Rubber prices to shoot up as production declines
KOTTAYAM (Commodity Online): Natural rubber prices in India are set to shoot up thanks to unprecedented rains that have lashed across Kerala, the major rubber producing state in the country. Heavy unseasonal rains in September and October have wrecked havoc with rubber tapping in all the major rubber producing regions in Kerala.
Rubber industry traders and the Rubber Board of India estimate that production of natural rubber in October alone could plunge by more than 15% because of the unexpected rains. Rubber prices in the domestic market are hovering around Rs 185-190 range per kg as demand for the commodity is steadily rising thanks to the shortage of rubber.
Jeemon Jose, a leading rubber planter in central Kerala, said that rubber prices may hit Rs 220 per kg mark in the spot market by November. “It is for the first time that such heavy rains have played havoc with rubber tapping in Kerala. I think rubber production this year will decline by at least 20% percent because of the incessant rains,” he told Commodity Online.
Jose said rubber prices are on a bull run because of heavy demand from countries like China. “We are getting dozens of export enquiries from companies in China,” he said.
Kottayam-based Rubber Board estimates say that India may produce 8.93 lakh tonnes of rubber during 2010-11, while the rubber consumption would be around 9.78 lakh tonnes.
Rubber prices have nearly doubled in India in the last one year thanks to increasing demand and declining production. While on the spot market, farmers have been reaping rich dividends on higher rubber prices, the commodity has been hot on the futures trading market in the Indian commodity exchanges.
In the National Multi-Commodity Exchange (NMCE), rubber futures prices are hovering around Rs 195-200 per kg for various contracts.
Traders in the rubber futures market expect the commodity prices to touch Rs 220 per kg in the near future.
(Commodityonline.com)
Friday, October 29, 2010
Rubber supply situation seen worsening in Q4
Rubber supply situation seen worsening in Q4
Kochi, Oct. 28
While the huge demand and imports by China in October has kindled firm price trends in global rubber markets, the demand-supply situation is expected to deteriorate further during the fourth quarter, the Association of Natural Rubber Producing Countries has warned.
Demand for natural rubber in India, which cooled off in the third quarter, is expected to accelerate during the fourth quarter. However, both India and Malaysia are expected to avoid imports, given the high prices expected in global markets.
Higher imports seen
But, China which had been keeping away from imports has re-entered in a big way in October and the trend is likely to be maintained. China's natural rubber imports are expected to grow by over 40 per cent during the fourth quarter. India, China and Malaysia together account for 47 per cent of global rubber consumption.
The increased imports expected during the coming months are on the back of greater consumption during January-September. Consumption during January-September increased by 10 per cent in China, 5 per cent in India and 2.5 per cent in Malaysia. Meanwhile, global rubber production estimates are likely to slip further in the coming months: from an expected growth of 6.3 per cent to 5.3 per cent.
This is mainly because several producing countries have scaled down their production estimates. Due to the persistent and unseasonal rains in October, India has scaled down its supply growth from 7.2 per cent estimated earlier to 2.9 per cent. Similarly, due to unseasonal rains and tapping disruption, supply from Thailand is expected to fall by 3.9 per cent in Q4.
In China, a large number of trees could not be tapped in October due incessant rains in the Hainan province, which has reduced production. Chinese production could also be affected during the winter months due to extreme cold weather. Vietnam, China and Cambodia have all revised their production estimates downward.
According to figures available from the ANRPC, the sharp spurt in global spot and futures prices for rubber can be explained by not only the expected shortage in production, but also due to the appreciation in the value of currencies of producing countries such as Thailand, Malaysia and Indonesia. The strengthening of the Japanese currency and spurt in the price of crude oil are also expected to have influenced the price of rubber.
Global supply of natural rubber that was expected to grow by 5.3 per cent in 2010 is likely to be scaled down after a review next month. The possibility of marked change in supply scenario is remote in the coming year as well since the yielding area under rubber trees is unlikely to grow significantly before 2012. The concerns over natural rubber supply are likely to persist till the end of 2011, unless there is sharp downturn in demand, the ANRPC warned.
Outgoing Rubber Board chief felicitated
Kottayam, Oct. 28
The integrity and dedication of the government servants have a vital role in good governance in democracy, said Mr P.J. Kurian, MP, delivering the presidential address at the farewell meeting of Mr Sajen Peter, Chairman, Rubber Board, at Mammen Mappillai Hall, Kottayam, organised by the public and employees of the Board.
“Indian Administrative Service is not a mere machinery to execute the directions of the political leadership. Mr Sajen Peter was a role model quite exceptional who always upheld his honest and impartial ideas in administration,” he said.
Mr V.N. Vasavan, MLA, said in his felicitation that Mr Sajen Peter had put in his best efforts for branding of Indian natural rubber in the international market.
“He had always been interested in creating quality consciousness among the small holders through his regular and meaningful messages through Rubber magazine and Board's other publications,” he said.
Mr Jacob Thomas (Member, Rubber Board), Mr Siby Monippally (Member, Rubber Board), Dr James Jacob (Director, Rubber Research Institute of India), Mr Augustine Joseph Vellimoozhayil (President, Anthyalam Rubber Producers' Society), Mr P.N. Narayanan Nair (President, Rubber Board Pensioners' Association), Mr P. Achuthan Kutty (Rubber Board Extension Officers Union), Mr Moncy P. Kurian (Rubber Board Technical Officers Union), Mr E.P. Joy (Rubber Board Staff Union) and Mr Mohammed Shereef (Rubber Board Technical Guild), spoke in the meeting.
Spot rubber stays steady
Kottayam, Oct. 28
Spot rubber finished unchanged on Thursday. The sharp declines on the National Multi Commodity Exchange failed to make any impact in the physical market, possibly, on supply concerns. Among other news, heavy and unseasonal rains in key natural rubber producing countries might worsen the tight supply situation in October-December, the Association of Natural Rubber Producing Countries said. Sheet rubber closed flat at Rs 190 a kg in the main marketing centres amidst scattered transactions. The grade improved to Rs 190 from Rs 189 a kg both at Kottayam and Kochi according to Rubber Board.
Futures decline
The November series declined to Rs 192.90 (194.45), December to Rs 195.80 (197.36), January to Rs 197.80 (199.52) and February to Rs 201 (202.43) a kg for RSS 4 on the NMCE.
RSS 3 weakened at its November futures to ¥323.7 (Rs 177.22) from ¥325.8 during the day session but then recovered to ¥326 (Rs 178.43) a kg in the night session on Tokyo Commodity Exchange (TOCOM). The grade (spot) slipped to Rs 179.16 (179.61) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 190 (190); RSS-5: 180 (180); ungraded: 176 (176); ISNR 20: 186 (186) and latex 60 per cent: 123.50 (123.50).
Kochi, Oct. 28
While the huge demand and imports by China in October has kindled firm price trends in global rubber markets, the demand-supply situation is expected to deteriorate further during the fourth quarter, the Association of Natural Rubber Producing Countries has warned.
Demand for natural rubber in India, which cooled off in the third quarter, is expected to accelerate during the fourth quarter. However, both India and Malaysia are expected to avoid imports, given the high prices expected in global markets.
Higher imports seen
But, China which had been keeping away from imports has re-entered in a big way in October and the trend is likely to be maintained. China's natural rubber imports are expected to grow by over 40 per cent during the fourth quarter. India, China and Malaysia together account for 47 per cent of global rubber consumption.
The increased imports expected during the coming months are on the back of greater consumption during January-September. Consumption during January-September increased by 10 per cent in China, 5 per cent in India and 2.5 per cent in Malaysia. Meanwhile, global rubber production estimates are likely to slip further in the coming months: from an expected growth of 6.3 per cent to 5.3 per cent.
This is mainly because several producing countries have scaled down their production estimates. Due to the persistent and unseasonal rains in October, India has scaled down its supply growth from 7.2 per cent estimated earlier to 2.9 per cent. Similarly, due to unseasonal rains and tapping disruption, supply from Thailand is expected to fall by 3.9 per cent in Q4.
In China, a large number of trees could not be tapped in October due incessant rains in the Hainan province, which has reduced production. Chinese production could also be affected during the winter months due to extreme cold weather. Vietnam, China and Cambodia have all revised their production estimates downward.
According to figures available from the ANRPC, the sharp spurt in global spot and futures prices for rubber can be explained by not only the expected shortage in production, but also due to the appreciation in the value of currencies of producing countries such as Thailand, Malaysia and Indonesia. The strengthening of the Japanese currency and spurt in the price of crude oil are also expected to have influenced the price of rubber.
Global supply of natural rubber that was expected to grow by 5.3 per cent in 2010 is likely to be scaled down after a review next month. The possibility of marked change in supply scenario is remote in the coming year as well since the yielding area under rubber trees is unlikely to grow significantly before 2012. The concerns over natural rubber supply are likely to persist till the end of 2011, unless there is sharp downturn in demand, the ANRPC warned.
Outgoing Rubber Board chief felicitated
Kottayam, Oct. 28
The integrity and dedication of the government servants have a vital role in good governance in democracy, said Mr P.J. Kurian, MP, delivering the presidential address at the farewell meeting of Mr Sajen Peter, Chairman, Rubber Board, at Mammen Mappillai Hall, Kottayam, organised by the public and employees of the Board.
“Indian Administrative Service is not a mere machinery to execute the directions of the political leadership. Mr Sajen Peter was a role model quite exceptional who always upheld his honest and impartial ideas in administration,” he said.
Mr V.N. Vasavan, MLA, said in his felicitation that Mr Sajen Peter had put in his best efforts for branding of Indian natural rubber in the international market.
“He had always been interested in creating quality consciousness among the small holders through his regular and meaningful messages through Rubber magazine and Board's other publications,” he said.
Mr Jacob Thomas (Member, Rubber Board), Mr Siby Monippally (Member, Rubber Board), Dr James Jacob (Director, Rubber Research Institute of India), Mr Augustine Joseph Vellimoozhayil (President, Anthyalam Rubber Producers' Society), Mr P.N. Narayanan Nair (President, Rubber Board Pensioners' Association), Mr P. Achuthan Kutty (Rubber Board Extension Officers Union), Mr Moncy P. Kurian (Rubber Board Technical Officers Union), Mr E.P. Joy (Rubber Board Staff Union) and Mr Mohammed Shereef (Rubber Board Technical Guild), spoke in the meeting.
Spot rubber stays steady
Kottayam, Oct. 28
Spot rubber finished unchanged on Thursday. The sharp declines on the National Multi Commodity Exchange failed to make any impact in the physical market, possibly, on supply concerns. Among other news, heavy and unseasonal rains in key natural rubber producing countries might worsen the tight supply situation in October-December, the Association of Natural Rubber Producing Countries said. Sheet rubber closed flat at Rs 190 a kg in the main marketing centres amidst scattered transactions. The grade improved to Rs 190 from Rs 189 a kg both at Kottayam and Kochi according to Rubber Board.
Futures decline
The November series declined to Rs 192.90 (194.45), December to Rs 195.80 (197.36), January to Rs 197.80 (199.52) and February to Rs 201 (202.43) a kg for RSS 4 on the NMCE.
RSS 3 weakened at its November futures to ¥323.7 (Rs 177.22) from ¥325.8 during the day session but then recovered to ¥326 (Rs 178.43) a kg in the night session on Tokyo Commodity Exchange (TOCOM). The grade (spot) slipped to Rs 179.16 (179.61) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 190 (190); RSS-5: 180 (180); ungraded: 176 (176); ISNR 20: 186 (186) and latex 60 per cent: 123.50 (123.50).
Thursday, October 28, 2010
Spot rubber improves on short covering
Spot rubber improves on short covering
Kottayam, Oct. 27
Spot rubber improved further to reach the previous record high on Wednesday. The market seemed to be following the gains in domestic rubber futures, catalysed by supply concerns. According to traders, sheet rubber improved to Rs 190 from Rs 189.50 a kg on fresh buying and short covering. The grade firmed up to Rs 189 from Rs 188.50 a kg both at Kottayam and Kochi as reported by the Rubber Board.
"An already tight situation in global supply of natural rubber is expected to worsen further in the fourth quarter," Mr Jom Jacob, Senior Economist at the ANRPC, said in a statement. "Marked change in supply scenario is remote even in 2011 given the fact that yielding area is unlikely to expand before 2012''.
RSS 4 increased further with the November series rising to Rs 194.35 (192.18), December to Rs 197.30 (194.81), January to Rs 199.32 (196.81) and February to Rs 202.40 (200.52) a kg on the National Multi Commodity Exchange. Futures weak
The November futures weakened to ¥325.8 (Rs 177.57) from ¥328 during the day session and then to ¥325 (Rs 177.08) a kg for RSS 3 in the night session on the Tokyo Commodity Exchange.
The grade (spot) closed at Rs 179.61 (178.81) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 190 (189.50); RSS-5: 180 (179); ungraded: 176 (174); ISNR 20: 186 (185.50) and latex 60 per cent: 123.50 (121).
Rubber Futures Decline From 27-Month High as Dollar's Strength Cuts Appeal
Posted: 27 Oct 2010 03:17 AM PDT
Rubber slumped on concern that China may tighten trading rules to curb excessive speculation, and as a stronger dollar reduced the appeal of commodities as alternative assets.
The April-delivery contract declined as much as 1.4 percent to 335.7 yen per kilogram ($4,107 a metric ton) on the Tokyo Commodity Exchange before settling at 337 yen. Shanghai futures plunged as much as 4.4 percent to 31,210 yuan ($4,669) a ton after reaching a record 33,320 yuan yesterday.
Commodities in China snapped a rally as the Zhengzhou Commodity Exchange yesterday increased the margin requirement for rice, rapeseed oil, wheat and sugar trading to 8 percent from 3 percent or 4 percent. The exchange will track “abnormal” trading and recommend investigation by watchdogs, a separate statement dated Oct. 25 said.
“Rubber came under pressure amid speculation that China may be attempting to cap raw materials prices to curb inflation,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone.
China’s increased liquidity after the financial crisis and government curbs on property investments have stoked commodity prices. In the past six months, cotton in Zhengzhou returned 61 percent, rubber in Shanghai gained 34 percent, zinc in Shanghai rose 9.2 percent, while Dalian soybean oil rose 20 percent.
“The government has had to battle anything from speculation in mung beans to garlic in the past and has shown increasing signs of wanting to intervene in futures,” Tommy Xiao, analyst at Shanghai JC Intelligence Co., said by phone from Shanghai. “But it’s like the game Whack-A-Mole: as they knock down one product, another one pops up.”
Dollar Strength
Rubber futures also declined because of a strengthening dollar, said Chaiwat Muenmee, analyst at commodity broker D.S. Futures. The dollar rose to a one-week high against the euro amid speculation more debt purchases by the Federal Reserve will help revive economic growth.
The dollar gained as high as $1.3771 per euro, the most since Oct. 20, before trading at $1.3793 at 4:44 p.m. in Tokyo.
The U.S. economy probably grew at a faster pace in the third quarter. Gross domestic product rose at a 2 percent annual pace, up from a 1.7 percent rate in the previous three months, according to the median forecast of economists surveyed by Bloomberg News before the Oct. 29 Commerce Department report.
The rubber cash price in Thailand gained 0.2 percent to 120.55 baht ($4.02) per kilogram today, boosted by worries that increasing rains in Thailand’s southern provinces will lower production amid persistent demand from processors, the Rubber Research Institute of Thailand said on its website. Prices will likely advance in the short term, the institute said.
Losses Limited
Rubber losses may be limited as reports on tightening supply should support prices, Chaiwat at D.S. Futures said. Rain continues to disrupt tapping among key producers, he said.
A natural rubber supply shortage will likely “worsen” in the fourth quarter as unseasonal rainfall continues to disrupt production from key growers, the Association of Natural Rubber Producing Countries said.
Output in Thailand, the largest producer and exporter, is estimated to fall 3.9 percent in the fourth quarter to 933,000 tons, the group said in a monthly bulletin.
Output in China and India is expected to contract during October to December because of heavy rain, the group said. India has scaled down its production forecast this year to 844,000 tons from 879,000 tons estimated earlier, while China cut its 2010 output forecast to 641,000 tons, a decline of 0.3 percent from the previous year, the group said.
Global rubber production this year is unlikely to increase more than 5.3 percent to 9.4 million tons, from a previous forecast of 6.3 percent, the association said. A further cut in output is expected because of tapping disruptions in Malaysia, Thailand and India, the group said.
“Marked change in supply scenario is remote in 2011 given the fact that yielding area is unlikely to expand before 2012,” Jom Jacob, the group’s senior economist, said in the statement.
(bloomberg.com)
Kottayam, Oct. 27
Spot rubber improved further to reach the previous record high on Wednesday. The market seemed to be following the gains in domestic rubber futures, catalysed by supply concerns. According to traders, sheet rubber improved to Rs 190 from Rs 189.50 a kg on fresh buying and short covering. The grade firmed up to Rs 189 from Rs 188.50 a kg both at Kottayam and Kochi as reported by the Rubber Board.
"An already tight situation in global supply of natural rubber is expected to worsen further in the fourth quarter," Mr Jom Jacob, Senior Economist at the ANRPC, said in a statement. "Marked change in supply scenario is remote even in 2011 given the fact that yielding area is unlikely to expand before 2012''.
RSS 4 increased further with the November series rising to Rs 194.35 (192.18), December to Rs 197.30 (194.81), January to Rs 199.32 (196.81) and February to Rs 202.40 (200.52) a kg on the National Multi Commodity Exchange. Futures weak
The November futures weakened to ¥325.8 (Rs 177.57) from ¥328 during the day session and then to ¥325 (Rs 177.08) a kg for RSS 3 in the night session on the Tokyo Commodity Exchange.
The grade (spot) closed at Rs 179.61 (178.81) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 190 (189.50); RSS-5: 180 (179); ungraded: 176 (174); ISNR 20: 186 (185.50) and latex 60 per cent: 123.50 (121).
Rubber Futures Decline From 27-Month High as Dollar's Strength Cuts Appeal
Posted: 27 Oct 2010 03:17 AM PDT
Rubber slumped on concern that China may tighten trading rules to curb excessive speculation, and as a stronger dollar reduced the appeal of commodities as alternative assets.
The April-delivery contract declined as much as 1.4 percent to 335.7 yen per kilogram ($4,107 a metric ton) on the Tokyo Commodity Exchange before settling at 337 yen. Shanghai futures plunged as much as 4.4 percent to 31,210 yuan ($4,669) a ton after reaching a record 33,320 yuan yesterday.
Commodities in China snapped a rally as the Zhengzhou Commodity Exchange yesterday increased the margin requirement for rice, rapeseed oil, wheat and sugar trading to 8 percent from 3 percent or 4 percent. The exchange will track “abnormal” trading and recommend investigation by watchdogs, a separate statement dated Oct. 25 said.
“Rubber came under pressure amid speculation that China may be attempting to cap raw materials prices to curb inflation,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone.
China’s increased liquidity after the financial crisis and government curbs on property investments have stoked commodity prices. In the past six months, cotton in Zhengzhou returned 61 percent, rubber in Shanghai gained 34 percent, zinc in Shanghai rose 9.2 percent, while Dalian soybean oil rose 20 percent.
“The government has had to battle anything from speculation in mung beans to garlic in the past and has shown increasing signs of wanting to intervene in futures,” Tommy Xiao, analyst at Shanghai JC Intelligence Co., said by phone from Shanghai. “But it’s like the game Whack-A-Mole: as they knock down one product, another one pops up.”
Dollar Strength
Rubber futures also declined because of a strengthening dollar, said Chaiwat Muenmee, analyst at commodity broker D.S. Futures. The dollar rose to a one-week high against the euro amid speculation more debt purchases by the Federal Reserve will help revive economic growth.
The dollar gained as high as $1.3771 per euro, the most since Oct. 20, before trading at $1.3793 at 4:44 p.m. in Tokyo.
The U.S. economy probably grew at a faster pace in the third quarter. Gross domestic product rose at a 2 percent annual pace, up from a 1.7 percent rate in the previous three months, according to the median forecast of economists surveyed by Bloomberg News before the Oct. 29 Commerce Department report.
The rubber cash price in Thailand gained 0.2 percent to 120.55 baht ($4.02) per kilogram today, boosted by worries that increasing rains in Thailand’s southern provinces will lower production amid persistent demand from processors, the Rubber Research Institute of Thailand said on its website. Prices will likely advance in the short term, the institute said.
Losses Limited
Rubber losses may be limited as reports on tightening supply should support prices, Chaiwat at D.S. Futures said. Rain continues to disrupt tapping among key producers, he said.
A natural rubber supply shortage will likely “worsen” in the fourth quarter as unseasonal rainfall continues to disrupt production from key growers, the Association of Natural Rubber Producing Countries said.
Output in Thailand, the largest producer and exporter, is estimated to fall 3.9 percent in the fourth quarter to 933,000 tons, the group said in a monthly bulletin.
Output in China and India is expected to contract during October to December because of heavy rain, the group said. India has scaled down its production forecast this year to 844,000 tons from 879,000 tons estimated earlier, while China cut its 2010 output forecast to 641,000 tons, a decline of 0.3 percent from the previous year, the group said.
Global rubber production this year is unlikely to increase more than 5.3 percent to 9.4 million tons, from a previous forecast of 6.3 percent, the association said. A further cut in output is expected because of tapping disruptions in Malaysia, Thailand and India, the group said.
“Marked change in supply scenario is remote in 2011 given the fact that yielding area is unlikely to expand before 2012,” Jom Jacob, the group’s senior economist, said in the statement.
(bloomberg.com)
Wednesday, October 27, 2010
Spot rubber rules steady
Spot rubber rules steady
Kottayam, Oct. 26
Physical rubber prices continued to rule unchanged on Tuesday. According to observers, the market failed to move in tandem with the gains in futures as buyers stayed away following a favourable change in weather. Sheet rubber closed flat at Rs 189.50 a kg in the main marketing centres.
As reported by the Rubber Board, the grade was steady at Rs 188.50 a kg at Kottayam and Kochi. Though the uptrend in prices is good for rubber growers, if it sustains beyond a limit it would impact adversely on them as long as it affects the trading community.
The medium and small units as a whole are suffering a lot now as the prices are up beyond their purchasing power, Mr Sajen Peter, outgoing Chairman told Business Line. The price if rules above the international level may not be promising to the industry.
Futures gain
In futures, the November series flared up to Rs 192.06 (187.18), December to Rs 194.60 (188.79), January to Rs 196.80 (191.59) and February to Rs 200.25 (195.37) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 weakened at its November futures to ¥327.8 (Rs 179.53) from ¥329.5 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange. The grade (spot) improved marginally to Rs 178.81 (178.77) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 189.50 (189.50); RSS-5: 179 (179.50); ungraded: 174 (174); ISNR 20: 185.50 (185.50) and latex 60 per cent: 121 (121).
Kottayam, Oct. 26
Physical rubber prices continued to rule unchanged on Tuesday. According to observers, the market failed to move in tandem with the gains in futures as buyers stayed away following a favourable change in weather. Sheet rubber closed flat at Rs 189.50 a kg in the main marketing centres.
As reported by the Rubber Board, the grade was steady at Rs 188.50 a kg at Kottayam and Kochi. Though the uptrend in prices is good for rubber growers, if it sustains beyond a limit it would impact adversely on them as long as it affects the trading community.
The medium and small units as a whole are suffering a lot now as the prices are up beyond their purchasing power, Mr Sajen Peter, outgoing Chairman told Business Line. The price if rules above the international level may not be promising to the industry.
Futures gain
In futures, the November series flared up to Rs 192.06 (187.18), December to Rs 194.60 (188.79), January to Rs 196.80 (191.59) and February to Rs 200.25 (195.37) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 weakened at its November futures to ¥327.8 (Rs 179.53) from ¥329.5 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange. The grade (spot) improved marginally to Rs 178.81 (178.77) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 189.50 (189.50); RSS-5: 179 (179.50); ungraded: 174 (174); ISNR 20: 185.50 (185.50) and latex 60 per cent: 121 (121).
Sunday, October 24, 2010
Spot rubber rules steady
Spot rubber rules steady
Kottayam, Oct. 23
Physical rubber prices finished almost unchanged on Saturday. The weekend session was comparatively inactive and a slight recovery in domestic futures failed to make any visible impact in the market. According to dealers, sheet rubber closed flat at Rs 189.50 a kg amidst scattered transactions. The grade was steady at Rs 188.50 a kg both at Kottayam and Kochi as reported by the Rubber Board.
Futures gain
RSS 4 increased at its November futures to Rs 190.03 (188.88), December to Rs 191.96 (190.60), January to Rs 194.32 (193.00) and February to Rs 197.13 (196.03) a kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 189.50 (189.50); RSS-5: 179.50 (180); ungraded: 174 (174); ISNR 20: 185.50 (185.50) and latex 60 per cent: 121 (121).
Kottayam, Oct. 23
Physical rubber prices finished almost unchanged on Saturday. The weekend session was comparatively inactive and a slight recovery in domestic futures failed to make any visible impact in the market. According to dealers, sheet rubber closed flat at Rs 189.50 a kg amidst scattered transactions. The grade was steady at Rs 188.50 a kg both at Kottayam and Kochi as reported by the Rubber Board.
Futures gain
RSS 4 increased at its November futures to Rs 190.03 (188.88), December to Rs 191.96 (190.60), January to Rs 194.32 (193.00) and February to Rs 197.13 (196.03) a kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 189.50 (189.50); RSS-5: 179.50 (180); ungraded: 174 (174); ISNR 20: 185.50 (185.50) and latex 60 per cent: 121 (121).
Saturday, October 23, 2010
Spot rubber turns weak
Spot rubber turns weak
Kottayam, Oct. 22
Rubber prices turned weak on Friday. On the spot, prices slipped marginally on buyer resistance following the declines in domestic rubber futures on the National Multi Commodity Exchange. There has been no visible selling pressure in the market as intermittent rains continued to disrupt tapping in almost all the plantations in the State.
Meanwhile, latex 60 per cent gained further on acute short supply. The trend was mixed. Sheet rubber weakened to Rs 189.50 a kg amidst low volumes. It closed unchanged at Rs 188.50 a kg both at Kottayam and Kochi according to Rubber Board on its official Web site.
RSS 4 declined further at its November futures to Rs 188.88 (193.58), December to Rs 190.60 (196.26), January to Rs 193 (198.47) and February to Rs 196.03 (200.15) a kg for on the NMCE. The volumes stood at 9,466 lots and the turnover at Rs 183.67 crore. The total open interest in all series was 4,687 lots. The October futures for RSS 3 slipped to ¥322 (Rs 176.80) from ¥325 during the day session but then recovered marginally to ¥322.3 (Rs 176.95) a kg during the night session on the Tokyo Commodity Exchange. The grade (spot) improved to Rs 178.77 (177.77) a kg at Bangkok.
Spot rates were: RSS-4: 189.50 (190); RSS-5: 180 (180); ungraded: 174 (175); ISNR 20: 185.50 (186) and latex 60 per cent: 121 (121).
Kottayam, Oct. 22
Rubber prices turned weak on Friday. On the spot, prices slipped marginally on buyer resistance following the declines in domestic rubber futures on the National Multi Commodity Exchange. There has been no visible selling pressure in the market as intermittent rains continued to disrupt tapping in almost all the plantations in the State.
Meanwhile, latex 60 per cent gained further on acute short supply. The trend was mixed. Sheet rubber weakened to Rs 189.50 a kg amidst low volumes. It closed unchanged at Rs 188.50 a kg both at Kottayam and Kochi according to Rubber Board on its official Web site.
RSS 4 declined further at its November futures to Rs 188.88 (193.58), December to Rs 190.60 (196.26), January to Rs 193 (198.47) and February to Rs 196.03 (200.15) a kg for on the NMCE. The volumes stood at 9,466 lots and the turnover at Rs 183.67 crore. The total open interest in all series was 4,687 lots. The October futures for RSS 3 slipped to ¥322 (Rs 176.80) from ¥325 during the day session but then recovered marginally to ¥322.3 (Rs 176.95) a kg during the night session on the Tokyo Commodity Exchange. The grade (spot) improved to Rs 178.77 (177.77) a kg at Bangkok.
Spot rates were: RSS-4: 189.50 (190); RSS-5: 180 (180); ungraded: 174 (175); ISNR 20: 185.50 (186) and latex 60 per cent: 121 (121).
Friday, October 22, 2010
Boost in Auto industry prompts India rubber output
MUMBAI (Commodity Online): The boost in the automobile industry in India prompted the natural rubber production during April-August period. The country produced nearly 29% more rubber during the period as against the previous year.
All major tyre companies produced a total of 47.1 million tyres during April-August period.
According to the Automotive Tyre Manufacturers Association (ATMA), automobile industry was shown a whopping 65% growth in the scooter segment while 44% and 43% in three-wheeler tyre and passenger car segment, respectively.
Despite a sharp rise in natural rubber (NR) prices, production grew due to the rise in commercial vehicle sales.
The Society of Indian Automobile Manufacturers (SIAM) data said that the sale of commercial vehicles rose 41.59% in April-September of the current year. Car sales increased 33.58% while two-wheelers saw an increase of 25.86%
All major tyre companies produced a total of 47.1 million tyres during April-August period.
According to the Automotive Tyre Manufacturers Association (ATMA), automobile industry was shown a whopping 65% growth in the scooter segment while 44% and 43% in three-wheeler tyre and passenger car segment, respectively.
Despite a sharp rise in natural rubber (NR) prices, production grew due to the rise in commercial vehicle sales.
The Society of Indian Automobile Manufacturers (SIAM) data said that the sale of commercial vehicles rose 41.59% in April-September of the current year. Car sales increased 33.58% while two-wheelers saw an increase of 25.86%
Spot rubber stays firm
Spot rubber stays firm
Kottayam, Oct. 21
Spot rubber prices closed firm on Thursday. The market lost its direction as the domestic futures on the National Multi Commodity Exchange (NMCE) went into a corrective phase possibly on profit booking at higher levels.
Among other news, it is reported that India is heading for a record natural rubber import as domestic output fails to keep pace with the auto-driven demand underpinning prices already at record highs. The rubber growers may not benefit from the record high prices ruling now as it is only a temporary phenomenon following weather changes and continuous rains in the State, said Adv. Joy Nadukkara, President, Pala Marketing Society. There are also reports of severe shortage of rubber both in domestic and international markets, he said.
Sheet rubber closed flat at Rs 190 a kg in the main marketing centres. It improved further to Rs 188.50 (187) a kg both at Kottayam and Kochi according to Rubber Board.
In futures, the November series declined to Rs 193.50 (196.33), December to Rs 195.34 (198.95), January to Rs 198.80 (200.89) and February to Rs 200 (202.98) a kg for RSS 4 on the NMCE. The October futures for RSS 3 moved up marginally to ¥325 (Rs 177.77) from ¥324 a kg during the day session but then closed unchanged during the night session on the Tokyo Commodity Exchange. The grade (spot) weakened to Rs 177.77 (178.95) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 190 (190); RSS-5: 180 (180); ungraded: 175 (175); ISNR 20: 186 (186) and latex 60 per cent: 121 (121).
Kottayam, Oct. 21
Spot rubber prices closed firm on Thursday. The market lost its direction as the domestic futures on the National Multi Commodity Exchange (NMCE) went into a corrective phase possibly on profit booking at higher levels.
Among other news, it is reported that India is heading for a record natural rubber import as domestic output fails to keep pace with the auto-driven demand underpinning prices already at record highs. The rubber growers may not benefit from the record high prices ruling now as it is only a temporary phenomenon following weather changes and continuous rains in the State, said Adv. Joy Nadukkara, President, Pala Marketing Society. There are also reports of severe shortage of rubber both in domestic and international markets, he said.
Sheet rubber closed flat at Rs 190 a kg in the main marketing centres. It improved further to Rs 188.50 (187) a kg both at Kottayam and Kochi according to Rubber Board.
In futures, the November series declined to Rs 193.50 (196.33), December to Rs 195.34 (198.95), January to Rs 198.80 (200.89) and February to Rs 200 (202.98) a kg for RSS 4 on the NMCE. The October futures for RSS 3 moved up marginally to ¥325 (Rs 177.77) from ¥324 a kg during the day session but then closed unchanged during the night session on the Tokyo Commodity Exchange. The grade (spot) weakened to Rs 177.77 (178.95) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 190 (190); RSS-5: 180 (180); ungraded: 175 (175); ISNR 20: 186 (186) and latex 60 per cent: 121 (121).
Thursday, October 21, 2010
Rubber futures rally as China enters market
Rubber futures rally as China enters market
Kochi, Oct. 20
Rubber futures rallied to Rs 200 a kg on Wednesday, catching the market by surprise. The current rally is a reflection of the trend in the international market where inadequate supply has been compounded by the entry of China as a big buyer, said Mr N. Radhakrishnan, Advisor to Cochin Rubber Merchants Association. This is reflected in the surge in the Indian and international futures prices.
The fact that the Government is still to decide on a final rate structure for import of natural rubber has compounded the crisis for India.
While the customs duty continues to reign at 20 per cent, the Rubber Board had recommended its reduction to 13.5 per cent based on the average prices prevailing in the last three years. The consuming industry had demanded that the rates be reduced to 7.5 per cent. The Government is still to make a final announcement.
For the rubber growing regions, the uninterrupted rains since June has hindered tapping operations and October output is expected to be lower. The persistent rain also raises the threat of fungal and bacteriological disease on the tree and this could also hamper long-term productivity.
The prevalent high prices are expected to induce the farmer to tap the tree and expose the bark to rainwater, increasing the possibility of fungal attacks.
Global production is also feared to be affected due to the emergence of the La Nina factor. Increased rains are reportedly hampering production in major producing countries such as Malaysia, Thailand and Indonesia. It was while these supply constraints had hit the global markets that China entered as a major buyer. China has been buying and stocking natural rubber to feed its booming automobile and tyre industries.
Speculation
Given the fact that the futures prices have touched the Rs 200 levels for the peak production months of January-February, sources in the trade said that there could be some speculation in the market. Pointing out that speculation in rubber futures is playing havoc with the physical market, the Automotive Tyre Manufacturers Association (ATMA) has asked for suspension of futures trading in rubber.
In a communication to the Forward Markets Commission and the Rubber Board, Mr Rajiv Budhraja, Director–General of ATMA, said: “On October 18, the futures went up by as much as Rs 5 for the November contract touching Rs 191 a kg.
As of today, the futures have touched Rs 200 for January contracts. As a direct fallout of the speculative activity in the futures market, the growers are holding back the stock, expecting a rise in prices, aggravating the scarcity challenges for natural rubber consumers.”
Traded volumes have jumped to an average of 8,000 tonnes from the normal average of 3,000-4,000 tonnes indicating heavy speculative activity. On the other hand, the open position has been successively coming down clearly indicating that intra-day players are on the prowl, Mr Budhraja said.
Supply concern lifts spot rubber
Kottayam, Oct. 20
Physical rubber prices reached record highs on Wednesday. Major consuming industries were practically inactive but there was no selling pressure even at higher levels. According to the Rubber Board, the grade firmed up to Rs 187 (185) a kg at Kottayam and Kochi.
The October futures for RSS 3 weakened to ¥324 (Rs 176.90) from ¥328.2 a kg during the day session on the Tokyo Commodity Exchange. The grade (spot) moved up to Rs 178.95 (178.03) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 190 (186); RSS-5: 180 (175); ungraded: 175 (172.50); ISNR 20: 186 (183) and latex 60 per cent: 121 (119).(The Business Line)
Kochi, Oct. 20
Rubber futures rallied to Rs 200 a kg on Wednesday, catching the market by surprise. The current rally is a reflection of the trend in the international market where inadequate supply has been compounded by the entry of China as a big buyer, said Mr N. Radhakrishnan, Advisor to Cochin Rubber Merchants Association. This is reflected in the surge in the Indian and international futures prices.
The fact that the Government is still to decide on a final rate structure for import of natural rubber has compounded the crisis for India.
While the customs duty continues to reign at 20 per cent, the Rubber Board had recommended its reduction to 13.5 per cent based on the average prices prevailing in the last three years. The consuming industry had demanded that the rates be reduced to 7.5 per cent. The Government is still to make a final announcement.
For the rubber growing regions, the uninterrupted rains since June has hindered tapping operations and October output is expected to be lower. The persistent rain also raises the threat of fungal and bacteriological disease on the tree and this could also hamper long-term productivity.
The prevalent high prices are expected to induce the farmer to tap the tree and expose the bark to rainwater, increasing the possibility of fungal attacks.
Global production is also feared to be affected due to the emergence of the La Nina factor. Increased rains are reportedly hampering production in major producing countries such as Malaysia, Thailand and Indonesia. It was while these supply constraints had hit the global markets that China entered as a major buyer. China has been buying and stocking natural rubber to feed its booming automobile and tyre industries.
Speculation
Given the fact that the futures prices have touched the Rs 200 levels for the peak production months of January-February, sources in the trade said that there could be some speculation in the market. Pointing out that speculation in rubber futures is playing havoc with the physical market, the Automotive Tyre Manufacturers Association (ATMA) has asked for suspension of futures trading in rubber.
In a communication to the Forward Markets Commission and the Rubber Board, Mr Rajiv Budhraja, Director–General of ATMA, said: “On October 18, the futures went up by as much as Rs 5 for the November contract touching Rs 191 a kg.
As of today, the futures have touched Rs 200 for January contracts. As a direct fallout of the speculative activity in the futures market, the growers are holding back the stock, expecting a rise in prices, aggravating the scarcity challenges for natural rubber consumers.”
Traded volumes have jumped to an average of 8,000 tonnes from the normal average of 3,000-4,000 tonnes indicating heavy speculative activity. On the other hand, the open position has been successively coming down clearly indicating that intra-day players are on the prowl, Mr Budhraja said.
Supply concern lifts spot rubber
Kottayam, Oct. 20
Physical rubber prices reached record highs on Wednesday. Major consuming industries were practically inactive but there was no selling pressure even at higher levels. According to the Rubber Board, the grade firmed up to Rs 187 (185) a kg at Kottayam and Kochi.
The October futures for RSS 3 weakened to ¥324 (Rs 176.90) from ¥328.2 a kg during the day session on the Tokyo Commodity Exchange. The grade (spot) moved up to Rs 178.95 (178.03) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 190 (186); RSS-5: 180 (175); ungraded: 175 (172.50); ISNR 20: 186 (183) and latex 60 per cent: 121 (119).(The Business Line)
Wednesday, October 20, 2010
Spot rubber surges on short covering
Spot rubber surges on short covering
Kottayam, Oct. 19
Spot rubber explored further highs on Tuesday. There were no quantity sellers in the market as widespread rains and supply concerns continued to dominate the market mood. There were no fresh enquiries from the tyre sector and the market moved up amidst scattered transactions. Sheet rubber improved to Rs 186 (182.50) a kg on fresh buying and short covering. The grade moved up further to Rs 185 (182) a kg at Kottayam and Kochi, according to Rubber Board.
Futures gain
The November series increased to Rs 192.05 (190.67), December to Rs 195 (193.29), January to Rs 198 (196.10) and February to Rs 200.40 (199.49) a kg for RSS 4 on the National Multi Commodity Exchange. RSS 3 firmed up at the October futures to ¥328.2 (Rs 178.64) from ¥323 a kg during the day session but then remained inactive during the night session on the Tokyo Commodity Exchange. Its spot closed at Rs 178.03 (177.57) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 186 (182.50); RSS-5: 175 (173.50); ungraded: 172.50 (172); ISNR 20: 183 (182) and latex 60 per cent: 119 (118).
Kottayam, Oct. 19
Spot rubber explored further highs on Tuesday. There were no quantity sellers in the market as widespread rains and supply concerns continued to dominate the market mood. There were no fresh enquiries from the tyre sector and the market moved up amidst scattered transactions. Sheet rubber improved to Rs 186 (182.50) a kg on fresh buying and short covering. The grade moved up further to Rs 185 (182) a kg at Kottayam and Kochi, according to Rubber Board.
Futures gain
The November series increased to Rs 192.05 (190.67), December to Rs 195 (193.29), January to Rs 198 (196.10) and February to Rs 200.40 (199.49) a kg for RSS 4 on the National Multi Commodity Exchange. RSS 3 firmed up at the October futures to ¥328.2 (Rs 178.64) from ¥323 a kg during the day session but then remained inactive during the night session on the Tokyo Commodity Exchange. Its spot closed at Rs 178.03 (177.57) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 186 (182.50); RSS-5: 175 (173.50); ungraded: 172.50 (172); ISNR 20: 183 (182) and latex 60 per cent: 119 (118).
Tuesday, October 19, 2010
Rubber firms up on supply pinch
Rubber firms up on supply pinch
Kottayam, Oct. 18
The rubber prices firmed up further on Monday. Widespread rains and supply concerns dominated the market mood and the prices moved up lacking quantity sellers in the main marketing centres.
There were no fresh quotes from the tyre sector and volumes were extremely poor.
According to dealers, sheet rubber improved to Rs 182.50 (Rs 181) a kg mainly on covering purchases.
The grade closed at Rs 182.00 (Rs 180.50) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The November series increased to Rs 190.85 (Rs 188.01), December to Rs 193.84 (Rs 190.93), January to Rs 196.60 (Rs 193.90) and February to Rs 200.00 (Rs 197.46) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).
The volumes totalled 8020 lots and open interest 5036 lots. The turnover was Rs 153.18 crores.
The October futures for RSS 3 moved down to ¥ 323.0 (Rs 176.36) from ¥ 329.5 during the day session but recovered partially to ¥ 325.5 (Rs 177.70) a kg during the night session on Tokyo Commodity Exchange (TOCOM). The grade (spot) weakened Rs 177.57 (Rs 178.17) a kg at Bangkok.
The physical rubber rates a kg were: RSS-4: Rs 182.50 (Rs 181.00), RSS-5: Rs 173.50 (Rs 172.50), Ungraded: Rs 172.00 (Rs 170.00), ISNR 20: Rs 182.00 (Rs 177.00)and Latex 60 per cent: Rs 118.00 (Rs 116.50)
Mechanised knife for rubber tapping at experimental stage
Kottayam, Oct 18
A demonstration of the functioning of a prototype of mechanised tapping knife, which is at the experimental stage, was conducted for Rubber Board members on Monday.
The knife has been developed by Mr Z. Mathew, Adjunct Professor at Amal Jyothi College of Engineering, Kanjirappally.
Earlier in his presidential address at the 164th meeting of the Rubber Board, Mr Sajan Peter, board's Chairman, said rubber production in the country during April-September was 7.6 per cent higher over the corresponding period a year ago. Domestic rubber consumption increased 2 per centduring the period. Consumption in the automotive tyre sector grew by 4.1 per cent, but the non-tyre sector recorded a decline of 1.3 per cent, he said.
Monsoon havoc for Rubber: Prices hit record highs
TOKYO/KOCHI (Commodity Online): Rubber prices moved ahead to hit a record high in the domestic as well as international markets as rains disrupted supplies and tapping in parts of the growing areas in Indonesia and India.
The prices hit a six-month high on the back of rising demand and limited supplies. Shanghai rubber advanced to the highest since 2002.
Futures in Tokyo gained as much as 1.9% to 334.4 yen per kilogram ($4,084 a metric ton). The prices are hovering at the peak levels since April 19 and traded at 333.1 yen in the later trades.
The buying is robust in the Chinese markets as the inventories had bottomed out after the National Day Holidays in the early this month.
Rubber inventories at the exchange warehouses in China remained lower at 36,900 tonnes on October 8, which was 76% lower than this year’s high of 151,832 tonnes on Jan. 21.
The March-delivery contract on the Shanghai Futures Exchange last traded 3.1% higher at 30,230 yuan.
The rainfall too played key role in crewing up the prices. The monsoon has been heavy and longer than the previous year. This lowered latex levels in key plantation countries.
Indonesian rubber prices hit a record yesterday at USD 3.85 per kilogram on rains havoc, damaging tapping and lowering production.
Thailand prices were up 2.6% on Tuesday, at 116.50 baht ($3.87) per kg on rising demand from China and other key developing countries.
India rubber hovered at the peak levels of Rs.180 per kg on the National Multi Commodity Exchange (NMCE) for immediate contract.
On Tuesday, physical rubber prices ended almost unchanged due to positive change in the weather during the past couple of days. However, the prices remained firm on Wednesday, October 13, 2010 as the robust demand in the international markets jacked up prices.
Rubber output up 7.6% during Apr-Sep’10 in India
KOTTAYAM (Commodity Online): The natural rubber (NR) production in the country during April-September 2010 was higher by 7.6% over the corresponding period in the previous year, the Rubber Board Chairman, Sajen Peter informed today.
He was delivering the presidential address in the 164th meeting of the Rubber Board held at Rubber Research Institute of India.
The consumption of NR in the domestic markets also increased 2% during this period. Consumption in the automotive tyre sector grew by 4.1%, while the non-tyre sector recorded a decline of 1.3%, he said.
He informed the meeting that world NR production and consumption had also increased by 5.9% and 17.8% respectively during the first half of 2010.
The global stock of NR is very low at 932,000 tonne at the end of June 2010 according to the reports of International Rubber Study Group. World production and consumption of NR in 2010 are projected at 10.25 and 10.31 million tonnes respectively.
A demonstration of the functioning of the prototype of mechanised tapping knife, which is in the experimental stage, also was conducted for the Board members. The knife was developed by Z Mathew, Adjunct Professor of Amal Jyothi College of Engineering, Kanjirappally.
Kottayam, Oct. 18
The rubber prices firmed up further on Monday. Widespread rains and supply concerns dominated the market mood and the prices moved up lacking quantity sellers in the main marketing centres.
There were no fresh quotes from the tyre sector and volumes were extremely poor.
According to dealers, sheet rubber improved to Rs 182.50 (Rs 181) a kg mainly on covering purchases.
The grade closed at Rs 182.00 (Rs 180.50) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The November series increased to Rs 190.85 (Rs 188.01), December to Rs 193.84 (Rs 190.93), January to Rs 196.60 (Rs 193.90) and February to Rs 200.00 (Rs 197.46) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).
The volumes totalled 8020 lots and open interest 5036 lots. The turnover was Rs 153.18 crores.
The October futures for RSS 3 moved down to ¥ 323.0 (Rs 176.36) from ¥ 329.5 during the day session but recovered partially to ¥ 325.5 (Rs 177.70) a kg during the night session on Tokyo Commodity Exchange (TOCOM). The grade (spot) weakened Rs 177.57 (Rs 178.17) a kg at Bangkok.
The physical rubber rates a kg were: RSS-4: Rs 182.50 (Rs 181.00), RSS-5: Rs 173.50 (Rs 172.50), Ungraded: Rs 172.00 (Rs 170.00), ISNR 20: Rs 182.00 (Rs 177.00)and Latex 60 per cent: Rs 118.00 (Rs 116.50)
Mechanised knife for rubber tapping at experimental stage
Kottayam, Oct 18
A demonstration of the functioning of a prototype of mechanised tapping knife, which is at the experimental stage, was conducted for Rubber Board members on Monday.
The knife has been developed by Mr Z. Mathew, Adjunct Professor at Amal Jyothi College of Engineering, Kanjirappally.
Earlier in his presidential address at the 164th meeting of the Rubber Board, Mr Sajan Peter, board's Chairman, said rubber production in the country during April-September was 7.6 per cent higher over the corresponding period a year ago. Domestic rubber consumption increased 2 per centduring the period. Consumption in the automotive tyre sector grew by 4.1 per cent, but the non-tyre sector recorded a decline of 1.3 per cent, he said.
Monsoon havoc for Rubber: Prices hit record highs
TOKYO/KOCHI (Commodity Online): Rubber prices moved ahead to hit a record high in the domestic as well as international markets as rains disrupted supplies and tapping in parts of the growing areas in Indonesia and India.
The prices hit a six-month high on the back of rising demand and limited supplies. Shanghai rubber advanced to the highest since 2002.
Futures in Tokyo gained as much as 1.9% to 334.4 yen per kilogram ($4,084 a metric ton). The prices are hovering at the peak levels since April 19 and traded at 333.1 yen in the later trades.
The buying is robust in the Chinese markets as the inventories had bottomed out after the National Day Holidays in the early this month.
Rubber inventories at the exchange warehouses in China remained lower at 36,900 tonnes on October 8, which was 76% lower than this year’s high of 151,832 tonnes on Jan. 21.
The March-delivery contract on the Shanghai Futures Exchange last traded 3.1% higher at 30,230 yuan.
The rainfall too played key role in crewing up the prices. The monsoon has been heavy and longer than the previous year. This lowered latex levels in key plantation countries.
Indonesian rubber prices hit a record yesterday at USD 3.85 per kilogram on rains havoc, damaging tapping and lowering production.
Thailand prices were up 2.6% on Tuesday, at 116.50 baht ($3.87) per kg on rising demand from China and other key developing countries.
India rubber hovered at the peak levels of Rs.180 per kg on the National Multi Commodity Exchange (NMCE) for immediate contract.
On Tuesday, physical rubber prices ended almost unchanged due to positive change in the weather during the past couple of days. However, the prices remained firm on Wednesday, October 13, 2010 as the robust demand in the international markets jacked up prices.
Rubber output up 7.6% during Apr-Sep’10 in India
KOTTAYAM (Commodity Online): The natural rubber (NR) production in the country during April-September 2010 was higher by 7.6% over the corresponding period in the previous year, the Rubber Board Chairman, Sajen Peter informed today.
He was delivering the presidential address in the 164th meeting of the Rubber Board held at Rubber Research Institute of India.
The consumption of NR in the domestic markets also increased 2% during this period. Consumption in the automotive tyre sector grew by 4.1%, while the non-tyre sector recorded a decline of 1.3%, he said.
He informed the meeting that world NR production and consumption had also increased by 5.9% and 17.8% respectively during the first half of 2010.
The global stock of NR is very low at 932,000 tonne at the end of June 2010 according to the reports of International Rubber Study Group. World production and consumption of NR in 2010 are projected at 10.25 and 10.31 million tonnes respectively.
A demonstration of the functioning of the prototype of mechanised tapping knife, which is in the experimental stage, also was conducted for the Board members. The knife was developed by Z Mathew, Adjunct Professor of Amal Jyothi College of Engineering, Kanjirappally.
Saturday, October 16, 2010
Spot rubber gains further
Spot rubber gains further
Kottayam, Oct 15
Spot rubber made further gains on Friday. According to market circles, the prices ruled firm, catalysed by the overall sentiments in the domestic and international markets.
Widespread rains during the past 24 hours also contributed strength to the ongoing bull run but there were no fresh quotes from major consuming industries. Sheet rubber closed at Rs 181 (179.5) a kg after hitting an intra–day high of Rs 182 a kg during the mid session. The grade improved to Rs 180 (179) a kg both at Kottayam and Kochi, according to the Rubber Board.
In futures, the October series expired at Rs 184.2 (185.34) while the November futures increased to Rs 187.49 (185.51), December to Rs 190.64 (188.48) and January to Rs 193.39 (191.65) a kg a kg for RSS 4 on the National Multi Commodity Exchange. The volumes totalled 4,572 lots and open interest 5,158 lots. The turnover was Rs 86.81 crore.
RSS 3 moved up marginally at the October futures to ¥329.5 (Rs 179.05) from ¥328 during the day session but fell back to ¥327 (Rs 177.69) a kg during the night session on the Tokyo Commodity Exchange. The grade (spot) closed firm at Rs 178.17 (177.14) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 181 (179.5); RSS-5: 172.50 (171); ungraded: 170 (168); ISNR 20: 177 (176) and latex 60 per cent: 117 (116.5).
Rubber Climbs to 27-Month High on Rising Demand, Limited Supply
Oct. 15 (Bloomberg) -- Rubber in Tokyo climbed to a 27- month high as wet weather cut supplies from Asian producers, while growing car sales in China and India boosted demand.
The most-active contract on the Tokyo Commodity Exchange gained as much as 1.3 percent to 343 yen per kilogram ($4,212 a metric ton), the highest level since July 2008, before settling at 340 yen. The price had the best weekly performance since May.
Natural-rubber imports by China, the world’s largest user, jumped 19 percent from a month ago to 190,000 tons in September as the nation’s passenger-car sales to dealerships quickened last month from August on additional incentives. Sales in India rose to 169,082 units in September from 129,684 a year earlier, according to the Society of Indian Automobile Manufacturers.
“Car sales are growing so rapidly in the emerging markets that demand for natural rubber from tire makers is getting stronger,” Takaki Shigemoto, an analyst at JSC Corp. in Tokyo, said today by phone. “Suppliers may not be able to catch up with growing demand as weather constrains output.”
Heavier-than-usual rains in Southeast Asia and China have curbed output. Cash prices in Thailand advanced 1.3 percent today to 120.05 baht ($3.97) per kilogram boosted by demand from local and overseas buyers and limited supply after heavy rains, according to the Rubber Research Institute of Thailand.
A severe drought in Yunnan at the beginning of this year and the recent torrential rain in Hainan, the top two producing areas in China, will reduce domestic rubber output, according to Guo Cheng, an analyst at Yongan Futures Co.
Hainan Floods
Flooding forced the evacuation of 440,000 people and destroyed 3,000 houses in Hainan, Xinhua News Agency reported Oct. 12, citing Governor Luo Baoming. A total of 166,700 hectares (411,925 acres) of crops have been damaged, including 74,000 hectares destroyed, the news agency said.
“Demand continues to expand with car sales in China remaining strong, while supply is below normal,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said by phone from Bangkok. “Fundamental factors remain supportive for the price to rise further,” she said.
March-delivery rubber on the Shanghai Futures Exchange surged as much as 1.5 percent to a record 32,055 yuan ($4,784) a ton before closing at 32,040 yuan.
Rubber inventories in China climbed 5,320 tons to 36,900 tons, the Shanghai bourse said Oct. 8, based on a survey of 10 warehouses. That’s 76 percent lower than this year’s high of 151,832 tons on Jan. 21.
Kottayam, Oct 15
Spot rubber made further gains on Friday. According to market circles, the prices ruled firm, catalysed by the overall sentiments in the domestic and international markets.
Widespread rains during the past 24 hours also contributed strength to the ongoing bull run but there were no fresh quotes from major consuming industries. Sheet rubber closed at Rs 181 (179.5) a kg after hitting an intra–day high of Rs 182 a kg during the mid session. The grade improved to Rs 180 (179) a kg both at Kottayam and Kochi, according to the Rubber Board.
In futures, the October series expired at Rs 184.2 (185.34) while the November futures increased to Rs 187.49 (185.51), December to Rs 190.64 (188.48) and January to Rs 193.39 (191.65) a kg a kg for RSS 4 on the National Multi Commodity Exchange. The volumes totalled 4,572 lots and open interest 5,158 lots. The turnover was Rs 86.81 crore.
RSS 3 moved up marginally at the October futures to ¥329.5 (Rs 179.05) from ¥328 during the day session but fell back to ¥327 (Rs 177.69) a kg during the night session on the Tokyo Commodity Exchange. The grade (spot) closed firm at Rs 178.17 (177.14) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 181 (179.5); RSS-5: 172.50 (171); ungraded: 170 (168); ISNR 20: 177 (176) and latex 60 per cent: 117 (116.5).
Rubber Climbs to 27-Month High on Rising Demand, Limited Supply
Oct. 15 (Bloomberg) -- Rubber in Tokyo climbed to a 27- month high as wet weather cut supplies from Asian producers, while growing car sales in China and India boosted demand.
The most-active contract on the Tokyo Commodity Exchange gained as much as 1.3 percent to 343 yen per kilogram ($4,212 a metric ton), the highest level since July 2008, before settling at 340 yen. The price had the best weekly performance since May.
Natural-rubber imports by China, the world’s largest user, jumped 19 percent from a month ago to 190,000 tons in September as the nation’s passenger-car sales to dealerships quickened last month from August on additional incentives. Sales in India rose to 169,082 units in September from 129,684 a year earlier, according to the Society of Indian Automobile Manufacturers.
“Car sales are growing so rapidly in the emerging markets that demand for natural rubber from tire makers is getting stronger,” Takaki Shigemoto, an analyst at JSC Corp. in Tokyo, said today by phone. “Suppliers may not be able to catch up with growing demand as weather constrains output.”
Heavier-than-usual rains in Southeast Asia and China have curbed output. Cash prices in Thailand advanced 1.3 percent today to 120.05 baht ($3.97) per kilogram boosted by demand from local and overseas buyers and limited supply after heavy rains, according to the Rubber Research Institute of Thailand.
A severe drought in Yunnan at the beginning of this year and the recent torrential rain in Hainan, the top two producing areas in China, will reduce domestic rubber output, according to Guo Cheng, an analyst at Yongan Futures Co.
Hainan Floods
Flooding forced the evacuation of 440,000 people and destroyed 3,000 houses in Hainan, Xinhua News Agency reported Oct. 12, citing Governor Luo Baoming. A total of 166,700 hectares (411,925 acres) of crops have been damaged, including 74,000 hectares destroyed, the news agency said.
“Demand continues to expand with car sales in China remaining strong, while supply is below normal,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said by phone from Bangkok. “Fundamental factors remain supportive for the price to rise further,” she said.
March-delivery rubber on the Shanghai Futures Exchange surged as much as 1.5 percent to a record 32,055 yuan ($4,784) a ton before closing at 32,040 yuan.
Rubber inventories in China climbed 5,320 tons to 36,900 tons, the Shanghai bourse said Oct. 8, based on a survey of 10 warehouses. That’s 76 percent lower than this year’s high of 151,832 tons on Jan. 21.
Friday, October 15, 2010
Covering purchases keep spot rubber firm
Covering purchases keep spot rubber firm
Kottayam, Oct 14
Physical rubber prices firmed up further on Thursday. The market continued to suffer from short supplies and the prices moved up mainly on covering purchases following gains in futures. There were no fresh quotes from the tyre sector, sources said.
Sheet rubber finished higher at Rs 179.5 from Rs 178 a kg after hitting an intra-day high of Rs 180 a kg on early trades. According to the Rubber Board, the grade improved to Rs 179 (177.5) a kg at Kottayam and Kochi.
Futures gain
RSS 4 increased with October futures rising to Rs 185.5 (184) and November to Rs 185.68 (184.86) while the December futures slipped to Rs 188.49 (188.82) and January to Rs 191.8 (192.66) a kg on the National Multi Commodity Exchange. The volumes totalled 7,390 lots, and open interest 5,028 lots. The turnover was Rs 139.75 crore.
Globally, October futures firmed up to ¥328 (Rs 178.36) from ¥323 a kg for RSS 3 during the day session and to ¥329 (Rs 178.9) during the night session on Tokyo Commodity Exchange. RSS 3 (spot) improved to Rs 177.14 (174.2) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 179.5 (178); RSS-5: 171 (169); ungraded: 168 (167); ISNR 20: 176 (174) and latex 60 per cent: 116.5 (116.5).
Financial aid to Rubber Producers' Societies
Our Correspondent
Kottayam, Oct. 14
The Rubber Board has introduced a scheme for financial assistance worth Rs 108 lakh to the Rubber Producers' Societies for acquiring additional facilities in group rubber processing centres. The scheme is intended to improve the quality of small holders' produce to match international standards.
The board has developed a design for the group processing centres with fuel-efficient, environment friendly and pollution free systems.
The scheme has provision to set up new smoke houses in addition to the existing facility; repairing of group processing centre, biogas plant and furnace; purchase of aluminium dishes, latex collection vessels and sheeting battery.
Details are available from the regional offices and field stations of the board.
Kottayam, Oct 14
Physical rubber prices firmed up further on Thursday. The market continued to suffer from short supplies and the prices moved up mainly on covering purchases following gains in futures. There were no fresh quotes from the tyre sector, sources said.
Sheet rubber finished higher at Rs 179.5 from Rs 178 a kg after hitting an intra-day high of Rs 180 a kg on early trades. According to the Rubber Board, the grade improved to Rs 179 (177.5) a kg at Kottayam and Kochi.
Futures gain
RSS 4 increased with October futures rising to Rs 185.5 (184) and November to Rs 185.68 (184.86) while the December futures slipped to Rs 188.49 (188.82) and January to Rs 191.8 (192.66) a kg on the National Multi Commodity Exchange. The volumes totalled 7,390 lots, and open interest 5,028 lots. The turnover was Rs 139.75 crore.
Globally, October futures firmed up to ¥328 (Rs 178.36) from ¥323 a kg for RSS 3 during the day session and to ¥329 (Rs 178.9) during the night session on Tokyo Commodity Exchange. RSS 3 (spot) improved to Rs 177.14 (174.2) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 179.5 (178); RSS-5: 171 (169); ungraded: 168 (167); ISNR 20: 176 (174) and latex 60 per cent: 116.5 (116.5).
Financial aid to Rubber Producers' Societies
Our Correspondent
Kottayam, Oct. 14
The Rubber Board has introduced a scheme for financial assistance worth Rs 108 lakh to the Rubber Producers' Societies for acquiring additional facilities in group rubber processing centres. The scheme is intended to improve the quality of small holders' produce to match international standards.
The board has developed a design for the group processing centres with fuel-efficient, environment friendly and pollution free systems.
The scheme has provision to set up new smoke houses in addition to the existing facility; repairing of group processing centre, biogas plant and furnace; purchase of aluminium dishes, latex collection vessels and sheeting battery.
Details are available from the regional offices and field stations of the board.
Thursday, October 14, 2010
Global cues perk up spot rubber prices
Global cues perk up spot rubber prices
Kottayam, Oct 13
Rubber prices improved on Wednesday. On the spot market, prices moved up following gains in the domestic and international futures.
An improvement in arrivals could be expected following a favourable change in weather. According to a Bangkok-based analyst, rubber remained bullish as Chinese buyers increased the purchases after the long holidays as their inventories were low.
Sheet rubber moved up to Rs 178 from Rs 175 a kg in the main marketing centres. The grade improved to Rs 177.5 (175) a kg both at Kottayam and Kochi according to Rubber Board.
Futures gain
In futures, the October series increased to Rs 184 (179.4), November to Rs 185.23 (179.98), December to Rs 189.07 (183.57) and January to Rs 192.9 (186.76) a kg for RSS 4 on the National Multi Commodity Exchange. RSS 3 flared up at its October futures to ¥323 (Rs 175.61) from ¥314.4 a kg during the day session and then to ¥326.6 (Rs 177.56) during the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) firmed up to Rs 174.2 (172.13) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 178 (175); RSS-5: 169 (168); ungraded: 167 (165); ISNR 20: 174 (172) and latex 60 per cent: 116.5 (116).
Monsoon havoc for Rubber: Prices hit record highs
TOKYO/KOCHI (Commodity Online): Rubber prices moved ahead to hit a record high in the domestic as well as international markets as rains disrupted supplies and tapping in parts of the growing areas in Indonesia and India.
The prices hit a six-month high on the back of rising demand and limited supplies. Shanghai rubber advanced to the highest since 2002.
Futures in Tokyo gained as much as 1.9% to 334.4 yen per kilogram ($4,084 a metric ton). The prices are hovering at the peak levels since April 19 and traded at 333.1 yen in the later trades.
The buying is robust in the Chinese markets as the inventories had bottomed out after the National Day Holidays in the early this month.
Rubber inventories at the exchange warehouses in China remained lower at 36,900 tonnes on October 8, which was 76% lower than this year’s high of 151,832 tonnes on Jan. 21.
The March-delivery contract on the Shanghai Futures Exchange last traded 3.1% higher at 30,230 yuan.
The rainfall too played key role in crewing up the prices. The monsoon has been heavy and longer than the previous year. This lowered latex levels in key plantation countries.
Indonesian rubber prices hit a record yesterday at USD 3.85 per kilogram on rains havoc, damaging tapping and lowering production.
Thailand prices were up 2.6% on Tuesday, at 116.50 baht ($3.87) per kg on rising demand from China and other key developing countries.
India rubber hovered at the peak levels of Rs.180 per kg on the National Multi Commodity Exchange (NMCE) for immediate contract.
On Tuesday, physical rubber prices ended almost unchanged due to positive change in the weather during the past couple of days. However, the prices remained firm on Wednesday, October 13, 2010 as the robust demand in the international markets jacked up prices.
Rubber Rallies as Rains Tighten Supply; Shanghai Price Reaches 8-Year High
Post under News on 10/13/2010 12:17:00 PM by Admin
Rubber climbed to the highest level in six months as persistent rainfall in key producing countries raised concerns that supplies may tighten. Shanghai rubber advanced to the highest since at least 2002.
Futures in Tokyo gained as much as 1.9 percent to 334.4 yen per kilogram ($4,084 a metric ton), the highest level since April 19, before trading at 333.1 yen at 11:39 a.m. local time. Shanghai futures surged as much as 4.6 percent to 30,670 yuan a ton ($4,599), the highest level since at least January 2002, according to Bloomberg data.
“The rubber industry remains bullish as Chinese buyers have increased purchases after National Day holidays as its inventories are still low,” said Varut Rungkhum, an analyst at Bangkok-based commodity broker Agro Wealth Ltd.
Natural-rubber inventories climbed 5,320 tons to 36,900 tons, the Shanghai exchange said Oct. 8, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin. That was 76 percent lower than this year’s high of 151,832 tons on Jan. 21.
The March-delivery contract on the Shanghai Futures Exchange last traded 3.1 percent higher at 30,230 yuan.
“Rainfall this year has been longer and heavier than the previous year, lowering latex levels in key producing countries,” Varut said by phone today. “Floods in Hainan will probably reduce output in China.”
Flooding in China’s southern island province of Hainan forced the evacuation of 440,000 people and destroyed 3,000 houses, with more rain expected, Xinhua News Agency reported yesterday, citing Governor Luo Baoming. A total of 166,700 hectares (411,925 acres) of crops have been damaged, including 74,000 hectares destroyed, the news agency said.
Indonesia Record
Cash prices in Thailand rose 2.6 percent yesterday to 116.50 baht ($3.87) per kilogram as demand from China, the largest buyer, increased to replenish its low inventories, according to the Rubber Research Institute of Thailand.
Rubber prices in Indonesia, the world’s second-largest producer, surged to a record yesterday of $3.85 a kilogram as heavy rain disrupted tapping, lowering production, according to the Rubber Association of Indonesia.
The price may advance to $4 a kilogram by the end of the month because of a “supply shortage,” while domestic demand keeps expanding, Asril Sutan Amir, the association’s chairman, said by phone today.
(bloomberg.com)
Tyres burned in China, not recycled in Brisbane
Post under News on 10/13/2010 12:13:00 PM by Admin
More than a million used tyres from Brisbane are being burnt in China's coal mines while local tyre recyclers struggle to source enough rubber to keep their businesses afloat.
Last year, more than 11 million used tyres were exported from Australia to China and Vietnam, with 1.5 million sent from Brisbane wharves.
Ipswich-based recycler Chip Tyre chief executive Dave Mohr said a loophole in government regulations, which listed tyres as "regulated" rather than a "hazardous" waste, had allowed their mass export.
Advertisement: Story continues below
Mr Mohr said the practice was "unethical, if not illegal" under the Basel Convention, which prevents the exchange of hazardous waste between countries.
“One of the problems at the moment is that tyres are being baled and sent to China for dubious reasons,” he said. “They are not being recycled, they are being used to fuel kilns or power stations or whatever.”
Tyres are often collected from companies by the cheapest bidding firms, rather than rubber recycling businesses.
Queensland Waste Recyclers Association executive director Rick Ralph said stopping the export of old tyres was critical for local recycling businesses.
"We use the rubber in adhesives and we use it for all sorts of applications, for bitumen in roads," he said.
"If we don't do it, guess where will be importing the rubber back from? China.
"We have businesses now ready and wanting to invest, but because we can't close this loophole and support the local recyclers, there is a danger our local recyclers will go out of business."
The company appears to have won a sympathetic ear from the Queensland Government which is preparing to introduce a $35 a tonne waste levy on businesses storing wastes, including tyres.
Sustainability minister Kate Jones said exporting second-hand tyres would be discussed at a meeting next month of all Australian environment ministers.
"This is federal legislation. As a state minister I am not a signatory to it," she said.
However, Ms Jones said she had met several times with the QWRA and conceded there were obstacles for rubber recyclers.
"At the moment it is cheaper to put them to these carriers than to do something else with the tyres," she said.
Mr Mohr said his business could not compete with those that collected tyres and shipped them to China.
"It is two to three times more expensive for me to do what I am doing compared to what they are doing," he said.
"Everybody believes their tyres are being dealt with in a responsible manner, but they aren't."
Mr Mohr said the major problem was a non-governmental fee collected by tyre retailers for each passenger vehicle tyre they sold.
"At the moment what is happening is that they will collect the $2.50 [for each tyre] and then whoever is the cheapest to the back door to pick the tyres up gets the job," he said.
"So if they can get rid of the tyres for $1.50, or $1.10 each, as some people are talking about to get rid of the tyres, then they are letting the tyres go to whomever might be the cheapest, rather than whomever might be recycling."
Recycled tyre rubber can be turned into grout, playground softfall and mixed in with road bitumen.
Ms Jones said the new Queensland waste levy, to be introduced next July, would put a "price signal" into the waste market and force "cowboy" operators out of the industry.
However, she said the Environmental Protection Agency was already taking action against two tyre recyclers in southeast Queensland, including one business with a licence to store 3000 tyres that had collected 180,000 tyres.
A second tyre recycling business which operated without a licence and without a council development application had been fined $85,000.
Ms Jones promised tougher penalties and more inspectors to monitor Queensland's emerging waste industry.
"We will have to have increased regulation. I believe we will have to have additional officers," Ms Jones said.
Finding enough tyre rubber was one of a number of issues addressed in the new Queensland Waste Strategy 2010-2020, which was launched in July.
(smh.com.au)
Kottayam, Oct 13
Rubber prices improved on Wednesday. On the spot market, prices moved up following gains in the domestic and international futures.
An improvement in arrivals could be expected following a favourable change in weather. According to a Bangkok-based analyst, rubber remained bullish as Chinese buyers increased the purchases after the long holidays as their inventories were low.
Sheet rubber moved up to Rs 178 from Rs 175 a kg in the main marketing centres. The grade improved to Rs 177.5 (175) a kg both at Kottayam and Kochi according to Rubber Board.
Futures gain
In futures, the October series increased to Rs 184 (179.4), November to Rs 185.23 (179.98), December to Rs 189.07 (183.57) and January to Rs 192.9 (186.76) a kg for RSS 4 on the National Multi Commodity Exchange. RSS 3 flared up at its October futures to ¥323 (Rs 175.61) from ¥314.4 a kg during the day session and then to ¥326.6 (Rs 177.56) during the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) firmed up to Rs 174.2 (172.13) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 178 (175); RSS-5: 169 (168); ungraded: 167 (165); ISNR 20: 174 (172) and latex 60 per cent: 116.5 (116).
Monsoon havoc for Rubber: Prices hit record highs
TOKYO/KOCHI (Commodity Online): Rubber prices moved ahead to hit a record high in the domestic as well as international markets as rains disrupted supplies and tapping in parts of the growing areas in Indonesia and India.
The prices hit a six-month high on the back of rising demand and limited supplies. Shanghai rubber advanced to the highest since 2002.
Futures in Tokyo gained as much as 1.9% to 334.4 yen per kilogram ($4,084 a metric ton). The prices are hovering at the peak levels since April 19 and traded at 333.1 yen in the later trades.
The buying is robust in the Chinese markets as the inventories had bottomed out after the National Day Holidays in the early this month.
Rubber inventories at the exchange warehouses in China remained lower at 36,900 tonnes on October 8, which was 76% lower than this year’s high of 151,832 tonnes on Jan. 21.
The March-delivery contract on the Shanghai Futures Exchange last traded 3.1% higher at 30,230 yuan.
The rainfall too played key role in crewing up the prices. The monsoon has been heavy and longer than the previous year. This lowered latex levels in key plantation countries.
Indonesian rubber prices hit a record yesterday at USD 3.85 per kilogram on rains havoc, damaging tapping and lowering production.
Thailand prices were up 2.6% on Tuesday, at 116.50 baht ($3.87) per kg on rising demand from China and other key developing countries.
India rubber hovered at the peak levels of Rs.180 per kg on the National Multi Commodity Exchange (NMCE) for immediate contract.
On Tuesday, physical rubber prices ended almost unchanged due to positive change in the weather during the past couple of days. However, the prices remained firm on Wednesday, October 13, 2010 as the robust demand in the international markets jacked up prices.
Rubber Rallies as Rains Tighten Supply; Shanghai Price Reaches 8-Year High
Post under News on 10/13/2010 12:17:00 PM by Admin
Rubber climbed to the highest level in six months as persistent rainfall in key producing countries raised concerns that supplies may tighten. Shanghai rubber advanced to the highest since at least 2002.
Futures in Tokyo gained as much as 1.9 percent to 334.4 yen per kilogram ($4,084 a metric ton), the highest level since April 19, before trading at 333.1 yen at 11:39 a.m. local time. Shanghai futures surged as much as 4.6 percent to 30,670 yuan a ton ($4,599), the highest level since at least January 2002, according to Bloomberg data.
“The rubber industry remains bullish as Chinese buyers have increased purchases after National Day holidays as its inventories are still low,” said Varut Rungkhum, an analyst at Bangkok-based commodity broker Agro Wealth Ltd.
Natural-rubber inventories climbed 5,320 tons to 36,900 tons, the Shanghai exchange said Oct. 8, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin. That was 76 percent lower than this year’s high of 151,832 tons on Jan. 21.
The March-delivery contract on the Shanghai Futures Exchange last traded 3.1 percent higher at 30,230 yuan.
“Rainfall this year has been longer and heavier than the previous year, lowering latex levels in key producing countries,” Varut said by phone today. “Floods in Hainan will probably reduce output in China.”
Flooding in China’s southern island province of Hainan forced the evacuation of 440,000 people and destroyed 3,000 houses, with more rain expected, Xinhua News Agency reported yesterday, citing Governor Luo Baoming. A total of 166,700 hectares (411,925 acres) of crops have been damaged, including 74,000 hectares destroyed, the news agency said.
Indonesia Record
Cash prices in Thailand rose 2.6 percent yesterday to 116.50 baht ($3.87) per kilogram as demand from China, the largest buyer, increased to replenish its low inventories, according to the Rubber Research Institute of Thailand.
Rubber prices in Indonesia, the world’s second-largest producer, surged to a record yesterday of $3.85 a kilogram as heavy rain disrupted tapping, lowering production, according to the Rubber Association of Indonesia.
The price may advance to $4 a kilogram by the end of the month because of a “supply shortage,” while domestic demand keeps expanding, Asril Sutan Amir, the association’s chairman, said by phone today.
(bloomberg.com)
Tyres burned in China, not recycled in Brisbane
Post under News on 10/13/2010 12:13:00 PM by Admin
More than a million used tyres from Brisbane are being burnt in China's coal mines while local tyre recyclers struggle to source enough rubber to keep their businesses afloat.
Last year, more than 11 million used tyres were exported from Australia to China and Vietnam, with 1.5 million sent from Brisbane wharves.
Ipswich-based recycler Chip Tyre chief executive Dave Mohr said a loophole in government regulations, which listed tyres as "regulated" rather than a "hazardous" waste, had allowed their mass export.
Advertisement: Story continues below
Mr Mohr said the practice was "unethical, if not illegal" under the Basel Convention, which prevents the exchange of hazardous waste between countries.
“One of the problems at the moment is that tyres are being baled and sent to China for dubious reasons,” he said. “They are not being recycled, they are being used to fuel kilns or power stations or whatever.”
Tyres are often collected from companies by the cheapest bidding firms, rather than rubber recycling businesses.
Queensland Waste Recyclers Association executive director Rick Ralph said stopping the export of old tyres was critical for local recycling businesses.
"We use the rubber in adhesives and we use it for all sorts of applications, for bitumen in roads," he said.
"If we don't do it, guess where will be importing the rubber back from? China.
"We have businesses now ready and wanting to invest, but because we can't close this loophole and support the local recyclers, there is a danger our local recyclers will go out of business."
The company appears to have won a sympathetic ear from the Queensland Government which is preparing to introduce a $35 a tonne waste levy on businesses storing wastes, including tyres.
Sustainability minister Kate Jones said exporting second-hand tyres would be discussed at a meeting next month of all Australian environment ministers.
"This is federal legislation. As a state minister I am not a signatory to it," she said.
However, Ms Jones said she had met several times with the QWRA and conceded there were obstacles for rubber recyclers.
"At the moment it is cheaper to put them to these carriers than to do something else with the tyres," she said.
Mr Mohr said his business could not compete with those that collected tyres and shipped them to China.
"It is two to three times more expensive for me to do what I am doing compared to what they are doing," he said.
"Everybody believes their tyres are being dealt with in a responsible manner, but they aren't."
Mr Mohr said the major problem was a non-governmental fee collected by tyre retailers for each passenger vehicle tyre they sold.
"At the moment what is happening is that they will collect the $2.50 [for each tyre] and then whoever is the cheapest to the back door to pick the tyres up gets the job," he said.
"So if they can get rid of the tyres for $1.50, or $1.10 each, as some people are talking about to get rid of the tyres, then they are letting the tyres go to whomever might be the cheapest, rather than whomever might be recycling."
Recycled tyre rubber can be turned into grout, playground softfall and mixed in with road bitumen.
Ms Jones said the new Queensland waste levy, to be introduced next July, would put a "price signal" into the waste market and force "cowboy" operators out of the industry.
However, she said the Environmental Protection Agency was already taking action against two tyre recyclers in southeast Queensland, including one business with a licence to store 3000 tyres that had collected 180,000 tyres.
A second tyre recycling business which operated without a licence and without a council development application had been fined $85,000.
Ms Jones promised tougher penalties and more inspectors to monitor Queensland's emerging waste industry.
"We will have to have increased regulation. I believe we will have to have additional officers," Ms Jones said.
Finding enough tyre rubber was one of a number of issues addressed in the new Queensland Waste Strategy 2010-2020, which was launched in July.
(smh.com.au)
Wednesday, October 13, 2010
Spot rubber rules steadySpot rubber rules steady
Spot rubber rules steadySpot rubber rules steady
Kottayam, Oct 12
Physical rubber prices closed almost unchanged on Tuesday. A positive change in weather during the past couple of days has kept the buyers on sidelines though there were visible gains on the National Multi Commodity Exchange (NMCE). Meanwhile, ISNR 20, the only gainer of the day, firmed up further on short supply.
Sheet rubber closed flat at Rs 175 a kg amidst scattered transactions. The grade moved up to Rs 175 from Rs 174.5 a kg both at Kottayam and Kochi according to Rubber Board as quoted in their official website.
Futures improve
October futures improved to Rs 179.75 (177.59), November to Rs 180 (179.37), December to Rs 183.6 (182.4) and January to Rs 186.89 (185.15) a kg for RSS 4 on the NMCE. RSS 3 increased at its October series to ¥314.4 (Rs 171.23) from ¥310 a kg during the day session and then to ¥318.5 (Rs 173.46) during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) closed firm at Rs 172.13 (168.17) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 175 (175); RSS-5: 168 (168); ungraded: 165 (165); ISNR 20: 172 (171) and latex 60 per cent: 116 (116).
Rubber Rallies as Rains Tighten Supply; Shanghai Price Reaches 8-Year High
Rubber climbed to the highest level in six months as persistent rainfall in key producing countries raised concerns that supplies may tighten amid increasing purchases from China, the largest buyer. Shanghai rubber advanced to a record.
Futures in Tokyo gained as much as 2 percent to 334.6 yen per kilogram ($4,091 a metric ton), the highest level since April 19, before trading at 333.4 yen at 2:22 p.m. local time. Shanghai futures surged as much as 4.6 percent to a record 30,670 yuan a ton ($4,599), the Shanghai Futures Exchange said in an e-mail.
“The rubber industry remains bullish as Chinese buyers have increased purchases after National Day holidays as its inventories are still low,” said Varut Rungkhum, an analyst at Bangkok-based commodity broker Agro Wealth Ltd.
China imported 190,000 metric tons of natural rubber in September, the customs agency said today on its website.
“The high level of China imports reflects that demand there continues to grow and will likely expand to replenish its stockpiles,” Chaiwat Muenmee, analyst at commodity broker DS Futures Co., said by phone from Bangkok. “Inventories in China and Japan remain low, while rubber supplies are limited, which will bolster prices.”
Rubber stockpiles held at Japanese warehouses expanded 26.1 percent to 7,282 tons on Sept. 20, according to data from the Rubber Trade Association of Japan released yesterday.
Natural-rubber inventories climbed 5,320 tons to 36,900 tons, the Shanghai exchange said Oct. 8, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin. That’s 76 percent lower than this year’s high of 151,832 tons on Jan. 21.
The March-delivery contract on the Shanghai Futures Exchange last traded 3.2 percent higher at 30,280 yuan.
Hainan Flood
“Rainfall this year has been longer and heavier than the previous year, lowering latex levels in key producing countries,” Varut said by phone today. “Floods in Hainan will probably reduce output in China.”
Flooding in China’s southern island province of Hainan forced the evacuation of 440,000 people and destroyed 3,000 houses, with more rain expected, Xinhua News Agency reported yesterday, citing Governor Luo Baoming. A total of 166,700 hectares (411,925 acres) of crops have been damaged, including 74,000 hectares destroyed, the news agency said.
Cash prices in Thailand added 0.3 percent today to 116.80 baht ($3.92) per kilogram as China raised purchases to substitute declining output from flooding in rubber plantation area, according to the Rubber Research Institute of Thailand. Local rubber processors also accelerated purchases on worries over supply shortage, the institute said.
Rubber prices in Indonesia, the world’s second-largest producer, climbed to $3.87 a kilogram today as heavy rain disrupted tapping, lowering production, Asril Sutan Amir, chairman of the Rubber Association of Indonesia, said by phone today.
The price may advance to $4 a kilogram by the end of the month because of a “supply shortage,” while domestic demand keeps expanding, he added.
Kottayam, Oct 12
Physical rubber prices closed almost unchanged on Tuesday. A positive change in weather during the past couple of days has kept the buyers on sidelines though there were visible gains on the National Multi Commodity Exchange (NMCE). Meanwhile, ISNR 20, the only gainer of the day, firmed up further on short supply.
Sheet rubber closed flat at Rs 175 a kg amidst scattered transactions. The grade moved up to Rs 175 from Rs 174.5 a kg both at Kottayam and Kochi according to Rubber Board as quoted in their official website.
Futures improve
October futures improved to Rs 179.75 (177.59), November to Rs 180 (179.37), December to Rs 183.6 (182.4) and January to Rs 186.89 (185.15) a kg for RSS 4 on the NMCE. RSS 3 increased at its October series to ¥314.4 (Rs 171.23) from ¥310 a kg during the day session and then to ¥318.5 (Rs 173.46) during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) closed firm at Rs 172.13 (168.17) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 175 (175); RSS-5: 168 (168); ungraded: 165 (165); ISNR 20: 172 (171) and latex 60 per cent: 116 (116).
Rubber Rallies as Rains Tighten Supply; Shanghai Price Reaches 8-Year High
Rubber climbed to the highest level in six months as persistent rainfall in key producing countries raised concerns that supplies may tighten amid increasing purchases from China, the largest buyer. Shanghai rubber advanced to a record.
Futures in Tokyo gained as much as 2 percent to 334.6 yen per kilogram ($4,091 a metric ton), the highest level since April 19, before trading at 333.4 yen at 2:22 p.m. local time. Shanghai futures surged as much as 4.6 percent to a record 30,670 yuan a ton ($4,599), the Shanghai Futures Exchange said in an e-mail.
“The rubber industry remains bullish as Chinese buyers have increased purchases after National Day holidays as its inventories are still low,” said Varut Rungkhum, an analyst at Bangkok-based commodity broker Agro Wealth Ltd.
China imported 190,000 metric tons of natural rubber in September, the customs agency said today on its website.
“The high level of China imports reflects that demand there continues to grow and will likely expand to replenish its stockpiles,” Chaiwat Muenmee, analyst at commodity broker DS Futures Co., said by phone from Bangkok. “Inventories in China and Japan remain low, while rubber supplies are limited, which will bolster prices.”
Rubber stockpiles held at Japanese warehouses expanded 26.1 percent to 7,282 tons on Sept. 20, according to data from the Rubber Trade Association of Japan released yesterday.
Natural-rubber inventories climbed 5,320 tons to 36,900 tons, the Shanghai exchange said Oct. 8, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin. That’s 76 percent lower than this year’s high of 151,832 tons on Jan. 21.
The March-delivery contract on the Shanghai Futures Exchange last traded 3.2 percent higher at 30,280 yuan.
Hainan Flood
“Rainfall this year has been longer and heavier than the previous year, lowering latex levels in key producing countries,” Varut said by phone today. “Floods in Hainan will probably reduce output in China.”
Flooding in China’s southern island province of Hainan forced the evacuation of 440,000 people and destroyed 3,000 houses, with more rain expected, Xinhua News Agency reported yesterday, citing Governor Luo Baoming. A total of 166,700 hectares (411,925 acres) of crops have been damaged, including 74,000 hectares destroyed, the news agency said.
Cash prices in Thailand added 0.3 percent today to 116.80 baht ($3.92) per kilogram as China raised purchases to substitute declining output from flooding in rubber plantation area, according to the Rubber Research Institute of Thailand. Local rubber processors also accelerated purchases on worries over supply shortage, the institute said.
Rubber prices in Indonesia, the world’s second-largest producer, climbed to $3.87 a kilogram today as heavy rain disrupted tapping, lowering production, Asril Sutan Amir, chairman of the Rubber Association of Indonesia, said by phone today.
The price may advance to $4 a kilogram by the end of the month because of a “supply shortage,” while domestic demand keeps expanding, he added.
Tuesday, October 12, 2010
Spot rubber rules firm
Spot rubber rules firm
Kottayam, Oct 11
Spot rubber ruled firm on Monday. According to market circles, the prices moved up mainly on covering purchases catalysed by the gains on the National Multi Commodity Exchange (NMCE). There were no revised quotes from the tyre sector possibly due to the positive change in weather during the past 48 hours. The trend was mixed. Sheet rubber improved to Rs 175 from Rs 174.5 a kg in the major marketing centres. The grade was quoted steady at Rs 174.5 a kg on the official website of the Rubber Board.
Futures improve
RSS 4 improved at its October futures to Rs 177.5 (176.73), November to Rs 179.21 (177.55), December to Rs 182.38 (180.45) and January to Rs 185 (183.2) a kg on NMCE. RSS 3 (spot) increased to Rs 168.17 (166.38) a kg at Bangkok. The Tokyo Commodity Exchange remained closed owing to Health and Sports Day.
Spot rates were (Rs/kg): RSS-4: 175 (174.5); RSS-5: 168 (167.5); ungraded: 165 (164.5); ISNR 20: 171 (171) and latex 60 per cent: 116 (116).
Rubber Futures in Tokyo Gain as Much as 2.6% to 331 Yen/Kg
Oct. 12 (Bloomberg) -- Rubber futures in Tokyo climbed as much as 2.6 percent to 331 yen a kilogram, the highest level since April. March-delivery rubber traded at 330.7 yen at 9:03 a.m.
Kottayam, Oct 11
Spot rubber ruled firm on Monday. According to market circles, the prices moved up mainly on covering purchases catalysed by the gains on the National Multi Commodity Exchange (NMCE). There were no revised quotes from the tyre sector possibly due to the positive change in weather during the past 48 hours. The trend was mixed. Sheet rubber improved to Rs 175 from Rs 174.5 a kg in the major marketing centres. The grade was quoted steady at Rs 174.5 a kg on the official website of the Rubber Board.
Futures improve
RSS 4 improved at its October futures to Rs 177.5 (176.73), November to Rs 179.21 (177.55), December to Rs 182.38 (180.45) and January to Rs 185 (183.2) a kg on NMCE. RSS 3 (spot) increased to Rs 168.17 (166.38) a kg at Bangkok. The Tokyo Commodity Exchange remained closed owing to Health and Sports Day.
Spot rates were (Rs/kg): RSS-4: 175 (174.5); RSS-5: 168 (167.5); ungraded: 165 (164.5); ISNR 20: 171 (171) and latex 60 per cent: 116 (116).
Rubber Futures in Tokyo Gain as Much as 2.6% to 331 Yen/Kg
Oct. 12 (Bloomberg) -- Rubber futures in Tokyo climbed as much as 2.6 percent to 331 yen a kilogram, the highest level since April. March-delivery rubber traded at 330.7 yen at 9:03 a.m.
Monday, October 11, 2010
Spot rubber rules firm
Spot rubber rules firm
Kottayam, Oct. 9
Rubber prices finished firm on Saturday. The weekend session was rather calm though the trend setting domestic futures also settled marginally higher on the National Multi Commodity Exchange. Sheet rubber improved to Rs 174.50 from Rs 174 a kg amidst scattered transactions. The trend was mixed.
In futures, the October series improved to Rs 176.73 (176.37), November to Rs 177.55 (177.05), December to Rs 180.45 (180.19) and January to Rs 183.20 (183.10) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).
Spot rates were (Rs/kg): RSS-4: 174.50 (174); RSS-5: 167.50 (167.50); ungraded: 164.50 (164); ISNR 20: 171 (171) and latex 60 per cent: 116 (116).
Kottayam, Oct. 9
Rubber prices finished firm on Saturday. The weekend session was rather calm though the trend setting domestic futures also settled marginally higher on the National Multi Commodity Exchange. Sheet rubber improved to Rs 174.50 from Rs 174 a kg amidst scattered transactions. The trend was mixed.
In futures, the October series improved to Rs 176.73 (176.37), November to Rs 177.55 (177.05), December to Rs 180.45 (180.19) and January to Rs 183.20 (183.10) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).
Spot rates were (Rs/kg): RSS-4: 174.50 (174); RSS-5: 167.50 (167.50); ungraded: 164.50 (164); ISNR 20: 171 (171) and latex 60 per cent: 116 (116).
Saturday, October 9, 2010
Sheet rubber rules firm
Sheet rubber rules firm
Kottayam, Oct. 8
Physical rubber prices showed a mixed trend on Friday. Declines in the domestic rubber futures and a favourable change in weather during the day kept the buyers on sidelines.
According to market circles, most of them preferred to wait for a clear trend to emerge in the international scene after the weekend holidays.
Sheet rubber closed flat at Rs 1,74 a kg both at Kottayam and Kochi. Meanwhile, ISNR 20, the only gainer of the session, moved up further on short supply. The volumes were dull.
Futures weak
In futures, the October series weakened to Rs 176.25 (177.18), November to Rs 177.05 (178.94), December to Rs 180.25 (181.91) and January to Rs 183.30 (185.05) a kg for RSS 4 on the National Multi Commodity Exchange.
The volumes totalled 4106 lots and open interest 4514 lots. The turnover was Rs 74.30 crore. RSS 3 moved up at its October series to ¥310 (Rs 167.25) from ¥309.7 a kg during the day session but slipped to ¥309 (Rs 166.73) during the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) increased to Rs 166.38 (165.29) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 174 (174); RSS-5: 167.50 (168); ungraded: 164 (164.50); ISNR 20: 171 (170) and latex 60 per cent: 116 (116).
Rubber in Tokyo Drops on Strong Yen; Shanghai Sets 2-Year High
Posted: 08 Oct 2010 05:29 AM PDT
By Aya Takada and Supunnabul Suwannakij
Oct. 8 (Bloomberg) -- Rubber in Tokyo retreated from a more than five-month peak after Japan’s currency surged against the dollar, weakening the appeal of yen-based contracts. Shanghai futures set a two-year high after a week-long holiday.
Futures in Tokyo dropped for the first time in four days, losing as much as 1.8 percent to 318.5 yen per kilogram ($3,871 a metric ton). The price had earlier gained to 326.5 yen, the highest price since April 21. Shanghai contracts surged to as much as 28,020 yuan ($4,200), the highest level since July 2008 as they resumed trade after the National Day holiday.
“The strengthening tone of the yen put pressure on the Tocom prices,” Sureerat Kunthongjun, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok.
The yen yesterday gained to a 15-year high on expectations that the Federal Reserve will expand credit-easing steps and on prospects that Japan will avoid currency-market intervention before today’s meeting of finance ministers and central bankers from the Group of Seven industrialized nations. China’s stocks and commodities rose after retail sales surged during the holiday, adding to signs of the strength in the economy.
“Rubber was supported by speculation that Chinese buyers may step up purchases after the holiday,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd., said today by phone. “Futures in Tokyo were sold because of a stronger yen and a slump in industrial commodities overnight.”
The March-delivery contract fell 0.5 percent to settle at 322.7 yen on the Tokyo Commodity Exchange, also known as Tocom. The March contract on the Shanghai Futures Exchange gained 2.9 percent to close at 27,655 yuan.
Dollar Slumps
The dollar traded near the lowest level since 1995 against the yen on burgeoning speculation the Federal Reserve will debase its currency by stepping up purchases of government debt to support the economic recovery.
The dollar stood at 82.45 yen at 4:14 p.m. in Tokyo from 82.41 yen in New York yesterday when it touched 82.11 yen, the lowest since May 1995.
U.S. private nonfarm payrolls rose by 75,000 in September after an increase of 67,000 in the previous month, according to the median forecast of 60 economists in a Bloomberg News survey before today’s report from the Labor Department. The jobless rate is expected to increase to 9.7 percent from 9.6 percent.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, rose 3.1 percent to 2,738.74.
The auctioned price of ribbed smoked sheets in Thailand dropped 0.3 percent to 105.89 baht ($3.52) a kilogram tracking lower crude oil prices, the Rubber Research Institute of Thailand said on its website today.
(bloomberg.com)
Merchant Hedge Fund Founders Coleman, King Buy Singapore Rubber Trader
Posted: 08 Oct 2010 05:28 AM PDT
Michael Coleman, who co-manages the $1.3 billion Merchant Commodity Fund, and his partner Doug King have bought a stake in a Singapore-based rubber trader, which had sales of about $1 billion last year.
The two former Cargill Inc. traders control a company called Kincol Pte Ltd., which purchased 60 percent of RCMA Commodities Asia Pte Ltd., Coleman, 49, and King, 43, said in separate interviews yesterday. Chris Pardey, also a former Cargill trader, is a shareholder in Kincol and becomes chief executive officer of RCMA, they said.
The Merchant Commodity Fund, which invests in agriculture and energy, returned 12.7 percent in September and is heading for its seventh straight annual gain since starting in 2004, according to three people with direct knowledge of the matter. Rubber, used in tires, jumped 52 percent in the past year on the Tokyo Commodity Exchange as demand led by China, the top consumer, outpaced supply from Thailand, Indonesia and Malaysia.
“With China’s growth in vehicles and infrastructure requirements, rubber will be a critical commodity,” Zug, Switzerland-based King said. “We see it as strategic.”
The purchase was a personal one, and not related to the fund, Coleman and King said, declining to say how much they paid.
The acquisition gives the two fund managers access to supply, demand and logistics in the global rubber trade as RCMA operates in China and the U.S. The firm also has an office in the Netherlands and provides warehousing and transport services, according to its website.
Trading Roots
Kincol has an agreement to buy the balance of RCMA “over the course of the next few years,” Coleman said. The stake was bought from Oei Hong Bie, whom Coleman has known for 26 years since he first came to Singapore, he said. Oei continues to hold “a significant stake” in the trading firm, its website said.
Pardey left Barclays Capital earlier this year where he was global head of agricultural products, coal and freight. RCMA has more than 70 staff, Coleman said.
“Our ambition is to build a strong commodity trading/ supply-chain management company, not limited to agriculture,” said Coleman, who was head of global rubber trading at Cargill. “Our roots are in physical commodity trading,” he said. King was Cargill’s head of global petroleum trading and ran U.K. grain trading.
The Merchant Commodity Fund managed $1.3 billion at the end of September, King said. The fund’s gain last month took this year’s return after deduction of fees to 7.5 percent, according to the three people with knowledge of the numbers.
Rubber futures in Tokyo dropped 0.7 percent to 321.9 yen a kilogram ($3,912 a metric ton) as of 12:20 p.m. local time.
(bloomberg.com)
Indian tyre makers to import over 30,000 T rubber Oct-Dec
Posted: 08 Oct 2010 05:26 AM PDT
ndian tyre makers will import over 30,000 tonnes natural rubber in Oct-Dec and are also looking for similar quantities for Jan-March delivery, as rising demand outweighs higher international prices, industry players said.
That would put total imports for this fiscal year close to the 170,679 tonnes of 2009/10, when India's needs nearly doubled as domestic production was hit by a severe drought.
"Tyre makers have already signed deals for 30,000 tonnes of rubber imports because of the difference between domestic and international prices. In Thailand rubber was cheaper when they contracted," a dealer based in Kochi, in the southern state of Kerala, said.
In August, Indian rubber makers were charging a premium of as much as 35 rupees ($0.79) per kilogramme (kg) over the Bangkok market, prompting Indian tyre companies to buy rubber from overseas markets.
"Despite duty, overseas rubber was cheaper. Now the gap between domestic and international markets has come down, but tyre makers are likely to import to cater to their rising demand," the dealer said.
The world's fourth-biggest natural rubber producer currently charges 20 percent duty on the imports. India's imports between April-September stood at 107,190 tonnes, down 12 percent compared to 122,095 tonnes a year ago.
On Thursday, the Indian price was over 8 rupees higher per kg than Bangkok market, data with the state-run Rubber Board showed.
"Tyre companies will wait for the government to cut import tax on rubber and afterwards again they will start placing orders," said another dealer.
India may cut the tax on rubber imports to 20.46 rupees per kg from the current 20 percent levy, a government policy adviser said last month.
India's natural rubber production in 2010/11 is likely to fall short of the estimated 893,000 tonnes due to adverse weather conditions, Sajen Peter, chairman of the Rubber Board, said on Wednesday.
The Rubber Board estimates consumption in the country will rise by 5 percent to 978,000 tonnes in 2010/11.
"(Indian) tyre companies are inquiring for imports in first quarter of 2011. They want to contract before prices rise further," said a leading rubber exporter based in Thailand, the world's biggest exporter of natural rubber.
The global rubber market could see two years of tighter supplies and rising prices as output sputters while producers replace ageing trees and demand drives higher in a worldwide recovery, conference delegates said.
Tokyo rubber futures rose further on Thursday, hitting a five-month high on the back of tight supply in producing countries, but the gains were limited by the strength of the Japanese yen, dealers said.
(1$=44.2)
(moneycontrol.com)
India revises down rubber output projection
MUMBAI (Commodity Online): Rubber Board of India has revised down its natural rubber output estimation for this fiscal due to unpleasant weather condition in Kerala, a major production region in the country.
Rubber Board Chairman, Sajan Peter on Wednesday said that the production is likely to be down than its earlier projection of 893,000 tons.
However, the output is expected to be 5% higher than the previous year, he added. India produced 831,000 tons of natural rubber in 2009-10.
Kottayam, Oct. 8
Physical rubber prices showed a mixed trend on Friday. Declines in the domestic rubber futures and a favourable change in weather during the day kept the buyers on sidelines.
According to market circles, most of them preferred to wait for a clear trend to emerge in the international scene after the weekend holidays.
Sheet rubber closed flat at Rs 1,74 a kg both at Kottayam and Kochi. Meanwhile, ISNR 20, the only gainer of the session, moved up further on short supply. The volumes were dull.
Futures weak
In futures, the October series weakened to Rs 176.25 (177.18), November to Rs 177.05 (178.94), December to Rs 180.25 (181.91) and January to Rs 183.30 (185.05) a kg for RSS 4 on the National Multi Commodity Exchange.
The volumes totalled 4106 lots and open interest 4514 lots. The turnover was Rs 74.30 crore. RSS 3 moved up at its October series to ¥310 (Rs 167.25) from ¥309.7 a kg during the day session but slipped to ¥309 (Rs 166.73) during the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) increased to Rs 166.38 (165.29) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 174 (174); RSS-5: 167.50 (168); ungraded: 164 (164.50); ISNR 20: 171 (170) and latex 60 per cent: 116 (116).
Rubber in Tokyo Drops on Strong Yen; Shanghai Sets 2-Year High
Posted: 08 Oct 2010 05:29 AM PDT
By Aya Takada and Supunnabul Suwannakij
Oct. 8 (Bloomberg) -- Rubber in Tokyo retreated from a more than five-month peak after Japan’s currency surged against the dollar, weakening the appeal of yen-based contracts. Shanghai futures set a two-year high after a week-long holiday.
Futures in Tokyo dropped for the first time in four days, losing as much as 1.8 percent to 318.5 yen per kilogram ($3,871 a metric ton). The price had earlier gained to 326.5 yen, the highest price since April 21. Shanghai contracts surged to as much as 28,020 yuan ($4,200), the highest level since July 2008 as they resumed trade after the National Day holiday.
“The strengthening tone of the yen put pressure on the Tocom prices,” Sureerat Kunthongjun, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok.
The yen yesterday gained to a 15-year high on expectations that the Federal Reserve will expand credit-easing steps and on prospects that Japan will avoid currency-market intervention before today’s meeting of finance ministers and central bankers from the Group of Seven industrialized nations. China’s stocks and commodities rose after retail sales surged during the holiday, adding to signs of the strength in the economy.
“Rubber was supported by speculation that Chinese buyers may step up purchases after the holiday,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd., said today by phone. “Futures in Tokyo were sold because of a stronger yen and a slump in industrial commodities overnight.”
The March-delivery contract fell 0.5 percent to settle at 322.7 yen on the Tokyo Commodity Exchange, also known as Tocom. The March contract on the Shanghai Futures Exchange gained 2.9 percent to close at 27,655 yuan.
Dollar Slumps
The dollar traded near the lowest level since 1995 against the yen on burgeoning speculation the Federal Reserve will debase its currency by stepping up purchases of government debt to support the economic recovery.
The dollar stood at 82.45 yen at 4:14 p.m. in Tokyo from 82.41 yen in New York yesterday when it touched 82.11 yen, the lowest since May 1995.
U.S. private nonfarm payrolls rose by 75,000 in September after an increase of 67,000 in the previous month, according to the median forecast of 60 economists in a Bloomberg News survey before today’s report from the Labor Department. The jobless rate is expected to increase to 9.7 percent from 9.6 percent.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, rose 3.1 percent to 2,738.74.
The auctioned price of ribbed smoked sheets in Thailand dropped 0.3 percent to 105.89 baht ($3.52) a kilogram tracking lower crude oil prices, the Rubber Research Institute of Thailand said on its website today.
(bloomberg.com)
Merchant Hedge Fund Founders Coleman, King Buy Singapore Rubber Trader
Posted: 08 Oct 2010 05:28 AM PDT
Michael Coleman, who co-manages the $1.3 billion Merchant Commodity Fund, and his partner Doug King have bought a stake in a Singapore-based rubber trader, which had sales of about $1 billion last year.
The two former Cargill Inc. traders control a company called Kincol Pte Ltd., which purchased 60 percent of RCMA Commodities Asia Pte Ltd., Coleman, 49, and King, 43, said in separate interviews yesterday. Chris Pardey, also a former Cargill trader, is a shareholder in Kincol and becomes chief executive officer of RCMA, they said.
The Merchant Commodity Fund, which invests in agriculture and energy, returned 12.7 percent in September and is heading for its seventh straight annual gain since starting in 2004, according to three people with direct knowledge of the matter. Rubber, used in tires, jumped 52 percent in the past year on the Tokyo Commodity Exchange as demand led by China, the top consumer, outpaced supply from Thailand, Indonesia and Malaysia.
“With China’s growth in vehicles and infrastructure requirements, rubber will be a critical commodity,” Zug, Switzerland-based King said. “We see it as strategic.”
The purchase was a personal one, and not related to the fund, Coleman and King said, declining to say how much they paid.
The acquisition gives the two fund managers access to supply, demand and logistics in the global rubber trade as RCMA operates in China and the U.S. The firm also has an office in the Netherlands and provides warehousing and transport services, according to its website.
Trading Roots
Kincol has an agreement to buy the balance of RCMA “over the course of the next few years,” Coleman said. The stake was bought from Oei Hong Bie, whom Coleman has known for 26 years since he first came to Singapore, he said. Oei continues to hold “a significant stake” in the trading firm, its website said.
Pardey left Barclays Capital earlier this year where he was global head of agricultural products, coal and freight. RCMA has more than 70 staff, Coleman said.
“Our ambition is to build a strong commodity trading/ supply-chain management company, not limited to agriculture,” said Coleman, who was head of global rubber trading at Cargill. “Our roots are in physical commodity trading,” he said. King was Cargill’s head of global petroleum trading and ran U.K. grain trading.
The Merchant Commodity Fund managed $1.3 billion at the end of September, King said. The fund’s gain last month took this year’s return after deduction of fees to 7.5 percent, according to the three people with knowledge of the numbers.
Rubber futures in Tokyo dropped 0.7 percent to 321.9 yen a kilogram ($3,912 a metric ton) as of 12:20 p.m. local time.
(bloomberg.com)
Indian tyre makers to import over 30,000 T rubber Oct-Dec
Posted: 08 Oct 2010 05:26 AM PDT
ndian tyre makers will import over 30,000 tonnes natural rubber in Oct-Dec and are also looking for similar quantities for Jan-March delivery, as rising demand outweighs higher international prices, industry players said.
That would put total imports for this fiscal year close to the 170,679 tonnes of 2009/10, when India's needs nearly doubled as domestic production was hit by a severe drought.
"Tyre makers have already signed deals for 30,000 tonnes of rubber imports because of the difference between domestic and international prices. In Thailand rubber was cheaper when they contracted," a dealer based in Kochi, in the southern state of Kerala, said.
In August, Indian rubber makers were charging a premium of as much as 35 rupees ($0.79) per kilogramme (kg) over the Bangkok market, prompting Indian tyre companies to buy rubber from overseas markets.
"Despite duty, overseas rubber was cheaper. Now the gap between domestic and international markets has come down, but tyre makers are likely to import to cater to their rising demand," the dealer said.
The world's fourth-biggest natural rubber producer currently charges 20 percent duty on the imports. India's imports between April-September stood at 107,190 tonnes, down 12 percent compared to 122,095 tonnes a year ago.
On Thursday, the Indian price was over 8 rupees higher per kg than Bangkok market, data with the state-run Rubber Board showed.
"Tyre companies will wait for the government to cut import tax on rubber and afterwards again they will start placing orders," said another dealer.
India may cut the tax on rubber imports to 20.46 rupees per kg from the current 20 percent levy, a government policy adviser said last month.
India's natural rubber production in 2010/11 is likely to fall short of the estimated 893,000 tonnes due to adverse weather conditions, Sajen Peter, chairman of the Rubber Board, said on Wednesday.
The Rubber Board estimates consumption in the country will rise by 5 percent to 978,000 tonnes in 2010/11.
"(Indian) tyre companies are inquiring for imports in first quarter of 2011. They want to contract before prices rise further," said a leading rubber exporter based in Thailand, the world's biggest exporter of natural rubber.
The global rubber market could see two years of tighter supplies and rising prices as output sputters while producers replace ageing trees and demand drives higher in a worldwide recovery, conference delegates said.
Tokyo rubber futures rose further on Thursday, hitting a five-month high on the back of tight supply in producing countries, but the gains were limited by the strength of the Japanese yen, dealers said.
(1$=44.2)
(moneycontrol.com)
India revises down rubber output projection
MUMBAI (Commodity Online): Rubber Board of India has revised down its natural rubber output estimation for this fiscal due to unpleasant weather condition in Kerala, a major production region in the country.
Rubber Board Chairman, Sajan Peter on Wednesday said that the production is likely to be down than its earlier projection of 893,000 tons.
However, the output is expected to be 5% higher than the previous year, he added. India produced 831,000 tons of natural rubber in 2009-10.
Thursday, October 7, 2010
Rubber Advances on Tight Supply From Thailand; Stronger Yen Limits Gains
Rubber Advances on Tight Supply From Thailand; Stronger Yen Limits Gains
Posted: 06 Oct 2010 11:57 PM PDT
Rubber advanced for a third day as wet weather disrupted tapping in Thailand, limiting supply from the world’s largest producer and exporter.
The March-delivery contract climbed as much as 0.6 percent to 323.5 yen per kilogram ($3,901 a metric ton) before trading at 322.5 yen on the Tokyo Commodity Exchange at 11:54 a.m. The price rose to 324.1 yen yesterday, the highest level for the most-active contract since April 26.
Shippers in Thailand have raised offers for RSS-3 grade rubber for November shipment to around $3.70 a kilogram, from $3.60 at the end of last week, said Kazuhiko Saito, an analyst at commodity broker Fujitomi Co. in Tokyo.
“Shipments from Thailand slowed as heavy rain constrained latex output in the nation’s main producing areas,” Saito said today by phone.
Gains in futures were limited after Japan’s currency climbed to a 15-year high against the dollar, weakening the appeal of yen-denominated contracts, he said.
The dollar was at 82.94 yen at 11:42 a.m. in Tokyo after sinking to 82.77 yesterday, the weakest level since May 1995 and lower than the rate on Sept. 15, when Japan intervened in the currency market for the first time since 2004.
The dollar came under pressure amid growing expectations that the Federal Reserve will expand credit-easing steps to sustain the U.S. recovery. The yen also advanced on prospects that Japan will avoid currency-market intervention before this week’s meeting of finance ministers and central bankers from the Group of Seven industrialized nations.
Low Risk Appetite
“Investors’ risk appetite isn’t strong before the release of U.S. jobs data, as they are bracing for weak numbers,” Saito at Fujitomi said.
U.S. initial jobless claims likely increased by 2,000 to 455,000 in the week ended Oct. 2, according to a Bloomberg News survey of economists before the data is released today. The unemployment rate climbed to 9.7 percent in September from 9.6 percent in August, according to a separate survey.
As the stimulus-led recovery failed to create jobs, companies in the U.S. unexpectedly cut payroll by 39,000 in September, according to figures from ADP Employment. The median of a Bloomberg News survey of 37 economists projected an increase of 20,000 jobs.
The auctioned price of ribbed smoked sheets in Thailand grew 1.3 percent to 105.6 baht ($3.52), the Rubber Research Institute of Thailand said yesterday on its website.
The Shanghai market is closed for National Day holidays and will resume trade tomorrow. Natural-rubber inventories expanded 4,680 tons to 31,580 tons, based on a survey of 10 warehouses, the exchange said Sept. 30.
(bloomberg.com)
Rubber May Advance to Highest Since 2008 on 'Momentum': Technical Analysis
Posted: 06 Oct 2010 11:55 PM PDT
Rubber futures on the Tokyo Commodity Exchange may climb to the highest level since July 2008 because of “bullish momentum,” according to technical analysis from Singapore-based broker Phillip Futures Pte Ltd.
The moving average convergence/divergence indicator crossed above the shorter-dated signal line on Sept. 22, pointing to higher prices, said Ker Chung Yang, analyst at Phillip Futures.
The most-active contract, which increased 17 percent this year, may test resistance at 332 yen per kilogram ($4,006 per metric ton) next week, Ker said in e-mail yesterday. “It’s possible for TOCOM rubber to extend gains,” he said. The price reached 324.1 yen yesterday, the highest intraday level since April, and traded at 323.6 yen today.
Rubber, used to make tires and gloves, may be bolstered by strengthening crude oil prices and increasing demand for tires after U.S. auto sales in September rose to a seasonally adjusted annual rate of 11.8 million, compared with 9.4 million a year earlier, according to a Phillip Futures’ note dated Oct. 4. Demand in China, the world’s biggest consumer, may outstrip supply in the short term because of economic growth, it said.
The MACD indicator is derived by subtracting a 26-day exponential moving average from a 12-day average. A second measure, called the signal line, uses a nine-day moving average of the MACD indicator. In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.
(bloomberg.com)
Ceylon raw rubber prices fluctuate on Jodia Bazar
Posted: 06 Oct 2010 11:52 PM PDT
KARACHI (October 07, 2010) : The trading in Ceylon raw rubber moved both ways on Jodia Bazar here on Wednesday. The following variations were noted.
CEYLON RAW RUBBER (Per lb): Merryrub (Equivalent to RSS3) edged up by Rs 10 to Rs 160, RSSV closed higher by Rs 10 to Rs 160, Merryrub (Equivalent to Crape) went down by Rs 25 to Rs 175 and Pale Crape TPC3 moved lower by Rs 20 to Rs 180.
LATEX: Merrytex (28 kg) closed higher by Rs 125 to Rs 1,075, Semnan Tex moved upward by Rs 125 to Rs 1075 and Thai (GT) ended up by Rs 125 to Rs 1,075.
(brecorder.com)
Spot rubber recovers
Posted: 06 Oct 2010 11:50 PM PDT
On Wednesday (06 October 2010), the spot rubber prices recovered due to short coverings. Moderate gains on the National Multi Commodity Exchange and the predictions regarding continuous rains till the weekend have triggered short covering in major grades, and the prices moved up sharply even amidst low volumes. Sheet rubber increased to Rs 174 from Rs 172 per kg mainly on covering purchases.
The October futures for RSS 4 rose to Rs 178.80 (175.91), November to Rs 180.90 (177.85), December to Rs 183.75 (180.80) and January to Rs 187.18 (183.75) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 174 (172); RSS-5: 168 (167); ungraded: 164.50 (163); ISNR 20: 169 (168) and latex 60 per cent: 116 (116).
(indiainfoline.com)
Low priority for rubber in carbon trade irks planters
Domestic market sought to encourage afforestation.
M. R. Subramani
Chennai, Oct 7
The clean development mechanism or the system that encourages either preventing emitting of carbon di-oxide into the atmosphere or removing it from there has seen 2,141 projects registered for carbon credits till August last year. But the system seems to accord the lowest priority for afforestation and reforestation (A/R) since only five projects have been registered for carbon credits until now.
It is here that the plantation industry, especially rubber growers, are feeling aggrieved. Plantation crops provide an array of ecosystem services such as protecting the top soil from erosion, improving the water cycle and carbon sequestration. But it does not enjoy the benefits of this since A/R is not among preferred in the 15 sectors that are eligible for carbon trading.
In a technical paper presented on “Climate change and plantation crops” at the United Planters' Association of Southern India 117th annual conference, Dr James Jacob, Director of Rubber Research Institute of India, said that the procedure for getting A/R credits is cumbersome that it is practically impossible to get certified emission reduction (CER) credits for plantations in the country.
“There are no major buyers for A/R credits except the World bank and it is rather symbolic in nature,” said Dr Jacob. “Sectors such as energy or manufacturing are so powerful that they hold huge CER potential and therefore, these sectors are naturally preferred in global carbon markets,” he said.
In fact, the CDM takes into account of things after December 31, 1989. All the plantations are older than that and, therefore, they are not eligible for the credits.
The other problem is that the plantation sector comes under the Commerce Ministry that has not been taken on board by the Ministry of Environment and Forests, the nodal ministry dealing with climate change negotiations. “Therefore, the interest of the plantation sector are not considered in the cap and trade negotiations,” Dr Jacob said, adding that the plantation sector should explore how best the carbon credit potential of the industry could be protected.
One of the ways suggested to tap the potential of the plantation industry in carbon credit is for the country have its own domestic or regional mechanism by including A/R.
This is because there are no serious buyers for A/R credits. “They (A/R) credits remain unsold as a result,” Dr Jacob said.
With the future of Kyoto Protocol being uncertain, such a domestic system will help.
The plantation industry feels the domestic mechanism is also need since even if the carbon credit trade continues after 2012, the sector will continue to be treated unfairly.
Spot rubber rules steady
Aravindan
Kottayam, Oct 7
Spot rubber was almost steady on Thursday. According to observers, certain tyre companies were buyers of n RSS 4 as sustained and heavy rain continued to dominate the market mood. A leading manufacturer bought the grade even at Rs 175 a kg on early trades but the declines in domestic futures kept the sentiments under pressure during closing hours.
Sheet rubber closed unchanged at Rs 174 a kg in the main marketing centres. The grade improved to Rs 173.5 (172.5) a kg both at Kottayam and Kochi according to Rubber Board. The trend was partially mixed.
Futures decline
RSS 4 declined with the October series slipping to Rs 177.2 (178.96), November to Rs 178.75 (180.85), December to Rs 181.7 (183.7) and January to Rs 185 (187) a kg on the National Multi Commodity Exchange. The volumes totalled 4,478 lots, and open interest 4,498 lots. The turnover was Rs 80.77 crore.
RSS 3 improved marginally at its October series to ¥309.7 (Rs 166.21) from ¥308.9 a kg during the day session and then to ¥312 (Rs 167.44) during the night session on Tokyo Commodity Exchange. RSS 3 (spot) firmed up further to Rs 165.29 (164.19) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 174 (174); RSS-5: 168 (168); ungraded: 164.5 (164.5); ISNR 20: 170 (169) and latex 60 per cent: 116 (116).
Posted: 06 Oct 2010 11:57 PM PDT
Rubber advanced for a third day as wet weather disrupted tapping in Thailand, limiting supply from the world’s largest producer and exporter.
The March-delivery contract climbed as much as 0.6 percent to 323.5 yen per kilogram ($3,901 a metric ton) before trading at 322.5 yen on the Tokyo Commodity Exchange at 11:54 a.m. The price rose to 324.1 yen yesterday, the highest level for the most-active contract since April 26.
Shippers in Thailand have raised offers for RSS-3 grade rubber for November shipment to around $3.70 a kilogram, from $3.60 at the end of last week, said Kazuhiko Saito, an analyst at commodity broker Fujitomi Co. in Tokyo.
“Shipments from Thailand slowed as heavy rain constrained latex output in the nation’s main producing areas,” Saito said today by phone.
Gains in futures were limited after Japan’s currency climbed to a 15-year high against the dollar, weakening the appeal of yen-denominated contracts, he said.
The dollar was at 82.94 yen at 11:42 a.m. in Tokyo after sinking to 82.77 yesterday, the weakest level since May 1995 and lower than the rate on Sept. 15, when Japan intervened in the currency market for the first time since 2004.
The dollar came under pressure amid growing expectations that the Federal Reserve will expand credit-easing steps to sustain the U.S. recovery. The yen also advanced on prospects that Japan will avoid currency-market intervention before this week’s meeting of finance ministers and central bankers from the Group of Seven industrialized nations.
Low Risk Appetite
“Investors’ risk appetite isn’t strong before the release of U.S. jobs data, as they are bracing for weak numbers,” Saito at Fujitomi said.
U.S. initial jobless claims likely increased by 2,000 to 455,000 in the week ended Oct. 2, according to a Bloomberg News survey of economists before the data is released today. The unemployment rate climbed to 9.7 percent in September from 9.6 percent in August, according to a separate survey.
As the stimulus-led recovery failed to create jobs, companies in the U.S. unexpectedly cut payroll by 39,000 in September, according to figures from ADP Employment. The median of a Bloomberg News survey of 37 economists projected an increase of 20,000 jobs.
The auctioned price of ribbed smoked sheets in Thailand grew 1.3 percent to 105.6 baht ($3.52), the Rubber Research Institute of Thailand said yesterday on its website.
The Shanghai market is closed for National Day holidays and will resume trade tomorrow. Natural-rubber inventories expanded 4,680 tons to 31,580 tons, based on a survey of 10 warehouses, the exchange said Sept. 30.
(bloomberg.com)
Rubber May Advance to Highest Since 2008 on 'Momentum': Technical Analysis
Posted: 06 Oct 2010 11:55 PM PDT
Rubber futures on the Tokyo Commodity Exchange may climb to the highest level since July 2008 because of “bullish momentum,” according to technical analysis from Singapore-based broker Phillip Futures Pte Ltd.
The moving average convergence/divergence indicator crossed above the shorter-dated signal line on Sept. 22, pointing to higher prices, said Ker Chung Yang, analyst at Phillip Futures.
The most-active contract, which increased 17 percent this year, may test resistance at 332 yen per kilogram ($4,006 per metric ton) next week, Ker said in e-mail yesterday. “It’s possible for TOCOM rubber to extend gains,” he said. The price reached 324.1 yen yesterday, the highest intraday level since April, and traded at 323.6 yen today.
Rubber, used to make tires and gloves, may be bolstered by strengthening crude oil prices and increasing demand for tires after U.S. auto sales in September rose to a seasonally adjusted annual rate of 11.8 million, compared with 9.4 million a year earlier, according to a Phillip Futures’ note dated Oct. 4. Demand in China, the world’s biggest consumer, may outstrip supply in the short term because of economic growth, it said.
The MACD indicator is derived by subtracting a 26-day exponential moving average from a 12-day average. A second measure, called the signal line, uses a nine-day moving average of the MACD indicator. In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.
(bloomberg.com)
Ceylon raw rubber prices fluctuate on Jodia Bazar
Posted: 06 Oct 2010 11:52 PM PDT
KARACHI (October 07, 2010) : The trading in Ceylon raw rubber moved both ways on Jodia Bazar here on Wednesday. The following variations were noted.
CEYLON RAW RUBBER (Per lb): Merryrub (Equivalent to RSS3) edged up by Rs 10 to Rs 160, RSSV closed higher by Rs 10 to Rs 160, Merryrub (Equivalent to Crape) went down by Rs 25 to Rs 175 and Pale Crape TPC3 moved lower by Rs 20 to Rs 180.
LATEX: Merrytex (28 kg) closed higher by Rs 125 to Rs 1,075, Semnan Tex moved upward by Rs 125 to Rs 1075 and Thai (GT) ended up by Rs 125 to Rs 1,075.
(brecorder.com)
Spot rubber recovers
Posted: 06 Oct 2010 11:50 PM PDT
On Wednesday (06 October 2010), the spot rubber prices recovered due to short coverings. Moderate gains on the National Multi Commodity Exchange and the predictions regarding continuous rains till the weekend have triggered short covering in major grades, and the prices moved up sharply even amidst low volumes. Sheet rubber increased to Rs 174 from Rs 172 per kg mainly on covering purchases.
The October futures for RSS 4 rose to Rs 178.80 (175.91), November to Rs 180.90 (177.85), December to Rs 183.75 (180.80) and January to Rs 187.18 (183.75) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 174 (172); RSS-5: 168 (167); ungraded: 164.50 (163); ISNR 20: 169 (168) and latex 60 per cent: 116 (116).
(indiainfoline.com)
Low priority for rubber in carbon trade irks planters
Domestic market sought to encourage afforestation.
M. R. Subramani
Chennai, Oct 7
The clean development mechanism or the system that encourages either preventing emitting of carbon di-oxide into the atmosphere or removing it from there has seen 2,141 projects registered for carbon credits till August last year. But the system seems to accord the lowest priority for afforestation and reforestation (A/R) since only five projects have been registered for carbon credits until now.
It is here that the plantation industry, especially rubber growers, are feeling aggrieved. Plantation crops provide an array of ecosystem services such as protecting the top soil from erosion, improving the water cycle and carbon sequestration. But it does not enjoy the benefits of this since A/R is not among preferred in the 15 sectors that are eligible for carbon trading.
In a technical paper presented on “Climate change and plantation crops” at the United Planters' Association of Southern India 117th annual conference, Dr James Jacob, Director of Rubber Research Institute of India, said that the procedure for getting A/R credits is cumbersome that it is practically impossible to get certified emission reduction (CER) credits for plantations in the country.
“There are no major buyers for A/R credits except the World bank and it is rather symbolic in nature,” said Dr Jacob. “Sectors such as energy or manufacturing are so powerful that they hold huge CER potential and therefore, these sectors are naturally preferred in global carbon markets,” he said.
In fact, the CDM takes into account of things after December 31, 1989. All the plantations are older than that and, therefore, they are not eligible for the credits.
The other problem is that the plantation sector comes under the Commerce Ministry that has not been taken on board by the Ministry of Environment and Forests, the nodal ministry dealing with climate change negotiations. “Therefore, the interest of the plantation sector are not considered in the cap and trade negotiations,” Dr Jacob said, adding that the plantation sector should explore how best the carbon credit potential of the industry could be protected.
One of the ways suggested to tap the potential of the plantation industry in carbon credit is for the country have its own domestic or regional mechanism by including A/R.
This is because there are no serious buyers for A/R credits. “They (A/R) credits remain unsold as a result,” Dr Jacob said.
With the future of Kyoto Protocol being uncertain, such a domestic system will help.
The plantation industry feels the domestic mechanism is also need since even if the carbon credit trade continues after 2012, the sector will continue to be treated unfairly.
Spot rubber rules steady
Aravindan
Kottayam, Oct 7
Spot rubber was almost steady on Thursday. According to observers, certain tyre companies were buyers of n RSS 4 as sustained and heavy rain continued to dominate the market mood. A leading manufacturer bought the grade even at Rs 175 a kg on early trades but the declines in domestic futures kept the sentiments under pressure during closing hours.
Sheet rubber closed unchanged at Rs 174 a kg in the main marketing centres. The grade improved to Rs 173.5 (172.5) a kg both at Kottayam and Kochi according to Rubber Board. The trend was partially mixed.
Futures decline
RSS 4 declined with the October series slipping to Rs 177.2 (178.96), November to Rs 178.75 (180.85), December to Rs 181.7 (183.7) and January to Rs 185 (187) a kg on the National Multi Commodity Exchange. The volumes totalled 4,478 lots, and open interest 4,498 lots. The turnover was Rs 80.77 crore.
RSS 3 improved marginally at its October series to ¥309.7 (Rs 166.21) from ¥308.9 a kg during the day session and then to ¥312 (Rs 167.44) during the night session on Tokyo Commodity Exchange. RSS 3 (spot) firmed up further to Rs 165.29 (164.19) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 174 (174); RSS-5: 168 (168); ungraded: 164.5 (164.5); ISNR 20: 170 (169) and latex 60 per cent: 116 (116).
Rubber Sets Five-Month High as Monetary Easing Raises Commodities Appeal
Rubber Sets Five-Month High as Monetary Easing Raises Commodities Appeal
Posted: 05 Oct 2010 10:09 PM PDT
Rubber reached a five-month high after the Bank of Japan eased its monetary policy, raising speculation other central banks may follow suit and boosting the appeal of commodities as an inflation hedge.
The March-delivery contract gained as much as 1.6 percent to 322.6 yen per kilogram ($3,878 a metric ton), the highest level since April 26, before trading at 321.7 yen on the Tokyo Commodity Exchange at 11:32 a.m.
Japan’s central bank yesterday cut its benchmark overnight interest rate for the first time since 2008 and pledged to hold it at “virtually zero” until officials foresee a sustained end to deflation. The bank also adopted a 5 trillion yen program aimed at lowering long-term borrowing costs and the premiums on corporate debt. Gold rallied to a record following the action, while the Reuters/Jefferies CRB Index of raw materials increased 1.6 percent yesterday, the biggest gain since Sept. 1.
“Investor appetite for commodities is increasing as central banks in advanced nations are moving to loosen their monetary policy further to sustain economic recovery,” said Hisaaki Tasaka, an analyst at Tokyo-based broker ACE Koeki Co. “Rubber was bought in tandem with metals and oil.”
The renewed push for monetary policy easing comes as the International Monetary Fund warns growth in advanced economies is falling short of its forecasts ahead of its annual meetings in Washington this week.
Stimulus Plans
The unexpected action by the Japanese central bank follows the U.S. Federal Reserve’s move toward more unconventional easing. Bank of England officials may consider further stimulus tomorrow, while the central banks of Australia, Canada and New Zealand are among those holding fire on interest-rate increases.
“The Bank of Japan is at the head of the pack,” said Stewart Robertson, an economist at Aviva Investors in London, which manages about $370 billion in assets. “It looks like a lot of others will follow.”
Rubber futures also increased as the physical market in Thailand, the largest producer and exporter, extended gains on tight supply, Tasaka at ACE Koeki said.
The benchmark Thai rubber price gained 0.2 percent to 110.65 baht ($3.69) a kilogram yesterday, according to the Rubber Research Institute of Thailand. A lack of supply continued to drive prices higher, the institute said.
The Shanghai rubber market is closed as China marks National Day holidays from Oct. 1 to Oct. 7.
Natural-rubber inventories monitored by the bourse expanded 4,680 tons to 31,580 tons, based on a survey of 10 warehouses, the exchange said Sept. 30.
(bloomberg.com)
Rubber consumption up, imports fall
Kochi, Oct 6
While consumption of natural rubber has been falling in North America during the last decade, demand and consumption has been growing rapidly across Asian countries, especially in China and India.
Addressing the Annual Rubber Conference 2010, organised by the Association of Natural Rubber Producing Countries Rubber (ANRPC), Prof K.V. Thomas, Minister of State for Agriculture and Consumer Affairs, said that rubber remains a vital component in India's commercial agriculture accounting for 38 per cent of the total area under plantation crops.
Demand slow down
However, there has been a slow down in demand across major Asian countries, including India, during the current year.
In India, which accounted for nearly 10 per cent of the global demand for natural rubber during 2009, consumption growth slowed down from 12.2 per cent in the first quarter of 2010 to 6.9 per cent in second quarter and further to an estimated one per cent in the third quarter on a year-to-year basis, the ANRPC reported.
This was also accompanied by a major plunge in import of natural rubber. Rubber imports which increased 124 per cent in the first quarter fell to 25 per cent in the second quarter and further by another 38 per cent in the third quarter.
Global output
The ANRPC said that while imports posted sharp negative growth, consumption merely slowed down and concluded that major consuming countries such as China, India and Malaysia have largely relied on domestically available stock of rubber rather than sourcing it from abroad.
The global rubber production is expected to grow by 6.3 per cent. However, this can be subject to further downward revision as negative factors are likely to stifle production from Indonesia, Thailand and some other Asian countries. And Thailand is the largest producer accounting for 33 per cent of the global supplies.
In India, the output growth has been more or less uniform across the first three quarters. The most significant difference has been the 11.6 per cent growth expected for July mainly on account of less rainy days reported in the month.
For the year as a whole, Indian rubber production is expected to grow by 7.2 per cent to 8.79 lakh tonnes (8.20 lakh tonnes).
Plantations
But there are several constraints before the Indian rubber production. The new areas coming under rubber plantations are in non-traditional low yielding areas which could impair future productivity.
More alarmingly, the share of aged trees which are over 21 years old is poised to increase from 19 per cent level in 1999 to 55 per cent level in 2011.
Also, severe shortage of skilled tappers and high wages has been an incessant problem in the market. The ANRPC also pointed to the very high Indian yield/hectare which has very high yielding clones. This leaves very little space for further improvement in productivity.
Spot rubber recovers on short covering
Kottayam, Oct 6
Domestic rubber prices recovered on Wednesday. The spot market has been suffering from acute short supplies on adverse weather conditions. Moderate gains on the National Multi Commodity Exchange (NMCE) and the predictions regarding continuous rains till the weekend have triggered short covering in major grades, and prices moved up sharply even amidst low volumes. Sheet rubber improved to Rs 174 from Rs 172 a kg mainly on covering purchases. The grade closed firm at Rs 172.5 (171.5) a kg both at Kottayam and Kochi according to the Rubber Board.
Futures gain
In futures, the October series flared up to Rs 178.8 (175.91), November to Rs 180.9 (177.85), December to Rs 183.75 (180.8) and January to Rs 187.18 (183.75) a kg on NMCE. The volumes totalled 5,206 lots, and open interest 4,259 lots. The turnover was Rs 93.94 crores. RSS 3 increased at its October series to ¥308.9 (Rs 165.3) from ¥302.7 a kg during the day session but slipped to ¥308 (Rs 164.84) during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) recovered to Rs 164.19 (163.13) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 174 (172); RSS-5: 168 (167); ungraded: 164.5 (163); ISNR 20: 169 (168) and latex 60 per cent: 116 (116).
Posted: 05 Oct 2010 10:09 PM PDT
Rubber reached a five-month high after the Bank of Japan eased its monetary policy, raising speculation other central banks may follow suit and boosting the appeal of commodities as an inflation hedge.
The March-delivery contract gained as much as 1.6 percent to 322.6 yen per kilogram ($3,878 a metric ton), the highest level since April 26, before trading at 321.7 yen on the Tokyo Commodity Exchange at 11:32 a.m.
Japan’s central bank yesterday cut its benchmark overnight interest rate for the first time since 2008 and pledged to hold it at “virtually zero” until officials foresee a sustained end to deflation. The bank also adopted a 5 trillion yen program aimed at lowering long-term borrowing costs and the premiums on corporate debt. Gold rallied to a record following the action, while the Reuters/Jefferies CRB Index of raw materials increased 1.6 percent yesterday, the biggest gain since Sept. 1.
“Investor appetite for commodities is increasing as central banks in advanced nations are moving to loosen their monetary policy further to sustain economic recovery,” said Hisaaki Tasaka, an analyst at Tokyo-based broker ACE Koeki Co. “Rubber was bought in tandem with metals and oil.”
The renewed push for monetary policy easing comes as the International Monetary Fund warns growth in advanced economies is falling short of its forecasts ahead of its annual meetings in Washington this week.
Stimulus Plans
The unexpected action by the Japanese central bank follows the U.S. Federal Reserve’s move toward more unconventional easing. Bank of England officials may consider further stimulus tomorrow, while the central banks of Australia, Canada and New Zealand are among those holding fire on interest-rate increases.
“The Bank of Japan is at the head of the pack,” said Stewart Robertson, an economist at Aviva Investors in London, which manages about $370 billion in assets. “It looks like a lot of others will follow.”
Rubber futures also increased as the physical market in Thailand, the largest producer and exporter, extended gains on tight supply, Tasaka at ACE Koeki said.
The benchmark Thai rubber price gained 0.2 percent to 110.65 baht ($3.69) a kilogram yesterday, according to the Rubber Research Institute of Thailand. A lack of supply continued to drive prices higher, the institute said.
The Shanghai rubber market is closed as China marks National Day holidays from Oct. 1 to Oct. 7.
Natural-rubber inventories monitored by the bourse expanded 4,680 tons to 31,580 tons, based on a survey of 10 warehouses, the exchange said Sept. 30.
(bloomberg.com)
Rubber consumption up, imports fall
Kochi, Oct 6
While consumption of natural rubber has been falling in North America during the last decade, demand and consumption has been growing rapidly across Asian countries, especially in China and India.
Addressing the Annual Rubber Conference 2010, organised by the Association of Natural Rubber Producing Countries Rubber (ANRPC), Prof K.V. Thomas, Minister of State for Agriculture and Consumer Affairs, said that rubber remains a vital component in India's commercial agriculture accounting for 38 per cent of the total area under plantation crops.
Demand slow down
However, there has been a slow down in demand across major Asian countries, including India, during the current year.
In India, which accounted for nearly 10 per cent of the global demand for natural rubber during 2009, consumption growth slowed down from 12.2 per cent in the first quarter of 2010 to 6.9 per cent in second quarter and further to an estimated one per cent in the third quarter on a year-to-year basis, the ANRPC reported.
This was also accompanied by a major plunge in import of natural rubber. Rubber imports which increased 124 per cent in the first quarter fell to 25 per cent in the second quarter and further by another 38 per cent in the third quarter.
Global output
The ANRPC said that while imports posted sharp negative growth, consumption merely slowed down and concluded that major consuming countries such as China, India and Malaysia have largely relied on domestically available stock of rubber rather than sourcing it from abroad.
The global rubber production is expected to grow by 6.3 per cent. However, this can be subject to further downward revision as negative factors are likely to stifle production from Indonesia, Thailand and some other Asian countries. And Thailand is the largest producer accounting for 33 per cent of the global supplies.
In India, the output growth has been more or less uniform across the first three quarters. The most significant difference has been the 11.6 per cent growth expected for July mainly on account of less rainy days reported in the month.
For the year as a whole, Indian rubber production is expected to grow by 7.2 per cent to 8.79 lakh tonnes (8.20 lakh tonnes).
Plantations
But there are several constraints before the Indian rubber production. The new areas coming under rubber plantations are in non-traditional low yielding areas which could impair future productivity.
More alarmingly, the share of aged trees which are over 21 years old is poised to increase from 19 per cent level in 1999 to 55 per cent level in 2011.
Also, severe shortage of skilled tappers and high wages has been an incessant problem in the market. The ANRPC also pointed to the very high Indian yield/hectare which has very high yielding clones. This leaves very little space for further improvement in productivity.
Spot rubber recovers on short covering
Kottayam, Oct 6
Domestic rubber prices recovered on Wednesday. The spot market has been suffering from acute short supplies on adverse weather conditions. Moderate gains on the National Multi Commodity Exchange (NMCE) and the predictions regarding continuous rains till the weekend have triggered short covering in major grades, and prices moved up sharply even amidst low volumes. Sheet rubber improved to Rs 174 from Rs 172 a kg mainly on covering purchases. The grade closed firm at Rs 172.5 (171.5) a kg both at Kottayam and Kochi according to the Rubber Board.
Futures gain
In futures, the October series flared up to Rs 178.8 (175.91), November to Rs 180.9 (177.85), December to Rs 183.75 (180.8) and January to Rs 187.18 (183.75) a kg on NMCE. The volumes totalled 5,206 lots, and open interest 4,259 lots. The turnover was Rs 93.94 crores. RSS 3 increased at its October series to ¥308.9 (Rs 165.3) from ¥302.7 a kg during the day session but slipped to ¥308 (Rs 164.84) during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) recovered to Rs 164.19 (163.13) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 174 (172); RSS-5: 168 (167); ungraded: 164.5 (163); ISNR 20: 169 (168) and latex 60 per cent: 116 (116).
Tuesday, October 5, 2010
Rubber Increases as Yen Weakens, Thai Shippers Raise Foreign Buyer Prices
Rubber Increases as Yen Weakens, Thai Shippers Raise Foreign Buyer Prices
Posted: 05 Oct 2010 03:11 AM PDT
Rubber gained as a weaker Japanese currency raised the appeal of yen-based contracts and after shippers in Thailand, the largest producer, raised cash prices for overseas buyers on stronger demand.
The March-delivery contract gained as much as 0.7 percent to 317.8 yen per kilogram ($3,794 a metric ton) before settling at 317.6 yen on the Tokyo Commodity Exchange. The price reached 318.2 yen yesterday, the highest level for a most-active contract since April 26.
Japan’s currency fell against the dollar after the Bank of Japan cut its key interest rate and said it would step up asset purchases to spur the economy. The yen slid against 14 of its 16 major counterparts after the BOJ said it would create a 5 trillion yen fund to buy government bonds and other assets.
“The weakening of the yen and bright prospects for car sales support the gains of the rubber market,” Varut Rungkhum, an analyst at commodity broker Agro Wealth Ltd., said by phone from Bangkok.
The yen declined to 83.64 per dollar at 2:37 p.m. in Singapore, from 83.36 in New York yesterday, after strengthening to 83.16 on Oct. 1, the highest since Sept. 15.
Thai exporters have raised offers for so-called RSS-3 grade rubber for November shipment to about $3.65 a kilogram, from $3.60 at the end of last week, said Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd.
“Cash prices gained on strong demand from tire makers, buoying the futures market,” Sugata said by phone today. “A weaker yen gave more support.”
Auto Sales
U.S. auto sales in September rose to a seasonally adjusted annual rate of 11.8 million, compared with 9.4 million a year earlier, data from researcher Autodata Corp. showed on Oct. 1.
September’s stronger sales, bolstered by Ford Motor Co.’s 41 percent sales gain, are a sign that the car market may have bottomed out and that a slow, stable recovery is under way, said Jesse Toprak, vice president of industry trends for TrueCar.com.
The benchmark Thai rubber price gained 0.2 percent to 110.65 baht ($3.67) a kilogram today, according to the Rubber Research Institute of Thailand. A lack of supply continued to drive prices higher, the institute said.
The Shanghai rubber market is closed as China marks National Day holidays from Oct. 1 to Oct. 7.
Natural-rubber inventories monitored by the bourse expanded 4,680 tons to 31,580 tons, based on a survey of 10 warehouses, the exchange said Sept. 30.
(bloomberg.com)
IRCo's WEEKLY MARKET SNAPSHOT: 27 September - 1 October 2010
Posted: 05 Oct 2010 03:10 AM PDT
IRCo's DCP gained 7.11 US cents/kg during the week due to the influence of the rise in crude oil futures, while rubber futures on Shanghai Future Exchange and Tokyo Commodity Exchange also broke new records on the back of firm market fundamentals because consumers were still worried about supply tightness caused by persistent heavy rains in producing countries, especially in Southern Thailand.
The rises in the Japanese yen and regional currencies against the U.S. dollar did not have much negative impact on rubber market sentiment during the week. On the contrary, the strengthening regional currencies were boosting NR consumption in these countries, especially in China, because of cheaper prices of imported natural rubber.
However, the current political disputes among the U.S., China, and Japan cannot be ruled out because they can slow down a global economic recovery.
(irco.biz)
NR May Climb to USD 4 a Kilogram in 1Q11 Driven by Strong Fundamentals
Posted: 05 Oct 2010 03:08 AM PDT
By Anant Thawatchaipracha
Chief Secretary and Economist of IRCo, Mr. Yium, said that natural rubber prices may hit 4US$ per kilogram by the first quarter of next year with supports not only from strong fundamentals, but also from internationally and domestically strong demand.
Mr. Yium furthered with Dow Jones that there was an increase in domestic demand due to the rise in auto sales, so that would cut back on exports.
Toyota Motor Thailand reported that new vehicle sales in August in Thailand rose by 52% on year.
"The strengthening Chinese yuan would also boost purchases from the world’s top natural consumer," said Mr. Yium.
(irco.biz)
Vietnam's Rubber Exports to Double in First Nine Months
Posted: 05 Oct 2010 03:07 AM PDT
By Siwaporn Bumroongpan
It is expected that Vietnam would earn US$1.45 billion from exported natural rubber (NR) amounting to 531,000 tons in the first nine months of this year. Its current main markets are China, Malaysia, the Republic of Korea, and India. Its volume of exports during the first nine months of this year rose by 10.9% year-on-year, For the whole year, its export earnings is forecast to be around US$1.8 billion from exporting 780,000 tons of NR this year, the Ministry of Agriculture and Rural Development said on Monday.
(irco.biz)
Output of India's NR September Increased by 4.3%
Posted: 05 Oct 2010 03:07 AM PDT
By Anant Thawatchaipracha
According to Dow Jones, Indian Rubber Board said natural rubber (NR) production of India increased from 74,300 metric tons in an earlier September to 77,500 tons in September 2010, or up 4.3% due to favorable weather conditions. IRCo is of the opinion that the following comparative figures between September 2010 and an earlier September provided by Dow Jones does not give any directives on the the rubber industry because there were no accumulated figures as at end September this year and the last year.
Rubber
Sept 2010
Sept 2009
Production
77,500
74,300
Consumption
78,000
78,765
Import
28,720
18,612
Stocks
268,065
209,240
Remark: all numbers expressed in metric tones
(Irco.biz)
Japan's Vehicle Production Up 20.8% in August
Posted: 05 Oct 2010 03:06 AM PDT
By Siwaporn Bumroongpan
Vehicle production in Japan rose for the tenth consecutive month by 20.8% year on year in this August to 690,689 units, up from 571,773 units in an earlier August due to solid government buying incentives, The Japan Automobile Manufacturers Association said Thursday.
IRCo has its own view that the Japanese have benefited from the strengthening yen against the U.S. dollar and other rival currencies because they can buy vehicles at very comfortable prices in the wake of persistent deflation. That also boosts imported volume of natural rubber (NR) to Japan and NR prices in the world market.
(irco.biz)
India's Synthetic Rubber Production Could Not Fulfill Domestic Demand
Posted: 05 Oct 2010 03:05 AM PDT
By Siwaporn Bumroongpan
India's synthetic rubber (SR) production in the April–June period amounted to 26,956 metric tons, up 9% from a year earlier, the state-run Rubber Board said. SR consumption in April – June period amounted to 99,160 tons, up 27.3% from a year earlier. Demand from tire makers pushed SR demand to 69,173 tons, up 33.4% during the same period. Imported SR amounted to 76,948 tons in the April – June period, and SR stocks as at end June were 39,655 tons.
IRCo noted that overall SR consumption in India in the April – June period was three times higher than its production, and imported SR was still a big portion to fulfill domestic SR demand.
(irco.biz)
India to host third annual conference of ANRPC
Posted: 05 Oct 2010 03:04 AM PDT
India will be hosting the the third Annual Rubber Conference, the 33rd Assembly and other committees of the Association of Natural Rubber Producing Countres (ANRPC) here for five days from today.
The Rubber conference will be held on Oct 6, which will be inaugurated by Union minister of state for Agriculture, K V Thomas. Le Quang Thung, Acting Chairman Vietnam Rubber will preside over the function, Rubber Board chairman, Sajan Peter, told reporters here.
Prof Djoko S Damardjati, Secretary General ANRPC will deliver the keynote address.
The theme of this year's confernce is 'Natural Rubber Industry in the New Decade Opportunties, Challenges and Strategies'. Papers would be presented by 10 member countries in three sessions, he said.
About 400 delegates including rubber Industry players, policy makers, researchers and analysts are among those who would be participating.
The first session focusing on the theme 'Outlook for Global Supply and Demand of Rubber' will be chaired by Dr Asoka Nugawela, Director, Rubber Research Institute of Sri Lanka, Prof Djoko S Damardjati, Secretary General ANRPC and Jom Jacon, Senior Economist of ANRPC will jointly present the paper titled 'Global Supply and Demand of Rubber'.
Another paper 'Outlook for Global Demand for Natural and Synthetic Rubber' by Dr Stephen V Evans, Secretary General International Rubber Study Group, Singapore.
The focus of the second session will be on 'Natural Rubber Industry in ANRPC member Countries: Present Status, Opportunties, Challanges and Strategies for the Future'.
Another session on 'Developments in Rubber Market and Downstream Sectors in Natural Rubber Producing Countries' will also be held besides a panel discussion of 'Supply and Demand of Rubber in the new Decade-Emerging issues and Strategies'.
ANRPC is an intergovernmental organisation having 11 mebers presently including China, Indonesia, Malaysia, Sri Lanak, Thailand besides India.
The committee's aim is to improve productivity of rubber holdings, reduce cost, increase value addtiion in downstream rubber sector among others.
(business-standard.com)
Rise in spot rubber prices
Posted: 05 Oct 2010 03:02 AM PDT
On Monday (04 October 2010), the spot rubber prices rose due to supply concerns following the widespread rains all over the plantation areas, bringing tapping almost to a halt. Sheet rubber increased to Rs. 171 from Rs. 170 per kg on fresh buying and short covering.
The October futures for RSS 4 rose to Rs. 174.70 (173.69), November to Rs. 177 (176.11), December to Rs. 179.50 (178.44) and January to Rs. 182.60 (180.89) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 171 (170); RSS-5: 167 (165); ungraded: 164 (162); ISNR 20: 167 (165) and latex 60 per cent: 116 (115.50).
(indiainfoline.com)
Posted: 05 Oct 2010 03:11 AM PDT
Rubber gained as a weaker Japanese currency raised the appeal of yen-based contracts and after shippers in Thailand, the largest producer, raised cash prices for overseas buyers on stronger demand.
The March-delivery contract gained as much as 0.7 percent to 317.8 yen per kilogram ($3,794 a metric ton) before settling at 317.6 yen on the Tokyo Commodity Exchange. The price reached 318.2 yen yesterday, the highest level for a most-active contract since April 26.
Japan’s currency fell against the dollar after the Bank of Japan cut its key interest rate and said it would step up asset purchases to spur the economy. The yen slid against 14 of its 16 major counterparts after the BOJ said it would create a 5 trillion yen fund to buy government bonds and other assets.
“The weakening of the yen and bright prospects for car sales support the gains of the rubber market,” Varut Rungkhum, an analyst at commodity broker Agro Wealth Ltd., said by phone from Bangkok.
The yen declined to 83.64 per dollar at 2:37 p.m. in Singapore, from 83.36 in New York yesterday, after strengthening to 83.16 on Oct. 1, the highest since Sept. 15.
Thai exporters have raised offers for so-called RSS-3 grade rubber for November shipment to about $3.65 a kilogram, from $3.60 at the end of last week, said Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd.
“Cash prices gained on strong demand from tire makers, buoying the futures market,” Sugata said by phone today. “A weaker yen gave more support.”
Auto Sales
U.S. auto sales in September rose to a seasonally adjusted annual rate of 11.8 million, compared with 9.4 million a year earlier, data from researcher Autodata Corp. showed on Oct. 1.
September’s stronger sales, bolstered by Ford Motor Co.’s 41 percent sales gain, are a sign that the car market may have bottomed out and that a slow, stable recovery is under way, said Jesse Toprak, vice president of industry trends for TrueCar.com.
The benchmark Thai rubber price gained 0.2 percent to 110.65 baht ($3.67) a kilogram today, according to the Rubber Research Institute of Thailand. A lack of supply continued to drive prices higher, the institute said.
The Shanghai rubber market is closed as China marks National Day holidays from Oct. 1 to Oct. 7.
Natural-rubber inventories monitored by the bourse expanded 4,680 tons to 31,580 tons, based on a survey of 10 warehouses, the exchange said Sept. 30.
(bloomberg.com)
IRCo's WEEKLY MARKET SNAPSHOT: 27 September - 1 October 2010
Posted: 05 Oct 2010 03:10 AM PDT
IRCo's DCP gained 7.11 US cents/kg during the week due to the influence of the rise in crude oil futures, while rubber futures on Shanghai Future Exchange and Tokyo Commodity Exchange also broke new records on the back of firm market fundamentals because consumers were still worried about supply tightness caused by persistent heavy rains in producing countries, especially in Southern Thailand.
The rises in the Japanese yen and regional currencies against the U.S. dollar did not have much negative impact on rubber market sentiment during the week. On the contrary, the strengthening regional currencies were boosting NR consumption in these countries, especially in China, because of cheaper prices of imported natural rubber.
However, the current political disputes among the U.S., China, and Japan cannot be ruled out because they can slow down a global economic recovery.
(irco.biz)
NR May Climb to USD 4 a Kilogram in 1Q11 Driven by Strong Fundamentals
Posted: 05 Oct 2010 03:08 AM PDT
By Anant Thawatchaipracha
Chief Secretary and Economist of IRCo, Mr. Yium, said that natural rubber prices may hit 4US$ per kilogram by the first quarter of next year with supports not only from strong fundamentals, but also from internationally and domestically strong demand.
Mr. Yium furthered with Dow Jones that there was an increase in domestic demand due to the rise in auto sales, so that would cut back on exports.
Toyota Motor Thailand reported that new vehicle sales in August in Thailand rose by 52% on year.
"The strengthening Chinese yuan would also boost purchases from the world’s top natural consumer," said Mr. Yium.
(irco.biz)
Vietnam's Rubber Exports to Double in First Nine Months
Posted: 05 Oct 2010 03:07 AM PDT
By Siwaporn Bumroongpan
It is expected that Vietnam would earn US$1.45 billion from exported natural rubber (NR) amounting to 531,000 tons in the first nine months of this year. Its current main markets are China, Malaysia, the Republic of Korea, and India. Its volume of exports during the first nine months of this year rose by 10.9% year-on-year, For the whole year, its export earnings is forecast to be around US$1.8 billion from exporting 780,000 tons of NR this year, the Ministry of Agriculture and Rural Development said on Monday.
(irco.biz)
Output of India's NR September Increased by 4.3%
Posted: 05 Oct 2010 03:07 AM PDT
By Anant Thawatchaipracha
According to Dow Jones, Indian Rubber Board said natural rubber (NR) production of India increased from 74,300 metric tons in an earlier September to 77,500 tons in September 2010, or up 4.3% due to favorable weather conditions. IRCo is of the opinion that the following comparative figures between September 2010 and an earlier September provided by Dow Jones does not give any directives on the the rubber industry because there were no accumulated figures as at end September this year and the last year.
Rubber
Sept 2010
Sept 2009
Production
77,500
74,300
Consumption
78,000
78,765
Import
28,720
18,612
Stocks
268,065
209,240
Remark: all numbers expressed in metric tones
(Irco.biz)
Japan's Vehicle Production Up 20.8% in August
Posted: 05 Oct 2010 03:06 AM PDT
By Siwaporn Bumroongpan
Vehicle production in Japan rose for the tenth consecutive month by 20.8% year on year in this August to 690,689 units, up from 571,773 units in an earlier August due to solid government buying incentives, The Japan Automobile Manufacturers Association said Thursday.
IRCo has its own view that the Japanese have benefited from the strengthening yen against the U.S. dollar and other rival currencies because they can buy vehicles at very comfortable prices in the wake of persistent deflation. That also boosts imported volume of natural rubber (NR) to Japan and NR prices in the world market.
(irco.biz)
India's Synthetic Rubber Production Could Not Fulfill Domestic Demand
Posted: 05 Oct 2010 03:05 AM PDT
By Siwaporn Bumroongpan
India's synthetic rubber (SR) production in the April–June period amounted to 26,956 metric tons, up 9% from a year earlier, the state-run Rubber Board said. SR consumption in April – June period amounted to 99,160 tons, up 27.3% from a year earlier. Demand from tire makers pushed SR demand to 69,173 tons, up 33.4% during the same period. Imported SR amounted to 76,948 tons in the April – June period, and SR stocks as at end June were 39,655 tons.
IRCo noted that overall SR consumption in India in the April – June period was three times higher than its production, and imported SR was still a big portion to fulfill domestic SR demand.
(irco.biz)
India to host third annual conference of ANRPC
Posted: 05 Oct 2010 03:04 AM PDT
India will be hosting the the third Annual Rubber Conference, the 33rd Assembly and other committees of the Association of Natural Rubber Producing Countres (ANRPC) here for five days from today.
The Rubber conference will be held on Oct 6, which will be inaugurated by Union minister of state for Agriculture, K V Thomas. Le Quang Thung, Acting Chairman Vietnam Rubber will preside over the function, Rubber Board chairman, Sajan Peter, told reporters here.
Prof Djoko S Damardjati, Secretary General ANRPC will deliver the keynote address.
The theme of this year's confernce is 'Natural Rubber Industry in the New Decade Opportunties, Challenges and Strategies'. Papers would be presented by 10 member countries in three sessions, he said.
About 400 delegates including rubber Industry players, policy makers, researchers and analysts are among those who would be participating.
The first session focusing on the theme 'Outlook for Global Supply and Demand of Rubber' will be chaired by Dr Asoka Nugawela, Director, Rubber Research Institute of Sri Lanka, Prof Djoko S Damardjati, Secretary General ANRPC and Jom Jacon, Senior Economist of ANRPC will jointly present the paper titled 'Global Supply and Demand of Rubber'.
Another paper 'Outlook for Global Demand for Natural and Synthetic Rubber' by Dr Stephen V Evans, Secretary General International Rubber Study Group, Singapore.
The focus of the second session will be on 'Natural Rubber Industry in ANRPC member Countries: Present Status, Opportunties, Challanges and Strategies for the Future'.
Another session on 'Developments in Rubber Market and Downstream Sectors in Natural Rubber Producing Countries' will also be held besides a panel discussion of 'Supply and Demand of Rubber in the new Decade-Emerging issues and Strategies'.
ANRPC is an intergovernmental organisation having 11 mebers presently including China, Indonesia, Malaysia, Sri Lanak, Thailand besides India.
The committee's aim is to improve productivity of rubber holdings, reduce cost, increase value addtiion in downstream rubber sector among others.
(business-standard.com)
Rise in spot rubber prices
Posted: 05 Oct 2010 03:02 AM PDT
On Monday (04 October 2010), the spot rubber prices rose due to supply concerns following the widespread rains all over the plantation areas, bringing tapping almost to a halt. Sheet rubber increased to Rs. 171 from Rs. 170 per kg on fresh buying and short covering.
The October futures for RSS 4 rose to Rs. 174.70 (173.69), November to Rs. 177 (176.11), December to Rs. 179.50 (178.44) and January to Rs. 182.60 (180.89) per kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 171 (170); RSS-5: 167 (165); ungraded: 164 (162); ISNR 20: 167 (165) and latex 60 per cent: 116 (115.50).
(indiainfoline.com)
Spot rubber improves on supply concerns
Spot rubber improves on supply concerns
Kottayam, Oct 4
Domestic rubber prices ruled firm on Monday. On the spot market, prices moved up on supply concerns following the widespread rains all over the plantation areas, bringing tapping almost to a halt. According to sources, there have been no fresh enquiries from the tyre sector but the mood was visibly bullish throughout the session. The volumes were narrow.
Sheet rubber increased to Rs 171 from Rs 170 a kg on fresh buying and short covering, dealers said. The grade was quoted at firm Rs 171 (169) a kg both at Kottayam and Kochi, according to Rubber Board.
Futures gain
RSS 4 increased with October futures rising to Rs 174.7 (173.69), November to Rs 177 (176.11), December to Rs 179.5 (178.44) and January to Rs 182.6 (180.89) a kg on the National Multi Commodity Exchange. The volumes totalled 5,520 lots and open interest 4,173 lots. The turnover was Rs 98.34 crore. The October series for RSS 3 finished steady at ¥302 (Rs 161.58) a kg during the day session but moved up marginally to ¥302.4 (Rs 161.81) during the night session on Tokyo Commodity Exchange. RSS 3 (spot) firmed up to Rs 163.45 (161.65) a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 171 (170); RSS-5: 167 (165); ungraded: 164 (162); ISNR 20: 167 (165) and latex 60 per cent: 116 (115.5).
Campco to start rubber procurement in six centres
A. J. Vinayak
Mangalore, Oct. 4
The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd will open six rubber procurement centres during this month, according to Mr K. Padmanabha, President of Campco.
The cooperative would start rubber procurement from Kadaba, Nintikallu, Alankar and Uppinangady in Karnataka, and from Parappa and Mulleria in Kerala during this month.
Campco, which deals in arecanut and cocoa procurement and marketing, ventured into rubber procurement at Bandadka in Kerala recently.
He said that Campco is working on developing an arecanut peeling machine. Nearly 80 per cent of work has been completed in this project.
Stressing the need for more research in value-added arecanut products, he said there is a need to create awareness about the medicinal uses of arecanut.
Mr Padmanabha was speaking on the sidelines of a guest lecture by Mr Balachandra Hegde Saimane — a progressive grower from Sirsi, who visited China recently to study arecanut market there.
Mr Hegde, who visited Hunan province in China to study the arecanut market there, said growers in China are giving more importance for value-addition. Growers in China have taken a bigger share in value chain by manufacturing value-added products and marketing them. Even the outer skin of arecanut is processed and marketed for chewing.
In India, most arecanut farmers concentrate only on cultivation than coming out with value-added products, he added.
Kottayam, Oct 4
Domestic rubber prices ruled firm on Monday. On the spot market, prices moved up on supply concerns following the widespread rains all over the plantation areas, bringing tapping almost to a halt. According to sources, there have been no fresh enquiries from the tyre sector but the mood was visibly bullish throughout the session. The volumes were narrow.
Sheet rubber increased to Rs 171 from Rs 170 a kg on fresh buying and short covering, dealers said. The grade was quoted at firm Rs 171 (169) a kg both at Kottayam and Kochi, according to Rubber Board.
Futures gain
RSS 4 increased with October futures rising to Rs 174.7 (173.69), November to Rs 177 (176.11), December to Rs 179.5 (178.44) and January to Rs 182.6 (180.89) a kg on the National Multi Commodity Exchange. The volumes totalled 5,520 lots and open interest 4,173 lots. The turnover was Rs 98.34 crore. The October series for RSS 3 finished steady at ¥302 (Rs 161.58) a kg during the day session but moved up marginally to ¥302.4 (Rs 161.81) during the night session on Tokyo Commodity Exchange. RSS 3 (spot) firmed up to Rs 163.45 (161.65) a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 171 (170); RSS-5: 167 (165); ungraded: 164 (162); ISNR 20: 167 (165) and latex 60 per cent: 116 (115.5).
Campco to start rubber procurement in six centres
A. J. Vinayak
Mangalore, Oct. 4
The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd will open six rubber procurement centres during this month, according to Mr K. Padmanabha, President of Campco.
The cooperative would start rubber procurement from Kadaba, Nintikallu, Alankar and Uppinangady in Karnataka, and from Parappa and Mulleria in Kerala during this month.
Campco, which deals in arecanut and cocoa procurement and marketing, ventured into rubber procurement at Bandadka in Kerala recently.
He said that Campco is working on developing an arecanut peeling machine. Nearly 80 per cent of work has been completed in this project.
Stressing the need for more research in value-added arecanut products, he said there is a need to create awareness about the medicinal uses of arecanut.
Mr Padmanabha was speaking on the sidelines of a guest lecture by Mr Balachandra Hegde Saimane — a progressive grower from Sirsi, who visited China recently to study arecanut market there.
Mr Hegde, who visited Hunan province in China to study the arecanut market there, said growers in China are giving more importance for value-addition. Growers in China have taken a bigger share in value chain by manufacturing value-added products and marketing them. Even the outer skin of arecanut is processed and marketed for chewing.
In India, most arecanut farmers concentrate only on cultivation than coming out with value-added products, he added.
Monday, October 4, 2010
Reduce customs duty on rubber: Commerce dept
Reduce customs duty on rubber: Commerce dept
Posted: 02 Oct 2010 03:33 AM PDT
NEW DELHI: The commerce department has suggested a reduction in customs levy on natural to address the flawed import duty structure where an input is taxed at a higher rate than the final product, in this case tyres.
Tyre manufacturers have been demanding a reduction in rubber import duties from the existing 20% as the import duty on tyres is much lower at 10%, creating an inverted duty structure that disincentivises local manufacturing. “We have submitted our taxation proposal to the revenue department (finance ministry). Now, the department has to take a call,” a commerce department official said.
The proposed reduction in duty, if implemented, will bring down the production cost for a number of industries which use rubber as input, especially tyres.
However, a decision is not going to be easy as rubber producers want duties to stay as they argue that imports at a lower rate will increase imports, forcing domestic prices lower and cause losses to farmers and traders.
The commerce department says it is aware of the farmers’ concerns. “Our proposal strikes a middle ground,” the official said, indicating that import duties would come down, but not to the extent (7.5%) demanded by various associations including the Automotive Tyre Manufacturer’s association (ATMA) and Indian Cycle and Rickshaw Tyres Manufacturing Association.
Prices of natural rubber are currently around Rs 170 a kg, as compared to below Rs 80-90 a kg last year. As per estimates made by ATMA, domestic rubber is likely to fall short of consumption requirements for 2010-11 by approximately 1,76,000 MT, leaving ample scope for imports. The rubber industry in the country manufactures around 35,000 different products and has an estimated turnover of Rs 45,000 crore. It employs more than five million people.
(economictimes.indiatimes.com)
Spot rubber rules firm on short covering
Aravindan
Kottayam, Oct 1
Spot rubber ruled firm on Friday. The market improved following the gains in domestic futures catalysed by widespread rains and supply concerns. The trend was mixed. Sheet rubber moved up to Rs 170 from Rs 168.5 a kg on fresh buying and short covering. The grade was quoted at Rs 169 (168.5), according to Rubber Board as quoted in the official Web site.
Futures gain
RSS 4 increased at its October futures to Rs 173.7 (171.79), November to Rs 176.34 (173.76), December to Rs 178.45 (176.42) and January to Rs 180.98 (178.96) a kg on the National Multi Commodity Exchange. The volumes totalled 3,912 lots and open interest 3,905 lots. The turnover was Rs 68.51 crore. The October series for RSS 3 improved to ¥302 (Rs 161.54) from ¥297.5 a kg during the day session but remained inactive during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 161.65 (161.21) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 170 (168.5); RSS-5: 165 (165); ungraded: 162 (162); ISNR 20: 165 (163) and latex 60 per cent: 115.5 (115.5).
Posted: 02 Oct 2010 03:33 AM PDT
NEW DELHI: The commerce department has suggested a reduction in customs levy on natural to address the flawed import duty structure where an input is taxed at a higher rate than the final product, in this case tyres.
Tyre manufacturers have been demanding a reduction in rubber import duties from the existing 20% as the import duty on tyres is much lower at 10%, creating an inverted duty structure that disincentivises local manufacturing. “We have submitted our taxation proposal to the revenue department (finance ministry). Now, the department has to take a call,” a commerce department official said.
The proposed reduction in duty, if implemented, will bring down the production cost for a number of industries which use rubber as input, especially tyres.
However, a decision is not going to be easy as rubber producers want duties to stay as they argue that imports at a lower rate will increase imports, forcing domestic prices lower and cause losses to farmers and traders.
The commerce department says it is aware of the farmers’ concerns. “Our proposal strikes a middle ground,” the official said, indicating that import duties would come down, but not to the extent (7.5%) demanded by various associations including the Automotive Tyre Manufacturer’s association (ATMA) and Indian Cycle and Rickshaw Tyres Manufacturing Association.
Prices of natural rubber are currently around Rs 170 a kg, as compared to below Rs 80-90 a kg last year. As per estimates made by ATMA, domestic rubber is likely to fall short of consumption requirements for 2010-11 by approximately 1,76,000 MT, leaving ample scope for imports. The rubber industry in the country manufactures around 35,000 different products and has an estimated turnover of Rs 45,000 crore. It employs more than five million people.
(economictimes.indiatimes.com)
Spot rubber rules firm on short covering
Aravindan
Kottayam, Oct 1
Spot rubber ruled firm on Friday. The market improved following the gains in domestic futures catalysed by widespread rains and supply concerns. The trend was mixed. Sheet rubber moved up to Rs 170 from Rs 168.5 a kg on fresh buying and short covering. The grade was quoted at Rs 169 (168.5), according to Rubber Board as quoted in the official Web site.
Futures gain
RSS 4 increased at its October futures to Rs 173.7 (171.79), November to Rs 176.34 (173.76), December to Rs 178.45 (176.42) and January to Rs 180.98 (178.96) a kg on the National Multi Commodity Exchange. The volumes totalled 3,912 lots and open interest 3,905 lots. The turnover was Rs 68.51 crore. The October series for RSS 3 improved to ¥302 (Rs 161.54) from ¥297.5 a kg during the day session but remained inactive during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 161.65 (161.21) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 170 (168.5); RSS-5: 165 (165); ungraded: 162 (162); ISNR 20: 165 (163) and latex 60 per cent: 115.5 (115.5).
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