Rubber mart seen moving upward

Rubber mart seen moving upward


Posted: 05 Feb 2011 04:16 AM PST
Malaysian rubber prices are expected to trend higher next week on higher demand amid tight supply globally.
A dealer said the current rainy season in rubber producing countries would lead to tight supply.
The local market was also expected to track the performance of regional markets, he added.
During the week just ended, the commodity traded lower as most players were reluctant to take heavy positions due to long festive holidays.

The Malaysian Rubber Board's official physical seller price for tyre-grade SMR 20 declined to three sen to 1,646.5 sen per kg from 1,649.5 per kg last week.
Latex-in-bulk slipped 1.5 sen to 1,023.0 sen per kg from 1,024.5 sen per kg previously.
The unofficial seller closing price for tyre-grade SMR 20 rose 1.5 sen to 1,648.0 sen per kg from 1,646.5 sen per kg last week while latex-in-bulk slipped one sen to 1,022.5 sen per kg from 1,023.5 sen per kg. – Bernama



Kerala to train rubber tappers from other states
Posted: 05 Feb 2011 01:33 AM PST
KOTTAYAM (Commodity Online) : In order to address shortage of tappers, the Rubber Board in India has launched a new scheme to introduce labourers from other states on a large scale, to plantations in Kerala.
In this regard, the state level inauguration of the training programme for non-Keralite tappers was held at Pampady in Kotayam.
“Shortage of tappers is the most important problem facing the rubber plantation sector in Kerala”, said V.J. Kurian, Chairman, Rubber Board in a message.
Selected workers from Kerala and other states would be given intensive training in the Board’s Tapping Schools in Kerala. Workers from other states having valid Electoral Identity Card would be brought to Kerala, after obtaining necessary clearance from the police and medical authorities concerned.
After successfully completing the training, their service would be allotted to holdings which are already identified. The whole programme would be implemented with the involvement of Rubber Producers’ Societies (RPSs) and the Tapper Banks under their control, said the Chairman.
The tappers training programme was inaugurated by the former vice chairman of the Board, Adv. Siby J Monippally, General Secretary, Indian Rubber Growers’ Association. The tapper banks formed through this scheme was expected to foster good labour relations and would lead to inclusive growth in the sector, he said.
Under the new scheme, the Board will meet the entire expenses of the trainees for their journey from native place to Kerala and will also provide an allowance of `150 a day for each trainee, for food and incidental expenses.
The trainees in batches of 20 will be given 30 days intensive training. Each trainee will be given Rs.150 every day as stipend and their accommodation will be arranged in the Board’s Tapping Schools.
Training for the first batch, brought from Orissa State, will commence from 31 January 2011 at Tappers Training School at Kothala, Kottayam. A total of 280 workers will be trained in the Board’s seven tapping schools. Board proposes to make available the service of trained tappers to the RPSs by the commencement of the next tapping season.



China 2010 syntetic rubber output hit 3.1 million tons
Posted: 05 Feb 2011 01:32 AM PST
BEIJING (Commodity Online) : China’s output of synthetic rubber hit 3.1 million tons last year, up 11.7% year on year.
In 2010, China's foreign trade of synthetic rubber totalled 4.9 billion, surging 50.9% year on year, and the trade deficit surged 32.8% year on year to $3.71 billion.
The import value of synthetic rubber increased 42.6% year on year to $4.3 billion, while the export value skyrocketed 164.1% year on year to about $600 million.
The price of synthetic rubber remained at a high level, and the price of styrene-butadiene rubber, butadiene rubber, acrylonitrile-butadiene rubber, ethylene-propylene rubber and butyl rubber reflected an increase of 42%, 64.3%, 31.4%, 15.6% and 14.9% year on year, respectively. However, the chloroprene rubber's price slightly decreased 1.1% year on year.
A subsidiary of China Petroleum & Chemical Corp started operation on a 30,000-ton butyl rubber base and a 15,000-ton isoprene rubber base in April 20




Thailand kick-starts 12,8000 ha rubber plantation project
Posted: 05 Feb 2011 01:31 AM PST
BANGKOK (Commodity Online) : A nationwide rubber plantation project that would cover 800,000 rai (12,8000 ha) in Thailand is in the offing with Thailand Premier Abhisit Vejjajiva encouraging farmers to take part in the drive.
The planting mission makes economic sense as the government expects RSS3 grade rubber to move up to 200 baht ($6.45) a kilogramme, this year.
The project is expected to yield excess of 220,000 tons of natural rubber by 2017, a figure that would add to 3.11 million tons the country harvested last year. New planters (approx. 160,000 in numbers) would be initiated into the process and they would own between 2 rai (0.7 acres) and 15 rai (5.93 acres) of land.
The government kick-started the three year drive recently, that would enhance acreage of rubber plantations in the North of the country by 150,000 rai (24000 ha) and in the Northeast by 500,000 rai (80,000 hectares).
The rest of the acreage (150,000 rai or 24000 ha) would be spread across the East, central plains and the South of Thailand.
As per the project, government would provide low-priced rubber saplings, fertiliser and technical support for the first three years to planters.
By the time, planters are supposed to find provisions to bear the cost for the remaining crop cycle (year three and four) even as a state bank would provide them with low-interest loans to support the spending.
The government has also decided to extend the 8-billion-baht credit programme to farmers until March, 2012 as the allocation has been under utilized by farmers.
Prevailing high prices of rubber has ensured less instances of borrowing by farmers.




Rise in spot rubber prices
Posted: 05 Feb 2011 01:29 AM PST
On Friday (04 February 2011), the spot rubber prices rose due to fresh buying and short covering, tracking global gains but the weakness in domestic futures kept it under pressure during closing hours. Sheet rubber ended at Rs. 238 (235) per kg after hitting an intraday high of Rs. 240 in the morning session.

The February futures for RSS 4 declined to to Rs. 235.50 (239.48), March to Rs. 240.66 (245.06), April to Rs. 249.51 (254.17) and May to Rs. 254.20 (259.42) per kg on the National Multi Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 238 (235); RSS-5: 227 (225); ungraded: 223 (220); ISNR 20: 230 (227) and latex 60 per cent: 152 (151).



Rubber Tops 500 Yen to Record as Recovery Boosts Demand Outlook
Posted: 04 Feb 2011 07:44 PM PST
Rubber surged to more than 500 yen a kilogram for the first time as signs the global economy is improving boosted speculation demand will keep expanding for the commodity as weather disruptions constrain supplies. The cash price in Thailand also surged to a record.

The July-delivery contract climbed as much as 2.9 percent to a record 504 yen a kilogram ($6,178 a metric ton) on the Tokyo Commodity Exchange before settling at 502.9 yen. The most-active contract surged 7.2 percent this week, the largest advance in 13 weeks.

Asian stocks climbed for a fourth day before a report that economists said will show U.S. employers added the most jobs in January in three months. Asian companies including Samsung Electronics Co. and Hyundai Motor Co. boosted earnings last quarter as economic growth in the U.S. and China spurred consumers to buy more electronics and cars.

“Optimism about global economic growth spurred investors to buy industrial commodities,”Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone. “Rubber also advanced on speculation that Chinese buyers may step up purchases after the New Year holiday.”

The Institute for Supply Management’s index of U.S. non- manufacturing businesses released yesterday showed service industries expanded in January at the fastest pace since August 2005, indicating the economic recovery is broadening.

U.S. nonfarm payrolls climbed by 146,000 in January after climbing by 103,000 the previous month, according to a Bloomberg survey before today’s Labor Department report. The jobless rate rose to 9.5 percent from 9.4 percent, a separate survey showed.

Recovery Signs

“The U.S. economy is picking up and starting to show some pretty consistent signs of recovery, which could spill over to jobs,” said Greg Gibbs, a currency strategist at Royal Bank of Scotland Group Plc in Sydney.

Rubber futures have gained 21 percent this year, extending last year’s 50 percent rally. Supplies from Thailand, Indonesia and Malaysia, the top growers representing 70 percent of global supply, were curbed by rain while rising car sales led by China and India improved demand.

“Concerns over worsening supply shortage still boost the sentiment as demand remains robust, while supply may demand further as rubber trees are entering leave-shedding season, lowering output,” Sureerat Kunthongjun, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok.

La Nina, which started in June and usually lasts for nine months or more, has led to higher-than-average rainfall in most parts of Southeast Asia. The weather event is having a “major impact” on rubber and palm oil production in Malaysia, as heavier rainfall may hamper harvesting and tapping, according to the Malaysian Meteorological Department.

The physical price of natural rubber in Thailand advanced to a record 184.05 baht ($5.96) a kilogram today as investors are concerned over the supply situation in Thailand and Malaysiaahead of the annual low-production period, the Rubber Research Institute of Thailand said. Robust car sales in the U.S. supported prices, it said.

U.S. Car Sales

U.S. sales of cars and light trucks rose 17.3 percent from a year earlier to 817,098 in January, according to data provided by Ward’s Information Products.

The Shanghai market will be closed until Feb. 8 for Lunar New Year holidays. May-delivery rubber in Shanghai climbed to a record 41,850 yuan ($6,350) a ton on Jan. 31.

Natural-rubber consumption in China may rise 9 percent to 3.6 million tons this year and India’s consumption may gain 5.2 percent to 991,000 tons, according to the Association of Natural Rubber Producing Countries.

China’s natural-rubber inventories rose for the first week in four, adding 126 tons to 58,673 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, theShanghai Futures Exchange said Feb. 1. That was a 61 percent drop from last year’s peak of 151,832 tons.

Car-sales growth in China will be around 10 to 15 percent this year, the China Association of Automobile Manufacturers said Jan. 10. Total auto sales, which include cars, trucks and buses, jumped 32 percent last year to 18.06 million, the association said.





NR Prices Still Climb Up On Supply Concerns And Strong Demand For Rubber Products
Posted: 04 Feb 2011 07:45 PM PST
There are no IRCo’s DCPs from 2 Feb. to 3 Feb. as relevant rubber markets have been closed on the Lunar New Year holidays during 2 - 8 Feb., but rubber prices on both rubber futures and physical markets continue to rise further due mainly to the news on flooding in Malaysia, anticipation and expectation of steady demand from China but tighter rubber supply after the Lunar New Year celebration, and further rises in oil prices in the wake of worsening Egyptian political confrontation. For the meantime, a strengthening Japanese yen has not much influence on rubber futures as market fundamentals and speculation on rubber futures dominate the rubber market.




India tyre makers buy rubber at record $5.26 per kg
Posted: 04 Feb 2011 07:39 PM PST
Feb 4 (Reuters) - Indian tyre makers bought natural rubber at a record 240 rupees ($5.26) per kg on Friday as farmers squeezed supplies seeking higher prices after a surge in the world markets, a senior official of a dealers body told Reuters.

The earlier record high was 235 rupees struck last month.

"Supplies were less-than-expected as big farmers were not selling. They were waiting for further upside due to rising prices in Thailand," said Ibrahim Jalal, treasurer at Indian Rubber Dealers Federation (IRDF).

Spot rubber price in Thailand, the world's biggest producer and exporter of natural rubber, was $5.90 per kg on Friday.




Tokyo futures hit record high on oil, supply
Posted: 04 Feb 2011 07:35 PM PST
BANGKOK, Feb 4 - Tokyo rubber futures jumped to another record high on Friday on the back of firm oil prices and supply worries, but profit-taking capped gains, dealers said.

* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for July delivery rose 13.0 yen to settle at 502.9 yen per kg. It rose as high as 504.0 yen per kg before profit-taking set in.

* Oil was headed for a second straight week of gains as Egypt's volatile situation kept markets on edge ahead of Friday prayers, while investors waited for U.S. employment data expected to give direction to prices later in the day. [O/R]

* Dealers said rubber futures could rise further next week after prices finished above the psychological level of 500 yen as concern over a fall in supply should provide support.

* Supply in the world's top two producing countries, Thailand and Indonesia, is due to fall significantly in February and March when the two countries are due to be in the dry season and rubber trees stop producing latex.

* The offer price for Thai benchmark RSS3 rubber remained at a record high on Friday. [ID:nSGE71300E] (Reporting by Apornrath Phoonphongphiphat; Editing by Alan Raybould)