Spot rubber rules steady
Kottayam, Dec. 30
Spot rubber continued to rule almost steady on Thursday. Expectations on an improvement in arrivals during the ongoing peak production season kept the buyers on sidelines but the market managed to close unchanged lacking quantity sellers in major grades. The trend was partially mixed as RSS 5 lost ground on comparatively low demand and better supply.
Sheet rubber finished unchanged at Rs 206 a kg, according to traders. The grade weakened to Rs 206.50 (207) a kg both at Kottayam and Kochi, according to the Rubber Board.
Futures drop
RSS 4 declined with January series slipping to Rs 208.24 (209.43), February to Rs 213 (214.15), March to Rs 217.15 (218.18) and April to Rs 223.21 (224.21) a kg on the National Multi Commodity Exchange. The volumes totalled 4336 lots and open interest 8999 lots. The turnover was Rs.92.32 crore.
RSS 3 (spot) slipped to Rs 224.07 (224.13) a kg at Bangkok. The January futures for the grade weakened to ¥403.6 (Rs 222.62) from ¥404.5 a kg during the day session on the Tokyo Commodity Exchange (TOCOM).
Spot rates were (Rs/kg): RSS-4: 206 (206); RSS-5: 198 (199): ungraded: 195 (195); ISNR 20: 204 (204) and latex 60 per cent 138.50 (138.50).
Rubber Increases, Posting Second Annual Advance, on Supply Deficit Concern
THURSDAY, DECEMBER 30, 2010 ADMIN
Rubber extended gains to post a second straight annual advance on concern that a shortage may worsen early next year as top exporter Thailand enters a low- production period known as wintering.
The June-delivery contract added as much as 0.9 percent to 414.8 yen per kilogram ($5,094 a metric ton) on the Tokyo Commodity Exchange and closed at 414.5 yen, bringing this year’s gain to 50 percent. The bourse will be closed from tomorrow and resume trading on Jan. 4.
Latex production in Thailand is set to shrink as growers reduce tapping of rubber trees from February to April. The seasonal drop in output may worsen a supply shortage as global demand rises, led by car sales in China and India. Rubber climbed to a record 419.3 yen on Dec. 27.
“Concern over tight supply continued lending support to the market,” said Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo. A rebound in oil prices also pushed rubber higher, reversing its early 1.8 percent decline, Shigemoto said.
Crude oil for February delivery rose as much as 0.2 percent to $91.33 a barrel on the New York Mercantile Exchange after losing 0.4 percent yesterday. The contract touched $91.88 on Dec. 27, the highest level since Oct. 7, 2008.
Rubber futures declined earlier as China, the world’s biggest consumer, may take measures to curb speculation, said Toshimitsu Kawanabe, an analyst at commodity broker Central Shoji Co.
Supply Drop
China may increase the size of agricultural futures contracts in 2012 to curb speculation, the Shanghai Securities News reported today, citing no one. Contracts already being traded will expire by the end of 2011 and the new contracts are still being studied, the report said. Raising the sizes will increase the amount of capital required for trading and keep some speculators out of futures markets, it said.
Supply of natural rubber from nine producers representing 92 percent of global output is expected to fall 6.3 percent in the fourth quarter, cutting this year’s production growth to 5.7 percent, from 6.6 percent forecast in November, the Association of Natural Rubber Producing Countries said in its monthly bulletin.
Output from the association’s members is estimated at 9.42 million tons this year and may climb to 9.92 million next year, the group said.
May-delivery rubber in Shanghai advanced 0.8 percent to close at 36,545 yuan ($5,534) a ton. The price has retreated from a record 38,920 yuan on Nov. 11 amid concern that China may take steps to cool inflation and economic expansion.
The cash rubber price in Thailand was unchanged at a record 149.55 baht ($4.96) per kilogram today as persistent rains in the country’s southern provinces limit supplies, according to the Rubber Research Institute of Thailand’s website.
(Source: http://www.bloomberg.com/news/2010-12-30/rubber-declines-trimming-annual-increase-as-china-may-curb-speculation.html)
Rubber to remain highly volatile amid supply woes
KOCHI: After a year that saw natural rubber prices surge to record levels, consumers of the commodity would like to believe that the worst is over.
In fact, the key stakeholders in the sector are of the view that supply uncertainties and price volatility would turn out to be a rule rather than an exception in the year ahead.
The domestic prices of natural rubber rose by almost 50% to a record high of `207.50 per kg on last Thursday compared to the same period of the previous year. Supply concerns, both at the global as well as domestic levels, were the major factors behind the sharp acceleration in prices.
Even as the industry hopes that normalcy would return to the overheated rubber market across the world, there is a growing concern about the difficult days ahead. “2011 is likely to be yet another challenging year for natural rubber consumers,” said Neeraj Kanwar, vice chairman and managing director of Apollo Tyres. According to him, while in the short-term “the limited supply of natural rubber will cast a shadow on the price front, its long-term availability will be a key concern which needs to be addressed on priority”.
The supply uncertainties of rubber, a key industrial raw material, have been aggravated by the climatic changes happening across the key producing countries. A prolonged spell of rains disrupted production in India this year, leading to tight supplies and rising prices. Internationally, leading global producers like Thailand and Indonesia also had to cut back on production due to heavy rains and floods.
“2010 was a difficult and abnormal year,” said Rajiv Budhraja, director general of Automotive Tyre Industries Association (ATMA), adding that he hoped the coming year would be “balanced and normal”. “We hope that what has happened in 2010 would get corrected in 2011,” he added.
But not all are optimistic about the restoration of normalcy in the near future. Kottayam-based analyst and trader Biju John, proprietor of CPM Spices Corporation, said that the “rubber sector is entering the new year with low stocks”. According to him, “if changing climatic conditions lead to cut backs in production in 2011, the prices could go through the roof.”
CP Krishnan, director of Geojit Comtrade Ltd, a leading broking company, also said that “climatic factors and demand conditions could be the price setters in the coming days”. According to him, the international prices have shot past the domestic prices, making it all the more difficult for the user industries in the country. The estimated shortfall in supply during this fiscal is around 85,000 tonne.
Meanwhile, the government has allowed the industry to import 40,000 tonne at a concessional duty of 7.5% by March 31. After that the duty has been capped at 20% or `20 per kg. This has been the industry’s demand for a long time. However, currently, the international prices are higher, making imports unviable. The industry hopes to contract imports early next year for meeting the requirements for the lean season starting April. But the uncertainties in supply could send the industry’s calculations haywire
Demand perks up latex prices
Spot rubber prices were almost steady on Wednesday. The market lost its direction on buyer resistance, as major players were hesitant to enlarge their commitments, possibly expecting an improvement in domestic supplies. Meanwhile, latex 60%, the only gainer of the day, closed firm on fresh demand. The volumes were dull.
According to traders, sheet rubber finished flat at Rs 206 a kg, amidst scattered transactions. The grade firmed up to Rs 207 (206.75) a kg, both at Kottayam and Kochi, according to the Rubber Board.
Among other reports, the key Tokyo rubber futures recovered partially on short-covering due to supply concerns prior to the long holidays, as the exchange will remain closed from December 31 to January 3. The most active Shanghai May futures closed weak at 36,030 yuan a tonne, down from Monday's close of 37,110 yuan.
Futures up
In futures, the January series improved marginally to Rs 209.56 (209.32), February to Rs 214.12 (213.96), March to Rs 218.35 (217.96) and April to Rs 224.40 (223.99) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) closed at Rs 224.13 (224.04) a kg at Bangkok. The January futures for the grade increased to ¥ 404.5 (Rs 222.17) from ¥ 401.9 during the day session and then to ¥ 406.5 (Rs 223.27) in the night session on the Tokyo Commodity Exchange.
Spot rubber rates (Rs/kg) kg were: RSS-4: 206 (206); RSS-5: 199 (199); Ungraded: 195 (195); ISNR 20: 204 (204); and latex 60%: 138.50 (137)
Friday, December 31, 2010
Wednesday, December 29, 2010
Q4 global natural rubber supply seen down 6.3%
Q4 global natural rubber supply seen down 6.3%
Kochi, Dec. 28
Global natural rubber supply is expected to slip 6.3 per cent during the fourth quarter – October-December. Based on lower production estimates from major producing countries such as Thailand, India and Vietnam, the Association of Natural Rubber Producing Countries (ANRPC), which accounts for 92 per cent of the global rubber output, has further pruned rubber production estimates. Earlier, it had projected a shortfall of 3.8 per cent for the quarter.
According to the latest estimates, Indian rubber production is expected to fall 4.6 per cent from 1.8 per cent for the quarter. Vietnam, which was expected to register a growth of 3.8 per cent, is now expected to witness a fall of 2.8 per cent. However, Thailand is expected to witness the sharpest fall of 33.4 per cent, down from the earlier 28.4 per cent. Thailand, Vietnam and India are the only three countries that will record negative growth in the fourth quarter.
Consequent to this revision, the global growth in natural rubber supply this year is expected to be contained at 5.7 per cent, lower from the 6.6 per cent expected earlier. The projection of accelerated global supply growth is based on output increase of 17.9 per cent registered in the first quarter, 2.8 per cent in the second and 12.3 per cent in the third.
The global natural rubber production, mainly from ANRPC countries, is now estimated at 9.422 million tonnes (mt) this year. This is expected to increased 5.3 per cent to 9.918 mt next year, provided there is not much variation in global weather conditions.
India has scaled down the country's expectation of natural rubber supply growth to three per cent this year at 8,45,000 tonnes. Reports till last month had indicated that rubber supply would grow by four per cent to 8,53,000 tonnes. The country's supply has been badly affected by unseasonal rains in the fourth quarter, which also happens to be the flush season for natural rubber supply, the ANRPC said.
Lean season
However, the Rubber Board now anticipates India's yielding area to expand by 14,000 hectares as area under rubber which was planted seven years ago has now become productive. This is expected to accelerate production by 5.3 per cent to 8,90,000 tonnes. The constraints on India's natural rubber production are characterised by long lean season spanning seven continuous months with low output.
The leaf shedding season also results in production dip which can last in the summer months. The onset of the South-West monsoon also affects tapping operations and rubber output during June-August. In effect, rubber output during the lean months can come down by 50-60 per cent of the peak production period, the ANRPC said.
Consumption of natural rubber by major consuming countries is also expected to rise this year. Between them, countries such as China, India and Malaysia account for over 48 per cent of the global rubber consumption. Consumption by China is expected to increase 8.6 per cent during the current year, while India is expected to register a growth of 5.1 per cent and Malaysia 2.2 per cent.
India is expected to top in imports, estimated at 14 per cent, while China is likely to register 10 per cent growth even as Malaysia's imports are expected to slow down by 5.3 per cent, the ANRPC said.
Spot rubber shrinks on profit booking
Kottayam, Dec 28
Spot rubber lost ground on Tuesday. Sharp declines on TOCOM following profit booking at higher levels and signs of weakness in domestic futures were the contributing factors. Reports on the resumption of tapping in key plantation areas and the expectations of an improvement in arrivals kept the sentiments weak though the market still experienced short supply. The trend continued to be mixed.
Sheet rubber moved down to Rs 206 (207) a kg, according to dealers. The grade weakened to Rs 206.75 ( 207.50) a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
RSS 4 slipped with the January series dropping to Rs 209.50 (209.66), February to Rs 214 (214.47), March to Rs 217.99 ( 218.82) and April to Rs 224.39 (224.62) a kg on the National Multi Commodity Exchange.
RSS 3 (spot) closed weak at Rs 224.04 (224.57) a kg in Bangkok. January futures for the grade declined to ¥401.5 (Rs 220.74) from ¥411.2 during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange.
Physical rubber rates (Rs/kg) were: RSS 4: 206 (207), RSS 5: 199 ( 202), Ungraded: 195 (197), ISNR 20: 204 (204) and Latex 60 per cent : 137 (137).
Kochi, Dec. 28
Global natural rubber supply is expected to slip 6.3 per cent during the fourth quarter – October-December. Based on lower production estimates from major producing countries such as Thailand, India and Vietnam, the Association of Natural Rubber Producing Countries (ANRPC), which accounts for 92 per cent of the global rubber output, has further pruned rubber production estimates. Earlier, it had projected a shortfall of 3.8 per cent for the quarter.
According to the latest estimates, Indian rubber production is expected to fall 4.6 per cent from 1.8 per cent for the quarter. Vietnam, which was expected to register a growth of 3.8 per cent, is now expected to witness a fall of 2.8 per cent. However, Thailand is expected to witness the sharpest fall of 33.4 per cent, down from the earlier 28.4 per cent. Thailand, Vietnam and India are the only three countries that will record negative growth in the fourth quarter.
Consequent to this revision, the global growth in natural rubber supply this year is expected to be contained at 5.7 per cent, lower from the 6.6 per cent expected earlier. The projection of accelerated global supply growth is based on output increase of 17.9 per cent registered in the first quarter, 2.8 per cent in the second and 12.3 per cent in the third.
The global natural rubber production, mainly from ANRPC countries, is now estimated at 9.422 million tonnes (mt) this year. This is expected to increased 5.3 per cent to 9.918 mt next year, provided there is not much variation in global weather conditions.
India has scaled down the country's expectation of natural rubber supply growth to three per cent this year at 8,45,000 tonnes. Reports till last month had indicated that rubber supply would grow by four per cent to 8,53,000 tonnes. The country's supply has been badly affected by unseasonal rains in the fourth quarter, which also happens to be the flush season for natural rubber supply, the ANRPC said.
Lean season
However, the Rubber Board now anticipates India's yielding area to expand by 14,000 hectares as area under rubber which was planted seven years ago has now become productive. This is expected to accelerate production by 5.3 per cent to 8,90,000 tonnes. The constraints on India's natural rubber production are characterised by long lean season spanning seven continuous months with low output.
The leaf shedding season also results in production dip which can last in the summer months. The onset of the South-West monsoon also affects tapping operations and rubber output during June-August. In effect, rubber output during the lean months can come down by 50-60 per cent of the peak production period, the ANRPC said.
Consumption of natural rubber by major consuming countries is also expected to rise this year. Between them, countries such as China, India and Malaysia account for over 48 per cent of the global rubber consumption. Consumption by China is expected to increase 8.6 per cent during the current year, while India is expected to register a growth of 5.1 per cent and Malaysia 2.2 per cent.
India is expected to top in imports, estimated at 14 per cent, while China is likely to register 10 per cent growth even as Malaysia's imports are expected to slow down by 5.3 per cent, the ANRPC said.
Spot rubber shrinks on profit booking
Kottayam, Dec 28
Spot rubber lost ground on Tuesday. Sharp declines on TOCOM following profit booking at higher levels and signs of weakness in domestic futures were the contributing factors. Reports on the resumption of tapping in key plantation areas and the expectations of an improvement in arrivals kept the sentiments weak though the market still experienced short supply. The trend continued to be mixed.
Sheet rubber moved down to Rs 206 (207) a kg, according to dealers. The grade weakened to Rs 206.75 ( 207.50) a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
RSS 4 slipped with the January series dropping to Rs 209.50 (209.66), February to Rs 214 (214.47), March to Rs 217.99 ( 218.82) and April to Rs 224.39 (224.62) a kg on the National Multi Commodity Exchange.
RSS 3 (spot) closed weak at Rs 224.04 (224.57) a kg in Bangkok. January futures for the grade declined to ¥401.5 (Rs 220.74) from ¥411.2 during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange.
Physical rubber rates (Rs/kg) were: RSS 4: 206 (207), RSS 5: 199 ( 202), Ungraded: 195 (197), ISNR 20: 204 (204) and Latex 60 per cent : 137 (137).
Tuesday, December 28, 2010
High rubber prices to continue in 2011 as well
Hainan Rubber to raise RMB 4.71 bln from Shanghai IPO
Posted: 27 Dec 2010 06:24 AM PST
Dec. 27, 2010 (China Knowledge) - Hainan Rubber Industry Group Co Ltd, a leading agricultural industrialization enterprise in China, today announced that it will raise up to RMB 4.71 billion from an initial public offering in Shanghai, Reuters reported. The company said in a statement that it will issue 786 million shares via both online and offline placement at a price ranging from RMB 5.50.
Commodity Outlook for Rubber by KediaCommodity
Posted: 27 Dec 2010 06:22 AM PST
Rubber ended the week higher on the back of increasing crude oil price to the highest level in more than two years, resulting boosting the cost of making rival synthetic products. Moreover, the rubber's supply is expected to decline more in next year as the low production season will starts in Thailand in next year. Therefore, overseas buyers, mainly from China, India and Japan, have started to buy rubber.
High rubber prices to continue in 2011 as well
Posted: 27 Dec 2010 06:16 AM PST
Domestic as well global rubber prices rallied to fresh historical highs due to heavy rainfall in top natural rubber producing areas of Southeast Asia like Thailand and India which may hit output for current year. Prices have also been supported by healthy demand from tyre industry and strong imports in China . Indian rubber supplies peak October-January, but this year unseasonal rains have been playing havoc in rubber producing states specially Kerala.
Rubber Futures Advance to Record as China's Stocks Rally After Rate Rise
Posted: 27 Dec 2010 06:13 AM PST
Rubber climbed to a record for a sixth day as higher oil prices boosted its appeal amid expectations a supply shortage may worsen early next year as top exporter Thailand enters a low-production period. The June-delivery contract rallied as much as 0.7 percent to 419.3 yen per kilogram ($5,069 a metric ton) on the Tokyo Commodity Exchange before settling at 417.6 yen.
India cuts rubber import duty, tyre makers rejoice
Posted: 27 Dec 2010 06:08 AM PST
NEW DELHI (Commodity Online): Tyre makers in India have rejoiced at government’s decision to slash the import duty on natural rubber from 20 per cent to 7.5 percent. The concession put forward by Govt are only for goods up to an aggregate of 40,000 metric tonnes of total imports during the remaining three months of the current fiscal ending March 31, 2011. Earlier in May, tyre manufacturers had appealed in Supreme Court for this.
Rubber prices to trend higher next week
Posted: 26 Dec 2010 03:16 PM PST
KUALA LUMPUR, Saturday 25 December 2010 (Bernama) -- The Malaysian rubber market is expected to trend higher next week as low production due to bad weather will continue to push prices higher, dealers said. A dealer said supply concerns remained amid the current heavy rainfalls in major rubber-producing countries.
Will the duty cut take the heat off tyre firms?
Posted: 26 Dec 2010 03:14 PM PST
The much-awaited duty cut on rubber imports will offer twin benefits for the tyre industry—it corrects the inverted duty structure in the tyre sector and will, in the longer term, temper rubber prices. So far, the import duty on rubber (the main input in tyre making) at 20% was higher than the 8.5% on tyres (finished good). Consequently, as rubber prices rocketed to a new high of Rs. 208/kg.
Posted: 27 Dec 2010 06:24 AM PST
Dec. 27, 2010 (China Knowledge) - Hainan Rubber Industry Group Co Ltd, a leading agricultural industrialization enterprise in China, today announced that it will raise up to RMB 4.71 billion from an initial public offering in Shanghai, Reuters reported. The company said in a statement that it will issue 786 million shares via both online and offline placement at a price ranging from RMB 5.50.
Commodity Outlook for Rubber by KediaCommodity
Posted: 27 Dec 2010 06:22 AM PST
Rubber ended the week higher on the back of increasing crude oil price to the highest level in more than two years, resulting boosting the cost of making rival synthetic products. Moreover, the rubber's supply is expected to decline more in next year as the low production season will starts in Thailand in next year. Therefore, overseas buyers, mainly from China, India and Japan, have started to buy rubber.
High rubber prices to continue in 2011 as well
Posted: 27 Dec 2010 06:16 AM PST
Domestic as well global rubber prices rallied to fresh historical highs due to heavy rainfall in top natural rubber producing areas of Southeast Asia like Thailand and India which may hit output for current year. Prices have also been supported by healthy demand from tyre industry and strong imports in China . Indian rubber supplies peak October-January, but this year unseasonal rains have been playing havoc in rubber producing states specially Kerala.
Rubber Futures Advance to Record as China's Stocks Rally After Rate Rise
Posted: 27 Dec 2010 06:13 AM PST
Rubber climbed to a record for a sixth day as higher oil prices boosted its appeal amid expectations a supply shortage may worsen early next year as top exporter Thailand enters a low-production period. The June-delivery contract rallied as much as 0.7 percent to 419.3 yen per kilogram ($5,069 a metric ton) on the Tokyo Commodity Exchange before settling at 417.6 yen.
India cuts rubber import duty, tyre makers rejoice
Posted: 27 Dec 2010 06:08 AM PST
NEW DELHI (Commodity Online): Tyre makers in India have rejoiced at government’s decision to slash the import duty on natural rubber from 20 per cent to 7.5 percent. The concession put forward by Govt are only for goods up to an aggregate of 40,000 metric tonnes of total imports during the remaining three months of the current fiscal ending March 31, 2011. Earlier in May, tyre manufacturers had appealed in Supreme Court for this.
Rubber prices to trend higher next week
Posted: 26 Dec 2010 03:16 PM PST
KUALA LUMPUR, Saturday 25 December 2010 (Bernama) -- The Malaysian rubber market is expected to trend higher next week as low production due to bad weather will continue to push prices higher, dealers said. A dealer said supply concerns remained amid the current heavy rainfalls in major rubber-producing countries.
Will the duty cut take the heat off tyre firms?
Posted: 26 Dec 2010 03:14 PM PST
The much-awaited duty cut on rubber imports will offer twin benefits for the tyre industry—it corrects the inverted duty structure in the tyre sector and will, in the longer term, temper rubber prices. So far, the import duty on rubber (the main input in tyre making) at 20% was higher than the 8.5% on tyres (finished good). Consequently, as rubber prices rocketed to a new high of Rs. 208/kg.
Monday, December 27, 2010
Check out Record car sales mark 2010 for Indian auto sector
Check out Record car sales mark 2010 for Indian auto sector
AHMEDABAD (Commodity Online): National Multi Commodity Exchange of India (NMCE) has categorically denied the rumours that there was a FMC raid in its premises.
“A routine inspection, that FMC conducts frequently in all exchanges, has been misquoted as a raid,” Poonam Verma, Vice President (Business Development) told Commodity Online.
She further said one of NMCE’s former employees floated this rumour, which sent shockwaves throughout the Rubber Traders in the southern part of India, where NMCE has a strong presence.
At a time when prices of all commodities are sky rocketing, a few section of media has picked up this rumour to directly link it to the failure of the government to check the spiraling price rise, according to NMCE insiders.
Rubber traders at NMCE counters started feeling the jitters as news appeared in one of the Malayalam newspapers.
When contacted, Dinesh Soni, the FMC official, quoted in the local stories, said he is not authorised to speak to the press.
AHMEDABAD (Commodity Online): National Multi Commodity Exchange of India (NMCE) has categorically denied the rumours that there was a FMC raid in its premises.
“A routine inspection, that FMC conducts frequently in all exchanges, has been misquoted as a raid,” Poonam Verma, Vice President (Business Development) told Commodity Online.
She further said one of NMCE’s former employees floated this rumour, which sent shockwaves throughout the Rubber Traders in the southern part of India, where NMCE has a strong presence.
At a time when prices of all commodities are sky rocketing, a few section of media has picked up this rumour to directly link it to the failure of the government to check the spiraling price rise, according to NMCE insiders.
Rubber traders at NMCE counters started feeling the jitters as news appeared in one of the Malayalam newspapers.
When contacted, Dinesh Soni, the FMC official, quoted in the local stories, said he is not authorised to speak to the press.
Spot rubber unchanged in dull trade
Spot rubber unchanged in dull trade
Kottayam, Dec. 24
Physical rubber prices finished unchanged on Friday. Sheet rubber closed unchanged at Rs 206.50 a kg, according to dealers. Transactions were low.
India has cut import duty on natural rubber to 7 per cent for shipments up to 40,000 tonnes until March 31. India imports natural rubber mainly from Thailand, Malaysia and Indonesia. But the tyre makers have stopped signing new import deals as they get the raw material more than 15 per cent cheaper in the local market.
Global supply of natural rubber (NR) is anticipated to fall 6.3 per cent in the fourth quarter (October-December) this year according to the revised estimates officially reported on December 16 by member countries of the ANRPC which account for 92 per cent of the commodity's global supply. This further downward revision from the previously expected 3.8 per cent fall during the quarter originates from Thailand (revised down from -28.4 per cent to -33.4 per cent), India (revised down from -1.8 per cent to - 4.6 per cent) and Vietnam (revised down from +3.8 per cent to - 2.8 per cent).
In futures, the January series increased to Rs 212.80 (210.13), February to Rs 217.50 (215.19), March to Rs 222.25 (219.98) and April to Rs 227.20 (225.09) a kg on National Multi Commodity Exchange (NMCE).
The volumes totalled 5,230 lots and open interest 8,105 lots. The turnover was Rs 112.64 crores.
RSS 3 (spot) closed at Rs 222.82 (222.58) a kg at Bangkok. The January futures for the grade improved to ¥ 407.0 (Rs 221.47) from ¥ 404.9 during the day session and then to ¥ 409.0 (Rs 222.57) per kg in the night session on Tokyo Commodity Exchange (TOCOM).
The spot rubber rates per kg were: RSS-4: Rs 206.50 (206.50), RSS-5: Rs 200.00 (200.00), Ungraded: Rs 195.00 (195.00), ISNR 20: Rs 204.00 (204.00) and Latex 60 per cent: Rs 137.00 (137.00).
Rubber mart seen trending higher
Posted: 25 Dec 2010 07:20 PM PST
The Malaysian rubber market is expected to trend higher next week as low production due to bad weather will continue to push prices higher, dealers said. A dealer said supply concerns remained amid the current heavy rainfalls in major rubber-producing countries. "This is amid increasing prices of crude oil, which increase the cost of producing rival synthetic rubber," a dealer said.
CPO futures end mostly higher
Posted: 25 Dec 2010 07:07 PM PST
CPO FUTURES CRUDE palm oil futures prices on Bursa Malaysia Derivatives closed mostly higher yesterday, dealers said. They said the firmer prices were helped by lower vegetable oils output amid gloomy weather and higher crude oil price. January 2011 gained RM10 to RM3,730 per tonne, February 2011 rose RM6 to RM3,696, March 2011 increased RM7 to RM3,665 and January 2012 declined RM20
Rubber Prices Settled In The Mixed Trends Towards Strong Crude Oil Prices
Posted: 25 Dec 2010 06:20 PM PST
Rubber futures and physical markets settled mostly lower on 22 December from a day earlier as investors took profits on rubber futures amid concerns over tightening global rubber supply before year-end holidays. The new benchmark June Tocom rubber contract settled lower at 413.5 yen/kg on 22 December at the day session as some investors took profits ahead of a public holiday in Japan on 23
China Increases Interest Rates to Curb Its Fastest Inflation in Two Years
Posted: 25 Dec 2010 03:49 PM PST
China raised interest rates for the second time since mid-October to counter the fastest inflation in more than two years and more moves may follow. The benchmark one-year lending rate will rise by 25 basis points to 5.81 percent and the one-year deposit rate will climb by the same amount to 2.75 percent, effective today, the People’s Bank of China said in a one-sentence statement on its website
Rubber import duty cut may not have desired impact: dealers
Posted: 25 Dec 2010 03:46 PM PST
The government's efforts to cool down rising rubber prices by lowering import duty may not yield the desired results, as traders are unlikely to resort to overseas purchases due to higher prices of the commodity in international markets than domestic rates. The government had on December 23 reduced import duty on natural rubber shipments of up to 40,000 tonnes to 7.5 per cent from 20 per cent
Tokyo rubber futures hit record high
Posted: 25 Dec 2010 03:42 PM PST
Tokyo (december 25, 2010) : key tokyo rubber futures hit a record high on friday in a holiday-thinned market, with sentiment helped by tight supply and a rise in oil prices above $90 a barrel the day before. the key tokyo commodity exchange rubber contract for june delivery, which debuted on wednesday, rose as high as 418.5 yen per kg as of 0103 gmt. that was up 5 yen or 1.2 percent from
Rubber in Tokyo Advances to a Record on High Oil Prices, Tight Thai Supply
Posted: 25 Dec 2010 03:41 PM PST
Rubber climbed to a record after crude oil climbed to the highest level in more than two years, boosting the cost of making rival synthetic products, and heavy rains curbed supplies from Thailand, the largest shipper. The June-delivery contract, which listed on the Tokyo Commodity Exchange on Dec. 22, surged to as high as 419 yen per kilogram ($5,054 a metric ton) during the so-called night
Vietnam trade gap shrinks to $12.37 billion
Posted: 25 Dec 2010 03:39 PM PST
Hanoi (december 26, 2010) : vietnam's trade deficit this year is expected to narrow to $12.37 billion following an annual jump in exports of 25.5 percent to $71.63 billion, a state-run newspaper reported on saturday. imports this year would rise 20.1 percent to $80 billion, the ruling communist party-run nhan dan (people) daily cited the industry and trade ministry s saying in a report. it
Tyre industry welcomes govt move to slash tariff on rubber
Posted: 25 Dec 2010 03:36 PM PST
Tyre-makers in India have cautiously welcomed the government's decision to slash the import duty on natural rubber from 20 per cent to 7.5 per cent, but do not expect their bottom-lines to improve in the near future. Earlier in May, tyre manufacturers had dragged the government to court, accusing it of having a discriminatory import duty structure. While natural rubber imports attracted a duty
Tyre scrips soar on rubber import duty cut
Posted: 25 Dec 2010 03:34 PM PST
Tyre stocks today rose up to 3.3 per cent following the government’s decision to cut import duty on natural rubber. However, rubber stocks fell up to five per cent due to the threat of lower realisation over the possibility of decline in rubber prices. Apollo Tyres closed 3.29 per cent higher at Rs 65.90 while MRF and Ceat gained 1.92 per cent and 2.86 per cent, respectively. Falco Tyres also
Spot rubber unchanged in dull trade
Posted: 25 Dec 2010 03:32 PM PST
Kottayam, Dec. 24 Physical rubber prices finished unchanged on Friday. Sheet rubber closed unchanged at Rs 206.50 a kg, according to dealers. Transactions were low. India has cut import duty on natural rubber to 7 per cent for shipments up to 40,000 tonnes until March 31. India imports natural rubber mainly from Thailand, Malaysia and Indonesia. But the tyre makers have stopped signing new
Buyer resistance drags spot rubber
Posted: 25 Dec 2010 03:29 PM PST
Kottayam, Dec 23 Spot rubber prices declined further on Thursday. Prices fell on buyer resistance amidst scattered transactions though there has been no visible selling pressure in the market. Traders appeared to be moving in to a holiday mood with Christmas a couple of days away. According to observers, growers were not interested to sell their produce prior to the festive season as the
India Cuts Duty on Natural Rubber Imports to 7.5% Until March 31
Posted: 25 Dec 2010 03:26 PM PST
Dec. 24 (Bloomberg) -- India, the fourth-biggest producer of natural rubber, reduced the import tax to 7.5 percent for shipments up to 40,000 tons until March 31, according to a Finance Ministry notification dated Dec. 22. The import duty has been reduced from 20 percent. (Source: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a77SvwMcH5GU)
Kottayam, Dec. 24
Physical rubber prices finished unchanged on Friday. Sheet rubber closed unchanged at Rs 206.50 a kg, according to dealers. Transactions were low.
India has cut import duty on natural rubber to 7 per cent for shipments up to 40,000 tonnes until March 31. India imports natural rubber mainly from Thailand, Malaysia and Indonesia. But the tyre makers have stopped signing new import deals as they get the raw material more than 15 per cent cheaper in the local market.
Global supply of natural rubber (NR) is anticipated to fall 6.3 per cent in the fourth quarter (October-December) this year according to the revised estimates officially reported on December 16 by member countries of the ANRPC which account for 92 per cent of the commodity's global supply. This further downward revision from the previously expected 3.8 per cent fall during the quarter originates from Thailand (revised down from -28.4 per cent to -33.4 per cent), India (revised down from -1.8 per cent to - 4.6 per cent) and Vietnam (revised down from +3.8 per cent to - 2.8 per cent).
In futures, the January series increased to Rs 212.80 (210.13), February to Rs 217.50 (215.19), March to Rs 222.25 (219.98) and April to Rs 227.20 (225.09) a kg on National Multi Commodity Exchange (NMCE).
The volumes totalled 5,230 lots and open interest 8,105 lots. The turnover was Rs 112.64 crores.
RSS 3 (spot) closed at Rs 222.82 (222.58) a kg at Bangkok. The January futures for the grade improved to ¥ 407.0 (Rs 221.47) from ¥ 404.9 during the day session and then to ¥ 409.0 (Rs 222.57) per kg in the night session on Tokyo Commodity Exchange (TOCOM).
The spot rubber rates per kg were: RSS-4: Rs 206.50 (206.50), RSS-5: Rs 200.00 (200.00), Ungraded: Rs 195.00 (195.00), ISNR 20: Rs 204.00 (204.00) and Latex 60 per cent: Rs 137.00 (137.00).
Rubber mart seen trending higher
Posted: 25 Dec 2010 07:20 PM PST
The Malaysian rubber market is expected to trend higher next week as low production due to bad weather will continue to push prices higher, dealers said. A dealer said supply concerns remained amid the current heavy rainfalls in major rubber-producing countries. "This is amid increasing prices of crude oil, which increase the cost of producing rival synthetic rubber," a dealer said.
CPO futures end mostly higher
Posted: 25 Dec 2010 07:07 PM PST
CPO FUTURES CRUDE palm oil futures prices on Bursa Malaysia Derivatives closed mostly higher yesterday, dealers said. They said the firmer prices were helped by lower vegetable oils output amid gloomy weather and higher crude oil price. January 2011 gained RM10 to RM3,730 per tonne, February 2011 rose RM6 to RM3,696, March 2011 increased RM7 to RM3,665 and January 2012 declined RM20
Rubber Prices Settled In The Mixed Trends Towards Strong Crude Oil Prices
Posted: 25 Dec 2010 06:20 PM PST
Rubber futures and physical markets settled mostly lower on 22 December from a day earlier as investors took profits on rubber futures amid concerns over tightening global rubber supply before year-end holidays. The new benchmark June Tocom rubber contract settled lower at 413.5 yen/kg on 22 December at the day session as some investors took profits ahead of a public holiday in Japan on 23
China Increases Interest Rates to Curb Its Fastest Inflation in Two Years
Posted: 25 Dec 2010 03:49 PM PST
China raised interest rates for the second time since mid-October to counter the fastest inflation in more than two years and more moves may follow. The benchmark one-year lending rate will rise by 25 basis points to 5.81 percent and the one-year deposit rate will climb by the same amount to 2.75 percent, effective today, the People’s Bank of China said in a one-sentence statement on its website
Rubber import duty cut may not have desired impact: dealers
Posted: 25 Dec 2010 03:46 PM PST
The government's efforts to cool down rising rubber prices by lowering import duty may not yield the desired results, as traders are unlikely to resort to overseas purchases due to higher prices of the commodity in international markets than domestic rates. The government had on December 23 reduced import duty on natural rubber shipments of up to 40,000 tonnes to 7.5 per cent from 20 per cent
Tokyo rubber futures hit record high
Posted: 25 Dec 2010 03:42 PM PST
Tokyo (december 25, 2010) : key tokyo rubber futures hit a record high on friday in a holiday-thinned market, with sentiment helped by tight supply and a rise in oil prices above $90 a barrel the day before. the key tokyo commodity exchange rubber contract for june delivery, which debuted on wednesday, rose as high as 418.5 yen per kg as of 0103 gmt. that was up 5 yen or 1.2 percent from
Rubber in Tokyo Advances to a Record on High Oil Prices, Tight Thai Supply
Posted: 25 Dec 2010 03:41 PM PST
Rubber climbed to a record after crude oil climbed to the highest level in more than two years, boosting the cost of making rival synthetic products, and heavy rains curbed supplies from Thailand, the largest shipper. The June-delivery contract, which listed on the Tokyo Commodity Exchange on Dec. 22, surged to as high as 419 yen per kilogram ($5,054 a metric ton) during the so-called night
Vietnam trade gap shrinks to $12.37 billion
Posted: 25 Dec 2010 03:39 PM PST
Hanoi (december 26, 2010) : vietnam's trade deficit this year is expected to narrow to $12.37 billion following an annual jump in exports of 25.5 percent to $71.63 billion, a state-run newspaper reported on saturday. imports this year would rise 20.1 percent to $80 billion, the ruling communist party-run nhan dan (people) daily cited the industry and trade ministry s saying in a report. it
Tyre industry welcomes govt move to slash tariff on rubber
Posted: 25 Dec 2010 03:36 PM PST
Tyre-makers in India have cautiously welcomed the government's decision to slash the import duty on natural rubber from 20 per cent to 7.5 per cent, but do not expect their bottom-lines to improve in the near future. Earlier in May, tyre manufacturers had dragged the government to court, accusing it of having a discriminatory import duty structure. While natural rubber imports attracted a duty
Tyre scrips soar on rubber import duty cut
Posted: 25 Dec 2010 03:34 PM PST
Tyre stocks today rose up to 3.3 per cent following the government’s decision to cut import duty on natural rubber. However, rubber stocks fell up to five per cent due to the threat of lower realisation over the possibility of decline in rubber prices. Apollo Tyres closed 3.29 per cent higher at Rs 65.90 while MRF and Ceat gained 1.92 per cent and 2.86 per cent, respectively. Falco Tyres also
Spot rubber unchanged in dull trade
Posted: 25 Dec 2010 03:32 PM PST
Kottayam, Dec. 24 Physical rubber prices finished unchanged on Friday. Sheet rubber closed unchanged at Rs 206.50 a kg, according to dealers. Transactions were low. India has cut import duty on natural rubber to 7 per cent for shipments up to 40,000 tonnes until March 31. India imports natural rubber mainly from Thailand, Malaysia and Indonesia. But the tyre makers have stopped signing new
Buyer resistance drags spot rubber
Posted: 25 Dec 2010 03:29 PM PST
Kottayam, Dec 23 Spot rubber prices declined further on Thursday. Prices fell on buyer resistance amidst scattered transactions though there has been no visible selling pressure in the market. Traders appeared to be moving in to a holiday mood with Christmas a couple of days away. According to observers, growers were not interested to sell their produce prior to the festive season as the
India Cuts Duty on Natural Rubber Imports to 7.5% Until March 31
Posted: 25 Dec 2010 03:26 PM PST
Dec. 24 (Bloomberg) -- India, the fourth-biggest producer of natural rubber, reduced the import tax to 7.5 percent for shipments up to 40,000 tons until March 31, according to a Finance Ministry notification dated Dec. 22. The import duty has been reduced from 20 percent. (Source: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a77SvwMcH5GU)
Friday, December 24, 2010
Import duty cut
Indian rubber prices showed a mixed trend. After remaining steady to weak, for most of the day, futures prices edged up during the closing hours
while quotes in the ready market steady to weak, and failed to catch up. Govt. decided to cut import duty on natural rubber to 7.5 % from 20% on Thursday for
shipments up to 40,000 tonnes till Mar 31 after which the duty imposed will be either 20% or Rs.20, which ever will be lower. This decision has come at a time
when Indian rubber prices are way below the prices prevailing in the international market, as a result of which immediate impact of import duty cut on prices
prevailing in the domestic will proved to be neutral. However, it is noteworthy that the duty would be reinstated after March 31st. This is significant since, if
April prices were to rule similar to prevailing prices, which is fair to assume at present, then the import duty which is lower than that prevailing levels could still
be enjoyed during the lean season. Further, the possibility of India emerging as a dominant buyer if International prices are conducive, would keep the premium
intact, or even push International prices higher, unless supply side improves drastically. With Indian weather improving lately, helping tapping, and the
possibility of slowing down of Chinese buying ahead of Lunar year holidays in early February, may ease the supply situation a bit in the next few fortnights.
while quotes in the ready market steady to weak, and failed to catch up. Govt. decided to cut import duty on natural rubber to 7.5 % from 20% on Thursday for
shipments up to 40,000 tonnes till Mar 31 after which the duty imposed will be either 20% or Rs.20, which ever will be lower. This decision has come at a time
when Indian rubber prices are way below the prices prevailing in the international market, as a result of which immediate impact of import duty cut on prices
prevailing in the domestic will proved to be neutral. However, it is noteworthy that the duty would be reinstated after March 31st. This is significant since, if
April prices were to rule similar to prevailing prices, which is fair to assume at present, then the import duty which is lower than that prevailing levels could still
be enjoyed during the lean season. Further, the possibility of India emerging as a dominant buyer if International prices are conducive, would keep the premium
intact, or even push International prices higher, unless supply side improves drastically. With Indian weather improving lately, helping tapping, and the
possibility of slowing down of Chinese buying ahead of Lunar year holidays in early February, may ease the supply situation a bit in the next few fortnights.
Buyer resistance drags spot rubber
Buyer resistance drags spot rubber
Kottayam, Dec 23
Spot rubber prices declined further on Thursday. Prices fell on buyer resistance amidst scattered transactions though there has been no visible selling pressure in the market.
Traders appeared to be moving in to a holiday mood with Christmas a couple of days away. According to observers, growers were not interested to sell their produce prior to the festive season as the international rates ruled much higher above the domestic scene and hence, the volumes were low.
Sheet rubber weakened to Rs 206.50 (207) a kg as quoted by the traders. The grade continued to finish flat at Rs 207.50 a kg at Kottayam and Kochi, according to Rubber Board.
FUTURES IMPROVE
January futures improved to Rs 210.28 (208.60), February to Rs 215.38 (213.09), March to Rs 220.10 (218.22) and April to Rs 225.40 (223.32) a kg on the National Multi Commodity Exchange (NMCE).
RSS 3 (spot) finished marginally higher at Rs. 222.58 (222.46) a kg at Bangkok. The Tokyo Commodity Exchange remained closed on account of the Emperor's Birthday.
Spot rubber rates (Rs/kg) were: RSS-4: 206.50 (207); RSS-5: 200 (201); ungraded: 195 (195.50); ISNR 20: 204 (204.50) and Latex 60%: 137 (137).
Global price rise makes rubber import unviable
Posted: 22 Dec 2010 03:03 PM PST
KOCHI: Tyre industry’s hopes to import rubber recedes as international prices soars significantly. The industry is, however, of the view that imports could have been contracted earlier if the governmenwet had capped the customs duty on rubber or allowed imports at concessional duty. The record gains in the past few days have put the international rubber prices at a higher level as compared to
Thailand’s role in record rubber prices
Posted: 22 Dec 2010 03:02 PM PST
Another day, another record price for rubber. Two years ago south-east Asian producers were talking about grubbing up rubber trees in an attempt to bolster the price of latex. They didn’t do it, and just as well – growing demand and tight supply have driven prices up into previously uncharted territory. On Wednesday, Thai rubber (RSS3) was up 5c at $4.95/kilo, more than four times its December
Good time for rubber industry
Posted: 22 Dec 2010 02:58 PM PST
The future challenge in the rubber industry is not the price of rubber but the availability, an industry expert said. Rubber Research Institute Director General Dr Asoka Nugawela at the recent international conference of the Association of Natural Rubber Producers held in India said buyers will be prepared to pay any amount but there will be a scarcity for rubber. “Therefore if Sri Lanka can
Commodity Outlook for Rubber by KediaCommodity
Posted: 22 Dec 2010 02:56 PM PST
Rubber yesterday traded with the negative node and settled -1.09% down at 21005 due to profit booking. But the downside was limited as rain curbed output in Thailand, heightening concern that a supply shortage may worsen as rising car sales boost demand from China supported the prices. Persistent rains across Thailand, Indonesia and Malaysia, the top three producers, have disrupted tapping and
Weak futures sap spot rubber
Posted: 22 Dec 2010 02:54 PM PST
Kottayam, Dec. 22 Spot rubber prices turned weak on Wednesday. Declines in the domestic futures and a favourable change in weather giving a late welcome to the peak production season kept the market under pressure during the day. Moderate gains in Bangkok spot prices failed to make any visible impact on sheet rubber but ISNR 20 and latex ruled firm on better demand.
Kottayam, Dec 23
Spot rubber prices declined further on Thursday. Prices fell on buyer resistance amidst scattered transactions though there has been no visible selling pressure in the market.
Traders appeared to be moving in to a holiday mood with Christmas a couple of days away. According to observers, growers were not interested to sell their produce prior to the festive season as the international rates ruled much higher above the domestic scene and hence, the volumes were low.
Sheet rubber weakened to Rs 206.50 (207) a kg as quoted by the traders. The grade continued to finish flat at Rs 207.50 a kg at Kottayam and Kochi, according to Rubber Board.
FUTURES IMPROVE
January futures improved to Rs 210.28 (208.60), February to Rs 215.38 (213.09), March to Rs 220.10 (218.22) and April to Rs 225.40 (223.32) a kg on the National Multi Commodity Exchange (NMCE).
RSS 3 (spot) finished marginally higher at Rs. 222.58 (222.46) a kg at Bangkok. The Tokyo Commodity Exchange remained closed on account of the Emperor's Birthday.
Spot rubber rates (Rs/kg) were: RSS-4: 206.50 (207); RSS-5: 200 (201); ungraded: 195 (195.50); ISNR 20: 204 (204.50) and Latex 60%: 137 (137).
Global price rise makes rubber import unviable
Posted: 22 Dec 2010 03:03 PM PST
KOCHI: Tyre industry’s hopes to import rubber recedes as international prices soars significantly. The industry is, however, of the view that imports could have been contracted earlier if the governmenwet had capped the customs duty on rubber or allowed imports at concessional duty. The record gains in the past few days have put the international rubber prices at a higher level as compared to
Thailand’s role in record rubber prices
Posted: 22 Dec 2010 03:02 PM PST
Another day, another record price for rubber. Two years ago south-east Asian producers were talking about grubbing up rubber trees in an attempt to bolster the price of latex. They didn’t do it, and just as well – growing demand and tight supply have driven prices up into previously uncharted territory. On Wednesday, Thai rubber (RSS3) was up 5c at $4.95/kilo, more than four times its December
Good time for rubber industry
Posted: 22 Dec 2010 02:58 PM PST
The future challenge in the rubber industry is not the price of rubber but the availability, an industry expert said. Rubber Research Institute Director General Dr Asoka Nugawela at the recent international conference of the Association of Natural Rubber Producers held in India said buyers will be prepared to pay any amount but there will be a scarcity for rubber. “Therefore if Sri Lanka can
Commodity Outlook for Rubber by KediaCommodity
Posted: 22 Dec 2010 02:56 PM PST
Rubber yesterday traded with the negative node and settled -1.09% down at 21005 due to profit booking. But the downside was limited as rain curbed output in Thailand, heightening concern that a supply shortage may worsen as rising car sales boost demand from China supported the prices. Persistent rains across Thailand, Indonesia and Malaysia, the top three producers, have disrupted tapping and
Weak futures sap spot rubber
Posted: 22 Dec 2010 02:54 PM PST
Kottayam, Dec. 22 Spot rubber prices turned weak on Wednesday. Declines in the domestic futures and a favourable change in weather giving a late welcome to the peak production season kept the market under pressure during the day. Moderate gains in Bangkok spot prices failed to make any visible impact on sheet rubber but ISNR 20 and latex ruled firm on better demand.
Thursday, December 23, 2010
Weak futures sap spot rubber
Weak futures sap spot rubber
Kottayam, Dec. 22
Spot rubber prices turned weak on Wednesday. Declines in the domestic futures and a favourable change in weather giving a late welcome to the peak production season kept the market under pressure during the day.
Moderate gains in Bangkok spot prices failed to make any visible impact on sheet rubber but ISNR 20 and latex ruled firm on better demand. There was no improvement in arrivals and the volumes were comparatively dull.
Sheet rubber slipped to Rs 207 (Rs 207.50) a kg, according to dealers. The grade finished unchanged at Rs 207.50 a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
RSS 4 weakened further at its January series to Rs 209 (Rs 209.96), February to Rs. 213.50 (Rs 214.74), March to Rs 218.49 (Rs 219.57) and April to Rs 223.50 (Rs 224.25) a kg on the National Multi-Commodity Exchange.
RSS 3 (spot) increased to Rs 222.46 (Rs 220.60) a kg at Bangkok. The January futures for the grade weakened to ¥ 403.7 (Rs 218.03) from ¥ 404.9 during the day session and then to ¥ 402.4 (Rs 217.30) a kg in the night session on Tokyo Commodity Exchange (TOCOM).
Spot rubber rates (Rs/kg): RSS-4: 207 (207.50); RSS-5: 201 (201.50); Ungraded: 195.50 (197.50); ISNR 20: 204.50 (202.50) and Latex 60%: 137 (134).
Rubber Futures Are Out Of Control
Posted: 22 Dec 2010 05:00 AM PST
Tokyo and Shanghai rubber futures skyrocketed during the last four days on the back of persistent supply tightness in major producing countries and anticipation of higher prices in the coming months. The most active May contracts on Tokyo and Shanghai rubber futures settled at 396.70 yen/kg and at 34,880 yuan/ton on 16 December before rising consecutively to finish at 413.10 yen/kg and at 37,275
Rubber Futures Drop as Rally to Record Prompts Investors to Lock-in Gains
Posted: 22 Dec 2010 04:52 AM PST
Rubber reversed gains after surging to a record for a fourth day as investors sold the commodity to lock-in gains amid concerns over tightening global supply. The Thai cash price gained to an all-time high. The June-delivery contract, which listed today on the Tokyo Commodity Exchange, advanced to 417 yen per kilogram ($4,975 a metric ton) before settling at 413.5 yen. “Investors cashed in on
Europe Day Ahead: FTSE, Dax, CAC May Open Barely Unchanged
Posted: 22 Dec 2010 04:50 AM PST
The following are today’s top stories for Europe: EUROPEAN MARKETS London’s FTSE may open 4 points down at 5,948, the Dax index in Germany may also be 4 points down at 7,074, and France’s CAC 40 3 points off at 3,924, London Capital Group said. TOP STORIES and MOST READ Banks Dumping JGBs as Only Europe Bonds Do Worse: Japan Credit Japan’s banks, which bought record amounts of government debt
Rubber rises on extended buying
Posted: 22 Dec 2010 04:45 AM PST
NMCE rubber futures hit fresh contract high yesterday on strong buying interest supported by bullish fundamental factors. A rally in TOCOM rubber futures on supply crunch from Thailand supported the Indian market. Domestic markets also witnessed supply crunch as farmers are holding back their produce anticipating further rise in the prices. However, in later part of the day, prices shed
12 Nabbed For Intimidating Rubber Smallholders
Posted: 22 Dec 2010 04:43 AM PST
KUCHING, Dec 22 (Bernama) -- Twelve people linked to secret societies have been detained for 60 days under the Emergency Ordinance 1969 for intimidating rubber smallholders, said Sarawak Police Commissioner Datuk Mohmad Salleh. He this followed complaints from rubber smallholder in Sibu, Sarikei and Bintagor that gangsters had threatened to harm them if they refuse to sell latex to them at
Spot rubber zooms to new peak
Posted: 22 Dec 2010 04:41 AM PST
Kottayam, Dec. 21 Spot rubber finished firm on Tuesday. The trendsetting Japanese markets continued to explore new highs as heavy rains in major producing countries triggered fund buying amidst tight market conditions. But the gains in domestic spot were limited as buyers stayed back following the weakness on the National Multi Commodity Exchange (NMCE). Sheet rubber created yet another record
Tokyo rubber futures hit lifetime high
Posted: 22 Dec 2010 04:38 AM PST
Tokyo (december 22, 2010) : key tokyo rubber futures settled 1.1 percent higher on tuesday after scaling a fresh lifetime high, while shanghai futures hovered near a six-week high, as supply concerns after heavy rains in producing countries spurred fund buying. tocom's key rubber contract for may delivery surged to a lifetime high of 413.8 yen in regular day session trading before settling up
Kottayam, Dec. 22
Spot rubber prices turned weak on Wednesday. Declines in the domestic futures and a favourable change in weather giving a late welcome to the peak production season kept the market under pressure during the day.
Moderate gains in Bangkok spot prices failed to make any visible impact on sheet rubber but ISNR 20 and latex ruled firm on better demand. There was no improvement in arrivals and the volumes were comparatively dull.
Sheet rubber slipped to Rs 207 (Rs 207.50) a kg, according to dealers. The grade finished unchanged at Rs 207.50 a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
RSS 4 weakened further at its January series to Rs 209 (Rs 209.96), February to Rs. 213.50 (Rs 214.74), March to Rs 218.49 (Rs 219.57) and April to Rs 223.50 (Rs 224.25) a kg on the National Multi-Commodity Exchange.
RSS 3 (spot) increased to Rs 222.46 (Rs 220.60) a kg at Bangkok. The January futures for the grade weakened to ¥ 403.7 (Rs 218.03) from ¥ 404.9 during the day session and then to ¥ 402.4 (Rs 217.30) a kg in the night session on Tokyo Commodity Exchange (TOCOM).
Spot rubber rates (Rs/kg): RSS-4: 207 (207.50); RSS-5: 201 (201.50); Ungraded: 195.50 (197.50); ISNR 20: 204.50 (202.50) and Latex 60%: 137 (134).
Rubber Futures Are Out Of Control
Posted: 22 Dec 2010 05:00 AM PST
Tokyo and Shanghai rubber futures skyrocketed during the last four days on the back of persistent supply tightness in major producing countries and anticipation of higher prices in the coming months. The most active May contracts on Tokyo and Shanghai rubber futures settled at 396.70 yen/kg and at 34,880 yuan/ton on 16 December before rising consecutively to finish at 413.10 yen/kg and at 37,275
Rubber Futures Drop as Rally to Record Prompts Investors to Lock-in Gains
Posted: 22 Dec 2010 04:52 AM PST
Rubber reversed gains after surging to a record for a fourth day as investors sold the commodity to lock-in gains amid concerns over tightening global supply. The Thai cash price gained to an all-time high. The June-delivery contract, which listed today on the Tokyo Commodity Exchange, advanced to 417 yen per kilogram ($4,975 a metric ton) before settling at 413.5 yen. “Investors cashed in on
Europe Day Ahead: FTSE, Dax, CAC May Open Barely Unchanged
Posted: 22 Dec 2010 04:50 AM PST
The following are today’s top stories for Europe: EUROPEAN MARKETS London’s FTSE may open 4 points down at 5,948, the Dax index in Germany may also be 4 points down at 7,074, and France’s CAC 40 3 points off at 3,924, London Capital Group said. TOP STORIES and MOST READ Banks Dumping JGBs as Only Europe Bonds Do Worse: Japan Credit Japan’s banks, which bought record amounts of government debt
Rubber rises on extended buying
Posted: 22 Dec 2010 04:45 AM PST
NMCE rubber futures hit fresh contract high yesterday on strong buying interest supported by bullish fundamental factors. A rally in TOCOM rubber futures on supply crunch from Thailand supported the Indian market. Domestic markets also witnessed supply crunch as farmers are holding back their produce anticipating further rise in the prices. However, in later part of the day, prices shed
12 Nabbed For Intimidating Rubber Smallholders
Posted: 22 Dec 2010 04:43 AM PST
KUCHING, Dec 22 (Bernama) -- Twelve people linked to secret societies have been detained for 60 days under the Emergency Ordinance 1969 for intimidating rubber smallholders, said Sarawak Police Commissioner Datuk Mohmad Salleh. He this followed complaints from rubber smallholder in Sibu, Sarikei and Bintagor that gangsters had threatened to harm them if they refuse to sell latex to them at
Spot rubber zooms to new peak
Posted: 22 Dec 2010 04:41 AM PST
Kottayam, Dec. 21 Spot rubber finished firm on Tuesday. The trendsetting Japanese markets continued to explore new highs as heavy rains in major producing countries triggered fund buying amidst tight market conditions. But the gains in domestic spot were limited as buyers stayed back following the weakness on the National Multi Commodity Exchange (NMCE). Sheet rubber created yet another record
Tokyo rubber futures hit lifetime high
Posted: 22 Dec 2010 04:38 AM PST
Tokyo (december 22, 2010) : key tokyo rubber futures settled 1.1 percent higher on tuesday after scaling a fresh lifetime high, while shanghai futures hovered near a six-week high, as supply concerns after heavy rains in producing countries spurred fund buying. tocom's key rubber contract for may delivery surged to a lifetime high of 413.8 yen in regular day session trading before settling up
Wednesday, December 22, 2010
Spot rubber zooms to new peak
Spot rubber zooms to new peak
Kottayam, Dec. 21
Spot rubber finished firm on Tuesday. The trendsetting Japanese markets continued to explore new highs as heavy rains in major producing countries triggered fund buying amidst tight market conditions.
But the gains in domestic spot were limited as buyers stayed back following the weakness on the National Multi Commodity Exchange (NMCE). Sheet rubber created yet another record at Rs 207.50 (Rs 207) a kg according to traders.
The grade increased to Rs 207.50 (Rs 206) a kg both at Kottayam and Kochi, according to the Rubber Board. Reacting to the current developments in the market, Mr N. Radhakrishnan, President, Cochin Rubber Merchants Association, said that it has become a part of the vicious circle.
Speculators in the international futures increased their prices, while our speculators also enhanced prices simultaneously.
Growers take it for granted that futures prices would become a reality soon. Since the current market prices are lower compared with futures, growers hold the stock which opens the way for further hike in prices.
The January series declined to Rs 210.05 (Rs 212.36), February to Rs 214.92 (Rs 216.76), March to Rs 219.96 (Rs 220.85) and April to Rs 224.20 (Rs 225.41) a kg for RSS-4 on the National Multi Commodity Exchange.
The December futures improved further to ¥ 405 (Rs 218.94) from ¥ 398.1 during the day session and then to ¥ 406.4 (Rs 219.65) a kg for RSS-3 in the night session on Tokyo Commodity Exchange (TOCOM).
Fundamentally, rubber is likely to extend gains, according to reports from Bangkok. Still there are worries over short supplies as rains may continue until early next year till the low-production period sets in. RSS-3 (spot) flared up to Rs 220.60 (Rs 217.45) a kg at Bangkok.
Spot rubber rates (Rs/kg) were: RSS-4: Rs 207.50 (Rs 207), RSS-5: Rs 201.50 (Rs 201), Ungraded: Rs 197.50 (Rs 197), ISNR-20: Rs 202.50 (Rs 201) and Latex 60 per cent: Rs 134 (Rs 134)
Kottayam, Dec. 21
Spot rubber finished firm on Tuesday. The trendsetting Japanese markets continued to explore new highs as heavy rains in major producing countries triggered fund buying amidst tight market conditions.
But the gains in domestic spot were limited as buyers stayed back following the weakness on the National Multi Commodity Exchange (NMCE). Sheet rubber created yet another record at Rs 207.50 (Rs 207) a kg according to traders.
The grade increased to Rs 207.50 (Rs 206) a kg both at Kottayam and Kochi, according to the Rubber Board. Reacting to the current developments in the market, Mr N. Radhakrishnan, President, Cochin Rubber Merchants Association, said that it has become a part of the vicious circle.
Speculators in the international futures increased their prices, while our speculators also enhanced prices simultaneously.
Growers take it for granted that futures prices would become a reality soon. Since the current market prices are lower compared with futures, growers hold the stock which opens the way for further hike in prices.
The January series declined to Rs 210.05 (Rs 212.36), February to Rs 214.92 (Rs 216.76), March to Rs 219.96 (Rs 220.85) and April to Rs 224.20 (Rs 225.41) a kg for RSS-4 on the National Multi Commodity Exchange.
The December futures improved further to ¥ 405 (Rs 218.94) from ¥ 398.1 during the day session and then to ¥ 406.4 (Rs 219.65) a kg for RSS-3 in the night session on Tokyo Commodity Exchange (TOCOM).
Fundamentally, rubber is likely to extend gains, according to reports from Bangkok. Still there are worries over short supplies as rains may continue until early next year till the low-production period sets in. RSS-3 (spot) flared up to Rs 220.60 (Rs 217.45) a kg at Bangkok.
Spot rubber rates (Rs/kg) were: RSS-4: Rs 207.50 (Rs 207), RSS-5: Rs 201.50 (Rs 201), Ungraded: Rs 197.50 (Rs 197), ISNR-20: Rs 202.50 (Rs 201) and Latex 60 per cent: Rs 134 (Rs 134)
Tuesday, December 21, 2010
Spot rubber stretches to new high
Spot rubber stretches to new high
Kottayam, Dec. 20
The rubber market explored record highs on Monday. On the spot, prices moved up sharply reacting to the gains in the international indices. There were no quantity sellers even during closing hours and the market made all-round gains on fresh buying and short covering.
According to traders, sheet rubber flared up to Rs 207 (Rs 203) a kg, breaking the previous record closing of Rs 206 a kg in late trades.
The grade improved to Rs 206 (Rs 203) a kg both at Kottayam and Kochi, according to the Rubber Board.
Incessant rains across Thailand, Indonesia and Malaysia, have disrupted tapping by the top three producers and lowered the output amidst increasing demand from rising car sales in China and India.
The short supply is expected to worsen as the low-production season starts early next year in Thailand.
Meanwhile, key Tokyo rubber futures scaled a record high during the morning trade in Tokyo supported by strong gains in Shanghai futures and supply concerns in major producing countries.
In domestic futures, the January series firmed up to Rs 212.45 (208.62), February to Rs 216.87 (212.37), March to Rs 221.00 (215.46) and April to Rs 225.50 (219.47) per kg for RSS 4 on the National Multi Commodity Exchange.
The volumes totalled 8,098 lots and open interest 7,195 lots. The turnover was Rs 174.03 crore. The December futures firmed up sharply to ¥398.1 (Rs 215.84) from ¥389 a kg for RSS 3 during the day session and then to ¥402 (Rs 217.96) in the night session on the Tokyo Commodity Exchange (TOCOM).
RSS 3 (spot) increased to Rs 217.45 (213.75) a kg at Bangkok.
The spot rubber rates per kg were: RSS-4: 207 (203 ); RSS-5: 201 (197 ); Ungraded: 197 (193); ISNR 20: 201 (197); and Latex 60%: 134 (131).
IRCo's WEEKLY MARKET SNAPSHOT: 13 - 17 December 2010
Posted: 20 Dec 2010 05:01 AM PST
IRCo's DCP still extended its rise consecutively and ended at 468.26 US cents/kg on Friday. Both rubber futures and physical markets also floated and finished the week higher under support of supply tightness caused by persistent rainfall in rubber producing countries and steady demand from tire and non-tire manufacturers, high oil prices, fund buying, a stable Japanese yen against the greenback,
Rubber Gains to Record as Rain Curbs Thai Supply, U.S. Economy Accelerates
Posted: 20 Dec 2010 04:31 AM PST
Rubber extended its rally to a record as rain curbed output in Thailand, the top exporter, and on speculation China may delay raising interest rates, helping demand. The cash Thai price surged to an all-time high. May-delivery rubber climbed to as high as 412.8 yen a kilogram ($4,889 a metric ton) on the Tokyo Commodity Exchange before ending so-called night trading at 412.4 yen, according to
Commodity Outlook for Rubber by KediaCommodity
Posted: 20 Dec 2010 04:29 AM PST
Rubber ended the week higher as heavy rains in the south of Thailand, the world’s biggest exporter, increased concerns that supply was trailing demand. The cash price gained to an all-time high. Despite high prices, demand remains strong from China, India and Japan. Global demand for natural and synthetic rubber is forecast to increase by 15.3 percent this year to 24.3 million tons, according to
Spot rubber ends unchanged
Posted: 20 Dec 2010 04:25 AM PST
On Saturday (18 December 2010), the spot rubber ended unchanged and the weekend session was inactive and lost its direction as the domestic futures on the National Multi Commodity Exchange seemed almost steady with only minor slips in all contracts. Sheet rubber ended flat at Rs. 203 per kg. The January futures for RSS 4 declined to Rs. 208.62 (208.96), February to Rs. 212.37 (212.78), March to
Rubber market ma continue uptrend this week
Posted: 20 Dec 2010 04:22 AM PST
KUALA LUMPUR: The Malaysia rubber market is expected to continue its uptrend this week as tight supplies globally and the on-going wet weather continue to weigh on prices. Tyre-grade SMR 20 is expected to touch 1,450.0 sen per kg this week, a dealer said, adding that the undertone of the market was still intact. “The fundamentals are very strong due to the wet weather in rubber producing
Indonesia sees rubber exports up 7-8 percent
Posted: 19 Dec 2010 03:01 PM PST
Jakarta (december 19, 2010) : indonesia's rubber association said on thursday it sawrubber exports rising 7-8 percent in 2011 from 2.4 million tonnes this year, in line with its forecast for production growth next year, though it said weather anomalies could hurt supply. indonesia revised up its forecast for 2010 rubber output to 2.8 million tonnes and association gapkindo said earlier this
Commodity Trends: Coffee rubber futures at record highs
Posted: 19 Dec 2010 02:58 PM PST
In global markets, coffee futures surged to a 13-year high on supply concerns especially of high quality Arabica while Rubber futures rallied on heavy rains in south of Thailand, and cash price gained an all-time high. Coffee Futures have surged 66 percent this year, heading for the biggest annual gain since 1994. May-delivery rubber on the Tokyo Commodity Exchange climbed to as high as 400.9
Kottayam, Dec. 20
The rubber market explored record highs on Monday. On the spot, prices moved up sharply reacting to the gains in the international indices. There were no quantity sellers even during closing hours and the market made all-round gains on fresh buying and short covering.
According to traders, sheet rubber flared up to Rs 207 (Rs 203) a kg, breaking the previous record closing of Rs 206 a kg in late trades.
The grade improved to Rs 206 (Rs 203) a kg both at Kottayam and Kochi, according to the Rubber Board.
Incessant rains across Thailand, Indonesia and Malaysia, have disrupted tapping by the top three producers and lowered the output amidst increasing demand from rising car sales in China and India.
The short supply is expected to worsen as the low-production season starts early next year in Thailand.
Meanwhile, key Tokyo rubber futures scaled a record high during the morning trade in Tokyo supported by strong gains in Shanghai futures and supply concerns in major producing countries.
In domestic futures, the January series firmed up to Rs 212.45 (208.62), February to Rs 216.87 (212.37), March to Rs 221.00 (215.46) and April to Rs 225.50 (219.47) per kg for RSS 4 on the National Multi Commodity Exchange.
The volumes totalled 8,098 lots and open interest 7,195 lots. The turnover was Rs 174.03 crore. The December futures firmed up sharply to ¥398.1 (Rs 215.84) from ¥389 a kg for RSS 3 during the day session and then to ¥402 (Rs 217.96) in the night session on the Tokyo Commodity Exchange (TOCOM).
RSS 3 (spot) increased to Rs 217.45 (213.75) a kg at Bangkok.
The spot rubber rates per kg were: RSS-4: 207 (203 ); RSS-5: 201 (197 ); Ungraded: 197 (193); ISNR 20: 201 (197); and Latex 60%: 134 (131).
IRCo's WEEKLY MARKET SNAPSHOT: 13 - 17 December 2010
Posted: 20 Dec 2010 05:01 AM PST
IRCo's DCP still extended its rise consecutively and ended at 468.26 US cents/kg on Friday. Both rubber futures and physical markets also floated and finished the week higher under support of supply tightness caused by persistent rainfall in rubber producing countries and steady demand from tire and non-tire manufacturers, high oil prices, fund buying, a stable Japanese yen against the greenback,
Rubber Gains to Record as Rain Curbs Thai Supply, U.S. Economy Accelerates
Posted: 20 Dec 2010 04:31 AM PST
Rubber extended its rally to a record as rain curbed output in Thailand, the top exporter, and on speculation China may delay raising interest rates, helping demand. The cash Thai price surged to an all-time high. May-delivery rubber climbed to as high as 412.8 yen a kilogram ($4,889 a metric ton) on the Tokyo Commodity Exchange before ending so-called night trading at 412.4 yen, according to
Commodity Outlook for Rubber by KediaCommodity
Posted: 20 Dec 2010 04:29 AM PST
Rubber ended the week higher as heavy rains in the south of Thailand, the world’s biggest exporter, increased concerns that supply was trailing demand. The cash price gained to an all-time high. Despite high prices, demand remains strong from China, India and Japan. Global demand for natural and synthetic rubber is forecast to increase by 15.3 percent this year to 24.3 million tons, according to
Spot rubber ends unchanged
Posted: 20 Dec 2010 04:25 AM PST
On Saturday (18 December 2010), the spot rubber ended unchanged and the weekend session was inactive and lost its direction as the domestic futures on the National Multi Commodity Exchange seemed almost steady with only minor slips in all contracts. Sheet rubber ended flat at Rs. 203 per kg. The January futures for RSS 4 declined to Rs. 208.62 (208.96), February to Rs. 212.37 (212.78), March to
Rubber market ma continue uptrend this week
Posted: 20 Dec 2010 04:22 AM PST
KUALA LUMPUR: The Malaysia rubber market is expected to continue its uptrend this week as tight supplies globally and the on-going wet weather continue to weigh on prices. Tyre-grade SMR 20 is expected to touch 1,450.0 sen per kg this week, a dealer said, adding that the undertone of the market was still intact. “The fundamentals are very strong due to the wet weather in rubber producing
Indonesia sees rubber exports up 7-8 percent
Posted: 19 Dec 2010 03:01 PM PST
Jakarta (december 19, 2010) : indonesia's rubber association said on thursday it sawrubber exports rising 7-8 percent in 2011 from 2.4 million tonnes this year, in line with its forecast for production growth next year, though it said weather anomalies could hurt supply. indonesia revised up its forecast for 2010 rubber output to 2.8 million tonnes and association gapkindo said earlier this
Commodity Trends: Coffee rubber futures at record highs
Posted: 19 Dec 2010 02:58 PM PST
In global markets, coffee futures surged to a 13-year high on supply concerns especially of high quality Arabica while Rubber futures rallied on heavy rains in south of Thailand, and cash price gained an all-time high. Coffee Futures have surged 66 percent this year, heading for the biggest annual gain since 1994. May-delivery rubber on the Tokyo Commodity Exchange climbed to as high as 400.9
Monday, December 20, 2010
Latex Hits Record High Price in Vietnam-Vietnam Rubber Association
Latex Hits Record High Price in Vietnam-Vietnam Rubber Association
Posted: 18 Dec 2010 02:36 PM PST
The cost of latex has reached a record high, climbing to over VND90 million (US$4,300) per tonne due to short supply, said general secretary of Vietnam Rubber Association (VRA) Tran Thi Thuy Hoa. This is the highest it's ever been. It's even higher than before the world recession, Hoa said. While demand on the production industry has increased significantly thanks to the recovery of the world
Indonesia Sees Rubber Exports Up 7-8 Pct In 2011- Indonesia's Rubber Association
Posted: 18 Dec 2010 02:30 PM PST
Indonesia's rubber association said on Thursday (December 16) it saw rubber exports rising 7-8 percent in 2011 from 2.4 million tonnes this year, in line with its forecast for production growth next year, though it said weather anomalies could hurt supply. Indonesia revised up its forecast for 2010 rubber output to 2.8 million tonnes andassociation Gapkindo said earlier this week it also
Rubber Board's Special Programme to Address Tapper Shortage
Posted: 18 Dec 2010 02:28 PM PST
Rubber Board Chairman Mr. V.J. Kurian has announced that the Board will implement a special programme with immediate effect to address the shortage of tappers, which has evolved as a serious issue in the rubber plantation sector. Selected workers from Kerala and other States will be given intensive training in the Board's Tapping Schools in Kerala. Workers from other states having valid
Rubber prices set to continue uptrend
Posted: 18 Dec 2010 02:26 PM PST
The Malaysia rubber market is expected to continue its uptrend next week as tight supplies globally and the on-going wet weather continue to weigh on prices. Tyre-grade SMR 20 is expected to touch 1,450.0 sen per kg next week, a dealer said, adding that the undertone of the market was still intact. "The fundamentals are very strong due to the wet weather in rubber producing countries like
Spot rubber rules steady
Posted: 18 Dec 2010 02:24 PM PST
Kottayam, Dec. 18 Spot rubber finished unchanged on Saturday. The weekend session was comparatively inactive and lost its direction as the domestic futures on the National Multi Commodity Exchange seemed almost steady with only minor slips in all contracts. Most of the traders preferred to wait till the international markets resume trading on Monday after weekend holidays. Sheet rubber
Rubber Climbs to Record as Thailand Rains Hurt Output Amid Growing Demand
Posted: 18 Dec 2010 02:22 PM PST
Rubber extended a rally to a record as heavy rains in the south of Thailand, the world’s biggest exporter, increased concerns that supply was trailing demand. The cash price gained to an all-time high. May-delivery rubber on the Tokyo Commodity Exchange climbed to as high as 400.9 yen per kilogram ($4,784 a metric ton), before ending so-called night trading at 400.5 yen, according to intraday
Spot rubber improves on buying
Posted: 18 Dec 2010 02:20 PM PST
Kottayam, Dec 17 Physical rubber prices showed a better trend on Friday. The gap between the domestic and international prices kept the undercurrent firm and the market moved up on fresh buying and short covering. The unexpected changes in weather have also influenced the sentiments. There were rumours that certain tyre manufacturers were buyers on sheet rubber on early trades. Among other news
Tokyo rubber futures bounce
Posted: 18 Dec 2010 02:17 PM PST
Singapore (december 17, 2010) : the most active rubber contract on the tokyo commodity exchange bounced from lows on thursday on bargain hunting, but a lack of activity in the physical market could put pressure on prices. tocom's may rubber contract settled 3 yen a kg higher at 396.7 yen, having hit a low of 390.2 yen. the contract struck a record at 400.1 yen a kg on tuesday on worries about
North to come under rubber cultivation
Posted: 18 Dec 2010 02:14 PM PST
With Sri Lankan natural rubber currently attracting great demand in the international market and fetching the highest ever price of Rs.400.61, large areas of the former war-torn Northern districts of Vavuniya, Kilinochchi and Mullaitivu are also to be brought under rubber cultivation. Director General of the Rubber Development Department, R.B. Premadasa told the Sunday Observer
Posted: 18 Dec 2010 02:36 PM PST
The cost of latex has reached a record high, climbing to over VND90 million (US$4,300) per tonne due to short supply, said general secretary of Vietnam Rubber Association (VRA) Tran Thi Thuy Hoa. This is the highest it's ever been. It's even higher than before the world recession, Hoa said. While demand on the production industry has increased significantly thanks to the recovery of the world
Indonesia Sees Rubber Exports Up 7-8 Pct In 2011- Indonesia's Rubber Association
Posted: 18 Dec 2010 02:30 PM PST
Indonesia's rubber association said on Thursday (December 16) it saw rubber exports rising 7-8 percent in 2011 from 2.4 million tonnes this year, in line with its forecast for production growth next year, though it said weather anomalies could hurt supply. Indonesia revised up its forecast for 2010 rubber output to 2.8 million tonnes andassociation Gapkindo said earlier this week it also
Rubber Board's Special Programme to Address Tapper Shortage
Posted: 18 Dec 2010 02:28 PM PST
Rubber Board Chairman Mr. V.J. Kurian has announced that the Board will implement a special programme with immediate effect to address the shortage of tappers, which has evolved as a serious issue in the rubber plantation sector. Selected workers from Kerala and other States will be given intensive training in the Board's Tapping Schools in Kerala. Workers from other states having valid
Rubber prices set to continue uptrend
Posted: 18 Dec 2010 02:26 PM PST
The Malaysia rubber market is expected to continue its uptrend next week as tight supplies globally and the on-going wet weather continue to weigh on prices. Tyre-grade SMR 20 is expected to touch 1,450.0 sen per kg next week, a dealer said, adding that the undertone of the market was still intact. "The fundamentals are very strong due to the wet weather in rubber producing countries like
Spot rubber rules steady
Posted: 18 Dec 2010 02:24 PM PST
Kottayam, Dec. 18 Spot rubber finished unchanged on Saturday. The weekend session was comparatively inactive and lost its direction as the domestic futures on the National Multi Commodity Exchange seemed almost steady with only minor slips in all contracts. Most of the traders preferred to wait till the international markets resume trading on Monday after weekend holidays. Sheet rubber
Rubber Climbs to Record as Thailand Rains Hurt Output Amid Growing Demand
Posted: 18 Dec 2010 02:22 PM PST
Rubber extended a rally to a record as heavy rains in the south of Thailand, the world’s biggest exporter, increased concerns that supply was trailing demand. The cash price gained to an all-time high. May-delivery rubber on the Tokyo Commodity Exchange climbed to as high as 400.9 yen per kilogram ($4,784 a metric ton), before ending so-called night trading at 400.5 yen, according to intraday
Spot rubber improves on buying
Posted: 18 Dec 2010 02:20 PM PST
Kottayam, Dec 17 Physical rubber prices showed a better trend on Friday. The gap between the domestic and international prices kept the undercurrent firm and the market moved up on fresh buying and short covering. The unexpected changes in weather have also influenced the sentiments. There were rumours that certain tyre manufacturers were buyers on sheet rubber on early trades. Among other news
Tokyo rubber futures bounce
Posted: 18 Dec 2010 02:17 PM PST
Singapore (december 17, 2010) : the most active rubber contract on the tokyo commodity exchange bounced from lows on thursday on bargain hunting, but a lack of activity in the physical market could put pressure on prices. tocom's may rubber contract settled 3 yen a kg higher at 396.7 yen, having hit a low of 390.2 yen. the contract struck a record at 400.1 yen a kg on tuesday on worries about
North to come under rubber cultivation
Posted: 18 Dec 2010 02:14 PM PST
With Sri Lankan natural rubber currently attracting great demand in the international market and fetching the highest ever price of Rs.400.61, large areas of the former war-torn Northern districts of Vavuniya, Kilinochchi and Mullaitivu are also to be brought under rubber cultivation. Director General of the Rubber Development Department, R.B. Premadasa told the Sunday Observer
Sunday, December 19, 2010
Spot rubber rules steady
Spot rubber rules steady
Kottayam, Dec. 18
Spot rubber finished unchanged on Saturday.
The weekend session was comparatively inactive and lost its direction as the domestic futures on the National Multi Commodity Exchange seemed almost steady with only minor slips in all contracts.
Most of the traders preferred to wait till the international markets resume trading on Monday after weekend holidays.
Sheet rubber finished flat at Rs 203 a kg according to traders. The transactions were low.
Futures slip
In futures, the January series slipped to Rs 208.62 (208.96), February to Rs 212.37 (212.78), March to Rs 215.46 (216.07) and April to Rs 219.47 (219.98) a kg for RSS 4 on the NMCE.
Spot rates were (Rs/kg): RSS-4: 203 (203); RSS-5: 197 (197); ungraded: 193 (193); ISNR 20: 197 (197) and latex 60 per cent: 131 (131).
Kottayam, Dec. 18
Spot rubber finished unchanged on Saturday.
The weekend session was comparatively inactive and lost its direction as the domestic futures on the National Multi Commodity Exchange seemed almost steady with only minor slips in all contracts.
Most of the traders preferred to wait till the international markets resume trading on Monday after weekend holidays.
Sheet rubber finished flat at Rs 203 a kg according to traders. The transactions were low.
Futures slip
In futures, the January series slipped to Rs 208.62 (208.96), February to Rs 212.37 (212.78), March to Rs 215.46 (216.07) and April to Rs 219.47 (219.98) a kg for RSS 4 on the NMCE.
Spot rates were (Rs/kg): RSS-4: 203 (203); RSS-5: 197 (197); ungraded: 193 (193); ISNR 20: 197 (197) and latex 60 per cent: 131 (131).
Friday, December 17, 2010
Spot rubber prices gain on global cues
Spot rubber prices gain on global cues
Kottayam, Dec.16
Rubber prices improved on Thursday. On the spot market, another sharp rise in Bangkok spot prices catalysed the domestic mood and the market made all-round gains on fresh buying and short covering. According to observers, there was neither visible buying from the tyre sector nor improvement in arrivals to influence the day's trend. The undercurrent was firm.
Sheet rubber closed at Rs 202 a kg at the main marketing centres. The grade increased to Rs 201 (199.50) a kg both in Kottayam and Kochi, according to the Rubber Board.
Futures flare up
The January series flared up to Rs 208.16 (205.14), February to Rs 211.70 (208.35) and March to Rs 214.60 (211.43), while the April series concluded the debut trading session at Rs 218.01 a kg for RSS 4 on the National Multi Commodity Exchange.
The December futures for RSS 3 slipped to ¥ 386.5 (Rs 208.60) from ¥ 387.0 a kg during the day session, but then recovered partially to ¥ 386.7 (Rs 208.70) in the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) increased to Rs 213.02 (211.82) a kg at Bangkok.
Spot prices (Rs/kg) were: RSS-4: 202 (200); RSS-5: 195 (191.50); Ungraded: 192 (188); ISNR 20: 194 (193); and latex 60 per cent: 130 (129).
Kottayam, Dec.16
Rubber prices improved on Thursday. On the spot market, another sharp rise in Bangkok spot prices catalysed the domestic mood and the market made all-round gains on fresh buying and short covering. According to observers, there was neither visible buying from the tyre sector nor improvement in arrivals to influence the day's trend. The undercurrent was firm.
Sheet rubber closed at Rs 202 a kg at the main marketing centres. The grade increased to Rs 201 (199.50) a kg both in Kottayam and Kochi, according to the Rubber Board.
Futures flare up
The January series flared up to Rs 208.16 (205.14), February to Rs 211.70 (208.35) and March to Rs 214.60 (211.43), while the April series concluded the debut trading session at Rs 218.01 a kg for RSS 4 on the National Multi Commodity Exchange.
The December futures for RSS 3 slipped to ¥ 386.5 (Rs 208.60) from ¥ 387.0 a kg during the day session, but then recovered partially to ¥ 386.7 (Rs 208.70) in the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) increased to Rs 213.02 (211.82) a kg at Bangkok.
Spot prices (Rs/kg) were: RSS-4: 202 (200); RSS-5: 195 (191.50); Ungraded: 192 (188); ISNR 20: 194 (193); and latex 60 per cent: 130 (129).
Wednesday, December 15, 2010
Rubber Futures Pare Gains as Investors Lock in Profit After Record Rally
Rubber Futures Pare Gains as Investors Lock in Profit After Record Rally
Posted: 13 Dec 2010 10:45 PM PST
Rubber retreated from a record rally as some investors cashed in profits and falling crude oil cut the appeal of the commodity used to make tires and gloves. The cash price in Thailand also reached a record. May-delivery rubber on the Tokyo Commodity Exchange declined as much as 0.8 percent to 392.5 yen per kilogram (4,703 a metric ton) after climbing to an all-time high of 400.1 yen earlier.
Thai Physical Rubber Price Climbs to Record 141.05 Baht a Kilo
Posted: 13 Dec 2010 10:42 PM PST
Dec. 14 (Bloomberg) -- The physical price of natural rubber in Thailand, the world’s largest producer and exporter, climbed to a record 141.05 baht per kilogram, from 138.55 baht yesterday, as persistent rains have lowered output amid continued demand from China and India, according to the Rubber Research Institute of Thailand. (Source: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=
Spot rubber gains as growers hold back stocks
Posted: 13 Dec 2010 10:40 PM PST
Kottayam, Dec. 13 Spot rubber prices improved on Monday. On the spot, prices firmed up reacting to sharp gains in the domestic and international markets. Supply concerns continued to haunt the sentiments though there has been a positive change in weather as rains subsided during the past couple of days. According to observers, growers mostly preferred to hold on their stocks expecting the rally
Tokyo rubber futures hit record high
Posted: 13 Dec 2010 10:38 PM PST
Singapore (december 14, 2010) : the most active rubber contract on the tokyo commodity exchange surged to a record on monday on fund buying driven by tight supply in producing countries and rising imports from top consumer china. tocom's may rubber contract hit a high at 396.4 yen a kg before settling at 395.5 yen, up 13.6 yen from previous settlement. the previous record was 388.9 yen a kg hit
Spot rubber rules firm
Kottayam, Dec. 14
The physical rubber prices were firm on Tuesday. According to analysts, the market moved up since the gap between the domestic and international rates widened mainly following the spurt in Bangkok spot prices.
Weakness on NMCE failed to dampen the sentiments though it affected the strength partially during closing hours. There were no buyers from major consuming industries or quantity sellers but the undercurrent was bullish as the inflow of the raw material continued to be meagre.
Sheet rubber improved to Rs 200 (199.50) a kg according to traders. The grade settled firm at Rs 199.50 (198.50) a kg both at Kottayam and Kochi as reported in the official website of the Rubber Board.
RSS 4 weakened at the December series to Rs 200.50 (201.23), January to Rs 203.97 (205.06), February to Rs 207.15 (208.31) and March to Rs 210.40 (211.12) a kg on National Multi Commodity Exchange (NMCE). The volumes totalled 6198 lots and open interest 6852 lots. The turnover was Rs 127.98 crores.
The December futures for RSS 3 increased to ¥387.7 (Rs 210.22) from ¥385.9 a kg during the day session but then slipped to ¥385 (Rs 208.73) in the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) flared up to Rs 212.63 (208.69) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 200 (199.50); RSS-5: 191 (189.50); ungraded: 187 (186); ISNR 20: 193 (191.50) and latex 60 per cent: 128 (128).
Posted: 13 Dec 2010 10:45 PM PST
Rubber retreated from a record rally as some investors cashed in profits and falling crude oil cut the appeal of the commodity used to make tires and gloves. The cash price in Thailand also reached a record. May-delivery rubber on the Tokyo Commodity Exchange declined as much as 0.8 percent to 392.5 yen per kilogram (4,703 a metric ton) after climbing to an all-time high of 400.1 yen earlier.
Thai Physical Rubber Price Climbs to Record 141.05 Baht a Kilo
Posted: 13 Dec 2010 10:42 PM PST
Dec. 14 (Bloomberg) -- The physical price of natural rubber in Thailand, the world’s largest producer and exporter, climbed to a record 141.05 baht per kilogram, from 138.55 baht yesterday, as persistent rains have lowered output amid continued demand from China and India, according to the Rubber Research Institute of Thailand. (Source: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=
Spot rubber gains as growers hold back stocks
Posted: 13 Dec 2010 10:40 PM PST
Kottayam, Dec. 13 Spot rubber prices improved on Monday. On the spot, prices firmed up reacting to sharp gains in the domestic and international markets. Supply concerns continued to haunt the sentiments though there has been a positive change in weather as rains subsided during the past couple of days. According to observers, growers mostly preferred to hold on their stocks expecting the rally
Tokyo rubber futures hit record high
Posted: 13 Dec 2010 10:38 PM PST
Singapore (december 14, 2010) : the most active rubber contract on the tokyo commodity exchange surged to a record on monday on fund buying driven by tight supply in producing countries and rising imports from top consumer china. tocom's may rubber contract hit a high at 396.4 yen a kg before settling at 395.5 yen, up 13.6 yen from previous settlement. the previous record was 388.9 yen a kg hit
Spot rubber rules firm
Kottayam, Dec. 14
The physical rubber prices were firm on Tuesday. According to analysts, the market moved up since the gap between the domestic and international rates widened mainly following the spurt in Bangkok spot prices.
Weakness on NMCE failed to dampen the sentiments though it affected the strength partially during closing hours. There were no buyers from major consuming industries or quantity sellers but the undercurrent was bullish as the inflow of the raw material continued to be meagre.
Sheet rubber improved to Rs 200 (199.50) a kg according to traders. The grade settled firm at Rs 199.50 (198.50) a kg both at Kottayam and Kochi as reported in the official website of the Rubber Board.
RSS 4 weakened at the December series to Rs 200.50 (201.23), January to Rs 203.97 (205.06), February to Rs 207.15 (208.31) and March to Rs 210.40 (211.12) a kg on National Multi Commodity Exchange (NMCE). The volumes totalled 6198 lots and open interest 6852 lots. The turnover was Rs 127.98 crores.
The December futures for RSS 3 increased to ¥387.7 (Rs 210.22) from ¥385.9 a kg during the day session but then slipped to ¥385 (Rs 208.73) in the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) flared up to Rs 212.63 (208.69) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 200 (199.50); RSS-5: 191 (189.50); ungraded: 187 (186); ISNR 20: 193 (191.50) and latex 60 per cent: 128 (128).
Tuesday, December 14, 2010
Spot rubber gains as growers hold back stocks
Spot rubber gains as growers hold back stocks
Kottayam, Dec. 13
Spot rubber prices improved on Monday. On the spot, prices firmed up reacting to sharp gains in the domestic and international markets.
Supply concerns continued to haunt the sentiments though there has been a positive change in weather as rains subsided during the past couple of days. According to observers, growers mostly preferred to hold on their stocks expecting the rally to continue in tune with the global trend.
Sheet rubber increased to Rs 199.50 (198) a kg according to dealers. The grade finished firm at Rs 198.50 (Rs 197.50) a kg both at Kottayam and Kochi, according to Rubber Board.
In futures, the December series moved up to Rs 201.15 (Rs 198.10), January to Rs 205.28 (Rs 201.67), February to Rs 208.64 (Rs 205.37) and March to Rs 211.29 (Rs 208.61) a kg on the National Multi Commodity Exchange.
RSS 3 flared up sharply with the December futures rising to Rs 385.9 (Rs 207.32) from Rs 372.9 a kg during the day session and then to Rs 388.5 (Rs 208.71) in the night session on the Tokyo Commodity Exchange. The grade (spot) improved to Rs. 208.69 (Rs 205.64) a kg at Bangkok.
Spot rubber rates (Rs/kg) were: RSS-4: Rs 199.50 (Rs 198), RSS-5: Rs 189.50 (Rs 188), Ungraded: Rs 186 (Rs 184), ISNR 20: Rs 191.50 (Rs 191) and Latex 60 per cent: Rs 128 (Rs 127)
TOCOM Rubber rises on short covering
Posted: 13 Dec 2010 04:14 AM PST
Rubber gained, booking second weekly increase, amid concern that supply from Thailand, the largest exporter, may tighten further on seasonal decline in output. May-delivery rubber on the Tokyo Commodity Exchange advanced 0.4 percent to settle at 381.9 yen per kilogram ($4,563 a metric ton) after climbing to 383 yen, matching a 30-year high reached on Nov. 11. The contract advanced 3.1 percent
Rubber Climbs to Record in Tokyo as Supply Shortage May Deepen on China
Posted: 13 Dec 2010 04:08 AM PST
Rubber climbed to a record as rain cut production in Southeast Asia, worsening a shortage as demand for the commodity used in tires expands in China and India. The cash price in Thailand reached an all-time high. May-delivery rubber on the Tokyo Commodity Exchange climbed to as high as 400 yen per kilogram (4,746 a metric ton), before ending so-called night trading at 399.6 yen. Trading in this
Commodity Outlook for Rubber by KediaCommodity
Posted: 13 Dec 2010 04:04 AM PST
Rubber yesterday traded with the positive node and settled 0.08% up at 19825 recovering from its lows amid concern that supply from Thailand, the largest exporter, may tighten further on seasonal decline in output. Global consumption of natural rubber will outstrip supply by 313,000 tons this year, the most since 2006. In yesterday's trading session Rubber has touched the low of 19710 after
Malaysian rubber prices are likely to ease slightly this week
Posted: 13 Dec 2010 04:02 AM PST
KUALA LUMPUR: Malaysian rubber prices are likely to ease slightly on technical correction after sharp advances last week, dealer said. He said the market was expected to track developments overseas, particularly China which is scheduled to release its November economic data. Last week, rubber prices rose sharply on tight supply situation as output was disrupted by continuous rain. The
Natural rubber prices to remain volatile: Analysts
Posted: 12 Dec 2010 03:20 PM PST
Rubber prices, which touched record high levels last month, are likely to remain volatile in the next year also, according to industry analysts. "Most of the Rubber growing areas are located on the rim of Pacific Ocean and are frequently troubled by tropical storms impacting the production," National Multi Commodity Exchange CEO Anil Mishra told PTI. He said that the key growing areas of
Rain stretches spot rubber gains
Posted: 12 Dec 2010 03:18 PM PST
Kottayam, Dec 11 Spot rubber market improved on Saturday. The prices firmed up mainly on covering purchases though the domestic futures were almost steady on the National Multi Commodity Exchange. According to reports, off-season rains disrupted the tapping in most of the plantations. Sheet rubber firmed up to Rs 198 (197.50) a kg both at Kottayam and Kochi. FUTURES MIXED The trend
Rubber closes at 38-year high
Posted: 12 Dec 2010 03:14 PM PST
CPO FUTURES CRUDE palm oil (CPO) prices ended higher on Bursa Malaysia Derivatives yesterday despite a larger-than-expected drop in overseas market, dealers said. Cargo surveyor, Intertek Testing Services, said exports of Malaysian palm oil products for December 1-10 fell 23.7 per cent to 298,005 tonnes from 390,534 tonnes shipped during November 1-10. Meanwhile, Malaysian Palm Oil Board
Tokyo rubber futures match 30-year peak
Posted: 12 Dec 2010 03:12 PM PST
Singapore (december 11, 2010) : tokyo rubber futures matched a 30-year high on friday on tight physical supply but dealers avoided aggressive buying ahead of important economic data from top consumer china at the weekend, which could set the tone for the market. china's consumer inflation may have hit 5.1 percent in november, the economic information daily reported on friday, without citing any
Rubber Futures Advance for Second Week Amid Concerns About Thai Supply
Posted: 12 Dec 2010 03:11 PM PST
Rubber gained, booking second weekly increase, amid concern that supply from Thailand, the largest exporter, may tighten further on seasonal decline in output. May-delivery rubber on the Tokyo Commodity Exchange advanced 0.4 percent to settle at 381.9 yen per kilogram ($4,563 a metric ton) after climbing to 383 yen, matching a 30-year high reached on Nov. 11. The contract advanced 3.1 percent
Kottayam, Dec. 13
Spot rubber prices improved on Monday. On the spot, prices firmed up reacting to sharp gains in the domestic and international markets.
Supply concerns continued to haunt the sentiments though there has been a positive change in weather as rains subsided during the past couple of days. According to observers, growers mostly preferred to hold on their stocks expecting the rally to continue in tune with the global trend.
Sheet rubber increased to Rs 199.50 (198) a kg according to dealers. The grade finished firm at Rs 198.50 (Rs 197.50) a kg both at Kottayam and Kochi, according to Rubber Board.
In futures, the December series moved up to Rs 201.15 (Rs 198.10), January to Rs 205.28 (Rs 201.67), February to Rs 208.64 (Rs 205.37) and March to Rs 211.29 (Rs 208.61) a kg on the National Multi Commodity Exchange.
RSS 3 flared up sharply with the December futures rising to Rs 385.9 (Rs 207.32) from Rs 372.9 a kg during the day session and then to Rs 388.5 (Rs 208.71) in the night session on the Tokyo Commodity Exchange. The grade (spot) improved to Rs. 208.69 (Rs 205.64) a kg at Bangkok.
Spot rubber rates (Rs/kg) were: RSS-4: Rs 199.50 (Rs 198), RSS-5: Rs 189.50 (Rs 188), Ungraded: Rs 186 (Rs 184), ISNR 20: Rs 191.50 (Rs 191) and Latex 60 per cent: Rs 128 (Rs 127)
TOCOM Rubber rises on short covering
Posted: 13 Dec 2010 04:14 AM PST
Rubber gained, booking second weekly increase, amid concern that supply from Thailand, the largest exporter, may tighten further on seasonal decline in output. May-delivery rubber on the Tokyo Commodity Exchange advanced 0.4 percent to settle at 381.9 yen per kilogram ($4,563 a metric ton) after climbing to 383 yen, matching a 30-year high reached on Nov. 11. The contract advanced 3.1 percent
Rubber Climbs to Record in Tokyo as Supply Shortage May Deepen on China
Posted: 13 Dec 2010 04:08 AM PST
Rubber climbed to a record as rain cut production in Southeast Asia, worsening a shortage as demand for the commodity used in tires expands in China and India. The cash price in Thailand reached an all-time high. May-delivery rubber on the Tokyo Commodity Exchange climbed to as high as 400 yen per kilogram (4,746 a metric ton), before ending so-called night trading at 399.6 yen. Trading in this
Commodity Outlook for Rubber by KediaCommodity
Posted: 13 Dec 2010 04:04 AM PST
Rubber yesterday traded with the positive node and settled 0.08% up at 19825 recovering from its lows amid concern that supply from Thailand, the largest exporter, may tighten further on seasonal decline in output. Global consumption of natural rubber will outstrip supply by 313,000 tons this year, the most since 2006. In yesterday's trading session Rubber has touched the low of 19710 after
Malaysian rubber prices are likely to ease slightly this week
Posted: 13 Dec 2010 04:02 AM PST
KUALA LUMPUR: Malaysian rubber prices are likely to ease slightly on technical correction after sharp advances last week, dealer said. He said the market was expected to track developments overseas, particularly China which is scheduled to release its November economic data. Last week, rubber prices rose sharply on tight supply situation as output was disrupted by continuous rain. The
Natural rubber prices to remain volatile: Analysts
Posted: 12 Dec 2010 03:20 PM PST
Rubber prices, which touched record high levels last month, are likely to remain volatile in the next year also, according to industry analysts. "Most of the Rubber growing areas are located on the rim of Pacific Ocean and are frequently troubled by tropical storms impacting the production," National Multi Commodity Exchange CEO Anil Mishra told PTI. He said that the key growing areas of
Rain stretches spot rubber gains
Posted: 12 Dec 2010 03:18 PM PST
Kottayam, Dec 11 Spot rubber market improved on Saturday. The prices firmed up mainly on covering purchases though the domestic futures were almost steady on the National Multi Commodity Exchange. According to reports, off-season rains disrupted the tapping in most of the plantations. Sheet rubber firmed up to Rs 198 (197.50) a kg both at Kottayam and Kochi. FUTURES MIXED The trend
Rubber closes at 38-year high
Posted: 12 Dec 2010 03:14 PM PST
CPO FUTURES CRUDE palm oil (CPO) prices ended higher on Bursa Malaysia Derivatives yesterday despite a larger-than-expected drop in overseas market, dealers said. Cargo surveyor, Intertek Testing Services, said exports of Malaysian palm oil products for December 1-10 fell 23.7 per cent to 298,005 tonnes from 390,534 tonnes shipped during November 1-10. Meanwhile, Malaysian Palm Oil Board
Tokyo rubber futures match 30-year peak
Posted: 12 Dec 2010 03:12 PM PST
Singapore (december 11, 2010) : tokyo rubber futures matched a 30-year high on friday on tight physical supply but dealers avoided aggressive buying ahead of important economic data from top consumer china at the weekend, which could set the tone for the market. china's consumer inflation may have hit 5.1 percent in november, the economic information daily reported on friday, without citing any
Rubber Futures Advance for Second Week Amid Concerns About Thai Supply
Posted: 12 Dec 2010 03:11 PM PST
Rubber gained, booking second weekly increase, amid concern that supply from Thailand, the largest exporter, may tighten further on seasonal decline in output. May-delivery rubber on the Tokyo Commodity Exchange advanced 0.4 percent to settle at 381.9 yen per kilogram ($4,563 a metric ton) after climbing to 383 yen, matching a 30-year high reached on Nov. 11. The contract advanced 3.1 percent
Wednesday, December 8, 2010
Spot rubber weakens on buyer resistance
Spot rubber weakens on buyer resistance
Kottayam, Dec. 7
Spot rubber turned weak on Tuesday. The prices slipped on buyer resistance while most of the players stayed back letting the prices to settle at comfortable levels as rains subsided and almost came to a halt giving way to the beginning of the much awaited peak production season. But there was no improvement in arrivals yet or selling pressure from any corner, market circles reported.
The trend was mixed. Sheet rubber declined to Rs 197.50 from Rs 199.00 a kg in the main marketing centres. According to the Rubber Board, the grade finished weak at Rs 197.50 (198.50) a kg both at Kottayam and Kochi.
RSS 4 recovered partially at the December series to Rs 199.80 (198.00), January to Rs 202.70 (200.66), February to Rs 206.31 (204.63) and March to Rs 209.55 (207.84) per kg on National Multi Commodity Exchange (NMCE).
The volumes totalled 6,000 lots and open interest 6,445 lots. The turnover was Rs 121.05 crore.
The December futures firmed up to Rs 368.5 (199.37) from Rs 366.8 a kg for RSS 3 during the day session but then remained inactive in the night session on Tokyo Commodity Exchange (TOCOM).
RSS 3 (spot) closed at Rs. 202.70 (203.05) a kg at Bangkok. The spot rubber prices per kg were: RSS-4: Rs 197.50 (199.00), RSS-5: Rs 187.50 (188.00), Ungraded : Rs 182.00 (182.00), ISNR 20: Rs 190.50 (191.00), and Latex 60 per cent : Rs 128.00 (128.00)
Rubber Climbs to Two-Week High as Supply in Thailand Limited, Oil Advances
Posted: 06 Dec 2010 02:47 PM PST
Rubber climbed to a three-week high after a rally in oil raised the appeal of the commodity as an alternative to synthetic products used in tires and tight supply boosted the Thai cash price to a record.
May-delivery rubber on the Tokyo Commodity Exchange gained as much as 2.3 percent to 378.8 yen per kilogram ($4,569 a metric ton) before settling at 378 yen. The price climbed to the highest level since Nov. 11, when a most-active contract reached a 30-year high of 383 yen.
Oil advanced to the highest in 26 months in New York amid optimism fuel demand will increase. Physical rubber prices in Thailand, the biggest producer and exporter, increased to a record on Dec. 3 on a supply shortage, according to the Rubber Research Institute of Thailand. Futures also gained on expectation the Federal Reserve may take more steps to boost economic growth.
“Rubber chased a rally in oil and metals as investor demand for commodities increased amid speculation over U.S. monetary easing,” Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone. “Futures were also supported by the strength of physical rubber prices.”
Federal Reserve Chairman Ben S. Bernanke said U.S. unemployment may take five years to return to a normal level and that Fed purchases of Treasury securities beyond the $600 billion announced last month are possible.
Bernanke Comments
“At the rate we’re going, it could be four, five years before we are back to a more normal unemployment rate” of about 5 to 6 percent, Bernanke said according to the transcript of an interview aired today on CBS Corp.’s “60 Minutes” program.
Bernanke and other Fed officials have defended the central bank’s announcement that it will purchase $75 billion in Treasury securities a month through June to prop up a recovery so weak that only 39,000 jobs were created in November.
Oil for January delivery added as much as 0.6 percent to $89.76 a barrel in electronic trading on the New York Mercantile Exchange, the highest since October 2008, before trading at $89.69 at 4:53 p.m. Tokyo time. Higher oil boosts the cost of making synthetic rubber.
The cash rubber price in Thailand climbed to a record 134.05 baht ($4.46) per kilogram on Dec. 3, according to the Rubber Research Institute of Thailand. Demand remained strong amid a supply shortage as rain persists in southern Thailand, the institute said. Thailand’s south accounts for 80 percent of output. The Thai market was closed today for a holiday.
Bridgestone Corp., the world’s largest tiremaker, plans to raise Japanese prices of truck and bus tires by an average of 7 percent after rubber and petrochemical costs increased. The changes will take effect March 1, the company said in a statement on its website today.
May-delivery rubber in Shanghai added 1.5 percent to 32,835 yuan ($4,939) a ton. It reached a record 38,920 yuan on Nov. 11.
China’s natural-rubber inventories dropped for the first time in 10 weeks, declining 6,665 tons to 55,346 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the bourse said on Dec. 3.
(Source: http://www.bloomberg.com/news/2010-12-06/rubber-climbs-to-two-week-high-as-supply-in-thailand-limited-oil-advances.html)
Rubber weakens on lack of buying
Posted: 06 Dec 2010 02:44 PM PST
Kottayam, Dec. 6
Physical rubber prices improved on Monday.
According to sources, the market opened better and remained firm due to the lack of sellers on major grades, possibly following the gains in Tokyo Commodity Exchange. But it showed signs of weakness during closing hours as the domestic futures finished weak on NMCE. The trend was mixed.
Among other news, the Tokyo rubber futures hit a two-week high, catalysed by the rise in oil prices but the gains were limited due to a stronger yen.
Sheet rubber increased to Rs 199.00 (197.00) a kg according to traders. The grade finished firm at Rs 198.50 (198.00) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The December series declined to Rs 197.90 (200.16), January to Rs 200.33 (203.18), February to Rs 204.32 (207.00) and March to Rs 207.71 (209.76) per kg for RSS 4 on National Multi Commodity Exchange.
RSS 3 firmed up at its December futures to A5 366.8 (Rs 199.04) from A5 361.7 per kg during the day session but remained inactive in the night session on Tokyo Commodity Exchange. The spot rubber prices per kg were RSS-4 — Rs 199.00 (197.00); RSS-5 — Rs 188.00 (186.00); Ungraded — Rs 182.00 (181.00); ISNR 20 — Rs 191.00 (191.00) and Latex 60% — Rs 128.00 (128.00).
(Source: http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=2112112&page=&format=html&comments=0)
UBS cuts Michelin hopes amid rubber price fears
Posted: 06 Dec 2010 02:43 PM PST
Shares in Michelin slid 3% after UBS cut its rating on the stock to "sell", flagging the difficulties tyremakers are suffering in passing on higher costs of both natural and synethetic rubber.
The bank also lowered to "neutral" from "buy" its recommendation on shares in Japan's Yokohama Rubber and Sumitomo Rubber Industries, warning of rubber costs rising to $4.20 a kilogramme next year, some 20% higher than previous forecasts.
"While the price of [natural rubber] may reflect a spike, we expect supply constraints to remain significant, as demand for natural rubber looks set to exceed production," UBS analysts said.
"Beyond adverse weather conditions negatively impacting rubber harvests in the fourth quarter, supply of natural rubber looks set to remain tight as a result of ageing hevea trees and low levels of replanting."
'Weak link'
Meanwhile, prices of synthetic rubber, which also have a bearing on the market for natural alternatives, were rising too, up 9% in the past two weeks, thanks to rising prices of oil, from which it is made, and manufacturing constraints.
Breakdown of Michelin's raw material costs
Natural rubber: 28%
Synthetic rubber: 26%
Fillers:16%
Chemicals: 13%
Steelcord: 10%
Textile: 7%
Sources: Michelin/UBS
Such higher costs boded ill for tyremakers, who looked the "weak link in the value chain", facing increased competition as emerging market manufacturers hit the mainstream.
French-based Michelin looked especially at risk thanks to its "high exposure to natural rubber-intensive truck tyres and to price sensitive consumers and distributors".
Shares in the group closed down E1.67 at E54.58 in Paris, taking their decline since a late-September high to some 15%.
'New era'
The downgrades came as rubber touched a three-week high in Tokyo of 378.8 yen a kilogramme, for the benchmark May contract, lifted by the rising price of oil, and therefore implied inflation in synthetic rubber.
"Natural rubber prices have not decoupled from crude oil prices for the past few months," Ker Chung Yang at Phillip Futures said, seeing potential further rises in oil to $92 a barrel for next year.
Meanwhile, demand for the commodity remains high, boosted by surging demand for cars in developing countries, and in particular in China and India.
"General sentiment on natural rubber remains bullish on supportive fundamentals," Mr Ker said, forecasting a "new era" of high prices.
(Source: http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=2112007&page=&format=html&comments=0)
M'sian rubber market seen to be firm this week
Posted: 06 Dec 2010 02:41 PM PST
KUALA LUMPUR The Malaysian rubber market is expected to be firm this week, dealers said.
A dealer said there may be concerns on supply contraints due to bad weather that had disrupted tapping and output.
Prices are likely to be supported at this level amid concerns over tight supplies, he said.
Previous week, the SMR 20 buyers' price breached its record high level of 1,335.0 sen previously, to settle at 1,340.5 sen per kg on Friday.
On a weekly basis, the Malaysian Rubber Board's official sellers' physical price for tyre-grade SMR 20 ended 31.5 sen higher at 1,351.0 sen per kg compared with 1,319.5 sen per kg previous Friday, while latex-in-bulk rose 25 sen to 907 sen per kg. The unofficial sellers' closing price for tyre-grade SMR 20 gained 41 sen to 1,354.0 sen per kg while latex-in-bulk went up 30 sen to 910.0 sen per kg.
(Source: http://biz.thestar.com.my/news/story.asp?file=/2010/12/6/business/7561754&sec=business)
Global rubber output expected to drop in Q4
Posted: 06 Dec 2010 02:39 PM PST
Kochi, Dec. 6
Following production shortfalls reported from India even during the peak production months of October-November, the Association of Natural Rubber Producing Countries (ANRPC) has predicted that global natural rubber production would fall by 3.8 per cent during the fourth quarter of the current year.
However, the ANRPC, which accounts for over 92 per cent of the global rubber production, has stated that the overall world production for 2010 would be on the higher side given major upward revision reported by Indonesia for Q3 and Q4. This was against smaller downward revisions reported by Thailand and Malaysia.
Indian dip
The production of natural rubber in India had declined by 5.4 per cent in November to 88,500 tonnes as against 93,500 tonnes during the same month last year, provisional estimates put out by the Rubber Board of India revealed.
However, the Automotive Tyre Manufacturers Association of India had pointed out that the actual rubber production data for November 2010 shows a far steeper fall at 15 per cent over the projected data for the month at 104,000 tonnes. But the cumulative production between April-November was up two per cent at 546,150 tonnes as against 530,900 tonnes last year.
India has also scaled up the country's production targets for 2010 to 853,000 tonnes from the earlier projection of 844,000 tonnes. Although rubber growing areas in India witnessed unusually heavy rains in November, the production forecasts are based on better than expected output during the third quarter of the current year.
Revised estimates put out by the Rubber Board show that production shortfall for the third quarter was only 1.8 per cent as against the 4.9 per cent expected earlier. The revised figures also reveal that supply is expected to grow by just four per cent this year and by 4.9 per cent in 2011.
Meanwhile, the total supply from the ANRPC regions is also expected to grow faster at 6.6 per cent this year, as against 5.3 per cent anticipated earlier. The upward revision has been mainly prompted by Indonesia, which reported a 33 per cent growth in rubber production in the third quarter as against an anticipated growth of 4.7 per cent. The output for Q4 is expected to jump by 18.6 per cent, making a marked recovery from the 1.9 per cent expected earlier.
The price boom seems to have tapped into the large number of dormant trees bringing old and neglected trees into productive operations and the country's production is expected to grow by 16.9 per cent to 2.85 million tonnes. However this accelerated pace of growth in Indonesia is not likely to be sustained into the coming years.
Thailand affected
Unusually heavy rains and floods during the first half of November have affected the supply of rubber from Thailand, especially from South Thailand which accounts for 80 per cent of the country's natural rubber output.
Reports from the Rubber Research Institute of Thailand indicate that an estimated 18,000 hectares of rubber area has been flooded and 15,600 hectares have been damaged by heavy winds. As a direct consequence, natural rubber supply from Thailand is expected to fall by 1.4 per cent to 3.12 million tonnes this year.
Lower Malaysian numbers
Malaysia too has scaled down its production growth to 13.2 per cent to 0.97 million tonnes this year, as against a production growth of 16.7 per cent and one million tonnes production expected earlier. Even this projection seems over optimistic given the severe monsoon rains which lashed the rubber growing regions of the country even in early November, ANRPC observed.
China's stringent fight against inflation could temper rubber price rise in global markets in the immediate future. Although the import of natural rubber and compound rubber into China are expected to be high during the third and fourth quarter of current year, the actual rubber consumption by the Chinese economy are expected to be much lower during the period.
(Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120753841800.htm)
IRCo's WEEKLY MARKET SNAPSHOT: 29 November - 3 December 2010
Posted: 06 Dec 2010 02:37 PM PST
IRCo's DCP ended the week at 439.35 US cents/kg., and it still pulled up its 14-day DCP on Friday. Rubber futures and physical markets in the region also settled higher on Friday than Monday because of persistent supply tightness and steady demand. A sharp rise in crude oil futures and an insignificant change in the Japanese yen against the greenback also lent support for rubber prices to climb up consecutively during the week.
Price volatility on Shanghai rubber futures is expected to be less than the past as the China Securities Regulatory Commission (CSRC) raised trading margins to more than 10% and limits on daily price moves starting on 26 November 2010 in order to curb speculation in futures markets, according to Reuters on 1 December 2010. And rubber prices are likely to stay above US$4.0 per kg. at least until 1Q11 as anticipated.
On the investment front, global stock markets were mixed during the week as concern over tension in Korean peninsular, European debt problems and a rise in the November unemployment rate of 9.8% in the U.S. undermined investor confidence that weakened the greenback against its rival currencies and lifted commodity prices, including crude oil futures and rubber prices. However, holiday shopping will boost consumer stocks in December at some levels.
(Source: http://www.irco.biz/MarketWise.php?PHPSESSID=9cbf002318dc75d77a0e4b89c10996ec)
Asian rubber: bridgestone buys rss3, china eyes warehouse goods
Posted: 06 Dec 2010 02:34 PM PST
Singapore (december 05, 2010) : japan's largest tyre maker, bridgestone corp, bought some rss3 rubber for forward shipment, but top consumer china was chasing cheaper thai grades from its own warehouses, dealers said on tuesday. indonesia's sir20 grade changed hands late on monday at $4.24 a kg for january shipment, and there were still inquiries for december cargo, which was offered at higher prices around $4.25 a kg.
"major tyre makers are still around, but they have moved to january and february shipment," said a dealer in singapore. "china is a bit quiet recently because prices in shanghai are cheaper," he added. rss3 was quoted at $4.32 on tuesday, down from a lifetime high at $4.40 offered last week, but dealers said thai grades already stored in warehouses in shanghai were a few cents cheaper.
bridgestone bought rss3 at $4.30 in deals done late on monday. natural rubber prices have hit an all time high above $4 a kg in southeast asia due to tight supply blamed on a combination of heavy rains and dry weather in producing countries, which helped spur rallies in tokyo and shanghai rubber futures.
"i heard china is looking to buy thai grades at $4.20, which is very cheap. that's for goods already in the warehouses, but i am not sure if anything has been traded," said a dealer in thailand's southern city of hat yai. "it's very low because the fob price in origin is already $4.30," he added. rubber inventories in warehouses monitored by the shanghai futures exchange rose 1.7 percent to 1,015 tonnes from a week earlier, the exchange said on friday.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1130660:asian-rubber-bridgestone-buys-rss3-china-eyes-warehouse-goods.html?hl=rubber)
Kottayam, Dec. 7
Spot rubber turned weak on Tuesday. The prices slipped on buyer resistance while most of the players stayed back letting the prices to settle at comfortable levels as rains subsided and almost came to a halt giving way to the beginning of the much awaited peak production season. But there was no improvement in arrivals yet or selling pressure from any corner, market circles reported.
The trend was mixed. Sheet rubber declined to Rs 197.50 from Rs 199.00 a kg in the main marketing centres. According to the Rubber Board, the grade finished weak at Rs 197.50 (198.50) a kg both at Kottayam and Kochi.
RSS 4 recovered partially at the December series to Rs 199.80 (198.00), January to Rs 202.70 (200.66), February to Rs 206.31 (204.63) and March to Rs 209.55 (207.84) per kg on National Multi Commodity Exchange (NMCE).
The volumes totalled 6,000 lots and open interest 6,445 lots. The turnover was Rs 121.05 crore.
The December futures firmed up to Rs 368.5 (199.37) from Rs 366.8 a kg for RSS 3 during the day session but then remained inactive in the night session on Tokyo Commodity Exchange (TOCOM).
RSS 3 (spot) closed at Rs. 202.70 (203.05) a kg at Bangkok. The spot rubber prices per kg were: RSS-4: Rs 197.50 (199.00), RSS-5: Rs 187.50 (188.00), Ungraded : Rs 182.00 (182.00), ISNR 20: Rs 190.50 (191.00), and Latex 60 per cent : Rs 128.00 (128.00)
Rubber Climbs to Two-Week High as Supply in Thailand Limited, Oil Advances
Posted: 06 Dec 2010 02:47 PM PST
Rubber climbed to a three-week high after a rally in oil raised the appeal of the commodity as an alternative to synthetic products used in tires and tight supply boosted the Thai cash price to a record.
May-delivery rubber on the Tokyo Commodity Exchange gained as much as 2.3 percent to 378.8 yen per kilogram ($4,569 a metric ton) before settling at 378 yen. The price climbed to the highest level since Nov. 11, when a most-active contract reached a 30-year high of 383 yen.
Oil advanced to the highest in 26 months in New York amid optimism fuel demand will increase. Physical rubber prices in Thailand, the biggest producer and exporter, increased to a record on Dec. 3 on a supply shortage, according to the Rubber Research Institute of Thailand. Futures also gained on expectation the Federal Reserve may take more steps to boost economic growth.
“Rubber chased a rally in oil and metals as investor demand for commodities increased amid speculation over U.S. monetary easing,” Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone. “Futures were also supported by the strength of physical rubber prices.”
Federal Reserve Chairman Ben S. Bernanke said U.S. unemployment may take five years to return to a normal level and that Fed purchases of Treasury securities beyond the $600 billion announced last month are possible.
Bernanke Comments
“At the rate we’re going, it could be four, five years before we are back to a more normal unemployment rate” of about 5 to 6 percent, Bernanke said according to the transcript of an interview aired today on CBS Corp.’s “60 Minutes” program.
Bernanke and other Fed officials have defended the central bank’s announcement that it will purchase $75 billion in Treasury securities a month through June to prop up a recovery so weak that only 39,000 jobs were created in November.
Oil for January delivery added as much as 0.6 percent to $89.76 a barrel in electronic trading on the New York Mercantile Exchange, the highest since October 2008, before trading at $89.69 at 4:53 p.m. Tokyo time. Higher oil boosts the cost of making synthetic rubber.
The cash rubber price in Thailand climbed to a record 134.05 baht ($4.46) per kilogram on Dec. 3, according to the Rubber Research Institute of Thailand. Demand remained strong amid a supply shortage as rain persists in southern Thailand, the institute said. Thailand’s south accounts for 80 percent of output. The Thai market was closed today for a holiday.
Bridgestone Corp., the world’s largest tiremaker, plans to raise Japanese prices of truck and bus tires by an average of 7 percent after rubber and petrochemical costs increased. The changes will take effect March 1, the company said in a statement on its website today.
May-delivery rubber in Shanghai added 1.5 percent to 32,835 yuan ($4,939) a ton. It reached a record 38,920 yuan on Nov. 11.
China’s natural-rubber inventories dropped for the first time in 10 weeks, declining 6,665 tons to 55,346 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the bourse said on Dec. 3.
(Source: http://www.bloomberg.com/news/2010-12-06/rubber-climbs-to-two-week-high-as-supply-in-thailand-limited-oil-advances.html)
Rubber weakens on lack of buying
Posted: 06 Dec 2010 02:44 PM PST
Kottayam, Dec. 6
Physical rubber prices improved on Monday.
According to sources, the market opened better and remained firm due to the lack of sellers on major grades, possibly following the gains in Tokyo Commodity Exchange. But it showed signs of weakness during closing hours as the domestic futures finished weak on NMCE. The trend was mixed.
Among other news, the Tokyo rubber futures hit a two-week high, catalysed by the rise in oil prices but the gains were limited due to a stronger yen.
Sheet rubber increased to Rs 199.00 (197.00) a kg according to traders. The grade finished firm at Rs 198.50 (198.00) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The December series declined to Rs 197.90 (200.16), January to Rs 200.33 (203.18), February to Rs 204.32 (207.00) and March to Rs 207.71 (209.76) per kg for RSS 4 on National Multi Commodity Exchange.
RSS 3 firmed up at its December futures to A5 366.8 (Rs 199.04) from A5 361.7 per kg during the day session but remained inactive in the night session on Tokyo Commodity Exchange. The spot rubber prices per kg were RSS-4 — Rs 199.00 (197.00); RSS-5 — Rs 188.00 (186.00); Ungraded — Rs 182.00 (181.00); ISNR 20 — Rs 191.00 (191.00) and Latex 60% — Rs 128.00 (128.00).
(Source: http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=2112112&page=&format=html&comments=0)
UBS cuts Michelin hopes amid rubber price fears
Posted: 06 Dec 2010 02:43 PM PST
Shares in Michelin slid 3% after UBS cut its rating on the stock to "sell", flagging the difficulties tyremakers are suffering in passing on higher costs of both natural and synethetic rubber.
The bank also lowered to "neutral" from "buy" its recommendation on shares in Japan's Yokohama Rubber and Sumitomo Rubber Industries, warning of rubber costs rising to $4.20 a kilogramme next year, some 20% higher than previous forecasts.
"While the price of [natural rubber] may reflect a spike, we expect supply constraints to remain significant, as demand for natural rubber looks set to exceed production," UBS analysts said.
"Beyond adverse weather conditions negatively impacting rubber harvests in the fourth quarter, supply of natural rubber looks set to remain tight as a result of ageing hevea trees and low levels of replanting."
'Weak link'
Meanwhile, prices of synthetic rubber, which also have a bearing on the market for natural alternatives, were rising too, up 9% in the past two weeks, thanks to rising prices of oil, from which it is made, and manufacturing constraints.
Breakdown of Michelin's raw material costs
Natural rubber: 28%
Synthetic rubber: 26%
Fillers:16%
Chemicals: 13%
Steelcord: 10%
Textile: 7%
Sources: Michelin/UBS
Such higher costs boded ill for tyremakers, who looked the "weak link in the value chain", facing increased competition as emerging market manufacturers hit the mainstream.
French-based Michelin looked especially at risk thanks to its "high exposure to natural rubber-intensive truck tyres and to price sensitive consumers and distributors".
Shares in the group closed down E1.67 at E54.58 in Paris, taking their decline since a late-September high to some 15%.
'New era'
The downgrades came as rubber touched a three-week high in Tokyo of 378.8 yen a kilogramme, for the benchmark May contract, lifted by the rising price of oil, and therefore implied inflation in synthetic rubber.
"Natural rubber prices have not decoupled from crude oil prices for the past few months," Ker Chung Yang at Phillip Futures said, seeing potential further rises in oil to $92 a barrel for next year.
Meanwhile, demand for the commodity remains high, boosted by surging demand for cars in developing countries, and in particular in China and India.
"General sentiment on natural rubber remains bullish on supportive fundamentals," Mr Ker said, forecasting a "new era" of high prices.
(Source: http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=2112007&page=&format=html&comments=0)
M'sian rubber market seen to be firm this week
Posted: 06 Dec 2010 02:41 PM PST
KUALA LUMPUR The Malaysian rubber market is expected to be firm this week, dealers said.
A dealer said there may be concerns on supply contraints due to bad weather that had disrupted tapping and output.
Prices are likely to be supported at this level amid concerns over tight supplies, he said.
Previous week, the SMR 20 buyers' price breached its record high level of 1,335.0 sen previously, to settle at 1,340.5 sen per kg on Friday.
On a weekly basis, the Malaysian Rubber Board's official sellers' physical price for tyre-grade SMR 20 ended 31.5 sen higher at 1,351.0 sen per kg compared with 1,319.5 sen per kg previous Friday, while latex-in-bulk rose 25 sen to 907 sen per kg. The unofficial sellers' closing price for tyre-grade SMR 20 gained 41 sen to 1,354.0 sen per kg while latex-in-bulk went up 30 sen to 910.0 sen per kg.
(Source: http://biz.thestar.com.my/news/story.asp?file=/2010/12/6/business/7561754&sec=business)
Global rubber output expected to drop in Q4
Posted: 06 Dec 2010 02:39 PM PST
Kochi, Dec. 6
Following production shortfalls reported from India even during the peak production months of October-November, the Association of Natural Rubber Producing Countries (ANRPC) has predicted that global natural rubber production would fall by 3.8 per cent during the fourth quarter of the current year.
However, the ANRPC, which accounts for over 92 per cent of the global rubber production, has stated that the overall world production for 2010 would be on the higher side given major upward revision reported by Indonesia for Q3 and Q4. This was against smaller downward revisions reported by Thailand and Malaysia.
Indian dip
The production of natural rubber in India had declined by 5.4 per cent in November to 88,500 tonnes as against 93,500 tonnes during the same month last year, provisional estimates put out by the Rubber Board of India revealed.
However, the Automotive Tyre Manufacturers Association of India had pointed out that the actual rubber production data for November 2010 shows a far steeper fall at 15 per cent over the projected data for the month at 104,000 tonnes. But the cumulative production between April-November was up two per cent at 546,150 tonnes as against 530,900 tonnes last year.
India has also scaled up the country's production targets for 2010 to 853,000 tonnes from the earlier projection of 844,000 tonnes. Although rubber growing areas in India witnessed unusually heavy rains in November, the production forecasts are based on better than expected output during the third quarter of the current year.
Revised estimates put out by the Rubber Board show that production shortfall for the third quarter was only 1.8 per cent as against the 4.9 per cent expected earlier. The revised figures also reveal that supply is expected to grow by just four per cent this year and by 4.9 per cent in 2011.
Meanwhile, the total supply from the ANRPC regions is also expected to grow faster at 6.6 per cent this year, as against 5.3 per cent anticipated earlier. The upward revision has been mainly prompted by Indonesia, which reported a 33 per cent growth in rubber production in the third quarter as against an anticipated growth of 4.7 per cent. The output for Q4 is expected to jump by 18.6 per cent, making a marked recovery from the 1.9 per cent expected earlier.
The price boom seems to have tapped into the large number of dormant trees bringing old and neglected trees into productive operations and the country's production is expected to grow by 16.9 per cent to 2.85 million tonnes. However this accelerated pace of growth in Indonesia is not likely to be sustained into the coming years.
Thailand affected
Unusually heavy rains and floods during the first half of November have affected the supply of rubber from Thailand, especially from South Thailand which accounts for 80 per cent of the country's natural rubber output.
Reports from the Rubber Research Institute of Thailand indicate that an estimated 18,000 hectares of rubber area has been flooded and 15,600 hectares have been damaged by heavy winds. As a direct consequence, natural rubber supply from Thailand is expected to fall by 1.4 per cent to 3.12 million tonnes this year.
Lower Malaysian numbers
Malaysia too has scaled down its production growth to 13.2 per cent to 0.97 million tonnes this year, as against a production growth of 16.7 per cent and one million tonnes production expected earlier. Even this projection seems over optimistic given the severe monsoon rains which lashed the rubber growing regions of the country even in early November, ANRPC observed.
China's stringent fight against inflation could temper rubber price rise in global markets in the immediate future. Although the import of natural rubber and compound rubber into China are expected to be high during the third and fourth quarter of current year, the actual rubber consumption by the Chinese economy are expected to be much lower during the period.
(Source: http://www.thehindubusinessline.com/2010/12/07/stories/2010120753841800.htm)
IRCo's WEEKLY MARKET SNAPSHOT: 29 November - 3 December 2010
Posted: 06 Dec 2010 02:37 PM PST
IRCo's DCP ended the week at 439.35 US cents/kg., and it still pulled up its 14-day DCP on Friday. Rubber futures and physical markets in the region also settled higher on Friday than Monday because of persistent supply tightness and steady demand. A sharp rise in crude oil futures and an insignificant change in the Japanese yen against the greenback also lent support for rubber prices to climb up consecutively during the week.
Price volatility on Shanghai rubber futures is expected to be less than the past as the China Securities Regulatory Commission (CSRC) raised trading margins to more than 10% and limits on daily price moves starting on 26 November 2010 in order to curb speculation in futures markets, according to Reuters on 1 December 2010. And rubber prices are likely to stay above US$4.0 per kg. at least until 1Q11 as anticipated.
On the investment front, global stock markets were mixed during the week as concern over tension in Korean peninsular, European debt problems and a rise in the November unemployment rate of 9.8% in the U.S. undermined investor confidence that weakened the greenback against its rival currencies and lifted commodity prices, including crude oil futures and rubber prices. However, holiday shopping will boost consumer stocks in December at some levels.
(Source: http://www.irco.biz/MarketWise.php?PHPSESSID=9cbf002318dc75d77a0e4b89c10996ec)
Asian rubber: bridgestone buys rss3, china eyes warehouse goods
Posted: 06 Dec 2010 02:34 PM PST
Singapore (december 05, 2010) : japan's largest tyre maker, bridgestone corp, bought some rss3 rubber for forward shipment, but top consumer china was chasing cheaper thai grades from its own warehouses, dealers said on tuesday. indonesia's sir20 grade changed hands late on monday at $4.24 a kg for january shipment, and there were still inquiries for december cargo, which was offered at higher prices around $4.25 a kg.
"major tyre makers are still around, but they have moved to january and february shipment," said a dealer in singapore. "china is a bit quiet recently because prices in shanghai are cheaper," he added. rss3 was quoted at $4.32 on tuesday, down from a lifetime high at $4.40 offered last week, but dealers said thai grades already stored in warehouses in shanghai were a few cents cheaper.
bridgestone bought rss3 at $4.30 in deals done late on monday. natural rubber prices have hit an all time high above $4 a kg in southeast asia due to tight supply blamed on a combination of heavy rains and dry weather in producing countries, which helped spur rallies in tokyo and shanghai rubber futures.
"i heard china is looking to buy thai grades at $4.20, which is very cheap. that's for goods already in the warehouses, but i am not sure if anything has been traded," said a dealer in thailand's southern city of hat yai. "it's very low because the fob price in origin is already $4.30," he added. rubber inventories in warehouses monitored by the shanghai futures exchange rose 1.7 percent to 1,015 tonnes from a week earlier, the exchange said on friday.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1130660:asian-rubber-bridgestone-buys-rss3-china-eyes-warehouse-goods.html?hl=rubber)
Tuesday, December 7, 2010
Global rubber output expected to drop in Q4
Global rubber output expected to drop in Q4
Following production shortfalls reported from India even during the peak production months of October-November, the Association of Natural Rubber Producing Countries (ANRPC) has predicted that global natural rubber production would fall by 3.8 per cent during the fourth quarter of the current year.
However, the ANRPC, which accounts for over 92 per cent of the global rubber production, has stated that the overall world production for 2010 would be on the higher side given major upward revision reported by Indonesia for Q3 and Q4. This was against smaller downward revisions reported by Thailand and Malaysia.
Indian dip
The production of natural rubber in India had declined by 5.4 per cent in November to 88,500 tonnes as against 93,500 tonnes during the same month last year, provisional estimates put out by the Rubber Board of India revealed.
However, the Automotive Tyre Manufacturers Association of India had pointed out that the actual rubber production data for November 2010 shows a far steeper fall at 15 per cent over the projected data for the month at 104,000 tonnes. But the cumulative production between April-November was up two per cent at 546,150 tonnes as against 530,900 tonnes last year.
India has also scaled up the country's production targets for 2010 to 853,000 tonnes from the earlier projection of 844,000 tonnes. Although rubber growing areas in India witnessed unusually heavy rains in November, the production forecasts are based on better than expected output during the third quarter of the current year.
Revised estimates put out by the Rubber Board show that production shortfall for the third quarter was only 1.8 per cent as against the 4.9 per cent expected earlier. The revised figures also reveal that supply is expected to grow by just four per cent this year and by 4.9 per cent in 2011.
Meanwhile, the total supply from the ANRPC regions is also expected to grow faster at 6.6 per cent this year, as against 5.3 per cent anticipated earlier. The upward revision has been mainly prompted by Indonesia, which reported a 33 per cent growth in rubber production in the third quarter as against an anticipated growth of 4.7 per cent. The output for Q4 is expected to jump by 18.6 per cent, making a marked recovery from the 1.9 per cent expected earlier.
The price boom seems to have tapped into the large number of dormant trees bringing old and neglected trees into productive operations and the country's production is expected to grow by 16.9 per cent to 2.85 million tonnes. However this accelerated pace of growth in Indonesia is not likely to be sustained into the coming years.
Thailand affected
Unusually heavy rains and floods during the first half of November have affected the supply of rubber from Thailand, especially from South Thailand which accounts for 80 per cent of the country's natural rubber output.
Reports from the Rubber Research Institute of Thailand indicate that an estimated 18,000 hectares of rubber area has been flooded and 15,600 hectares have been damaged by heavy winds. As a direct consequence, natural rubber supply from Thailand is expected to fall by 1.4 per cent to 3.12 million tonnes this year.
Lower Malaysian numbers
Malaysia too has scaled down its production growth to 13.2 per cent to 0.97 million tonnes this year, as against a production growth of 16.7 per cent and one million tonnes production expected earlier. Even this projection seems over optimistic given the severe monsoon rains which lashed the rubber growing regions of the country even in early November, ANRPC observed.
China's stringent fight against inflation could temper rubber price rise in global markets in the immediate future. Although the import of natural rubber and compound rubber into China are expected to be high during the third and fourth quarter of current year, the actual rubber consumption by the Chinese economy are expected to be much lower during the period.
Rubber weakens on lack of buying
Kottayam, Dec. 6
Physical rubber prices improved on Monday.
According to sources, the market opened better and remained firm due to the lack of sellers on major grades, possibly following the gains in Tokyo Commodity Exchange. But it showed signs of weakness during closing hours as the domestic futures finished weak on NMCE. The trend was mixed.
Among other news, the Tokyo rubber futures hit a two-week high, catalysed by the rise in oil prices but the gains were limited due to a stronger yen.
Sheet rubber increased to Rs 199.00 (197.00) a kg according to traders. The grade finished firm at Rs 198.50 (198.00) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The December series declined to Rs 197.90 (200.16), January to Rs 200.33 (203.18), February to Rs 204.32 (207.00) and March to Rs 207.71 (209.76) per kg for RSS 4 on National Multi Commodity Exchange.
RSS 3 firmed up at its December futures to A5 366.8 (Rs 199.04) from A5 361.7 per kg during the day session but remained inactive in the night session on Tokyo Commodity Exchange. The spot rubber prices per kg were RSS-4 — Rs 199.00 (197.00); RSS-5 — Rs 188.00 (186.00); Ungraded — Rs 182.00 (181.00); ISNR 20 — Rs 191.00 (191.00) and Latex 60% — Rs 128.00 (128.00).
Following production shortfalls reported from India even during the peak production months of October-November, the Association of Natural Rubber Producing Countries (ANRPC) has predicted that global natural rubber production would fall by 3.8 per cent during the fourth quarter of the current year.
However, the ANRPC, which accounts for over 92 per cent of the global rubber production, has stated that the overall world production for 2010 would be on the higher side given major upward revision reported by Indonesia for Q3 and Q4. This was against smaller downward revisions reported by Thailand and Malaysia.
Indian dip
The production of natural rubber in India had declined by 5.4 per cent in November to 88,500 tonnes as against 93,500 tonnes during the same month last year, provisional estimates put out by the Rubber Board of India revealed.
However, the Automotive Tyre Manufacturers Association of India had pointed out that the actual rubber production data for November 2010 shows a far steeper fall at 15 per cent over the projected data for the month at 104,000 tonnes. But the cumulative production between April-November was up two per cent at 546,150 tonnes as against 530,900 tonnes last year.
India has also scaled up the country's production targets for 2010 to 853,000 tonnes from the earlier projection of 844,000 tonnes. Although rubber growing areas in India witnessed unusually heavy rains in November, the production forecasts are based on better than expected output during the third quarter of the current year.
Revised estimates put out by the Rubber Board show that production shortfall for the third quarter was only 1.8 per cent as against the 4.9 per cent expected earlier. The revised figures also reveal that supply is expected to grow by just four per cent this year and by 4.9 per cent in 2011.
Meanwhile, the total supply from the ANRPC regions is also expected to grow faster at 6.6 per cent this year, as against 5.3 per cent anticipated earlier. The upward revision has been mainly prompted by Indonesia, which reported a 33 per cent growth in rubber production in the third quarter as against an anticipated growth of 4.7 per cent. The output for Q4 is expected to jump by 18.6 per cent, making a marked recovery from the 1.9 per cent expected earlier.
The price boom seems to have tapped into the large number of dormant trees bringing old and neglected trees into productive operations and the country's production is expected to grow by 16.9 per cent to 2.85 million tonnes. However this accelerated pace of growth in Indonesia is not likely to be sustained into the coming years.
Thailand affected
Unusually heavy rains and floods during the first half of November have affected the supply of rubber from Thailand, especially from South Thailand which accounts for 80 per cent of the country's natural rubber output.
Reports from the Rubber Research Institute of Thailand indicate that an estimated 18,000 hectares of rubber area has been flooded and 15,600 hectares have been damaged by heavy winds. As a direct consequence, natural rubber supply from Thailand is expected to fall by 1.4 per cent to 3.12 million tonnes this year.
Lower Malaysian numbers
Malaysia too has scaled down its production growth to 13.2 per cent to 0.97 million tonnes this year, as against a production growth of 16.7 per cent and one million tonnes production expected earlier. Even this projection seems over optimistic given the severe monsoon rains which lashed the rubber growing regions of the country even in early November, ANRPC observed.
China's stringent fight against inflation could temper rubber price rise in global markets in the immediate future. Although the import of natural rubber and compound rubber into China are expected to be high during the third and fourth quarter of current year, the actual rubber consumption by the Chinese economy are expected to be much lower during the period.
Rubber weakens on lack of buying
Kottayam, Dec. 6
Physical rubber prices improved on Monday.
According to sources, the market opened better and remained firm due to the lack of sellers on major grades, possibly following the gains in Tokyo Commodity Exchange. But it showed signs of weakness during closing hours as the domestic futures finished weak on NMCE. The trend was mixed.
Among other news, the Tokyo rubber futures hit a two-week high, catalysed by the rise in oil prices but the gains were limited due to a stronger yen.
Sheet rubber increased to Rs 199.00 (197.00) a kg according to traders. The grade finished firm at Rs 198.50 (198.00) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The December series declined to Rs 197.90 (200.16), January to Rs 200.33 (203.18), February to Rs 204.32 (207.00) and March to Rs 207.71 (209.76) per kg for RSS 4 on National Multi Commodity Exchange.
RSS 3 firmed up at its December futures to A5 366.8 (Rs 199.04) from A5 361.7 per kg during the day session but remained inactive in the night session on Tokyo Commodity Exchange. The spot rubber prices per kg were RSS-4 — Rs 199.00 (197.00); RSS-5 — Rs 188.00 (186.00); Ungraded — Rs 182.00 (181.00); ISNR 20 — Rs 191.00 (191.00) and Latex 60% — Rs 128.00 (128.00).
Monday, December 6, 2010
Rubber Futures Decline as High Price Curbs Demand, Set for Weekly Gain
Rubber Futures Decline as High Price Curbs Demand, Set for Weekly Gain
Posted: 03 Dec 2010 02:44 PM PST
Rubber declined as end-users slowed purchases on higher prices, while heavy rains in Thailand continued to cut supply in the largest exporter, boosting the cash price to a record. Futures were still set for a weekly gain.
May-delivery rubber on the Tokyo Commodity Exchange declined as much as 0.7 percent to 369.1 yen per kilogram ($4,417 a metric ton) before settling at 370.4 yen. The price reached a 30-year high of 383 yen on Nov. 11.
End-users such as tire makers slow purchases as they draw down stockpiles, said Hisaaki Tasaka, an analyst at Tokyo-based broker ACE Koeki Co. “High prices sapped demand from physical buyers,” he said by phone today. “They will wait for prices to retreat.” Crude rubber stockpiles held at Japanese warehouses fell 2.3 percent to 7,375 tons on Nov. 20, data from the Rubber Trade Association of Japan showed yesterday.
The cash rubber price in Thailand climbed to a record, rising 1.5 percent to 134.05 baht ($4.46) per kilogram today, according to the Rubber Research Institute of Thailand. Demand remains strong amid a supply shortage as rains persist in southern Thailand, the institute said. Thailand’s south accounts for 80 percent of total production.
“Heavy rains in Thailand’s southern provinces raised worries over tightening supply,” Chaiwat Muenmee, analyst at DS Futures Co. said by phone from Bangkok. The monsoon covering southern Thailand may cause flash floods in the next two days, the Department of Disaster Prevention and Mitigation said today.
May-delivery rubber in Shanghai advanced 2.1 percent to close at 32,365 yuan ($4,858). The price reached a record 38,920 yuan on Nov. 11.
Supply Deficit
Global consumption of natural rubber will outpace supply by 313,000 tons this year, the most since 2006, Goldman Sachs Group Inc. forecast in a November report, revising its September outlook for an 82,000-ton deficit.
A natural-rubber shortage in India, the world’s biggest consumer after China, may widen almost five times over the next decade as rising incomes boost demand for tires, according to an industry group.
The deficit may widen to 840,000 tons in 2020 from 175,000 tons next year, Vinod Simon, president of the All India Rubber Industries Association, said in an interview. In 2015, the shortage may be 687,000 tons, Simon said.
The forecast underscores India’s rising demand for commodities as economic growth stokes consumer demand and the government boosts infrastructure spending. India’s “commodity demand has reached a tipping point, and growth is set to accelerate significantly,” Barclays Capital said last month.
Bridgestone Corp., the world’s largest tiremaker, expects to cut rubber use by 50 percent in the next decade to cope with rising raw material costs, Masayuki Ishii, general manager at the corporate communications division, said in an interview.
The company will use 1.77 million tons of natural and synthetic rubber for tire production this year, up 24 percent from 2009, he said.
(Source: http://www.bloomberg.com/news/2010-12-03/rubber-futures-decline-as-high-price-curbs-demand-set-for-weekly-gain.html)
Tokyo rubber futures up two percent
Posted: 03 Dec 2010 02:42 PM PST
Bangkok (december 03, 2010) : tokyo rubber futures rose more than 2 percent to the highest in nearly two weeks on thursday, tracking gains on stock markets, with positive global economic data providing additional support, dealers said. the benchmark contract on the tokyo commodity exchange for may delivery rose 8.2 yen, or 2.2 percent, to settle at 371.7 yen ($4.42) per kg, the highest since november 22.
tocom rubber was expected to rise further to test resistance at 380 yen on friday after prices finished above the psychological level of 370 yen, dealers said. a rally in commodities on wednesday helped spur follow-through buying, with sharp gains in us wheat and gasoline futures after positive economic data from the united states and china and a stronger euro boosted investor confidence about demand. us auto sales rose 17 percent in november from a year earlier, a stronger-than-expected gain that pointed to a slow but steady return in consumer demand from the depressed levels of a year ago.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1130012:tokyo-rubber-futures-up-two-percent.html?hl=rubber)
Rubber Deficit in India to Surge as Rising Demand Outstrips Local Output
Posted: 03 Dec 2010 02:40 PM PST
A natural-rubber shortage in India, the world’s biggest consumer after China, may surge almost five times over the next decade as rising incomes boost demand for tires, according to an industry group.
The deficit may increase to 840,000 metric tons in 2020 from 175,000 tons next year, Vinod Simon, president of the All India Rubber Industries Association, said in an interview. In 2015, the shortfall may be 687,000 tons, Simon said.
The forecast underscores India’s rising consumption of commodities as economic growth stokes consumer demand and the government boosts infrastructure spending. India’s “commodity demand has reached a tipping point, and growth is set to accelerate significantly,” Barclays Capital said last month.
“The rubber deficit may stay longer than we imagine as car sales continue to rise and a growing population boosts demand for health care products,” Anand James, chief analyst at brokerage Geojit Comtrade Ltd., said from Kochi, Kerala.
The stronger consumption in India may help sustain this year’s 34 percent rally in yen-priced futures. The contract on the Tokyo Commodity Exchange, which reached a 30-year high of 383 yen ($4.57) per kilo on Nov. 11, traded at 370.4 yen today. In India, spot prices in Kerala rose last month to more than 200 rupees ($4.43) a kilo for the first time. The Thai cash price surged to an all-time high today of 134.05 baht ($4.46) a kilo.
‘Still Be There’
The “increasing population of India will drive the market for rubber products,” Simon said yesterday from Bangkok, capital of the largest rubber producer and exporter, where he’s attending a conference. “Shortage will still be there.”
Rubber consumption may climb to 1.89 million tons in 2020, compared with 930,000 tons this year if the economy expands at 8.5 percent a year, Simon said. The South Asian nation’s economy grew 8.9 percent for a second straight quarter in July to September, a government report showed on Nov. 30.
India may expand faster than China in the next 10 years if the government boosts spending on roads and bridges and lifts investment curbs, New York University professor Nouriel Roubini said yesterday. “China is likely to slow in the coming years gradually and India’s growth is likely to accelerate,” boosted by a young population and higher consumption, Roubini said.
‘Through the Roof’
India’s Trade Secretary Rahul Khullar said this week that rubber demand is “going through the roof,” and local output from the world’s fourth-largest producer wasn’t going to expand dramatically. The government may allow imports of as much as 100,000 tons at a lower duty to help meet demand, Khullar said.
India’s rubber output totaled 88,500 tons in November, compared with 93,500 tons a year ago, according to figures from the state-run Rubber Board. Imports in the eight months to Nov. 30 totaled 143,468 tons from 139,321 tons as tire companies stepped up purchases, the board said.
“Rubber will remain a sellers’ market, as it has been in the past two to three years, as the demand-supply equation is unlikely to change soon,” James said. Thailand, Malaysia and Indonesia are the top three producers. Natural-rubber supply this year may total 9.5 million tons, according to the Association of Natural Rubber Producing Countries, whose members account for 92 percent of worldwide output.
Demand from India’s auto industry is expected to increase “substantially” in the coming years after investments by tire makers including Bridgestone Corp. and Michelin & Cie., said Simon. Annual car sales may double to 3 million by 2015, according to a projection from India’s government.
Bridgestone and Indian rivals including Apollo Tyres Ltd. and MRF Ltd. are investing $3 billion in plants to meet demand that’s forecast by Automotive Tyre Manufacturers’ Association to expand 10 percent to 106 million tires in the year to March 31. Rubber makes up 42 percent of raw-material costs, according to the manufacturers’ group.
(Source: http://www.bloomberg.com/news/2010-12-03/india-s-natural-rubber-shortage-may-surge-fivefold-on-demand-group-says.html)
Cash Rubber Price in Thailand Climbs to Record 134.05 Baht a Kilogram
Posted: 03 Dec 2010 02:38 PM PST
The cash rubber price in Thailand climbed to a record, rising 1.5 percent to 134.05 baht ($4.40) per kilogram today, according to the Rubber Research Institute of Thailand. Demand remains strong amid a supply shortage as rain persists in southern Thailand, the institute said. Thailand’s south accounts for 80 percent of total production.
(Source: http://www.bloomberg.com/news/2010-12-03/cash-rubber-price-in-thailand-climbs-to-record-134-05-baht-a-kilogram.html)
Retreaders do well as rubber, tyre prices fly
Posted: 03 Dec 2010 02:35 PM PST
Commercial vehicle (CV) owners are finding tyre retreading a feasible option, owing to the increasing tyre prices. Rajiv Budharaja, director general of Automotive Tyres Manufacturers Association, said:
“Currently, rubber prices are historically high, due to which the tyre manufacturers are increasing output costs. As a result, the CV owners and transporters are opting for options like tyre retreading that gives them a cost benefit of almost 50-60% as compared to buying a new tyre.”
The price of rubber has almost doubled in the past one year, and tyre manufacturers have hiked prices 2-3 times this year.
Despite this, the companies are unable to pass on the prices due to strong competition. Rubber is currently trading at Rs205 per kg.
Meanwhile, in the last six months, the demand for tyre retreading has risen 8-10% on month-on-month basis.
“The total turnover of this industry is Rs4,500 crore on an annual basis and 16,000 tonnes on a monthly basis. We are observing a major shift in demand for retread tyres,” said A S Mehta, marketing director, JK Tyre.
According to Gopal Singh of Tyresoles, a Karnataka-based tyre retreading company, “June onwards, we have seen almost 36% increase in demand. We manufacture 13,000 tyres in a month. We plan to increase production owing to higher demand. In December, we expect demand to go up by 10-20%.”
The industry is divided into organised and unorganised players.
Currently, among tyre manufacturers, MRF Tyres, Apollo Tyres and JK Tyre are into the retreading business. Owning to the potential, companies like Ceat and Bridgestone have also announced interest in the same.
JK Tyre currently has a manufacturing facility in Rajasthan for retreading and is planning to expand capacity by next year.
It also plans to increase the number of franchisees from current 60 to 200 by next year.
In tyre retreading, a new tread is applied over the body of the worn tyre, giving it a fresh lease of life at a cost that is less than half the price of a new tyre.
The process increases the life of a tyre by 40-70%, depending on the usage.
Better road conditions and an increasing number of 14-, 18- and 22-wheel trucks have increased the demand for retreading tyres.
Generally, buses and light CVs that carry short-distance haul go for retreading in order to save cost. With overloading being substantially curbed, trucks have also started going for this process.
There are two types of retreading — the conventional process and the pre-cured process.The pre-cured process is more advance and provides better performance and quality.
It is currently the preferred option, while the conventional method is phasing out.
(Source: http://www.dnaindia.com/money/report_retreaders-do-well-as-rubber-tyre-prices-fly_1475684)
Synthetic rubber consumption to go up: Lanxess
Posted: 03 Dec 2010 02:32 PM PST
Lanxess, speciality chemicals and leading synthetic rubber, on Friday said it sees a big jump in the rubber consumption in the country driven by increasing demand from tyre makers particularly radial tyres.
The company said India with a long history in production and consumption of natural rubber is currently undergoing a shift towards replacing natural with synthetic rubber in a variety of applications, Lanxess Managing Director & Country Representative Joerg Strassburger told reporters.
Thus providing a base for the increase in consumption of synthetic rubber in the country particularly driven by radial tyre demands in the country.
Most tyre companies in India are in an advanced stage of setting up greenfield projects for manufacturing radial tyres for trucks and buses and companies already having production facilities are also undergoing capacity expansion, he said at a day-long conference hosted by the company here.
Posted: 03 Dec 2010 02:44 PM PST
Rubber declined as end-users slowed purchases on higher prices, while heavy rains in Thailand continued to cut supply in the largest exporter, boosting the cash price to a record. Futures were still set for a weekly gain.
May-delivery rubber on the Tokyo Commodity Exchange declined as much as 0.7 percent to 369.1 yen per kilogram ($4,417 a metric ton) before settling at 370.4 yen. The price reached a 30-year high of 383 yen on Nov. 11.
End-users such as tire makers slow purchases as they draw down stockpiles, said Hisaaki Tasaka, an analyst at Tokyo-based broker ACE Koeki Co. “High prices sapped demand from physical buyers,” he said by phone today. “They will wait for prices to retreat.” Crude rubber stockpiles held at Japanese warehouses fell 2.3 percent to 7,375 tons on Nov. 20, data from the Rubber Trade Association of Japan showed yesterday.
The cash rubber price in Thailand climbed to a record, rising 1.5 percent to 134.05 baht ($4.46) per kilogram today, according to the Rubber Research Institute of Thailand. Demand remains strong amid a supply shortage as rains persist in southern Thailand, the institute said. Thailand’s south accounts for 80 percent of total production.
“Heavy rains in Thailand’s southern provinces raised worries over tightening supply,” Chaiwat Muenmee, analyst at DS Futures Co. said by phone from Bangkok. The monsoon covering southern Thailand may cause flash floods in the next two days, the Department of Disaster Prevention and Mitigation said today.
May-delivery rubber in Shanghai advanced 2.1 percent to close at 32,365 yuan ($4,858). The price reached a record 38,920 yuan on Nov. 11.
Supply Deficit
Global consumption of natural rubber will outpace supply by 313,000 tons this year, the most since 2006, Goldman Sachs Group Inc. forecast in a November report, revising its September outlook for an 82,000-ton deficit.
A natural-rubber shortage in India, the world’s biggest consumer after China, may widen almost five times over the next decade as rising incomes boost demand for tires, according to an industry group.
The deficit may widen to 840,000 tons in 2020 from 175,000 tons next year, Vinod Simon, president of the All India Rubber Industries Association, said in an interview. In 2015, the shortage may be 687,000 tons, Simon said.
The forecast underscores India’s rising demand for commodities as economic growth stokes consumer demand and the government boosts infrastructure spending. India’s “commodity demand has reached a tipping point, and growth is set to accelerate significantly,” Barclays Capital said last month.
Bridgestone Corp., the world’s largest tiremaker, expects to cut rubber use by 50 percent in the next decade to cope with rising raw material costs, Masayuki Ishii, general manager at the corporate communications division, said in an interview.
The company will use 1.77 million tons of natural and synthetic rubber for tire production this year, up 24 percent from 2009, he said.
(Source: http://www.bloomberg.com/news/2010-12-03/rubber-futures-decline-as-high-price-curbs-demand-set-for-weekly-gain.html)
Tokyo rubber futures up two percent
Posted: 03 Dec 2010 02:42 PM PST
Bangkok (december 03, 2010) : tokyo rubber futures rose more than 2 percent to the highest in nearly two weeks on thursday, tracking gains on stock markets, with positive global economic data providing additional support, dealers said. the benchmark contract on the tokyo commodity exchange for may delivery rose 8.2 yen, or 2.2 percent, to settle at 371.7 yen ($4.42) per kg, the highest since november 22.
tocom rubber was expected to rise further to test resistance at 380 yen on friday after prices finished above the psychological level of 370 yen, dealers said. a rally in commodities on wednesday helped spur follow-through buying, with sharp gains in us wheat and gasoline futures after positive economic data from the united states and china and a stronger euro boosted investor confidence about demand. us auto sales rose 17 percent in november from a year earlier, a stronger-than-expected gain that pointed to a slow but steady return in consumer demand from the depressed levels of a year ago.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1130012:tokyo-rubber-futures-up-two-percent.html?hl=rubber)
Rubber Deficit in India to Surge as Rising Demand Outstrips Local Output
Posted: 03 Dec 2010 02:40 PM PST
A natural-rubber shortage in India, the world’s biggest consumer after China, may surge almost five times over the next decade as rising incomes boost demand for tires, according to an industry group.
The deficit may increase to 840,000 metric tons in 2020 from 175,000 tons next year, Vinod Simon, president of the All India Rubber Industries Association, said in an interview. In 2015, the shortfall may be 687,000 tons, Simon said.
The forecast underscores India’s rising consumption of commodities as economic growth stokes consumer demand and the government boosts infrastructure spending. India’s “commodity demand has reached a tipping point, and growth is set to accelerate significantly,” Barclays Capital said last month.
“The rubber deficit may stay longer than we imagine as car sales continue to rise and a growing population boosts demand for health care products,” Anand James, chief analyst at brokerage Geojit Comtrade Ltd., said from Kochi, Kerala.
The stronger consumption in India may help sustain this year’s 34 percent rally in yen-priced futures. The contract on the Tokyo Commodity Exchange, which reached a 30-year high of 383 yen ($4.57) per kilo on Nov. 11, traded at 370.4 yen today. In India, spot prices in Kerala rose last month to more than 200 rupees ($4.43) a kilo for the first time. The Thai cash price surged to an all-time high today of 134.05 baht ($4.46) a kilo.
‘Still Be There’
The “increasing population of India will drive the market for rubber products,” Simon said yesterday from Bangkok, capital of the largest rubber producer and exporter, where he’s attending a conference. “Shortage will still be there.”
Rubber consumption may climb to 1.89 million tons in 2020, compared with 930,000 tons this year if the economy expands at 8.5 percent a year, Simon said. The South Asian nation’s economy grew 8.9 percent for a second straight quarter in July to September, a government report showed on Nov. 30.
India may expand faster than China in the next 10 years if the government boosts spending on roads and bridges and lifts investment curbs, New York University professor Nouriel Roubini said yesterday. “China is likely to slow in the coming years gradually and India’s growth is likely to accelerate,” boosted by a young population and higher consumption, Roubini said.
‘Through the Roof’
India’s Trade Secretary Rahul Khullar said this week that rubber demand is “going through the roof,” and local output from the world’s fourth-largest producer wasn’t going to expand dramatically. The government may allow imports of as much as 100,000 tons at a lower duty to help meet demand, Khullar said.
India’s rubber output totaled 88,500 tons in November, compared with 93,500 tons a year ago, according to figures from the state-run Rubber Board. Imports in the eight months to Nov. 30 totaled 143,468 tons from 139,321 tons as tire companies stepped up purchases, the board said.
“Rubber will remain a sellers’ market, as it has been in the past two to three years, as the demand-supply equation is unlikely to change soon,” James said. Thailand, Malaysia and Indonesia are the top three producers. Natural-rubber supply this year may total 9.5 million tons, according to the Association of Natural Rubber Producing Countries, whose members account for 92 percent of worldwide output.
Demand from India’s auto industry is expected to increase “substantially” in the coming years after investments by tire makers including Bridgestone Corp. and Michelin & Cie., said Simon. Annual car sales may double to 3 million by 2015, according to a projection from India’s government.
Bridgestone and Indian rivals including Apollo Tyres Ltd. and MRF Ltd. are investing $3 billion in plants to meet demand that’s forecast by Automotive Tyre Manufacturers’ Association to expand 10 percent to 106 million tires in the year to March 31. Rubber makes up 42 percent of raw-material costs, according to the manufacturers’ group.
(Source: http://www.bloomberg.com/news/2010-12-03/india-s-natural-rubber-shortage-may-surge-fivefold-on-demand-group-says.html)
Cash Rubber Price in Thailand Climbs to Record 134.05 Baht a Kilogram
Posted: 03 Dec 2010 02:38 PM PST
The cash rubber price in Thailand climbed to a record, rising 1.5 percent to 134.05 baht ($4.40) per kilogram today, according to the Rubber Research Institute of Thailand. Demand remains strong amid a supply shortage as rain persists in southern Thailand, the institute said. Thailand’s south accounts for 80 percent of total production.
(Source: http://www.bloomberg.com/news/2010-12-03/cash-rubber-price-in-thailand-climbs-to-record-134-05-baht-a-kilogram.html)
Retreaders do well as rubber, tyre prices fly
Posted: 03 Dec 2010 02:35 PM PST
Commercial vehicle (CV) owners are finding tyre retreading a feasible option, owing to the increasing tyre prices. Rajiv Budharaja, director general of Automotive Tyres Manufacturers Association, said:
“Currently, rubber prices are historically high, due to which the tyre manufacturers are increasing output costs. As a result, the CV owners and transporters are opting for options like tyre retreading that gives them a cost benefit of almost 50-60% as compared to buying a new tyre.”
The price of rubber has almost doubled in the past one year, and tyre manufacturers have hiked prices 2-3 times this year.
Despite this, the companies are unable to pass on the prices due to strong competition. Rubber is currently trading at Rs205 per kg.
Meanwhile, in the last six months, the demand for tyre retreading has risen 8-10% on month-on-month basis.
“The total turnover of this industry is Rs4,500 crore on an annual basis and 16,000 tonnes on a monthly basis. We are observing a major shift in demand for retread tyres,” said A S Mehta, marketing director, JK Tyre.
According to Gopal Singh of Tyresoles, a Karnataka-based tyre retreading company, “June onwards, we have seen almost 36% increase in demand. We manufacture 13,000 tyres in a month. We plan to increase production owing to higher demand. In December, we expect demand to go up by 10-20%.”
The industry is divided into organised and unorganised players.
Currently, among tyre manufacturers, MRF Tyres, Apollo Tyres and JK Tyre are into the retreading business. Owning to the potential, companies like Ceat and Bridgestone have also announced interest in the same.
JK Tyre currently has a manufacturing facility in Rajasthan for retreading and is planning to expand capacity by next year.
It also plans to increase the number of franchisees from current 60 to 200 by next year.
In tyre retreading, a new tread is applied over the body of the worn tyre, giving it a fresh lease of life at a cost that is less than half the price of a new tyre.
The process increases the life of a tyre by 40-70%, depending on the usage.
Better road conditions and an increasing number of 14-, 18- and 22-wheel trucks have increased the demand for retreading tyres.
Generally, buses and light CVs that carry short-distance haul go for retreading in order to save cost. With overloading being substantially curbed, trucks have also started going for this process.
There are two types of retreading — the conventional process and the pre-cured process.The pre-cured process is more advance and provides better performance and quality.
It is currently the preferred option, while the conventional method is phasing out.
(Source: http://www.dnaindia.com/money/report_retreaders-do-well-as-rubber-tyre-prices-fly_1475684)
Synthetic rubber consumption to go up: Lanxess
Posted: 03 Dec 2010 02:32 PM PST
Lanxess, speciality chemicals and leading synthetic rubber, on Friday said it sees a big jump in the rubber consumption in the country driven by increasing demand from tyre makers particularly radial tyres.
The company said India with a long history in production and consumption of natural rubber is currently undergoing a shift towards replacing natural with synthetic rubber in a variety of applications, Lanxess Managing Director & Country Representative Joerg Strassburger told reporters.
Thus providing a base for the increase in consumption of synthetic rubber in the country particularly driven by radial tyre demands in the country.
Most tyre companies in India are in an advanced stage of setting up greenfield projects for manufacturing radial tyres for trucks and buses and companies already having production facilities are also undergoing capacity expansion, he said at a day-long conference hosted by the company here.
Friday, December 3, 2010
INDIA TYRE-MAKERS STOP SIGNING FRESH NATURAL RUBBER IMPORT DEALS ON CHEAPER LOCAL SUPPLY-DEALERS
INDIA TYRE-MAKERS STOP SIGNING FRESH NATURAL RUBBER IMPORT DEALS ON CHEAPER LOCAL SUPPLY-DEALERS
By Rajendra Jadhav
MUMBAI, Dec 3 (Reuters) - Indian tyre-makers have stopped signing new natural rubber import deals as they are getting the raw material more than 15 percent cheaper in the local market, two dealers and one trade official told Reuters.
India, the world's fourth-biggest rubber producer, imports mainly from Thailand, Malaysia and Indonesia.
"They (tyre-makers) are aggressively buying in the domestic market due to cheaper supplies," said a dealer based in Kochi in southern state of Kerala, the biggest producing state in the country.
On Firday, spot price of the most traded RSS-4 rubber (ribbed smoked sheet) was 197 rupees ($4.36) per kilogramme (kg) in India as against 203 rupees ($4.5) per kg in Bangkok.
In the past one month, spot rubber price in India has risen by 1 percent, while that in the international market rose by 9 percent.
"Rubber is at least 15 percent cheaper in Indian market if you add import duty and freight charges, and calculate landed cost of imported rubber," George Valy, president of The Indian Rubber Dealers Federation, told Reuters.
India charges 20 percent import duty on natural rubber.
In August, Indian rubber makers were charging a premium of as much as 35 rupees per kg over the Bangkok market, prompting Indian tyre companies to sign imports deals aggressively for shipment in September to December.
"Now the scenario is exactly the opposite. No one is signing import deals. Still we are getting rubber from old contracts. That will continue for next one month, but if the scenario remains the same, imports will be very low in January to March period," said another dealer based in Kerala.
The country has imported to 143,468 tonnes of natural rubber in April-Nov, up 3 percent on year due to lower-than-anticipated local production.
India is likely to produce around 850,000 tonnes of natural rubber in 2010/11, down 4.8 percent from the earlier estimate, after heavy unseasonal rains affected tapping, a senior Rubber Board official said on Thursday.
India's Automotive Tyre Manufacturers' Association has estimated India's 2010/11 tyre production to rise to a record 121.4 million units as companies boost capacity to meet booming demand from the local auto industry.
India’s Natural-Rubber Deficit to Surge, Bloomberg Reports
By Supunnabul Suwannakij and Thomas Kutty Abraham
Dec. 3 (Bloomberg) -- A natural-rubber shortage in India,
the world’s biggest consumer after China, may surge almost five
times over the next decade as rising incomes boost demand for
tires, according to an industry group.
The deficit may increase to 840,000 metric tons in 2020
from 175,000 tons next year, Vinod Simon, president of the All
India Rubber Industries Association, said in an interview. In
2015, the shortfall may be 687,000 tons, Simon said.
The forecast underscores India’s rising consumption of
commodities as economic growth stokes consumer demand and the
government boosts infrastructure spending. India’s commodity
demand has reached a tipping point, and growth is set to
accelerate significantly, Barclays Capital said last month.
The rubber deficit may stay longer than we imagine as car
sales continue to rise and a growing population boosts demand
for health care products, Anand James, chief analyst at
brokerage Geojit Comtrade Ltd., said from Kochi, Kerala.
The stronger consumption in India may help sustain this
year’s 34 percent rally in yen-priced futures. The contract on
the Tokyo Commodity Exchange, which reached a 30-year high of
383 yen ($4.57) per kilo on Nov. 11, traded at 370.4 yen today.
In India, spot prices in Kerala rose last month to more than 200
rupees ($4.43) a kilo for the first time. The Thai cash price
surged to an all-time high today of 134.05 baht ($4.46) a kilo.
‘Still Be There’
The increasing population of India will drive the market
for rubber products, Simon said yesterday from Bangkok,
capital of the largest rubber producer and exporter, where he’s
attending a conference. Shortage will still be there.
Rubber consumption may climb to 1.89 million tons in 2020,
compared with 930,000 tons this year if the economy expands at
8.5 percent a year, Simon said. The South Asian nation’s economy
grew 8.9 percent for a second straight quarter in July to
September, a government report showed on Nov. 30.
India may expand faster than China in the next 10 years if
the government boosts spending on roads and bridges and lifts
investment curbs, New York University professor Nouriel Roubini
said yesterday. China is likely to slow in the coming years
gradually and India’s growth is likely to accelerate, boosted
by a young population and higher consumption, Roubini said.
‘Through the Roof’
India’s Trade Secretary Rahul Khullar said this week that
rubber demand is going through the roof, and local output
from the world’s fourth-largest producer wasn’t going to expand
dramatically. The government may allow imports of as much as
100,000 tons at a lower duty to help meet demand, Khullar said.
India’s rubber output totaled 88,500 tons in November,
compared with 93,500 tons a year ago, according to figures from
the state-run Rubber Board. Imports in the eight months to Nov.
30 totaled 143,468 tons from 139,321 tons as tire companies
stepped up purchases, the board said.
Rubber will remain a sellers’ market, as it has been in
the past two to three years, as the demand-supply equation is
unlikely to change soon, James said. Thailand, Malaysia and
Indonesia are the top three producers. Natural-rubber supply
this year may total 9.5 million tons, according to the
Association of Natural Rubber Producing Countries, whose members
account for 92 percent of worldwide output.
Demand from India’s auto industry is expected to increase
substantially in the coming years after investments by tire
makers including Bridgestone Corp. and Michelin & Cie., said
Simon. Annual car sales may double to 3 million by 2015,
according to a projection from India’s government.
Bridgestone and Indian rivals including Apollo Tyres Ltd.
and MRF Ltd. are investing $3 billion in plants to meet demand
that’s forecast by Automotive Tyre Manufacturers’ Association to
expand 10 percent to 106 million tires in the year to March 31.
Rubber makes up 42 percent of raw-material costs, according to
the manufacturers’ group.
By Rajendra Jadhav
MUMBAI, Dec 3 (Reuters) - Indian tyre-makers have stopped signing new natural rubber import deals as they are getting the raw material more than 15 percent cheaper in the local market, two dealers and one trade official told Reuters.
India, the world's fourth-biggest rubber producer, imports mainly from Thailand, Malaysia and Indonesia.
"They (tyre-makers) are aggressively buying in the domestic market due to cheaper supplies," said a dealer based in Kochi in southern state of Kerala, the biggest producing state in the country.
On Firday, spot price of the most traded RSS-4 rubber (ribbed smoked sheet) was 197 rupees ($4.36) per kilogramme (kg) in India as against 203 rupees ($4.5) per kg in Bangkok.
In the past one month, spot rubber price in India has risen by 1 percent, while that in the international market rose by 9 percent.
"Rubber is at least 15 percent cheaper in Indian market if you add import duty and freight charges, and calculate landed cost of imported rubber," George Valy, president of The Indian Rubber Dealers Federation, told Reuters.
India charges 20 percent import duty on natural rubber.
In August, Indian rubber makers were charging a premium of as much as 35 rupees per kg over the Bangkok market, prompting Indian tyre companies to sign imports deals aggressively for shipment in September to December.
"Now the scenario is exactly the opposite. No one is signing import deals. Still we are getting rubber from old contracts. That will continue for next one month, but if the scenario remains the same, imports will be very low in January to March period," said another dealer based in Kerala.
The country has imported to 143,468 tonnes of natural rubber in April-Nov, up 3 percent on year due to lower-than-anticipated local production.
India is likely to produce around 850,000 tonnes of natural rubber in 2010/11, down 4.8 percent from the earlier estimate, after heavy unseasonal rains affected tapping, a senior Rubber Board official said on Thursday.
India's Automotive Tyre Manufacturers' Association has estimated India's 2010/11 tyre production to rise to a record 121.4 million units as companies boost capacity to meet booming demand from the local auto industry.
India’s Natural-Rubber Deficit to Surge, Bloomberg Reports
By Supunnabul Suwannakij and Thomas Kutty Abraham
Dec. 3 (Bloomberg) -- A natural-rubber shortage in India,
the world’s biggest consumer after China, may surge almost five
times over the next decade as rising incomes boost demand for
tires, according to an industry group.
The deficit may increase to 840,000 metric tons in 2020
from 175,000 tons next year, Vinod Simon, president of the All
India Rubber Industries Association, said in an interview. In
2015, the shortfall may be 687,000 tons, Simon said.
The forecast underscores India’s rising consumption of
commodities as economic growth stokes consumer demand and the
government boosts infrastructure spending. India’s commodity
demand has reached a tipping point, and growth is set to
accelerate significantly, Barclays Capital said last month.
The rubber deficit may stay longer than we imagine as car
sales continue to rise and a growing population boosts demand
for health care products, Anand James, chief analyst at
brokerage Geojit Comtrade Ltd., said from Kochi, Kerala.
The stronger consumption in India may help sustain this
year’s 34 percent rally in yen-priced futures. The contract on
the Tokyo Commodity Exchange, which reached a 30-year high of
383 yen ($4.57) per kilo on Nov. 11, traded at 370.4 yen today.
In India, spot prices in Kerala rose last month to more than 200
rupees ($4.43) a kilo for the first time. The Thai cash price
surged to an all-time high today of 134.05 baht ($4.46) a kilo.
‘Still Be There’
The increasing population of India will drive the market
for rubber products, Simon said yesterday from Bangkok,
capital of the largest rubber producer and exporter, where he’s
attending a conference. Shortage will still be there.
Rubber consumption may climb to 1.89 million tons in 2020,
compared with 930,000 tons this year if the economy expands at
8.5 percent a year, Simon said. The South Asian nation’s economy
grew 8.9 percent for a second straight quarter in July to
September, a government report showed on Nov. 30.
India may expand faster than China in the next 10 years if
the government boosts spending on roads and bridges and lifts
investment curbs, New York University professor Nouriel Roubini
said yesterday. China is likely to slow in the coming years
gradually and India’s growth is likely to accelerate, boosted
by a young population and higher consumption, Roubini said.
‘Through the Roof’
India’s Trade Secretary Rahul Khullar said this week that
rubber demand is going through the roof, and local output
from the world’s fourth-largest producer wasn’t going to expand
dramatically. The government may allow imports of as much as
100,000 tons at a lower duty to help meet demand, Khullar said.
India’s rubber output totaled 88,500 tons in November,
compared with 93,500 tons a year ago, according to figures from
the state-run Rubber Board. Imports in the eight months to Nov.
30 totaled 143,468 tons from 139,321 tons as tire companies
stepped up purchases, the board said.
Rubber will remain a sellers’ market, as it has been in
the past two to three years, as the demand-supply equation is
unlikely to change soon, James said. Thailand, Malaysia and
Indonesia are the top three producers. Natural-rubber supply
this year may total 9.5 million tons, according to the
Association of Natural Rubber Producing Countries, whose members
account for 92 percent of worldwide output.
Demand from India’s auto industry is expected to increase
substantially in the coming years after investments by tire
makers including Bridgestone Corp. and Michelin & Cie., said
Simon. Annual car sales may double to 3 million by 2015,
according to a projection from India’s government.
Bridgestone and Indian rivals including Apollo Tyres Ltd.
and MRF Ltd. are investing $3 billion in plants to meet demand
that’s forecast by Automotive Tyre Manufacturers’ Association to
expand 10 percent to 106 million tires in the year to March 31.
Rubber makes up 42 percent of raw-material costs, according to
the manufacturers’ group.
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