR sector, dominated by small growers, has created a strong and healthy middle class, resulting in the arrival of a string of major retailers in textiles, jewellery and like.
However, the NR boom has also resulted in the middle class making intelligent investment in real estate, education for their children and availing of more leisure time activities, thereby contributing to the growth of the other sectors. Now, it appears that the district is all set for a take-off, linking itself to the emerging metropolis Kochi through major investments in infrastructure.
Kottayam, Sept 15
Spot rubber turned weak on Wednesday. The market opened steady but lost ground towards closing hours on buyer resistance.
According to sources, there has been no selling pressure in the market as the inflow was still weak. Traders lost confidence following the sharp decline in the Japanese futures and a partially weak closing on the National Multi-Commodity Exchange (NMCE). The trend was mixed.
Sheet rubber moved down to Rs 168 from Rs 169 a kg, according to dealers.
The grade was quoted steady at Rs 168.5 a kg on the Rubber Board's official Web site.
In futures, the September series closed at Rs 169.94 (170.02), October at Rs 167.6 (167.35), November at Rs 167.3 (167.3) and December at Rs 168.04 (168.42) a kg for RSS 4 on NMCE. The volumes totalled 2,214 lots and open interest 3,608 lots. The turnover was Rs 37.17 crore. RSS 3 September futures declined to ¥ 298 (Rs.162.01) from ¥303.4 a kg during the day session and then to ¥ 292.4 (Rs.158.97) during the night session on the Tokyo Commodity Exchange . RSS 3 (spot) improved marginally to Rs 162.85 (162.36) a kg at Bangkok.
The spot rubber rates were (Rs/kg): RSS-4: 168 (169) RSS-5: 165 (165) Ungraded: 160 (161) ISNR 20: 155 (155) and Latex 60 per cent: 115 (115)
Import duty hike on finished tyre sought
Staff Reporter
This will offset inverted duty structure: board
KOTTAYAM: It has been the considered view of the Rubber Board that the import duty on finished tyre should be enhanced to offset the inverted duty structure in the sector, according to Sajen Peter, Chairman, Rubber Board.
Speaking to The Hindu on the reported move of the Union Commerce Ministry to rationalise the import duty disproportion between natural rubber and manufactured tyre, Mr. Peter said the board had discussed the matter and submitted its recommendation to the Centre.
The issue refers to the contention of tyre manufacturers that while import of finished tyre attracts duty of only 10 per cent, the import duty on natural rubber was 20 per cent. In fact, the tyre import from China and Korea attract a duty of 8.6 per cent. This had created an ‘inverted duty structure' where the duty on the raw material was higher than the duty on finished product.
The manufacturers argued that the inverted duty structure would erode competitiveness of the industry.
Mr. Peter on Wednesday said that the board had always pointed to the authorities that while the contention was relevant in the normal situation, the one that prevailed in the natural rubber sector was different.
“Natural rubber might be an industrial raw material for the manufacturers but it is an agriculture product from the point of view of lakhs of growers. We have a situation where other cash crops like pepper, tea and coffee attract 100 per cent duty while cardamom attracts 75 per cent import duty. The grower will not be able to digest the view taken by the manufacturing industry,” he said.
Contesting the claims made for import of finished tyre at highly competitive rates, Mr Peter said if encouraged, import of finished tyres would affect the domestic tyre manufacturing industry. Moreover, a study found that the natural rubber component in the tyre imported last year had accounted for 35,000 mt of natural rubber.
In other words, the import of finished tyre was impacting not only the tyre manufacturing industry but the internal natural rubber sector also, he said. Mr Peter said the hike in import duty on finished tyre would not in any way affect the provisions of existing regional trade agreements (RTS). It was only last month that the State went through a minor storm when the reports on the part of the Ministry of Commerce to cut the import duty on natural rubber from 20 per cent to 7.5 per cent appeared in the media.
Rubber, real estate fuel development
Staff Reporter
Kottayam: One of the areas that have found a lot of activity in Kottayam during the past one decade is real estate. With the early promoters facing difficulties in the late 1990s, the growth had been chequered in the segment. However, it picked up by middle of the last decade.
“True, the recession had been a dampener, but it brought out the much needed correction in the sector, which was dominated by the unprofessional ‘promoters' who had jumped into the bandwagon for the quick money,” says Mathew Kuruvilla, managing director, Chandy's Homes, which is a subsidiary of the two-decade-old Chandy's Constructions.
According to him, the recession had not impacted the professional promoters who could ensure value for money for their clients and look forward to a steady growth of the sector at least for the next quarter of a century.
According to Sunny George, executive director, Castle Homes, the sector is now dominated by local players who have to ensure quality to reach out to the prospective clients as the brand loyalty was yet to be attained for most of them.
The recession had its impact during 2008 and 2009, as most of the ‘investor' clients kept away from the market. However, the market is picking up with promoters announcing new projects for both flats and villas, he says.
The catalyst
The one single factor that ensured the growth of all the major core sectors appears to the buoyancy that existed in the core economic sector of the district - natural rubber. The NR sector, which witnessed some of the worst days in the 1990s when prices nosedived to the below-Rs.50-a-kg range, rebounded with a vengeance during the past decade. Though the decade started off on a sombre note, the prices galloped during the past few years and reached the dream level when it crossed Rs.180 a kg few months ago.
The boom in the NR sector, dominated by small growers, has created a strong and healthy middle class, resulting in the arrival of a string of major retailers in textiles, jewellery and like.
However, the NR boom has also resulted in the middle class making intelligent investment in real estate, education for their children and availing of more leisure time activities, thereby contributing to the growth of the other sectors. Now, it appears that the district is all set for a take-off, linking itself to the emerging metropolis Kochi through major investments in infrastructure.
Wednesday, September 15, 2010
Rubber Board asks FMC to curb futures trading limit
Rubber Board asks FMC to curb futures trading limit
Move can check sharp increase in prices.
“We had earlier recommended to the FMC to limit the fluctuation to two per cent and they had implemented it. This year prices have increased sharply and we have asked the Commission to introduce the curbs again.” — Mr Sajen Peter, Rubber Board Chairman
Coonoor, Sept. 14
The Rubber Board has asked the Forward Markets Commission (FMC), which supervises the functioning of commodity exchanges in the country, to curb the intra-day price fluctuations in rubber futures to not more than two per cent.
“We had earlier recommended to the FMC to limit the fluctuation to two per cent and they had implemented it. When the prices fell last year, we agreed for removing the curbs. However, this year prices have increased sharply and we have asked the Commission to introduce the curbs again,” said Mr Sajen Peter, Rubber Board Chairman, on the sidelines of the 117th United Planters Association of Southern India annual conference.
Currently, futures price can rise or drop two per cent initially during a trading session. Once the ceiling or floor is hit, then trading in the particular commodity futures is stopped for a stipulated period of half-an-hour. After this if the price rises or drops another two per cent, then trading for the day is frozen.
What the Rubber Board wants is that trading should be stopped once the price rises or drops one per cent. Then after the cooling period gets over, the price can rise or drop another one per cent.
Asked when the issue was raised of late with the FMC, Mr Peter said: “We are raising it every month.”
This is seen as a move to assuage the user industry which has been demanding ban on futures. The board is against ban on rubber futures and has not endorsed such a proposal from the user industry.
To a question on import duty on rubber, he said the board had recommended a 20 per cent duty limited to Rs 20.46 a kg based on the domestic prices during the last three years.
Mr Peter said though the board has estimated that imports would be 70,000 tonnes this fiscal, it could exceed to over one lakh tonnes.
Export initiatives
Asked about export initiatives, he said there was no need for exports since a supply shortfall of 85,000 tonnes was likely.
“We would like rubber to be made available to the domestic industry provided it will pay international prices to Indian farmers,” the Rubber Board chief said.
He said for two-three months, domestic prices had gone above global prices and he had cautioned the growers at every available fora. “Prices are now almost on par with global rates. We think the Indian farmer has every right to get a price what a grower in Kuala Lumpur or Bangkok gets,” he added.
Rubber production was expected to be better this year and during April-August of the current fiscal, it had increased five per cent. “Last year, the production was hit due to various factors including weather,” he said.
During the current fiscal, rubber production is projected to be a record 8.93 lakh tonnes against 8.31 lt last fiscal.
Mixed trend in rubber
Kottayam, Sept. 14
Physical rubber prices showed a mixed trend on Tuesday.
According to observers, traders stayed back on sheet rubber possibly since its futures on NMCE shed the gains partially followed by selling at higher levels.
The reports from the international markets were also depressing.
Sheet rubber finished flat at Rs 169 a kg in the main marketing centres. The grade improved further to Rs 168.50 (168) a kg in the official website of the Rubber Board.
Futures decline
The September series for RSS 4 declined to Rs 170.19 (172.46), October to Rs 167.33 (169.82), November to Rs 167.35 (169.25) and December to Rs 168.70 (171.09) a kg on National Multi Commodity Exchange (NMCE). The volumes totalled 4644 lots. The turnover was 78.55 crores and open interest 3,690 lots. RSS 3 (spot) moved down further to Rs 162.36 (163.52) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 169 (169); RSS-5: 165 (165); ungraded: 161 (162); ISNR 20: 155 (154) and latex 60 per cent: 115 (114).
Financial aid for beekeepers to continue
Kottayam, Sept. 14
The Rubber Board has decided to continue the scheme for financial assistance for adopting beekeeping as an extra income generation activity, in 2010-11 too, with a total outlay of Rs 90 lakh.
The scheme will be implemented through the Rubber Producers' Societies (RPSs) and Self-Help Groups (SHGS).
Members of the RPSs/SHGs having rubber area up to 2.00 ha are eligible to get financial assistance under this scheme. Preference will be given to women SHGs. Each RPS/SHG can enrol 10-20 participants for the scheme.
Financial assistance will be extended for Indian and European honeybees at the same rate. Four beehives with colonies and allied equipment will be considered as one unit. An amount of Rs 3,000 or 50 per cent of the total cost of the hives and other equipment, (whichever is less) will be given as subsidy to each unit. The assistance to a beneficiary is limited for one unit only. The RPS/SHG will get Rs 30,000 to Rs 60,000 based on the number of beneficiaries.
Beehives, colonies and other equipment should be purchased from agencies approved by the Board. The RPS/SHG can decide on the number of equipment (other than beehives and colonies) to be purchased on need basis, with the approval from the Regional Offices concerned.
Move can check sharp increase in prices.
“We had earlier recommended to the FMC to limit the fluctuation to two per cent and they had implemented it. This year prices have increased sharply and we have asked the Commission to introduce the curbs again.” — Mr Sajen Peter, Rubber Board Chairman
Coonoor, Sept. 14
The Rubber Board has asked the Forward Markets Commission (FMC), which supervises the functioning of commodity exchanges in the country, to curb the intra-day price fluctuations in rubber futures to not more than two per cent.
“We had earlier recommended to the FMC to limit the fluctuation to two per cent and they had implemented it. When the prices fell last year, we agreed for removing the curbs. However, this year prices have increased sharply and we have asked the Commission to introduce the curbs again,” said Mr Sajen Peter, Rubber Board Chairman, on the sidelines of the 117th United Planters Association of Southern India annual conference.
Currently, futures price can rise or drop two per cent initially during a trading session. Once the ceiling or floor is hit, then trading in the particular commodity futures is stopped for a stipulated period of half-an-hour. After this if the price rises or drops another two per cent, then trading for the day is frozen.
What the Rubber Board wants is that trading should be stopped once the price rises or drops one per cent. Then after the cooling period gets over, the price can rise or drop another one per cent.
Asked when the issue was raised of late with the FMC, Mr Peter said: “We are raising it every month.”
This is seen as a move to assuage the user industry which has been demanding ban on futures. The board is against ban on rubber futures and has not endorsed such a proposal from the user industry.
To a question on import duty on rubber, he said the board had recommended a 20 per cent duty limited to Rs 20.46 a kg based on the domestic prices during the last three years.
Mr Peter said though the board has estimated that imports would be 70,000 tonnes this fiscal, it could exceed to over one lakh tonnes.
Export initiatives
Asked about export initiatives, he said there was no need for exports since a supply shortfall of 85,000 tonnes was likely.
“We would like rubber to be made available to the domestic industry provided it will pay international prices to Indian farmers,” the Rubber Board chief said.
He said for two-three months, domestic prices had gone above global prices and he had cautioned the growers at every available fora. “Prices are now almost on par with global rates. We think the Indian farmer has every right to get a price what a grower in Kuala Lumpur or Bangkok gets,” he added.
Rubber production was expected to be better this year and during April-August of the current fiscal, it had increased five per cent. “Last year, the production was hit due to various factors including weather,” he said.
During the current fiscal, rubber production is projected to be a record 8.93 lakh tonnes against 8.31 lt last fiscal.
Mixed trend in rubber
Kottayam, Sept. 14
Physical rubber prices showed a mixed trend on Tuesday.
According to observers, traders stayed back on sheet rubber possibly since its futures on NMCE shed the gains partially followed by selling at higher levels.
The reports from the international markets were also depressing.
Sheet rubber finished flat at Rs 169 a kg in the main marketing centres. The grade improved further to Rs 168.50 (168) a kg in the official website of the Rubber Board.
Futures decline
The September series for RSS 4 declined to Rs 170.19 (172.46), October to Rs 167.33 (169.82), November to Rs 167.35 (169.25) and December to Rs 168.70 (171.09) a kg on National Multi Commodity Exchange (NMCE). The volumes totalled 4644 lots. The turnover was 78.55 crores and open interest 3,690 lots. RSS 3 (spot) moved down further to Rs 162.36 (163.52) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 169 (169); RSS-5: 165 (165); ungraded: 161 (162); ISNR 20: 155 (154) and latex 60 per cent: 115 (114).
Financial aid for beekeepers to continue
Kottayam, Sept. 14
The Rubber Board has decided to continue the scheme for financial assistance for adopting beekeeping as an extra income generation activity, in 2010-11 too, with a total outlay of Rs 90 lakh.
The scheme will be implemented through the Rubber Producers' Societies (RPSs) and Self-Help Groups (SHGS).
Members of the RPSs/SHGs having rubber area up to 2.00 ha are eligible to get financial assistance under this scheme. Preference will be given to women SHGs. Each RPS/SHG can enrol 10-20 participants for the scheme.
Financial assistance will be extended for Indian and European honeybees at the same rate. Four beehives with colonies and allied equipment will be considered as one unit. An amount of Rs 3,000 or 50 per cent of the total cost of the hives and other equipment, (whichever is less) will be given as subsidy to each unit. The assistance to a beneficiary is limited for one unit only. The RPS/SHG will get Rs 30,000 to Rs 60,000 based on the number of beneficiaries.
Beehives, colonies and other equipment should be purchased from agencies approved by the Board. The RPS/SHG can decide on the number of equipment (other than beehives and colonies) to be purchased on need basis, with the approval from the Regional Offices concerned.
Tuesday, September 14, 2010
Centre to resolve import duty disparity between rubber, tyres: Khullar
Centre to resolve import duty disparity between rubber, tyres: Khullar
New Delhi, Sept. 13
The Government will rationalise the import duty disproportion between tyres and natural rubber within a month, the Commerce Ministry said on Monday.
At present, there is an import duty of 20 per cent on raw rubber. But the import duty on finished tyres is only 10 per cent.
The import duty on tyres from South Korea and China (from where 85 per cent of the tyres are imported) is just 8.6 per cent. This leads to an `inverted duty structure' where the import duty on rubber (an input) is higher than that on tyre (the finished goods).
Mr Rajiv Budhraja, Director-General, Automotive Tyre Manufacturers Association, told Business Line, "The inverted duty structure erodes our competiveness. Ideally, duty should be lowest on raw materials.
"The tyre industry is facing a shortage of 10-15 per cent of natural rubber and this is expected to increase this year due to the high demand from the auto industry."
"Give me a month's time, we are trying to sort out the problem of inverted duty structure," the Commerce Secretary, Dr Rahul Khullar, told reporters on the sidelines of a CII event.
To protect tyre manufacturers, the domestic industry wants either a reduction of the import duty on rubber to 7.5 per cent or raising of the Customs duty on imported tyres to 20 per cent.
The latter option might face a stiff opposition from the local auto industry that imports tyres and, therefore, may see costs going up.
Prices of natural rubber prices in the country are around Rs 160 a kg, a major increase from below Rs 100 a kg in the year-ago period.
Due to this steep rise in prices, tyre makers want to import rubber but find it economically unviable due to the high duty. This situation has led to domestic tyre manufacturers increasing prices by around 15 per cent since January.
Following the sharp increase in rubber prices, the Automotive Tyre Manufacturers Association (ATMA) had written to the Prime Minister to permit the duty-free import of at least 200,000 tonnes of rubber. This is because demand for the item is more than its supply by around 200,000 tonnes annually.
The rise in rubber prices was due to a fall in its production following the drought last year and the increase in demand from tyre makers. Of the total natural rubber produced in the country, automotive tyre makers consume around 40 per cent, while non-tyre rubber sector use 60 per cent of the item.
The Government recently had taken off the restrictions on import of radial tyres due to increase in prices of domestic tyres and its shortage. The Delhi High Court had also recently directed the Commerce Ministry to look into the concerns of the rubber user industries and asked it to set up a panel comprising experts from the Rubber Board.
Spot rubber improves on short covering
Kottayam, Sept. 13
The domestic rubber markets turned better on Monday. In spot the prices moved up following the sharp gains on NMCE.
According to observers, there were no quantity sellers even at closing hours and the market still suffered from short supplies.
Sheet rubber improved to Rs 169 from Rs 167.50 a kg on fresh buying and short covering. The grade was quoted firm at Rs 168 (167.50) a kg on the official website of the Rubber Board. The volumes were not impressive.
Futures improve
In futures, the September series improved to Rs 172.84 (169.83), October to Rs 169.67 (164.92), November to Rs 169.02 (164.71) and December to Rs 171.20 (166.63) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
The September futures for RSS 3 increased to ¥299.6 (Rs 165.64) from ¥300.1 a kg during the day session and then to ¥300.3 (Rs 165.77) during the night session on theTokyo Commodity Exchange (TOCOM). RSS-3 (spot) slipped again to Rs 163.52 (163.65) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 169 (167.50); RSS-5: 165 (162.50); ungraded: 162 (158); ISNR 20: 154 (152) and latex 60 per cent: 114 (112).
Malaysia rubber exports rise in July
Posted: 13 Sep 2010 04:28 AM PDT
Natural rubber production rose by 10,338 tonnes or 14.6 per cent to 81,083 tonnes in July compared to June, the Statistics Department sid today.
Production, however, dwindled by 1,821 tonnes from 82,904 tonnes on a year-on-year basis, it said.
The main portion of natural rubber production was contributed by the smallholding sector, with 93.2 per cent, while the estate sector accounted for only 6.8 per cent, it said in a statement today.
Natural rubber exports in July increased by 5.8 per cent as compared to June while exports on a year-on-year basis surged strongly by 22.5 per cent, it said.
The Standard Malaysian Rubber (SMR) continued to be the main contributor to exports, recording 71,318 tonnes, of which, 55.6 per cent was SMR20, it said.
The main natural rubber consuming industry was rubber gloves at 72.4 per cent, followed by tyres and tubes at eight per cent and rubber thread at 5.5 per cent, the department said.
The three industries consumed 32,808 tonnes or 85.9 per cent of the total domestic consumption of natural rubber, it added.
(btimes.com.my)
Centre's decision on rubber import duty not justified: KM Mani
Posted: 13 Sep 2010 04:26 AM PDT
Kerala Congress (M) chairman KM Mani has said that the decision of the ministry of commerce to modify the import duty for rubber could not be justified.
Inaugurating Rubber Board Technical Guild, an organisation affiliated to Kerala Congress, and works for the welfare of technical employees of Rubber Board yesterday, Mani said the Centre earlier imposed import duty of 40% has reduced to 13% which should be reexamined.
The former minister said the price of rubber will come down if the centre imports one lakh tonne of rubber through this duty structure.
Mani reiterated his demand that the import cess for natural rubber be put back at 20% and thus save the interests of lakhs of growers in the country.
He assured that all efforts would be made to raise the status of Rubber Research Institute of India on par with Indian Council for Scientific Research.
He urged the Centre to revise the payscale and perks of employees of Rubber Research Institute of India at the earliest.
(dnaindia.com)
Rubber prices to make condoms a costly affair
Posted: 13 Sep 2010 04:25 AM PDT
KOCHI: "Not tonight honey, it’s expensive.” This might soon replace the old line about headaches in Indian bedrooms, as condom manufacturers are grappling with an unprecedented rise in the price of latex, the key raw material behind the ubiquitous contraceptive. With latex prices ballooning nearly 200% year-on-year, condom manufacturers are set to announce price hikes across product lines, in a move that will likely have a deflationary effect on condom sales.
In a highly-competitive segment with little brand loyalty, firms are yet to decide on the quantum of the hike. Hikes are expected to be first announced in the high-end segments and are likely to be in the region of 10-15%.
As latex prices have risen dramatically in the course of the year, many small-scale manufacturers have gone out of business. “We have been forced to buy latex at a high price which is impacting our bottom line,” said Rajneesh Jain, director, Secure PersonalCare, a Gujarat-based condom manufacturer. At least half-a-dozen units in the small-scale sector have downed shutters, unable to contain the rising costs, he said.
It is not just the small-scale units that are feeling the pinch of latex price rise in the Rs 1,000-crore industry. Large companies are also moving to tide over the spike in prices. HLL Lifecare, which manufactures the Moods brand of condoms, is likely to announce a rate hike in two stages. It will increase its prices in the export market initially. “After this, we will bring about a similar price hike in the branded segment in the domestic market. But it will not be immediate,” M Ayyappan, chairman and managing director, HLL Lifecare, said. The whole process is likely to take about six months, he added.
In the branded segment, most companies are marketing different types of condoms. Moods, for instance, markets condoms that range from Rs15 to Rs 25 for a packet of three. TTK LIG, which manufactures the Kohinoor brand, and JK Ansell, the makers of the Kamasutra brand, are the top two players by sales, in the non-government retail market.
The government is the single-largest buyer of condoms and accounts for bulk of the revenues for many companies. The price of latex has gone up to Rs135 per kg from Rs46 per kg a year ago. Latex accounts for about 22% of the material costs in condom manufacturing. The industry has so far refrained from a price hike due to competition from imported condoms. Condoms from China and Malaysia are flooding the local market. On an average, they are about 15% cheaper than domestic brands, despite the 10% customs duty.
Despite the rise in latex prices, companies like Chennai-based TTK LIG has not raised price in the recent past. “We are studying the issue of latex price rise and would soon decide how to go about it,” said a senior TTK LIG official. The company has a requirement of 250 tonnes of latex per month. They also market the international brand Durex in India.
India’s condom industry has about 10-15 players, of which, only three to four are big players. Many small players manufacture for larger players under the original equipment manufacturer system, and also market regional brands.
While the condom manufacturers can think in terms of a price hike in the open market, they are in a tight spot as far as government supplies are concerned. For a company like HLL Lifecare, which sells 70-75% of its production to the government, this is all the more important. “We are hoping that there would be a rate hike,” Mr Ayyappan said. The company has made representations to the government for a price revision.
The government buys condoms from companies at an average price of Rs 1.40 to Rs 1.50 per piece. About 75% of the government’s purchase is from public sector unit, HLL, and the rest from private sector.
(economictimes.indiatimes.com)
New Delhi, Sept. 13
The Government will rationalise the import duty disproportion between tyres and natural rubber within a month, the Commerce Ministry said on Monday.
At present, there is an import duty of 20 per cent on raw rubber. But the import duty on finished tyres is only 10 per cent.
The import duty on tyres from South Korea and China (from where 85 per cent of the tyres are imported) is just 8.6 per cent. This leads to an `inverted duty structure' where the import duty on rubber (an input) is higher than that on tyre (the finished goods).
Mr Rajiv Budhraja, Director-General, Automotive Tyre Manufacturers Association, told Business Line, "The inverted duty structure erodes our competiveness. Ideally, duty should be lowest on raw materials.
"The tyre industry is facing a shortage of 10-15 per cent of natural rubber and this is expected to increase this year due to the high demand from the auto industry."
"Give me a month's time, we are trying to sort out the problem of inverted duty structure," the Commerce Secretary, Dr Rahul Khullar, told reporters on the sidelines of a CII event.
To protect tyre manufacturers, the domestic industry wants either a reduction of the import duty on rubber to 7.5 per cent or raising of the Customs duty on imported tyres to 20 per cent.
The latter option might face a stiff opposition from the local auto industry that imports tyres and, therefore, may see costs going up.
Prices of natural rubber prices in the country are around Rs 160 a kg, a major increase from below Rs 100 a kg in the year-ago period.
Due to this steep rise in prices, tyre makers want to import rubber but find it economically unviable due to the high duty. This situation has led to domestic tyre manufacturers increasing prices by around 15 per cent since January.
Following the sharp increase in rubber prices, the Automotive Tyre Manufacturers Association (ATMA) had written to the Prime Minister to permit the duty-free import of at least 200,000 tonnes of rubber. This is because demand for the item is more than its supply by around 200,000 tonnes annually.
The rise in rubber prices was due to a fall in its production following the drought last year and the increase in demand from tyre makers. Of the total natural rubber produced in the country, automotive tyre makers consume around 40 per cent, while non-tyre rubber sector use 60 per cent of the item.
The Government recently had taken off the restrictions on import of radial tyres due to increase in prices of domestic tyres and its shortage. The Delhi High Court had also recently directed the Commerce Ministry to look into the concerns of the rubber user industries and asked it to set up a panel comprising experts from the Rubber Board.
Spot rubber improves on short covering
Kottayam, Sept. 13
The domestic rubber markets turned better on Monday. In spot the prices moved up following the sharp gains on NMCE.
According to observers, there were no quantity sellers even at closing hours and the market still suffered from short supplies.
Sheet rubber improved to Rs 169 from Rs 167.50 a kg on fresh buying and short covering. The grade was quoted firm at Rs 168 (167.50) a kg on the official website of the Rubber Board. The volumes were not impressive.
Futures improve
In futures, the September series improved to Rs 172.84 (169.83), October to Rs 169.67 (164.92), November to Rs 169.02 (164.71) and December to Rs 171.20 (166.63) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
The September futures for RSS 3 increased to ¥299.6 (Rs 165.64) from ¥300.1 a kg during the day session and then to ¥300.3 (Rs 165.77) during the night session on theTokyo Commodity Exchange (TOCOM). RSS-3 (spot) slipped again to Rs 163.52 (163.65) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 169 (167.50); RSS-5: 165 (162.50); ungraded: 162 (158); ISNR 20: 154 (152) and latex 60 per cent: 114 (112).
Malaysia rubber exports rise in July
Posted: 13 Sep 2010 04:28 AM PDT
Natural rubber production rose by 10,338 tonnes or 14.6 per cent to 81,083 tonnes in July compared to June, the Statistics Department sid today.
Production, however, dwindled by 1,821 tonnes from 82,904 tonnes on a year-on-year basis, it said.
The main portion of natural rubber production was contributed by the smallholding sector, with 93.2 per cent, while the estate sector accounted for only 6.8 per cent, it said in a statement today.
Natural rubber exports in July increased by 5.8 per cent as compared to June while exports on a year-on-year basis surged strongly by 22.5 per cent, it said.
The Standard Malaysian Rubber (SMR) continued to be the main contributor to exports, recording 71,318 tonnes, of which, 55.6 per cent was SMR20, it said.
The main natural rubber consuming industry was rubber gloves at 72.4 per cent, followed by tyres and tubes at eight per cent and rubber thread at 5.5 per cent, the department said.
The three industries consumed 32,808 tonnes or 85.9 per cent of the total domestic consumption of natural rubber, it added.
(btimes.com.my)
Centre's decision on rubber import duty not justified: KM Mani
Posted: 13 Sep 2010 04:26 AM PDT
Kerala Congress (M) chairman KM Mani has said that the decision of the ministry of commerce to modify the import duty for rubber could not be justified.
Inaugurating Rubber Board Technical Guild, an organisation affiliated to Kerala Congress, and works for the welfare of technical employees of Rubber Board yesterday, Mani said the Centre earlier imposed import duty of 40% has reduced to 13% which should be reexamined.
The former minister said the price of rubber will come down if the centre imports one lakh tonne of rubber through this duty structure.
Mani reiterated his demand that the import cess for natural rubber be put back at 20% and thus save the interests of lakhs of growers in the country.
He assured that all efforts would be made to raise the status of Rubber Research Institute of India on par with Indian Council for Scientific Research.
He urged the Centre to revise the payscale and perks of employees of Rubber Research Institute of India at the earliest.
(dnaindia.com)
Rubber prices to make condoms a costly affair
Posted: 13 Sep 2010 04:25 AM PDT
KOCHI: "Not tonight honey, it’s expensive.” This might soon replace the old line about headaches in Indian bedrooms, as condom manufacturers are grappling with an unprecedented rise in the price of latex, the key raw material behind the ubiquitous contraceptive. With latex prices ballooning nearly 200% year-on-year, condom manufacturers are set to announce price hikes across product lines, in a move that will likely have a deflationary effect on condom sales.
In a highly-competitive segment with little brand loyalty, firms are yet to decide on the quantum of the hike. Hikes are expected to be first announced in the high-end segments and are likely to be in the region of 10-15%.
As latex prices have risen dramatically in the course of the year, many small-scale manufacturers have gone out of business. “We have been forced to buy latex at a high price which is impacting our bottom line,” said Rajneesh Jain, director, Secure PersonalCare, a Gujarat-based condom manufacturer. At least half-a-dozen units in the small-scale sector have downed shutters, unable to contain the rising costs, he said.
It is not just the small-scale units that are feeling the pinch of latex price rise in the Rs 1,000-crore industry. Large companies are also moving to tide over the spike in prices. HLL Lifecare, which manufactures the Moods brand of condoms, is likely to announce a rate hike in two stages. It will increase its prices in the export market initially. “After this, we will bring about a similar price hike in the branded segment in the domestic market. But it will not be immediate,” M Ayyappan, chairman and managing director, HLL Lifecare, said. The whole process is likely to take about six months, he added.
In the branded segment, most companies are marketing different types of condoms. Moods, for instance, markets condoms that range from Rs15 to Rs 25 for a packet of three. TTK LIG, which manufactures the Kohinoor brand, and JK Ansell, the makers of the Kamasutra brand, are the top two players by sales, in the non-government retail market.
The government is the single-largest buyer of condoms and accounts for bulk of the revenues for many companies. The price of latex has gone up to Rs135 per kg from Rs46 per kg a year ago. Latex accounts for about 22% of the material costs in condom manufacturing. The industry has so far refrained from a price hike due to competition from imported condoms. Condoms from China and Malaysia are flooding the local market. On an average, they are about 15% cheaper than domestic brands, despite the 10% customs duty.
Despite the rise in latex prices, companies like Chennai-based TTK LIG has not raised price in the recent past. “We are studying the issue of latex price rise and would soon decide how to go about it,” said a senior TTK LIG official. The company has a requirement of 250 tonnes of latex per month. They also market the international brand Durex in India.
India’s condom industry has about 10-15 players, of which, only three to four are big players. Many small players manufacture for larger players under the original equipment manufacturer system, and also market regional brands.
While the condom manufacturers can think in terms of a price hike in the open market, they are in a tight spot as far as government supplies are concerned. For a company like HLL Lifecare, which sells 70-75% of its production to the government, this is all the more important. “We are hoping that there would be a rate hike,” Mr Ayyappan said. The company has made representations to the government for a price revision.
The government buys condoms from companies at an average price of Rs 1.40 to Rs 1.50 per piece. About 75% of the government’s purchase is from public sector unit, HLL, and the rest from private sector.
(economictimes.indiatimes.com)
Monday, September 13, 2010
Rubber prices may go up to Rs 18,000 per quintal level
Posted: 12 Sep 2010 05:20 AM PDT
Surge in rubber prices in the international markets coupled with increased buying from tyre makers may push the prices of the commodity in the domestic market to Rs 18,000 per quintal level.
Rubber prices jumped by Rs 250 from Rs 16,450 per quintal to Rs 16,700 yesterday as on September 6, 2010.
"After the government's proposal to cap import duty at Rs 20 per kg, tyre makers postponed buying anticipating low prices. However, after seeing resistance from rubber growers, they have resumed buying, which has led to a jump in the prices of rubber," All-India Rubber Dealer Federation President George Valy told PTI.
He said, international rubber prices are now at more than Rs 16,300 level, however with the addition of import duty and freight cost, the landing cost of the rubber would be more than Rs 19,000 per quintal.
"Now, with this development, there is enough room for the increase in rubber prices in the domestic market and this could go up to Rs 18,000 per quintal level," Valy said.
Rubber prices in the domestic market declined from Rs 18,600 per quintal on August 6, to Rs 16,350 per quintal on September 2, and market experts had further predicted that it may further go down to Rs 15,000-level following which tyre makers had postponed their purchases.
However, with rubber growers showing firm resistance in selling their products at this level, tyre makers are resuming their buying here.
Before import duty was fixed, the prices of rubber in the international market stood at around Rs 15,000 per quintal, but following the proposal to cap import duty, they went up to Rs 16,000 per quintal, he said, adding that it may go up to Rs 18,000 per quintal.
Rubber import duty: Centre''s decision not justified, say
Posted: 12 Sep 2010 05:26 AM PDT
Kottayam, Sept 12 (PTI): The commerce ministry''s decision to modify import duty on rubber was unjustified and should be reexamined, according to Kerala Congress(M) chairman K M Mani. "The Centre earlier imposed import duty of 40 per cent and reduced it to 13 per cent which should be reexamined.
The price of rubber will come down if the centre imports one lakh tonne of rubber through this duty structure," he said. He was speaking after inaugurating Rubber Board Technical Guild, an organisation affiliated to KC(M) and work for the welfare of technical employees of Rubber Board in the country here yesterday. Mani reiterated his demand that import cess for natural rubber be put back at 20 per cent to save the interests of lakhs of growers in the country. He assured that all efforts would be made to raise the status of Rubber Research Institute of India on par with Indian Council for Scientific Research. He urged the Centre to revise the payscale and perks of emplopyees of RRII at the earliest.
Posted: 12 Sep 2010 05:20 AM PDT
Surge in rubber prices in the international markets coupled with increased buying from tyre makers may push the prices of the commodity in the domestic market to Rs 18,000 per quintal level.
Rubber prices jumped by Rs 250 from Rs 16,450 per quintal to Rs 16,700 yesterday as on September 6, 2010.
"After the government's proposal to cap import duty at Rs 20 per kg, tyre makers postponed buying anticipating low prices. However, after seeing resistance from rubber growers, they have resumed buying, which has led to a jump in the prices of rubber," All-India Rubber Dealer Federation President George Valy told PTI.
He said, international rubber prices are now at more than Rs 16,300 level, however with the addition of import duty and freight cost, the landing cost of the rubber would be more than Rs 19,000 per quintal.
"Now, with this development, there is enough room for the increase in rubber prices in the domestic market and this could go up to Rs 18,000 per quintal level," Valy said.
Rubber prices in the domestic market declined from Rs 18,600 per quintal on August 6, to Rs 16,350 per quintal on September 2, and market experts had further predicted that it may further go down to Rs 15,000-level following which tyre makers had postponed their purchases.
However, with rubber growers showing firm resistance in selling their products at this level, tyre makers are resuming their buying here.
Before import duty was fixed, the prices of rubber in the international market stood at around Rs 15,000 per quintal, but following the proposal to cap import duty, they went up to Rs 16,000 per quintal, he said, adding that it may go up to Rs 18,000 per quintal.
Rubber import duty: Centre''s decision not justified, say
Posted: 12 Sep 2010 05:26 AM PDT
Kottayam, Sept 12 (PTI): The commerce ministry''s decision to modify import duty on rubber was unjustified and should be reexamined, according to Kerala Congress(M) chairman K M Mani. "The Centre earlier imposed import duty of 40 per cent and reduced it to 13 per cent which should be reexamined.
The price of rubber will come down if the centre imports one lakh tonne of rubber through this duty structure," he said. He was speaking after inaugurating Rubber Board Technical Guild, an organisation affiliated to KC(M) and work for the welfare of technical employees of Rubber Board in the country here yesterday. Mani reiterated his demand that import cess for natural rubber be put back at 20 per cent to save the interests of lakhs of growers in the country. He assured that all efforts would be made to raise the status of Rubber Research Institute of India on par with Indian Council for Scientific Research. He urged the Centre to revise the payscale and perks of emplopyees of RRII at the earliest.
Saturday, September 11, 2010
Spot rubber rules high
Spot rubber rules high
Kottayam, Sept. 10
Spot rubber prices finished unchanged on Friday. The market was in a holiday mood and lost its direction as the National Multi Commodity Exchange was closed owing to Id-ul Fitr.
Sheet rubber ended unchanged at Rs 167 a kg amidst extremely thin volumes. The grade improved to Rs 167.50 (167.00) a kg according to the data published by Rubber Board on its Web site.
Futures gain
The September futures for RSS 3 increased marginally to ¥299.8 (Rs 165.43) from ¥299.6 a kg during the day session but the grade remained inactive during the night session on the Tokyo Commodity Exchange.
RSS 3 (spot) slipped to Rs 163.65 (163.75) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 167 (167); RSS-5: 162.50 (162.50); ungraded: 159.50 (158); ISNR 20: 152 (152) and latex 60 per cent: 112 (112).
Kottayam, Sept. 10
Spot rubber prices finished unchanged on Friday. The market was in a holiday mood and lost its direction as the National Multi Commodity Exchange was closed owing to Id-ul Fitr.
Sheet rubber ended unchanged at Rs 167 a kg amidst extremely thin volumes. The grade improved to Rs 167.50 (167.00) a kg according to the data published by Rubber Board on its Web site.
Futures gain
The September futures for RSS 3 increased marginally to ¥299.8 (Rs 165.43) from ¥299.6 a kg during the day session but the grade remained inactive during the night session on the Tokyo Commodity Exchange.
RSS 3 (spot) slipped to Rs 163.65 (163.75) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 167 (167); RSS-5: 162.50 (162.50); ungraded: 159.50 (158); ISNR 20: 152 (152) and latex 60 per cent: 112 (112).
Friday, September 10, 2010
Mixed trend in rubber
Mixed trend in rubber
Kottayam, Sept 9
Spot rubber witnessed a mixed trend on Thursday. The market activities have been slowed down as the reports from the domestic and international futures were not encouraging. Sheet rubber finished firm at Rs 167 a kg amidst scattered transactions. The volumes were low.
Futures improve
In futures, the September series improved to Rs 170.01 (169.35) while the October series weakened to Rs 164.98 (166.13), November to Rs 164.9 (166.23) and December to Rs 166.5 (167.83) a kg for RSS 4 on the National Multi Commodity Exchange. The September futures for RSS 3 improved to ¥299.6 (Rs 166.46) from ¥298.2 during the day session but slipped to ¥298 (Rs 165.59) a kg during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) weakened to Rs 163.75 (163.81) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 167 (167); RSS-5: 162.5 (162); ungraded: 158 (157.5); ISNR 20: 152 (152) and latex 60 per cent: 112 (111).
Kottayam, Sept 9
Spot rubber witnessed a mixed trend on Thursday. The market activities have been slowed down as the reports from the domestic and international futures were not encouraging. Sheet rubber finished firm at Rs 167 a kg amidst scattered transactions. The volumes were low.
Futures improve
In futures, the September series improved to Rs 170.01 (169.35) while the October series weakened to Rs 164.98 (166.13), November to Rs 164.9 (166.23) and December to Rs 166.5 (167.83) a kg for RSS 4 on the National Multi Commodity Exchange. The September futures for RSS 3 improved to ¥299.6 (Rs 166.46) from ¥298.2 during the day session but slipped to ¥298 (Rs 165.59) a kg during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) weakened to Rs 163.75 (163.81) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 167 (167); RSS-5: 162.5 (162); ungraded: 158 (157.5); ISNR 20: 152 (152) and latex 60 per cent: 112 (111).
Wednesday, September 8, 2010
Rubber prices jump by Rs 250 per quintal
Rubber prices jump by Rs 250 per quintal
KOCHI: Rubber prices on Wednesday jumped by Rs 250 to Rs 16,700 per quintal here on the back increased buying from tyre manufacturers.
The prices of rubber jumped by Rs 250 from Rs 16,450 per quintal to Rs 16,700 today as on September 6, 2010.
“After the government’s proposal to cap import duty at Rs 20 per kg, tyre makers postponed buying anticipating low prices. However, after seeing resistance from rubber growers, they have resumed buying, which has led to a jump in the prices of rubber,” A ll—India Rubber Dealer Federation President, Mr George Valy, told PTI.
Rubber prices in the domestic market have declined from Rs 18,600 per quintal on August 6, to Rs 16,350 per quintal on September 2, and market experts had further predicted that it may further go down to Rs 15,000—level following which tyre makers had po stponed their purchases.
However, with rubber growers showing firm resistance in selling their products at this level, tyre makers are resuming their buying here.
Before import duty was fixed, the prices of rubber in the international market stood at around Rs 15,000 per quintal, but following the proposal to cap import duty, they went up to Rs 16,000 per quintal and it may go up to Rs 18,000 per quintal, he said.
(thehindubusinessline.com)
Short-covering perks up spot rubber prices
Aravindan
Kottayam, Sept 8
Spot rubber improved on Wednesday. According to observers the physical market ruled firm following the gains in domestic futures as the inflow of the raw material was still weak. Sheet rubber increased to Rs 167 from Rs 165 a kg on fresh buying and short covering. The volumes were marginally better.
Futures gain
RSS 4 increased at the September futures to Rs 169.39 (168.31), October to Rs 166.03 (164.29), November to Rs 166.16 (164.61) and December to Rs 167.75 (166.20) a kg on the National Multi Commodity Exchange. The volumes totalled 3404 lots. The turnover was 57 crores and open interest 4255 lots. The September futures for RSS 3 weakened to ¥298.2 (Rs 165.67) from ¥302 during the day session but recovered partially to ¥299 (Rs 166.06) a kg during the night session on Tokyo Commodity Exchange (TOCOM).
RSS 3 (spot) improved to Rs 163.81 (163.50) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 167 (165); RSS-5: 162 (160); ungraded: 157.50 (155); ISNR 20: 152 (149.50) and latex 60 per cent: 111 (111).
KOCHI: Rubber prices on Wednesday jumped by Rs 250 to Rs 16,700 per quintal here on the back increased buying from tyre manufacturers.
The prices of rubber jumped by Rs 250 from Rs 16,450 per quintal to Rs 16,700 today as on September 6, 2010.
“After the government’s proposal to cap import duty at Rs 20 per kg, tyre makers postponed buying anticipating low prices. However, after seeing resistance from rubber growers, they have resumed buying, which has led to a jump in the prices of rubber,” A ll—India Rubber Dealer Federation President, Mr George Valy, told PTI.
Rubber prices in the domestic market have declined from Rs 18,600 per quintal on August 6, to Rs 16,350 per quintal on September 2, and market experts had further predicted that it may further go down to Rs 15,000—level following which tyre makers had po stponed their purchases.
However, with rubber growers showing firm resistance in selling their products at this level, tyre makers are resuming their buying here.
Before import duty was fixed, the prices of rubber in the international market stood at around Rs 15,000 per quintal, but following the proposal to cap import duty, they went up to Rs 16,000 per quintal and it may go up to Rs 18,000 per quintal, he said.
(thehindubusinessline.com)
Short-covering perks up spot rubber prices
Aravindan
Kottayam, Sept 8
Spot rubber improved on Wednesday. According to observers the physical market ruled firm following the gains in domestic futures as the inflow of the raw material was still weak. Sheet rubber increased to Rs 167 from Rs 165 a kg on fresh buying and short covering. The volumes were marginally better.
Futures gain
RSS 4 increased at the September futures to Rs 169.39 (168.31), October to Rs 166.03 (164.29), November to Rs 166.16 (164.61) and December to Rs 167.75 (166.20) a kg on the National Multi Commodity Exchange. The volumes totalled 3404 lots. The turnover was 57 crores and open interest 4255 lots. The September futures for RSS 3 weakened to ¥298.2 (Rs 165.67) from ¥302 during the day session but recovered partially to ¥299 (Rs 166.06) a kg during the night session on Tokyo Commodity Exchange (TOCOM).
RSS 3 (spot) improved to Rs 163.81 (163.50) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 167 (165); RSS-5: 162 (160); ungraded: 157.50 (155); ISNR 20: 152 (149.50) and latex 60 per cent: 111 (111).
Bullish trend in rubber futures
Bullish trend in rubber futures
Kottayam, Sept 7
The domestic rubber futures were bullish on Tuesday. The September series increased to Rs 168.4 (Rs 166.49), October to Rs 164.38 (Rs 163.53), November to Rs 164.61 (Rs 163.97) and December to Rs 166.2 (Rs 165.78) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
The volumes stood at 1,960 lots. The turnover was 32.58 crore and open interest 4,404 lots. RSS 3 declined sharply at its September futures to ¥ 302 (Rs 168.65) from ¥ 309 during the day session and to ¥ 299.5 (Rs 167.26) a kg during the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) improved to Rs 163.5 (Rs 162.49) a kg at Bangkok.
Spot closed
The spot rubber market remained closed owing to the hartal announced by the political parties.
India’s synthetic rubber stocks rise
MUMBAI (Commodity Online): India’s natural latex stocks rose to 206 tons from 181 tons, while solid synthetic rubber stocks rose to 1,210 tons from 1,046 tons. Leading tyre companies in the country had witnessed its stock valuations shedding away as a result of fading investors interest due to supply crunch of rubber.
The demand supply mismatches in India led to high cost pressure on the rubber consumer industries including tyre makers. The shortage became further severe when sustained rainfall in the key rubber plantation area disrupted rubber production.
During the first three months of the current fiscal, the stock prices of leading tyre companies were seen falling with heavy losses. Apollo Tyres lost over 12.1%, while CEAT lost 13.4% during the period. Goodyear India was down 14.3% and JK Tyre lost over 18.7%. India’s largest car maker Maruti-Suzuki posted the highest ever sales in the month.
With favorable climatic conditions the outlook for rubber production in the country seems to be appreciable, which ensures the availability of raw materials for the industry.
According to data issued on Friday by the Rubber Trade Association of Japan, natural rubber stocks in Japan totaled 4,326 metric tons as of August 20, up 24% from August 10 stocks of 3,496 tons.
Japan's rubber inventories have been declining steadily during the last few months, but the country's buyers have been actively replenishing recently. The stocks hit a record low of 2,628 tons on July 20.
Kottayam, Sept 7
The domestic rubber futures were bullish on Tuesday. The September series increased to Rs 168.4 (Rs 166.49), October to Rs 164.38 (Rs 163.53), November to Rs 164.61 (Rs 163.97) and December to Rs 166.2 (Rs 165.78) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
The volumes stood at 1,960 lots. The turnover was 32.58 crore and open interest 4,404 lots. RSS 3 declined sharply at its September futures to ¥ 302 (Rs 168.65) from ¥ 309 during the day session and to ¥ 299.5 (Rs 167.26) a kg during the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) improved to Rs 163.5 (Rs 162.49) a kg at Bangkok.
Spot closed
The spot rubber market remained closed owing to the hartal announced by the political parties.
India’s synthetic rubber stocks rise
MUMBAI (Commodity Online): India’s natural latex stocks rose to 206 tons from 181 tons, while solid synthetic rubber stocks rose to 1,210 tons from 1,046 tons. Leading tyre companies in the country had witnessed its stock valuations shedding away as a result of fading investors interest due to supply crunch of rubber.
The demand supply mismatches in India led to high cost pressure on the rubber consumer industries including tyre makers. The shortage became further severe when sustained rainfall in the key rubber plantation area disrupted rubber production.
During the first three months of the current fiscal, the stock prices of leading tyre companies were seen falling with heavy losses. Apollo Tyres lost over 12.1%, while CEAT lost 13.4% during the period. Goodyear India was down 14.3% and JK Tyre lost over 18.7%. India’s largest car maker Maruti-Suzuki posted the highest ever sales in the month.
With favorable climatic conditions the outlook for rubber production in the country seems to be appreciable, which ensures the availability of raw materials for the industry.
According to data issued on Friday by the Rubber Trade Association of Japan, natural rubber stocks in Japan totaled 4,326 metric tons as of August 20, up 24% from August 10 stocks of 3,496 tons.
Japan's rubber inventories have been declining steadily during the last few months, but the country's buyers have been actively replenishing recently. The stocks hit a record low of 2,628 tons on July 20.
Tuesday, September 7, 2010
Spot rubber prices rule firm
Spot rubber prices rule firm
Kottayam, Sept 6
Spot rubber prices finished unchanged on Monday. The market activities were in a slow pace prior to the hartal on Tuesday announced by the political parties. Sheet rubber finished flat at Rs 165 a kg as on the previous weekend session. The grade was quoted steady at Rs 164.50 a kg in the Board's Web site. The volumes were extremely low.
Futures gain
In futures, the September series increased to Rs 166.35 (165.76) while the October series slipped to Rs 163.43 (163.77), November to Rs 163.80 (164.42) and December to Rs 165.68 (165.84) a kg for RSS 4 on the National Multi Commodity Exchange.The volumes stood at 2,564 lots. RSS 3 weakened with September futures slipping to ¥309 (Rs 170.65) from ¥309.5 a kg during the day session, while the grade finished unchanged during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) improved to Rs 162.49 (161.57) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 165 (165); RSS-5: 160 (160); ungraded: 155 (155); ISNR 20: 149.50 (149.50) and latex 60 per cent: 111 (111).
Kottayam, Sept 6
Spot rubber prices finished unchanged on Monday. The market activities were in a slow pace prior to the hartal on Tuesday announced by the political parties. Sheet rubber finished flat at Rs 165 a kg as on the previous weekend session. The grade was quoted steady at Rs 164.50 a kg in the Board's Web site. The volumes were extremely low.
Futures gain
In futures, the September series increased to Rs 166.35 (165.76) while the October series slipped to Rs 163.43 (163.77), November to Rs 163.80 (164.42) and December to Rs 165.68 (165.84) a kg for RSS 4 on the National Multi Commodity Exchange.The volumes stood at 2,564 lots. RSS 3 weakened with September futures slipping to ¥309 (Rs 170.65) from ¥309.5 a kg during the day session, while the grade finished unchanged during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) improved to Rs 162.49 (161.57) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 165 (165); RSS-5: 160 (160); ungraded: 155 (155); ISNR 20: 149.50 (149.50) and latex 60 per cent: 111 (111).
Monday, September 6, 2010
Spot rubber improves on short covering
Spot rubber improves on short covering
Kottayam, Sept. 4
Spot rubber finished better on Saturday. According to sources, traders were reacting to the rumours that certain tyre manufacturers would re-enter the market during the succeeding weeks.
Sheet rubber improved to Rs 165 from Rs 164 a kg on fresh buying and short covering. The volumes were comparatively better though there was no visible improvement in arrivals.
Futures gain
The September series increased to Rs 165.76 (165.24), October to Rs 163.77 (162.85), November to Rs 164.42 (163.60) and December to Rs 165.84 (164.98) a kg for RSS 4 on the National Multi Commodity Exchange. The volumes stood at 1326 lots. The turnover was Rs 21.86 crore and open interest 4436 lots.
Spot rates were (Rs/kg): RSS-4: 165 (164); RSS-5: 160 (157); ungraded: 158 (154); ISNR 20: 149.50 (149) and latex 60 per cent: 111 (111).
Rubber duty: corruption alleged
Staff Reporter
KOTTAYAM: BJP State president V. Muraleedharan has alleged that corruption was behind the Central government's decision to change the import duty regime on Natural Rubber.
Inaugurating a dharna organised by the party district committee and Karshaka Morcha in front of the Head Post Office here on Saturday, Mr. Muraleedharan said the silence of the Union Ministers from the State amounted to their tacit approval of the corruption involved in the issue.
He said the new policies being implemented by the Central government were aimed at protecting the interests of the corporate sector at the cost of the farming community in the country.
The Congress leadership was taking forward the policies of globalisation and placing the interests of the country at the feet of multinationals, he said.
Mr. Muraleedharan said that the Delhi High Court and the Rubber Board had taken an empathetic attitude to the cause of the rubber farmers. However, the UPA government was bent on exploiting the situation to the benefit of the big business houses , he said. Mr. Muraleedharan said the BJP and the Karshaka Morcha would be in the forefront of the agitation to bring back the earlier import duty regime in the NR sector.(The Hindu)
Kottayam, Sept. 4
Spot rubber finished better on Saturday. According to sources, traders were reacting to the rumours that certain tyre manufacturers would re-enter the market during the succeeding weeks.
Sheet rubber improved to Rs 165 from Rs 164 a kg on fresh buying and short covering. The volumes were comparatively better though there was no visible improvement in arrivals.
Futures gain
The September series increased to Rs 165.76 (165.24), October to Rs 163.77 (162.85), November to Rs 164.42 (163.60) and December to Rs 165.84 (164.98) a kg for RSS 4 on the National Multi Commodity Exchange. The volumes stood at 1326 lots. The turnover was Rs 21.86 crore and open interest 4436 lots.
Spot rates were (Rs/kg): RSS-4: 165 (164); RSS-5: 160 (157); ungraded: 158 (154); ISNR 20: 149.50 (149) and latex 60 per cent: 111 (111).
Rubber duty: corruption alleged
Staff Reporter
KOTTAYAM: BJP State president V. Muraleedharan has alleged that corruption was behind the Central government's decision to change the import duty regime on Natural Rubber.
Inaugurating a dharna organised by the party district committee and Karshaka Morcha in front of the Head Post Office here on Saturday, Mr. Muraleedharan said the silence of the Union Ministers from the State amounted to their tacit approval of the corruption involved in the issue.
He said the new policies being implemented by the Central government were aimed at protecting the interests of the corporate sector at the cost of the farming community in the country.
The Congress leadership was taking forward the policies of globalisation and placing the interests of the country at the feet of multinationals, he said.
Mr. Muraleedharan said that the Delhi High Court and the Rubber Board had taken an empathetic attitude to the cause of the rubber farmers. However, the UPA government was bent on exploiting the situation to the benefit of the big business houses , he said. Mr. Muraleedharan said the BJP and the Karshaka Morcha would be in the forefront of the agitation to bring back the earlier import duty regime in the NR sector.(The Hindu)
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