Rain saps rubber output 7.6% in Oct

Rain saps rubber output 7.6% in Oct

Kochi Nov. 3

Following dramatic changes in the pattern of rainfall across several South–East Asian countries, rubber production in the country slipped during October. Natural rubber production slipped 7.6 per cent to 82,000 tonnes during October against 88,775 tonnes during the same month last year.

While pointing out that the production in other major producing countries such as Thailand and Indonesia also declined due to torrential rains, sources in the Rubber Board said that the decrease in domestic production was mainly due to excessive rain in October that hampered tapping operations.

This affected the production trends in most of the rubber–growing regions.

Production

However, despite the lower production last month, statistics available from the Rubber Board show that cumulative production in April-October months increased 4.5 per cent. Production during the first seven moths of the current fiscal was up at 4,57,250 tonnes against 4,37,400 tonnes during the same time last year.

Consumption

There was increased production of automotive tyres in October that was reflected in increased rubber consumption.

In October, natural rubber consumption increased to 81,500 tonnes (77,950 tonnes). The aggregate consumption during the first seven months of the year was also up three per cent to 5,50,550 tonnes (5,34,315 tonnes). The rate of consumption of natural rubber in the tyre industry meanwhile grew by around five per cent. As prices in the international market ruled lower than the domestic price, there was heavy import of rubber during October. Imports grew rapidly by over 80 per cent to 18,148 tonnes (10,011 tonnes) during the month.

The heightened import during October was also reflected in total imports during April-October that was marginally higher than last year.

But imports are likely to be arrested in the coming months as China has entered the market aggressively and is procuring rubber from the international markets at considerably high prices.


Spot rubber stretches record run


Kottayam, Nov. 3

Physical rubber prices continued to hit new peaks on Wednesday. Domestic supply concerns and news on comparatively low production and arrivals due to unseasonal rains kept the buyers under pressure and the prices moved up further on fresh buying and short covering.

According to sources, there were enquiries from certain tyre makers during the session. As a result of the current hike, all sectors related to rubber are undergoing a difficult phase, said Prof K.K Abraham, President of Pala Rubber Marketing Cooperative Society.

There is a four or five fold increase in the working capital which directly affects the existence of all sectors except rubber growers. For block rubber factories, the cost for a tonne of the scrap has gone up to Rs 1,50,000 against Rs 20,000 earlier. Though the price hike is an international phenomenon, it has badly affected the tyre and non-tyre sectors, block rubber factories, Cenex etc, he said.

Sheet rubber increased to Rs 195.50 (194.50) a kg, according to traders. The grade closed firm at Rs 195 (194) a kg both at Kottayam and Kochi as quoted in the official Web site of the Rubber Board. In futures, the November series improved to Rs 197.70 (196.57), December to Rs 200.61 (199.38), January to Rs 202.50 (201.72) and February to Rs 204.99 (203.71) a kg for RSS 4 on the National Multi Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 195.50 (194.50); RSS-5: 186 (185); ungraded: 183 (181.75); ISNR 20: 192 (190) and latex 60 per cent: 128 (126.50).