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)