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)