Rubber sector puts future in focus
MONDAY, MARCH 28, 2011
BINH PHUOC — Upgrading processing facilities and offering training to farmers will help the rubber industry develop in a sustainable manner, said experts at a sustainable rubber development forum in Binh Phuoc Province last week.
The area of rubber tree plantations increased rapidly from 1980-2010, with an annual average rise of 7.7 per cent in area and 10.7 per cent in output, said Pham Van Tinh, deputy director of the National Agricultural Extension Center.
During the period, rubber yields also rose strongly from 703 kilos per ha in 1980 to 1,720 kilos per ha last year.
Rubber tree development has improved the incomes of more than 130,000 farm labourers and more than 143,000 farmer households, Tinh said.
Although the sector has flourished in recent years, the sector faces problems compared other countries in the region, he said.
The current rush to plant the tree, without suitable land for cultivation, coupled with excessive exploitation, may cause a lower yield and quality in the future, threatening sustainable development for the sector, he said.
"This requires localities to quickly create a zoning plan for rubber plantations and urge farmers to strictly follow a plan and not cultivate the tree on any land when there is a rubber-price surge," said Dr Nguyen Anh Nghia, head of the Rubber Research Institute of Viet Nam's Crop Protection Division.
He also urged localities to improve agricultural-extension activities and give instruction in proper plantation techniques for seed selection, plantation, and harvesting.
Demand for natural rubber in the world market is expected to continue to increase until 2012, however, the planting should not be done indiscriminately, said Tran Thi Thuy Hoa, VRA's general secretary.
Currently, the export price of Vietnamese natural rubber is lower than that of Malaysia, Thailand and Indonesia because importers blamed the inconsistent quality of Vietnamese products, Hoa said.
"The country, therefore, should improve the quality management system for preliminary processing of natural rubber and support farmers to improve the quality of their rubber raw materials in line with national and international norms to enhance the sector's competitiveness," she said.
Supply shortage
The world's natural rubber output this year is expected to increase by 6.2 per cent from last year but is still low compared to the demand for latex, Hoa said.
Supply shortage has pushed up rubber prices in recent years, she said.
Though the price slightly fell this month due to a political crisis in Libya and the earthquake in Japan, it still stands at more than US$5,000 per tonne.
Currently Viet Nam is the world's fourth largest exporter of natural rubber, exporting 782,200 tonnes last year, earning $2.28 billion.
China is the largest buyer of Vietnamese rubber, accounting for 59 per cent of the country's total rubber exports.
Besides latex, last year the country also earned more than $300 million from exports of rubber wood-based products, accounting for about 10 per cent of total wooden products' export revenue, she said.
The country last year had 740,000 ha of rubber plantations, an increase of 62,300ha over 2009, mainly located in southeastern provinces.
The Government has created a master plan to develop the industry until 2015 with a vision to 2020.
Accordingly, the country targets having 800,000ha under rubber cultivation by 2015, producing more than 1.2 million tonnes of natural rubber per year by 2020. — VNS
Japan TOCOM March Rubber Deliveries Highest Since Jan 2007
MONDAY, MARCH 28, 2011
Deliveries against the March rubber futures contract on the Tokyo Commodity Exchange jumped 50 percent from February to 466 lots or 2,330 tonnes, the exchange said on Friday (Mar 25), the highest since 516 lots of deliveries in January 2007.
February deliveries were 310 lots or 1,550 tonnes.
The March TOCOM rubber futures contract expired at 446.4 yen per kg, down 14 percent from February contract's 518.8 yen expiry price.
The benchmark August contract settled down 6.8 yen or 1.6 percent at 429.6 yen.
The newly listed September contract will be the benchmark when it starts trading on Monday (Mar 28).
(Reuters, March 25, 2011)
Rubber Exports to Japan are Safe
MONDAY, MARCH 28, 2011
TEMPO Interactive, Jakarta:Indonesia’s raw rubber exports to Japan are secure despite the closure of several automotive factories in Japan. “There have been no reports of exports being suspended to Japan,” said Suharto Honggokusumo, the executive director of the Indonesian Rubber Producers Association (Gapkindo), in Jakarta yesterday.
Last year, Indonesia’s rubber exports stood at 2.4 million tons and were valued at US$7 billion. The growth of Indonesia’s rubber export volume during 2004 – 2010 was 8 percent. Rubber prices are high on the international trade market at US$ 5.2 per kilogram.
Consumer Tire Demand To Increase
MONDAY, MARCH 28, 2011
"As expected, wholesale tire prices are going up as much as 8% in March as raw materials took a big jump up in January 2011,” says Saul Ludwig in the latest installment of the "Ludwig Report" in Modern Tire Dealer magazine.
“While natural rubber is the most visible as its climb is unprecedented in history, other materials including synthetic rubber, carbon black, steel and chemicals also up,” Ludwig notes.
“I estimate that the total raw material basket cost in January 2011 was at least 30% greater than January 2010 (and up 10% vs. just one month earlier), so manufacturers have no alternative but to move tire prices up.
“Yes, this is tough on consumers,” says Ludwig, “but there is no option for them except to trade down in quality. Your job is to explain to them that quality is the lowest cost in the long run. Fuel efficient tires can offer a partial offset to higher tire prices.
“Despite this tire price inflation, I still expect consumer tire demand to increase as much as 3% this year.”
Ludwig is a managing director with Northcoast Research Holdings LLC based in Cleveland, Ohio. He concentrates on the tire and chemical industries.
(Tyrepress.com, March 25, 2011)
Rubber expected to continue uptrend this week
MONDAY, MARCH 28, 2011
KUALA LUMPUR: THE Malaysian rubber market is expected to continue its uptrend this week supported by higher crude oil prices.
A dealer said rising crude oil prices will make synthetic rubber, a product of crude oil, more costlier.
“Higher crude oil prices will lend support to the market despite increased fears that Japan's disaster could disrupt automobile manufacture and supply from key producing countries,” he added.
For the just-ended week, rubber prices mostly tracked movements on Tokyo and the Shanghai futures markets.
Tyre-grade SMR 20 surged 134.5 sen to 1,528 sen per kg, from 1,393.5 sen per kg previously.
While latex-in-bulk increased 145.5 sen to 1,042 sen per kg on Friday from 896.5 sen per kg, recorded previously. – Bernama.
(Source: http://biz.thestar.com.my/news/story.asp?file=/2011/3/28/business/8358016&sec=business)
Tokyo Futures Mostly Up On Supply Concerns
MONDAY, MARCH 28, 2011
Most Tokyo rubber futures were higher on Monday (Mar 28) as supply concerns provided firm support to the market.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for September delivery, which debuted in Monday's (Mar 28) session, was at 428 yen per kg as of 0028 GMT, down 8 yen or 1.8 percent from the open.
The previous benchmark for August delivery was up 3.6 yen at 433.2 yen.
Tokyo rubber futures fell on Friday (Mar 25) on technically driven selling as players liquidated contracts after prices failed to break above key resistance at 440 yen. Tight supplies, however, limited the losses, dealers said.
The most active Shanghai rubber contract for May delivery fell 175 yuan to settle at 36,450 yuan ($5,558) per kg on Friday (Mar 25).
Deliveries against the March rubber futures contract on the Tokyo Commodity Exchange jumped 50 percent from February to 466 lots or 2,330 tonnes, the exchange said on Friday (Mar 25), the highest since 516 lots delivered in January 2007.
U.S. crude futures remained steady in early Asian trade on Monday (Mar 28) as fighting persisted in Libya and political unrest continued unabated in Syria, Yemen and Bahrain, supporting oil supply concerns.
The euro started the week on the backfoot following news of a German state election rout for Chancellor Angela Merkel's conservatives, but expectations of an imminent rate hike by the European Central Bank looked set to limit its downside.
(Reuters, March 28, 2011)
Synthetic rubber demand rises by 13% in Dec
MONDAY, MARCH 28, 2011
NEW DELHI, MARCH 28:
The country’s synthetic rubber consumption has risen by 13 per cent to 35,865 tonnes in December 2010, outstripping domestic supply of 9,463 tonnes in the same period, according to the Rubber Board.
Synthetic rubber production and demand stood at 8,912 tonnes and 35,865 tonnes, respectively, in the same period previous year, the Board’s data showed.
Synthetic rubber is mostly used in the manufacturing of tyres in the country. The industry consumed 26,278 tonnes of the produce in December 2010 alone, it said.
According to the Rubber Board, demand for synthetic rubber also jumped significantly by 23.37 per cent to 3,06,620 tonnes till December 2010 of this fiscal, as against 2,48,520 tonnes in the year-ago period.
Meanwhile, the overall production of synthetic rubber has increased only by three per cent to 81,604 tonnes from 79,263 tonnes in the review period, it said.
India, the world’s second biggest consumer of natural rubber, imported 25,087 tonnes of synthetic rubber in December 2010, up by 4.25 per cent from 24,063 tonnes in the year-ago period. Currently, the country has stock of 39,035 tonnes of synthetic rubber.
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1578344.ece)
China natural rubber imports down 14% in February
MONDAY, MARCH 28, 2011
BEIJING (Commodity Online) : China, one of the world’s largest rubber consumers and the largest buyer of natural rubber, imported 107,218 metric tons of natural rubber in February.
According to country’s General Administration of Customs, the figure is 14 percent lower compared to same month a year ago while it was down 27 percent compared to January.
China imported 107,218 metric tons of natural rubber in February this year, down 14.4% compared with the same period of last year.
The February figure is 27% less than that in January, when the country imported 147,382 metric tons of natural rubber.
In the first two months of this year, China's natural rubber imports dropped 14.2% year on year to 254,590 metric tons, said the customs.
China mainly imports natural rubber from Thailand, Indonesia and Malaysia.
During the period from January to February, China imported 230,900 metric tons of synthetic rubber, down 6.42% from the same period of last year. Last month, synthetic rubber imports were 91,250 metric tons.
(Source: http://www.commodityonline.com/news/China-natural-rubber-imports-down-14-in-February-37620-3-1.html)
Monday, March 28, 2011
Sunday, March 27, 2011
Spot rubber turns weak
Spot rubber turns weak
SATURDAY, MARCH 26, 2011
KOTTAYAM, MARCH 25:
The physical rubber prices turned weak on Friday. The undercurrent was bearish in the absence of genuine buyers though there has been no visible selling pressure in the market. According to observers, the market might continue to remain sluggish with minor variations on either side till the end of the current fiscal. The trend was mixed.
The Tokyo rubber futures fell on heavy long liquidation by investment funds since it failed to break above the key resistance of ¥440 but the prices were partially supported by tight supplies on late trades.
Sheet rubber weakened to Rs 226 (228) a kg as quoted by the traders. The grade moved down to Rs 226.50 (227.50) a kg both at Kottayam and Kochi according to Rubber Board.
The April series increased to Rs 227.80 (223.54), May to Rs 233.69 (229.45), June to Rs 239.50 (235.34) and July to Rs 239.80 (237.18) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
RSS 3 (spot) slipped to Rs 258.90 (260.37) a kg at Bangkok. The March futures expired at ¥453.8 (Rs 249.36) a kg while the April futures declined to ¥433 (Rs 237.93) from ¥442.5 during the day session and then improved to ¥439.5 (Rs 241.50) a kg in the night session on the Tokyo Commodity Exchange (TOCOM).
Spot prices were (Rs/kg): RSS-4: 226 (228); RSS-5: 223 (224); ungraded: 219 (221); ISNR 20: 222 (222) and latex 60 per cent: 132 (130).
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1571599.ece)
Tokyo rubber futures down
SATURDAY, MARCH 26, 2011
Bangkok (march 26, 2011) : tokyo rubber futures fell on friday on technical selling as players liquidated contracts after prices failed to break above a key resistance of 440 yen. tight supply, however, spared more losses, dealers said. the benchmark rubber contract on the tokyo commodity exchange for august delivery fell 6.8 yen to settle at 429.6 yen ($5.30) per kg.
the most active shanghai rubber contract for may delivery fell 175 yuan to settle at 36,450 yuan ($5,558) per kg. brent crude was steady near $116 on friday ahead of protests planned in bahrain, heading for a third straight weekly gain and up 1.5 percent since western powers launched a military campaign in libya and turmoil flared in yemen and syria.
the dollar hovered near a 15-month low against a basket of currencies and was in sight of a 29-year trough against the australian dollar as a bounce in equities suggested that risk appetite was on the mend. tocom rubber were expected to rebound next week as players sought to test the resistance of 430 yen again. tight supply in producing countries should provide support, dealers said.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1170705:tokyo-rubber-futures-down.html?hl=rubber)
Rubber prices expected to rise further
SATURDAY, MARCH 26, 2011
The Malaysian rubber market is expected to continue its uptrend next week supported by higher crude oil prices.
A dealer said rising crude oil prices will make synthetic rubber, a product of crude oil, costlier.
"Higher crude oil prices will lend support to the market despite increased fears that Japan's disaster could disrupt automobile manufacture and supply from key producing countries," he added.
For the just-ended week, rubber prices mostly tracked movements on Tokyo and the Shanghai futures markets.
Tyre-grade SMR 20 surged 134.5 sen to 1,528 sen per kg, from 1,393.5 sen per kg previously, while latex-in-bulk increased 145.5 sen to 1,042 sen per kg on Friday, from 896.5 sen per kg, recorded previously.
Read more: Rubber prices expected to rise further http://www.btimes.com.my/articles/20110326135806/Article/#ixzz1HiMkgjqN
SATURDAY, MARCH 26, 2011
KOTTAYAM, MARCH 25:
The physical rubber prices turned weak on Friday. The undercurrent was bearish in the absence of genuine buyers though there has been no visible selling pressure in the market. According to observers, the market might continue to remain sluggish with minor variations on either side till the end of the current fiscal. The trend was mixed.
The Tokyo rubber futures fell on heavy long liquidation by investment funds since it failed to break above the key resistance of ¥440 but the prices were partially supported by tight supplies on late trades.
Sheet rubber weakened to Rs 226 (228) a kg as quoted by the traders. The grade moved down to Rs 226.50 (227.50) a kg both at Kottayam and Kochi according to Rubber Board.
The April series increased to Rs 227.80 (223.54), May to Rs 233.69 (229.45), June to Rs 239.50 (235.34) and July to Rs 239.80 (237.18) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
RSS 3 (spot) slipped to Rs 258.90 (260.37) a kg at Bangkok. The March futures expired at ¥453.8 (Rs 249.36) a kg while the April futures declined to ¥433 (Rs 237.93) from ¥442.5 during the day session and then improved to ¥439.5 (Rs 241.50) a kg in the night session on the Tokyo Commodity Exchange (TOCOM).
Spot prices were (Rs/kg): RSS-4: 226 (228); RSS-5: 223 (224); ungraded: 219 (221); ISNR 20: 222 (222) and latex 60 per cent: 132 (130).
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1571599.ece)
Tokyo rubber futures down
SATURDAY, MARCH 26, 2011
Bangkok (march 26, 2011) : tokyo rubber futures fell on friday on technical selling as players liquidated contracts after prices failed to break above a key resistance of 440 yen. tight supply, however, spared more losses, dealers said. the benchmark rubber contract on the tokyo commodity exchange for august delivery fell 6.8 yen to settle at 429.6 yen ($5.30) per kg.
the most active shanghai rubber contract for may delivery fell 175 yuan to settle at 36,450 yuan ($5,558) per kg. brent crude was steady near $116 on friday ahead of protests planned in bahrain, heading for a third straight weekly gain and up 1.5 percent since western powers launched a military campaign in libya and turmoil flared in yemen and syria.
the dollar hovered near a 15-month low against a basket of currencies and was in sight of a 29-year trough against the australian dollar as a bounce in equities suggested that risk appetite was on the mend. tocom rubber were expected to rebound next week as players sought to test the resistance of 430 yen again. tight supply in producing countries should provide support, dealers said.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1170705:tokyo-rubber-futures-down.html?hl=rubber)
Rubber prices expected to rise further
SATURDAY, MARCH 26, 2011
The Malaysian rubber market is expected to continue its uptrend next week supported by higher crude oil prices.
A dealer said rising crude oil prices will make synthetic rubber, a product of crude oil, costlier.
"Higher crude oil prices will lend support to the market despite increased fears that Japan's disaster could disrupt automobile manufacture and supply from key producing countries," he added.
For the just-ended week, rubber prices mostly tracked movements on Tokyo and the Shanghai futures markets.
Tyre-grade SMR 20 surged 134.5 sen to 1,528 sen per kg, from 1,393.5 sen per kg previously, while latex-in-bulk increased 145.5 sen to 1,042 sen per kg on Friday, from 896.5 sen per kg, recorded previously.
Read more: Rubber prices expected to rise further http://www.btimes.com.my/articles/20110326135806/Article/#ixzz1HiMkgjqN
Friday, March 25, 2011
NR Prices Rise 23% In A Week
NR Prices Rise 23% In A Week
THURSDAY, MARCH 24, 2011
Natural rubber (NR) prices, both in domestic and international markets, are in a come back mode after the damage last week due to an earthquake in Japan.
The domestic market quoted Rs 228 a kg for benchmark grade RSS-4 which had plummeted to Rs 185 a kg on March 14, the lowest this year.
In Tokyo, TOCOM yesterday (Mar 23) quoted ¥411 a kg for RSS-4, up ¥29 from the closing rate on Monday (Mar 21). It had dropped to ¥375 a kg on March 16. Likewise, Bangkok market on Wednesday (Mar 23) quoted Rs 251 a kg , up by Rs 50 from the Rs 201 on March 15. A bunch of other allied factors also indicate a fundamentally strong market for the next 10-12 weeks.
The market foresees a bullish mode as there would be a decline in production in the coming months due to heat and supplies would be low till the next monsoon. The lean season in the rubber production is March to May. So, according to experts, the global NR prices are now rising after declining sharply last week.
The total domestic production in March-May 2010 was 160,550 tonnes while it was 109,000 tonnes in December alone. The average monthly production in India is 70,000 tonnes while this was reduced to 53,500 tonnes in March-May. The heat during these months reduces the output.
Rubber price jumped after Thailand, the largest producer, asked exporters to halt shipments and as tyre plants in Japan resumed production after the earthquake.
(Business Standarad, India, March 24, 2011)
Buyer resistance tests rubber
THURSDAY, MARCH 24, 2011
KOTTAYAM, MARCH 23:
The physical rubber prices showed a mixed trend on Wednesday. The market opened steady but lost ground on buyer resistance following the early declines on the NMCE. A late recovery in domestic futures failed to strengthen the prices though the international markets ended on a positive note. Meanwhile ISNR 20 improved on better demand but the volumes were comparatively low.
Among other reports, Indonesia, the world's second-largest rubber producer, would increase its output by more than 20 per cent to 3.6 million tonnes by 2015, to meet rising domestic and Chinese demand in fast-growing economies.
In spot, sheet rubber moved down to Rs 228 (229) a kg according to traders. The grade finished unchanged at Rs 228 a kg both at Kottayam and Kochi as per Rubber Board.
The April series closed at Rs 230.20 (230.70), May at Rs 236 (236.38), June at Rs 241.66 (241.28) and July at Rs 242.20 (241.67) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
RSS 3 (spot) increased to Rs 253.19 (251.76) a kg at Bangkok. The March futures for the grade firmed up further to ¥445 (Rs 246.73) from ¥440 a kg during the day session and then to ¥449 (Rs 248.95) in the night session on the Tokyo Commodity Exchange (TOCOM).
Spot rates were (Rs/kg): RSS-4: 228 (229); RSS-5: 224 (225); ungraded: 221 (222); ISNR 20: 222 (221) and latex 60 per cent: 130 (130).
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1565065.ece)
Rubber Board invites suggestions for 12th Plan
THURSDAY, MARCH 24, 2011 \
KOTTAYAM, MARCH 23:
Ms Sheela Thomas, Rubber Board Chairperson, has invited suggestions from all the stakeholders for formulating the Board's schemes for the 12th Five Year Plan to be implemented from the year 2012-13.
The development schemes of the Board are part of Five Year Plans implemented by the Government of India. The current schemes in the 11th Plan are ending in 2011-12. Ms Sheela Thomas said that an evaluation of these schemes would be conducted so as to generate inputs for the formulation of 12th Plan schemes. Internationally renowned agricultural scientist and Member of Parliament Dr MS Swaminathan would chair the National Committee which has been constituted for the evaluation. The committee comprising experts from different disciplines would critically look into all the schemes being implemented in the fields of production, processing and marketing of NR and also research in rubber.
In order to give an opportunity for all sections of the public to have their say in plan formulation, the Board has scheduled a series of consultations with various segments of rubber industry stakeholders, she said. The first such meeting would be conducted at Kottayam soon.
Simultaneously, stakeholders can give online observations on the current schemes and suggestions for the 12th Plan, by logging on to the Board's Web sitewww.rubberboard.org.in. They could either key in their proposals in the suggestion box or attach a file. Details of the 11th Plan schemes of the Board are made available on the site, for ready reference.
She said that the observations and suggestions received from the stakeholders would be considered seriously while formulating the 12th Plan proposals of the Board, subject to the guidelines and priorities set up by Government of India and Planning Commission.
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1565067.ece)
Maharashtra Govt open to Rubber Board conducting field trials of genetically modified crop
THURSDAY, MARCH 24, 2011
KOCHI, MARCH 24:
The Maharashtra Government has responded positively to a proposal from the Rubber Research Institute of India (RRII), under the Rubber Board, for conducting controlled field trials of genetically modified rubber, Ms Sheela Thomas, Chairman of Rubber Board, has said.
She pointed out that the response from the Kerala Government, which had strongly opposed the field trials citing the State's policy to be free of GM crops, was awaited. The trials will be conducted in a closely-controlled environment and not in commercially-cultivated holdings.
She also mentioned that the board would conduct a survey to find out, among other things, the actual stock of natural rubber in the country. She said a framework for the survey, which will investigate several other aspects of natural rubber cultivation and production, was just being readied. The survey would be conducted entirely by the Rubber Board and no outside agency would be involved.
ISSUES WILL BE ADDRESSED
Ms Thomas was speaking at the interactive session with rubber traders organised by the Indian Chamber of Commerce and Industry and the Cochin Rubber Merchants Association. She assured the stakeholders that the issues raised by them would be addressed on an urgent basis, including the suggestion to raise the higher import duty in case of raw latex.
Nearly 50 members of the rubber trading community participated in the interactive session, the first since Ms Thomas took charge as the Rubber Board Chairman.
Mr Prathapachandran, President, Indian Chamber of Commerce and Industry, welcomed the gathering. Mr G. P. Goyal, President, Cochin Rubber Merchants Association, Mr N. Radjakrishnan, Advisor, and Mr K. B. Rajan, Secretary, CRMA, proposed the vote of thanks.
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1568112.ece)
Japan's earthquake and tsunami pulls down Vietnamese rubber price
THURSDAY, MARCH 24, 2011
Vietnam rubber prices fell sharply after the earthquake and the tsunami in Japan on March 11, according to the Vietnam Rubber Group (VRG) on Wednesday.
The price was reduced to 85 million Vietnamese dong (U.S. $ 40.68 million) per ton following the earthquake and tsunami, compared to 120 million Vietnamese dong / ton (57.44 million U.S. dollars . UU.) March 10, said VRG.
Insiders held rubber importers ceased work due to some Japanese carmakers suspend production, despite the fact that Japan accounts for only seven percent of the demand for rubber worldwide total.
However, rubber prices increase again in the second quarter of the year when Japanese auto plants to restore their production, they said.
VRG asked the Vietnamese rubber exporters not to sell products in a chaotic situation.
According to VRG, in the first two months of 2011, Vietnam exported 121,000 tonnes of rubber worth U.S. $ 532 million, 157 percent in volume and 275 percent in value over the same period last year.
Rubber export prices made an album in late February to early March, with approximately U.S. $ 5,000 per ton, more than 75 percent from year to year. The main markets are India, Britain, Hong Kong China and Malaysia, including Malaysia in January alone imported U.S. $ 19.67 million worth of rubber from Vietnam, according to the Vietnamese Ministry of Industry and Commerce.
In 2010, Vietnam exported 783,000 tons of rubber worth U.S. $ 2.376 billion 39 countries, of which China accounted for 60 percent. Vietnam now ranks fifth worldwide in cultivated areas of rubber and fourth in the export of rubber, according to the Vietnam General Department of Customs.
In 2011, Vietnam expects to export around 760,000 tonnes of rubber worth nearly three billion U.S. dollars, VRG estimates.
World demand for rubber will be around 11.15 million tonnes in 2011, while rubber production will be 10.97 million tons, according to the Association of Natural Rubber Producing Countries.
(Source: http://english.peopledaily.com.cn/90001/90777/90851/7329833.html)
Surging demand to boost Indonesia rubber
THURSDAY, MARCH 24, 2011
Jakarta: Indonesia, the world's largest producer of rubber second, increase its production by more than 20 percent to 3.6 million tons by the year 2015 to meet growing domestic demand and the Chinese in the fast-growing economies, the Rubber Association of Indonesia (Gapkindo) said on Tuesday.
Within five years, domestic consumption of rubber in the largest economy in Southeast Asia should go to 20 percent of total production, Suharto Honggokusumo, Gapkindo executive director said. Indonesia produced 2.8 million tons of rubber in 2010 and Honggokusumo regard this increase of 6 percent and 8 percent this year.
The weather anomaly La Nina caused unusually heavy rains this year in Indonesia, even during the dry season, common, leading to the production of many commodities.
"Before 2007, the (annual percentage) increases about 10 percent," he said.
domestic consumption of rubber in Indonesia was 422 000 tons in 2010, and Honggokusumo is an increase of 10 percent this year, when the economy is projected to grow by 6.4 percent. "This is normal, as in China, economic growth is very fast," he said. "Everyone wants a better life - from bicycles to motorcycles, then cars."
"We need to increase local consumption," he added. "In 2015 we would have 20 percent of production is consumed locally."
Global demand for natural and synthetic rubber, is expected to increase to 26.1 million tons in 2011 to 24.4 million tonnes in 2010, the International Rubber Study, said earlier this month. – Reuters
(Source: http://www.btimes.com.my/articles/indorube/Article/)
Tokyo rubber flat
THURSDAY, MARCH 24, 2011
Bangkok (march 24, 2011) : the benchmark tokyo rubber contract ended flat on wednesday as profit-taking emerged after a jump early in the session, but prices were still supported by tight supply in producing countries, dealers said. the benchmark rubber contract on the tokyo commodity exchange for august delivery lost just 0.3 yen to settle at 433.6 yen ($5.38) per kg. other contracts rose by 1.5 to 5.0 yen.
august jumped 3 percent to a high of 446.9 yen early on wednesday, prompting some players to take quick profits. "tocom rubber should rise further after the price finished above the strong support level at 430 yen," one dealer said. others noted that demand remained strong while supply was tight. the most active shanghai rubber contract for may delivery rose 750 yuan to finish at 36,650 yuan ($5,580) per tonne.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1170112:tokyo-rubber-flat.html?hl=rubber)
THURSDAY, MARCH 24, 2011
Natural rubber (NR) prices, both in domestic and international markets, are in a come back mode after the damage last week due to an earthquake in Japan.
The domestic market quoted Rs 228 a kg for benchmark grade RSS-4 which had plummeted to Rs 185 a kg on March 14, the lowest this year.
In Tokyo, TOCOM yesterday (Mar 23) quoted ¥411 a kg for RSS-4, up ¥29 from the closing rate on Monday (Mar 21). It had dropped to ¥375 a kg on March 16. Likewise, Bangkok market on Wednesday (Mar 23) quoted Rs 251 a kg , up by Rs 50 from the Rs 201 on March 15. A bunch of other allied factors also indicate a fundamentally strong market for the next 10-12 weeks.
The market foresees a bullish mode as there would be a decline in production in the coming months due to heat and supplies would be low till the next monsoon. The lean season in the rubber production is March to May. So, according to experts, the global NR prices are now rising after declining sharply last week.
The total domestic production in March-May 2010 was 160,550 tonnes while it was 109,000 tonnes in December alone. The average monthly production in India is 70,000 tonnes while this was reduced to 53,500 tonnes in March-May. The heat during these months reduces the output.
Rubber price jumped after Thailand, the largest producer, asked exporters to halt shipments and as tyre plants in Japan resumed production after the earthquake.
(Business Standarad, India, March 24, 2011)
Buyer resistance tests rubber
THURSDAY, MARCH 24, 2011
KOTTAYAM, MARCH 23:
The physical rubber prices showed a mixed trend on Wednesday. The market opened steady but lost ground on buyer resistance following the early declines on the NMCE. A late recovery in domestic futures failed to strengthen the prices though the international markets ended on a positive note. Meanwhile ISNR 20 improved on better demand but the volumes were comparatively low.
Among other reports, Indonesia, the world's second-largest rubber producer, would increase its output by more than 20 per cent to 3.6 million tonnes by 2015, to meet rising domestic and Chinese demand in fast-growing economies.
In spot, sheet rubber moved down to Rs 228 (229) a kg according to traders. The grade finished unchanged at Rs 228 a kg both at Kottayam and Kochi as per Rubber Board.
The April series closed at Rs 230.20 (230.70), May at Rs 236 (236.38), June at Rs 241.66 (241.28) and July at Rs 242.20 (241.67) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
RSS 3 (spot) increased to Rs 253.19 (251.76) a kg at Bangkok. The March futures for the grade firmed up further to ¥445 (Rs 246.73) from ¥440 a kg during the day session and then to ¥449 (Rs 248.95) in the night session on the Tokyo Commodity Exchange (TOCOM).
Spot rates were (Rs/kg): RSS-4: 228 (229); RSS-5: 224 (225); ungraded: 221 (222); ISNR 20: 222 (221) and latex 60 per cent: 130 (130).
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1565065.ece)
Rubber Board invites suggestions for 12th Plan
THURSDAY, MARCH 24, 2011 \
KOTTAYAM, MARCH 23:
Ms Sheela Thomas, Rubber Board Chairperson, has invited suggestions from all the stakeholders for formulating the Board's schemes for the 12th Five Year Plan to be implemented from the year 2012-13.
The development schemes of the Board are part of Five Year Plans implemented by the Government of India. The current schemes in the 11th Plan are ending in 2011-12. Ms Sheela Thomas said that an evaluation of these schemes would be conducted so as to generate inputs for the formulation of 12th Plan schemes. Internationally renowned agricultural scientist and Member of Parliament Dr MS Swaminathan would chair the National Committee which has been constituted for the evaluation. The committee comprising experts from different disciplines would critically look into all the schemes being implemented in the fields of production, processing and marketing of NR and also research in rubber.
In order to give an opportunity for all sections of the public to have their say in plan formulation, the Board has scheduled a series of consultations with various segments of rubber industry stakeholders, she said. The first such meeting would be conducted at Kottayam soon.
Simultaneously, stakeholders can give online observations on the current schemes and suggestions for the 12th Plan, by logging on to the Board's Web sitewww.rubberboard.org.in. They could either key in their proposals in the suggestion box or attach a file. Details of the 11th Plan schemes of the Board are made available on the site, for ready reference.
She said that the observations and suggestions received from the stakeholders would be considered seriously while formulating the 12th Plan proposals of the Board, subject to the guidelines and priorities set up by Government of India and Planning Commission.
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1565067.ece)
Maharashtra Govt open to Rubber Board conducting field trials of genetically modified crop
THURSDAY, MARCH 24, 2011
KOCHI, MARCH 24:
The Maharashtra Government has responded positively to a proposal from the Rubber Research Institute of India (RRII), under the Rubber Board, for conducting controlled field trials of genetically modified rubber, Ms Sheela Thomas, Chairman of Rubber Board, has said.
She pointed out that the response from the Kerala Government, which had strongly opposed the field trials citing the State's policy to be free of GM crops, was awaited. The trials will be conducted in a closely-controlled environment and not in commercially-cultivated holdings.
She also mentioned that the board would conduct a survey to find out, among other things, the actual stock of natural rubber in the country. She said a framework for the survey, which will investigate several other aspects of natural rubber cultivation and production, was just being readied. The survey would be conducted entirely by the Rubber Board and no outside agency would be involved.
ISSUES WILL BE ADDRESSED
Ms Thomas was speaking at the interactive session with rubber traders organised by the Indian Chamber of Commerce and Industry and the Cochin Rubber Merchants Association. She assured the stakeholders that the issues raised by them would be addressed on an urgent basis, including the suggestion to raise the higher import duty in case of raw latex.
Nearly 50 members of the rubber trading community participated in the interactive session, the first since Ms Thomas took charge as the Rubber Board Chairman.
Mr Prathapachandran, President, Indian Chamber of Commerce and Industry, welcomed the gathering. Mr G. P. Goyal, President, Cochin Rubber Merchants Association, Mr N. Radjakrishnan, Advisor, and Mr K. B. Rajan, Secretary, CRMA, proposed the vote of thanks.
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1568112.ece)
Japan's earthquake and tsunami pulls down Vietnamese rubber price
THURSDAY, MARCH 24, 2011
Vietnam rubber prices fell sharply after the earthquake and the tsunami in Japan on March 11, according to the Vietnam Rubber Group (VRG) on Wednesday.
The price was reduced to 85 million Vietnamese dong (U.S. $ 40.68 million) per ton following the earthquake and tsunami, compared to 120 million Vietnamese dong / ton (57.44 million U.S. dollars . UU.) March 10, said VRG.
Insiders held rubber importers ceased work due to some Japanese carmakers suspend production, despite the fact that Japan accounts for only seven percent of the demand for rubber worldwide total.
However, rubber prices increase again in the second quarter of the year when Japanese auto plants to restore their production, they said.
VRG asked the Vietnamese rubber exporters not to sell products in a chaotic situation.
According to VRG, in the first two months of 2011, Vietnam exported 121,000 tonnes of rubber worth U.S. $ 532 million, 157 percent in volume and 275 percent in value over the same period last year.
Rubber export prices made an album in late February to early March, with approximately U.S. $ 5,000 per ton, more than 75 percent from year to year. The main markets are India, Britain, Hong Kong China and Malaysia, including Malaysia in January alone imported U.S. $ 19.67 million worth of rubber from Vietnam, according to the Vietnamese Ministry of Industry and Commerce.
In 2010, Vietnam exported 783,000 tons of rubber worth U.S. $ 2.376 billion 39 countries, of which China accounted for 60 percent. Vietnam now ranks fifth worldwide in cultivated areas of rubber and fourth in the export of rubber, according to the Vietnam General Department of Customs.
In 2011, Vietnam expects to export around 760,000 tonnes of rubber worth nearly three billion U.S. dollars, VRG estimates.
World demand for rubber will be around 11.15 million tonnes in 2011, while rubber production will be 10.97 million tons, according to the Association of Natural Rubber Producing Countries.
(Source: http://english.peopledaily.com.cn/90001/90777/90851/7329833.html)
Surging demand to boost Indonesia rubber
THURSDAY, MARCH 24, 2011
Jakarta: Indonesia, the world's largest producer of rubber second, increase its production by more than 20 percent to 3.6 million tons by the year 2015 to meet growing domestic demand and the Chinese in the fast-growing economies, the Rubber Association of Indonesia (Gapkindo) said on Tuesday.
Within five years, domestic consumption of rubber in the largest economy in Southeast Asia should go to 20 percent of total production, Suharto Honggokusumo, Gapkindo executive director said. Indonesia produced 2.8 million tons of rubber in 2010 and Honggokusumo regard this increase of 6 percent and 8 percent this year.
The weather anomaly La Nina caused unusually heavy rains this year in Indonesia, even during the dry season, common, leading to the production of many commodities.
"Before 2007, the (annual percentage) increases about 10 percent," he said.
domestic consumption of rubber in Indonesia was 422 000 tons in 2010, and Honggokusumo is an increase of 10 percent this year, when the economy is projected to grow by 6.4 percent. "This is normal, as in China, economic growth is very fast," he said. "Everyone wants a better life - from bicycles to motorcycles, then cars."
"We need to increase local consumption," he added. "In 2015 we would have 20 percent of production is consumed locally."
Global demand for natural and synthetic rubber, is expected to increase to 26.1 million tons in 2011 to 24.4 million tonnes in 2010, the International Rubber Study, said earlier this month. – Reuters
(Source: http://www.btimes.com.my/articles/indorube/Article/)
Tokyo rubber flat
THURSDAY, MARCH 24, 2011
Bangkok (march 24, 2011) : the benchmark tokyo rubber contract ended flat on wednesday as profit-taking emerged after a jump early in the session, but prices were still supported by tight supply in producing countries, dealers said. the benchmark rubber contract on the tokyo commodity exchange for august delivery lost just 0.3 yen to settle at 433.6 yen ($5.38) per kg. other contracts rose by 1.5 to 5.0 yen.
august jumped 3 percent to a high of 446.9 yen early on wednesday, prompting some players to take quick profits. "tocom rubber should rise further after the price finished above the strong support level at 430 yen," one dealer said. others noted that demand remained strong while supply was tight. the most active shanghai rubber contract for may delivery rose 750 yuan to finish at 36,650 yuan ($5,580) per tonne.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1170112:tokyo-rubber-flat.html?hl=rubber)
Thursday, March 24, 2011
China Natural Rubber Imports Down 14.4%
China Natural Rubber Imports Down 14.4%
WEDNESDAY, MARCH 23, 2011
March 22 -- China posted a 14.41 percent year-on-year fall in the imports of natural rubber to 107,200 tons in February, reports yicai.com, citing the General Administration of Customs.
For the first two months, China imported 254,600 tons of natural rubber, a decline of 14.2 percent year-on-year. The average import price was $4,708.02 per ton.
The top exporters of natural rubber to China in February were Thailand, Indonesia, Malaysia, and Vietnam.
For the two months, China imported a total of 230,900 tons of synthetic rubber, down 6.42 percent year-on-year. The average import price was $3,245.5 per ton.
The top exporters of synthetic rubber to China in February were Korea, Japan, the U.S. and Russia.
Shares of Wuxi Boton Belt (300031) rose 0.42 percent to close at 19.12 yuan per share.
Bears back in the horizon to haunt Rubber
WEDNESDAY, MARCH 23, 2011
AHMEDABAD (Commodity Online): NMCE Rubber prices are rising from last week. Technically rubber is in uptrend but prices are expected to correct for time being on the back of profit booking by traders.
Today Rubber opened at 23110 and from there it rose and made high of 23875 touching its resistance and then again it came back down and is trading near 23200. Rubber made shooting star on daily chart and tomorrow trade below today’s low will give confirmation of short term bearish trend for the price targets of 22000 and 21450.
“Technically, Short term traders can sell rubber near 23250 for the price targets of 22000.” said Bharti Navlani, technical analyst with Commodity Online.
(Source: http://www.commodityonline.com/marketmovers/Bears-back-in-the-horizon-to-haunt-Rubber-2011-03-22-3273-3-1.html)
Thailand to set benchmark price for rubber
WEDNESDAY, MARCH 23, 2011
Thailand, the world's largest producer of rubber, will establish an internal reference price of raw materials to minimize the effects of volatility in international futures market.
The committee created by the government will work on a methodology for setting prices, to be used as a reference point in the nation, said Apichart Jongskul, head of the Office of Agricultural Economics. Apichart is also secretary of the committee.
Thailand, Malaysia and Indonesia, the three major producers, last week a tentative agreement on $ 4 per kg at a minimum price after rubber futures fell to 37% from a record 535.7 yen on February 18. Worsening unrest in West Asia and the slowdown in the growth of car sales in China, the biggest buyer, raised concerns demand may decrease. The worst-ever earthquake in Japan also intensified the losses. "Additional studies will determine the price reflecting the demand and supply, and be less influenced by movement in the futures market," said Apichart.
The level of $ 4 is the minimum to which farmers can make a profit if production costs and inflation are included, Yium Tavarolit, the quality of executive director of the International Rubber Consortium, said by telephone Tuesday. Rubber futures in Tokyo rose by 26% after touching a four-month low of 335 yen per kg on March 15 after Thailand, Indonesia and Malaysia agreed in principle to delay exports if the price fell. The contract for August delivery rose to 5.1% at 429.6 yen per kg.
(Source: http://www.financialexpress.com/news/thailand-to-set-benchmark-price-for-rubber/765965/0)
Spot rubber rules firm
WEDNESDAY, MARCH 23, 2011
Physical rubber prices ruled firm despite a weak closing in domestic futures on Tuesday. The market surged ahead following the sharp gains in international markets. According to sources, buyers were on the toes to cover their positions expecting the bullish trend to continue in the days ahead.
Meanwhile, the key Tokyo rubber futures bounced back once again led by rising physical rubber prices in major producing countries and firm oil prices.
Sheet rubber closed firm at Rs 229 (224) a kg as quoted by the traders. The grade increased to Rs 228 (223) a kg both at Kottayam and Kochi according to Rubber Board.
The April series weakened to Rs 231.34 (236.85), May to Rs 237 (242.89), June to Rs 241.60 (248.11) and July to Rs 242 (249.86) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
The volumes totalled 20714 lots and open interest 7980 lots. The turnover was Rs 490.66 crores.
RSS 3 (spot) increased sharply to Rs 251.76 (241.34) a kg at Bangkok. The March futures flared up to ¥440 (Rs 243.87) from ¥411 a kg during the day session and then to ¥449 (Rs 248.88) in the night session on the Tokyo Commodity Exchange (TOCOM).
Spot rates were (Rs/kg): RSS-4: 229 (224); RSS-5: 225 (220); ungraded: 222 (217); ISNR 20: 221 (219) and latex 60 per cent: 130 (120).
Thailand To Implement Rubber Price Guarantees
WEDNESDAY, MARCH 23, 2011
Thailand‟s Natural Rubber Policy Committee has agreed to set minimum and
maximum prices for natural rubber as part of a range of measures intended to
stabilise the industry and prevent major fluctuations in price. The Bangkok Post
reported on July 22 that a task force chaired by the country‟s Agriculture and
Cooperative Ministry has been appointed to lay out these price guidelines within one
month.
According to the paper, deputy agriculture minister Supachai Phosu has described
the Thai government‟s short-term solution to recent fluctuations; the government is
said to have asked for cooperation from the Bank of Thailand to “support commercial
banks in lending to entrepreneurs who buy rubber and keep their stocks when the
rubber price is below 120 baht a kilogramme.” Rubber prices increased to 150 baht a
kilogramme last week from 80 baht and the trend will most likely continue due to the
dry season.
Supachai also said Thailand wishes to cooperate with Indonesia and Malaysia in
establishing a minimum price of 120 baht a kilogramme, while the maximum price
should not be, reports the Bangkok Post, so high that it drives users to synthetic
rubber. Apichart Jongsakul, director of the Office of Agricultural Economics, said the
production cost of rubber was about 40 baht a kilogramme, and therefore 120 baht
was the „appropriate‟ price. He added that the price drop late last week was caused
by unrest in Libya and the Middle East, the Japanese earthquake and tsunami, along
with recent high prices deterring purchases from entrepreneurs in China.
On March 16, Suthep Thaugsuban, Thailand‟s deputy prime minister and chairman
of the National Rubber Policy Committee, reported implementing a temporary stop
on rubber exports in response to declining prices; at the time he said the current
decline was not „in line‟ with the commodity‟s trading nature. “Rubber is one of the
country‟s major sources of foreign exchange and therefore the government must
give it special attention,” he said.
(Tyrepress.com, March 22, 2011)
Indonesia Rubber Output Seen Up Over 20pct at 3.6 Mil Tons
WEDNESDAY, MARCH 23, 2011
Indonesia, the world's second-largest rubber producer, will boost its output by more than 20 percent to 3.6 million tonnes by 2015, the Indonesian Rubber Association (Gapkindo) said on Tuesday (Mar 22).
Within five years, domestic consumption of rubber in Southeast Asia's largest economy should jump to 20 percent of total production, Suharto Honggokusumo, executive director of Gapkindo told Reuters.
Indonesia produced 2.8 million tonnes of rubber in 2010, and Honggokusumo sees this rising between 6 and 8 percent this year.
The La Nina weather anomaly caused unusually heavy rains this year in Indonesia, including during the usual dry season, hitting output of many commodities.
"Before 2007, the (annual percentage) increases were around 10 percent," he said. "This is our ability. The economic situation is getting better in 2010.
"We need to improve the quality and increase the production in 2011," he added.
Indonesia's domestic rubber consumption was 422,000 tonnes in 2010, and Honggokusumo sees a 10 percent increase this year.
"This is normal, like in China, the economic growth is very fast," he said. "Everybody wants to have a better life -- from bicycles to motorbikes, then to cars."
"We need to increase the local consumption," he added. "In 2015 we would like to have 20 percent of production consumed locally."
Global demand for rubber, both natural and synthetic, is forecast to rise to 26.1 million tonnes in 2011 from 24.4 million tonnes in 2010, the International Rubber Study Group said earlier this month.
Dealers say this is in part due to a recovery in the automotive sector. The U.S. auto industry snapped a four-year sales decline in 2010, including three consecutive months of sales above the 12 million-unit annual rate.
Tokyo rubber futures, which set global trend, jumped to a two-week high on Tuesday (Mar 22) to finish at 433.9 yen ($5.35) per kg on supply concerns.
"The trend of the rubber price is high," he added.
Rubber prices hit record highs in mid-February but have plunged this month as doubts grew over demand and the global economy, in reaction first to unrest in the Middle East and then to last week's devastating earthquake in Japan.
"It is not good for both buyers and producers," said Honggokusumo, who was unable to give an average price forecast for 2011. He added that almost 86 percent of Indonesian rubber plantations belong to small-holder farmers.
The Thai government said on Monday (Mar 21) however, that it would not intervene in the domestic rubber market at this point as prices had rebounded to a level farmers were satisfied with.
Traders had said the government could intervene directly in the market and buy rubber that it would stockpile. Top exporter Thailand produces about a third of the world's natural rubber.
Honggokusumo said the Indonesian government was unlikely to intervene to support rubber prices.
On the Japanese earthquake and tsunami, which spurred a nuclear crisis, Honggokusumo said he had not heard of any cancellations or postponements of deliveries to Japan.
Japan accounts for 7 percent of global demand for natural rubber.
"It is business as usual," he added. "I don't think there is a major impact for us."
Having just returned from a rubber industry event in China, Honggokusumo sees the world's second-largest economy leading demand for years to come.
"They need more rubber," he said.
(Forexyard, March 22, 2011)
Tokyo Futures Hit Two-Week High On Supply Concerns
WEDNESDAY, MARCH 23, 2011
Tokyo rubber futures jumped to a two-week high on Tuesday (Mar 22) after a recovery in physical prices due largely to tight supply in producing countries spurred speculative buying in futures, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose 25.3 yen, or 6.1 percent, from Friday's close, to settle at 433.9 yen ($5.38) per kg. It touched 434.5 yen, the highest since March 8.
The Tokyo rubber futures market was closed on Monday (Mar 21) for a public holiday.
The most active Shanghai rubber futures for May delivery rose 280 yuan to settle at 35,900 yuan ($5,466) per tonne.
Brent crude futures were steady near $115 on Tuesday (Mar 22), supported by spreading unrest in the Middle East; uncertainty about demand from Japan, the world's number three consumer, capped gains.
The price of benchmark smoked rubber sheet (RSS3) jumped to $5.60 per kg on Tuesday (Mar 22), up from last week's $5.00, even though the Thai government said it saw no need to intervene in the market right now as prices were supported by seasonal tight supply, traders said.
TOCOM prices were expected to rise further after the benchmark finished above key resistance at 430 yen per kg; the next technical level is 450 yen,
(Reuters, March 22, 2011)
NMCE Rubber slumps on profit selling
WEDNESDAY, MARCH 23, 2011
NMCE rubber futures traded down on active selling interest on previous gains on Tuesday. Futures started the day on positive note on extended buying. However, profit selling on huge gains pressurized the prices.
However, positive trend in domestic spot and International market also supported the prices to recover. Rubber futures at TOCOM were ended on positive note at ¥446.00 per Kg. Thus, on overall positive cues futures at NMCE recovered but recovery was not enough to and prices ended the day in red.
The rubbers futures are projected to continue the losses on active profit selling initially on Wednesday. However, TOCOM August futures are trading positive at ¥436.00 per Kg. on active buying interest.
Reports of decline in shipment from Thailand as Japanese auto manufacturing companies have resumed their activity are likely to support the prices. Overall market trend is looking positive on supply concern which might support the prices to bounce back later in the day.
Factors to Watch For
As per deputy head of the China Rubber Industry Association, Natural-rubber demand in China, the biggest consumer, will rise 8% this year. Consumption will be 3.24 million metric tons, while tire output will climb 7.9 percent to an all-time high of 453 million units
As per the Committee on rubber policy of Thailand Government, Thai government will negotiate with commercial banks to extend loans to exporters to buy rubber from farmers at a minimum price of 120 baht per Kg
According to rubber board of India, Indian February Natural Rubber Output is 54,500 Tons Vs 51,500 Tons, consumption is 79,000 Tons Vs 76,350 Tons and imports are 6,831 Tons Vs 12,278 Tons
As per data released by rubber board, the year end deficit in natural rubber in India is estimated around 1.2 lakh tons and it is expected to be increase to 2 lakh tons during 2011-12
According to Rubber Research Institute of Thailand, ribbed smoked sheet prices gained for a fourth day, up by 6.4 percent to 162 baht a kilogram on Monday
According to the Association of Natural Rubber Producing Countries, Consumption in China, India and Malaysia, representing 48% of global usage, will increase this year
DERIVATIVE ANALYSIS
Indian Futures (NMCE)
The NMCE March contract, prices are falling while volumes and open interest are rising. If prices are in a downtrend and open interest is on the rise, chartists know that new money is coming into the market, showing aggressive new short selling. This scenario will prove out a continuation of a downtrend and bearish conditions.
Japan Futures (TOCOM)
The TOCOM active August contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.
Shanghai Futures (SHFE)
The SHFE active July contract, prices and open interest are rising while volumes are falling. Market is attracting late buyers & early shorts; market is vulnerable to a sharp correction but likely that that correction will be bought creating a buy point for uptrend.
(Source: http://www.commodityonline.com/futures-trading/technical/NMCE-Rubber-slumps-on-profit-selling-22736.html)
NR Producers Put Support Measures on Hold as Prices Rise
WEDNESDAY, MARCH 23, 2011
Natural Rubber producing countries have put on hold plans to support prices. Falling prices had prompted Thailand Indonesia and other countries to announce price support plans scheduled to take effect if prices fell to around $4/kg, but these have been put on hold, as prices have continues to rise in recent days. Today (Mar 22) prices reached around $5.50/kg in Tokyo
Specifically, a meeting by the International Rubber Consortium to discuss measures supporting natural rubber prices is now on hold as prices have rebounded strongly in the last few days, IRCo acting chief executive Yium Tavarolit said Monday (Mar 21). "Because natural rubber prices have breached the floor rate of THB120/kg (stipulated by the Thai government), that meeting is now not needed for the time being," said the Bangkok-based Yium after the Thai national rubber committee meeting held Monday (Mar 21) afternoon.
If prices fall below the floor rate, measures that have been mentioned last week, such as an export suspension, would be again considered.
Yium also said IRCo and the International Tripartite Rubber Council would be writing to the Tocom and the Shanghai Futures Exchange to ascertain the causes of price swings in the last few weeks, and to ask the exchanges to cooperate in reducing price volatility.
(European Rubber Journal, March 22, 2011)
WEDNESDAY, MARCH 23, 2011
March 22 -- China posted a 14.41 percent year-on-year fall in the imports of natural rubber to 107,200 tons in February, reports yicai.com, citing the General Administration of Customs.
For the first two months, China imported 254,600 tons of natural rubber, a decline of 14.2 percent year-on-year. The average import price was $4,708.02 per ton.
The top exporters of natural rubber to China in February were Thailand, Indonesia, Malaysia, and Vietnam.
For the two months, China imported a total of 230,900 tons of synthetic rubber, down 6.42 percent year-on-year. The average import price was $3,245.5 per ton.
The top exporters of synthetic rubber to China in February were Korea, Japan, the U.S. and Russia.
Shares of Wuxi Boton Belt (300031) rose 0.42 percent to close at 19.12 yuan per share.
Bears back in the horizon to haunt Rubber
WEDNESDAY, MARCH 23, 2011
AHMEDABAD (Commodity Online): NMCE Rubber prices are rising from last week. Technically rubber is in uptrend but prices are expected to correct for time being on the back of profit booking by traders.
Today Rubber opened at 23110 and from there it rose and made high of 23875 touching its resistance and then again it came back down and is trading near 23200. Rubber made shooting star on daily chart and tomorrow trade below today’s low will give confirmation of short term bearish trend for the price targets of 22000 and 21450.
“Technically, Short term traders can sell rubber near 23250 for the price targets of 22000.” said Bharti Navlani, technical analyst with Commodity Online.
(Source: http://www.commodityonline.com/marketmovers/Bears-back-in-the-horizon-to-haunt-Rubber-2011-03-22-3273-3-1.html)
Thailand to set benchmark price for rubber
WEDNESDAY, MARCH 23, 2011
Thailand, the world's largest producer of rubber, will establish an internal reference price of raw materials to minimize the effects of volatility in international futures market.
The committee created by the government will work on a methodology for setting prices, to be used as a reference point in the nation, said Apichart Jongskul, head of the Office of Agricultural Economics. Apichart is also secretary of the committee.
Thailand, Malaysia and Indonesia, the three major producers, last week a tentative agreement on $ 4 per kg at a minimum price after rubber futures fell to 37% from a record 535.7 yen on February 18. Worsening unrest in West Asia and the slowdown in the growth of car sales in China, the biggest buyer, raised concerns demand may decrease. The worst-ever earthquake in Japan also intensified the losses. "Additional studies will determine the price reflecting the demand and supply, and be less influenced by movement in the futures market," said Apichart.
The level of $ 4 is the minimum to which farmers can make a profit if production costs and inflation are included, Yium Tavarolit, the quality of executive director of the International Rubber Consortium, said by telephone Tuesday. Rubber futures in Tokyo rose by 26% after touching a four-month low of 335 yen per kg on March 15 after Thailand, Indonesia and Malaysia agreed in principle to delay exports if the price fell. The contract for August delivery rose to 5.1% at 429.6 yen per kg.
(Source: http://www.financialexpress.com/news/thailand-to-set-benchmark-price-for-rubber/765965/0)
Spot rubber rules firm
WEDNESDAY, MARCH 23, 2011
Physical rubber prices ruled firm despite a weak closing in domestic futures on Tuesday. The market surged ahead following the sharp gains in international markets. According to sources, buyers were on the toes to cover their positions expecting the bullish trend to continue in the days ahead.
Meanwhile, the key Tokyo rubber futures bounced back once again led by rising physical rubber prices in major producing countries and firm oil prices.
Sheet rubber closed firm at Rs 229 (224) a kg as quoted by the traders. The grade increased to Rs 228 (223) a kg both at Kottayam and Kochi according to Rubber Board.
The April series weakened to Rs 231.34 (236.85), May to Rs 237 (242.89), June to Rs 241.60 (248.11) and July to Rs 242 (249.86) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
The volumes totalled 20714 lots and open interest 7980 lots. The turnover was Rs 490.66 crores.
RSS 3 (spot) increased sharply to Rs 251.76 (241.34) a kg at Bangkok. The March futures flared up to ¥440 (Rs 243.87) from ¥411 a kg during the day session and then to ¥449 (Rs 248.88) in the night session on the Tokyo Commodity Exchange (TOCOM).
Spot rates were (Rs/kg): RSS-4: 229 (224); RSS-5: 225 (220); ungraded: 222 (217); ISNR 20: 221 (219) and latex 60 per cent: 130 (120).
Thailand To Implement Rubber Price Guarantees
WEDNESDAY, MARCH 23, 2011
Thailand‟s Natural Rubber Policy Committee has agreed to set minimum and
maximum prices for natural rubber as part of a range of measures intended to
stabilise the industry and prevent major fluctuations in price. The Bangkok Post
reported on July 22 that a task force chaired by the country‟s Agriculture and
Cooperative Ministry has been appointed to lay out these price guidelines within one
month.
According to the paper, deputy agriculture minister Supachai Phosu has described
the Thai government‟s short-term solution to recent fluctuations; the government is
said to have asked for cooperation from the Bank of Thailand to “support commercial
banks in lending to entrepreneurs who buy rubber and keep their stocks when the
rubber price is below 120 baht a kilogramme.” Rubber prices increased to 150 baht a
kilogramme last week from 80 baht and the trend will most likely continue due to the
dry season.
Supachai also said Thailand wishes to cooperate with Indonesia and Malaysia in
establishing a minimum price of 120 baht a kilogramme, while the maximum price
should not be, reports the Bangkok Post, so high that it drives users to synthetic
rubber. Apichart Jongsakul, director of the Office of Agricultural Economics, said the
production cost of rubber was about 40 baht a kilogramme, and therefore 120 baht
was the „appropriate‟ price. He added that the price drop late last week was caused
by unrest in Libya and the Middle East, the Japanese earthquake and tsunami, along
with recent high prices deterring purchases from entrepreneurs in China.
On March 16, Suthep Thaugsuban, Thailand‟s deputy prime minister and chairman
of the National Rubber Policy Committee, reported implementing a temporary stop
on rubber exports in response to declining prices; at the time he said the current
decline was not „in line‟ with the commodity‟s trading nature. “Rubber is one of the
country‟s major sources of foreign exchange and therefore the government must
give it special attention,” he said.
(Tyrepress.com, March 22, 2011)
Indonesia Rubber Output Seen Up Over 20pct at 3.6 Mil Tons
WEDNESDAY, MARCH 23, 2011
Indonesia, the world's second-largest rubber producer, will boost its output by more than 20 percent to 3.6 million tonnes by 2015, the Indonesian Rubber Association (Gapkindo) said on Tuesday (Mar 22).
Within five years, domestic consumption of rubber in Southeast Asia's largest economy should jump to 20 percent of total production, Suharto Honggokusumo, executive director of Gapkindo told Reuters.
Indonesia produced 2.8 million tonnes of rubber in 2010, and Honggokusumo sees this rising between 6 and 8 percent this year.
The La Nina weather anomaly caused unusually heavy rains this year in Indonesia, including during the usual dry season, hitting output of many commodities.
"Before 2007, the (annual percentage) increases were around 10 percent," he said. "This is our ability. The economic situation is getting better in 2010.
"We need to improve the quality and increase the production in 2011," he added.
Indonesia's domestic rubber consumption was 422,000 tonnes in 2010, and Honggokusumo sees a 10 percent increase this year.
"This is normal, like in China, the economic growth is very fast," he said. "Everybody wants to have a better life -- from bicycles to motorbikes, then to cars."
"We need to increase the local consumption," he added. "In 2015 we would like to have 20 percent of production consumed locally."
Global demand for rubber, both natural and synthetic, is forecast to rise to 26.1 million tonnes in 2011 from 24.4 million tonnes in 2010, the International Rubber Study Group said earlier this month.
Dealers say this is in part due to a recovery in the automotive sector. The U.S. auto industry snapped a four-year sales decline in 2010, including three consecutive months of sales above the 12 million-unit annual rate.
Tokyo rubber futures, which set global trend, jumped to a two-week high on Tuesday (Mar 22) to finish at 433.9 yen ($5.35) per kg on supply concerns.
"The trend of the rubber price is high," he added.
Rubber prices hit record highs in mid-February but have plunged this month as doubts grew over demand and the global economy, in reaction first to unrest in the Middle East and then to last week's devastating earthquake in Japan.
"It is not good for both buyers and producers," said Honggokusumo, who was unable to give an average price forecast for 2011. He added that almost 86 percent of Indonesian rubber plantations belong to small-holder farmers.
The Thai government said on Monday (Mar 21) however, that it would not intervene in the domestic rubber market at this point as prices had rebounded to a level farmers were satisfied with.
Traders had said the government could intervene directly in the market and buy rubber that it would stockpile. Top exporter Thailand produces about a third of the world's natural rubber.
Honggokusumo said the Indonesian government was unlikely to intervene to support rubber prices.
On the Japanese earthquake and tsunami, which spurred a nuclear crisis, Honggokusumo said he had not heard of any cancellations or postponements of deliveries to Japan.
Japan accounts for 7 percent of global demand for natural rubber.
"It is business as usual," he added. "I don't think there is a major impact for us."
Having just returned from a rubber industry event in China, Honggokusumo sees the world's second-largest economy leading demand for years to come.
"They need more rubber," he said.
(Forexyard, March 22, 2011)
Tokyo Futures Hit Two-Week High On Supply Concerns
WEDNESDAY, MARCH 23, 2011
Tokyo rubber futures jumped to a two-week high on Tuesday (Mar 22) after a recovery in physical prices due largely to tight supply in producing countries spurred speculative buying in futures, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose 25.3 yen, or 6.1 percent, from Friday's close, to settle at 433.9 yen ($5.38) per kg. It touched 434.5 yen, the highest since March 8.
The Tokyo rubber futures market was closed on Monday (Mar 21) for a public holiday.
The most active Shanghai rubber futures for May delivery rose 280 yuan to settle at 35,900 yuan ($5,466) per tonne.
Brent crude futures were steady near $115 on Tuesday (Mar 22), supported by spreading unrest in the Middle East; uncertainty about demand from Japan, the world's number three consumer, capped gains.
The price of benchmark smoked rubber sheet (RSS3) jumped to $5.60 per kg on Tuesday (Mar 22), up from last week's $5.00, even though the Thai government said it saw no need to intervene in the market right now as prices were supported by seasonal tight supply, traders said.
TOCOM prices were expected to rise further after the benchmark finished above key resistance at 430 yen per kg; the next technical level is 450 yen,
(Reuters, March 22, 2011)
NMCE Rubber slumps on profit selling
WEDNESDAY, MARCH 23, 2011
NMCE rubber futures traded down on active selling interest on previous gains on Tuesday. Futures started the day on positive note on extended buying. However, profit selling on huge gains pressurized the prices.
However, positive trend in domestic spot and International market also supported the prices to recover. Rubber futures at TOCOM were ended on positive note at ¥446.00 per Kg. Thus, on overall positive cues futures at NMCE recovered but recovery was not enough to and prices ended the day in red.
The rubbers futures are projected to continue the losses on active profit selling initially on Wednesday. However, TOCOM August futures are trading positive at ¥436.00 per Kg. on active buying interest.
Reports of decline in shipment from Thailand as Japanese auto manufacturing companies have resumed their activity are likely to support the prices. Overall market trend is looking positive on supply concern which might support the prices to bounce back later in the day.
Factors to Watch For
As per deputy head of the China Rubber Industry Association, Natural-rubber demand in China, the biggest consumer, will rise 8% this year. Consumption will be 3.24 million metric tons, while tire output will climb 7.9 percent to an all-time high of 453 million units
As per the Committee on rubber policy of Thailand Government, Thai government will negotiate with commercial banks to extend loans to exporters to buy rubber from farmers at a minimum price of 120 baht per Kg
According to rubber board of India, Indian February Natural Rubber Output is 54,500 Tons Vs 51,500 Tons, consumption is 79,000 Tons Vs 76,350 Tons and imports are 6,831 Tons Vs 12,278 Tons
As per data released by rubber board, the year end deficit in natural rubber in India is estimated around 1.2 lakh tons and it is expected to be increase to 2 lakh tons during 2011-12
According to Rubber Research Institute of Thailand, ribbed smoked sheet prices gained for a fourth day, up by 6.4 percent to 162 baht a kilogram on Monday
According to the Association of Natural Rubber Producing Countries, Consumption in China, India and Malaysia, representing 48% of global usage, will increase this year
DERIVATIVE ANALYSIS
Indian Futures (NMCE)
The NMCE March contract, prices are falling while volumes and open interest are rising. If prices are in a downtrend and open interest is on the rise, chartists know that new money is coming into the market, showing aggressive new short selling. This scenario will prove out a continuation of a downtrend and bearish conditions.
Japan Futures (TOCOM)
The TOCOM active August contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.
Shanghai Futures (SHFE)
The SHFE active July contract, prices and open interest are rising while volumes are falling. Market is attracting late buyers & early shorts; market is vulnerable to a sharp correction but likely that that correction will be bought creating a buy point for uptrend.
(Source: http://www.commodityonline.com/futures-trading/technical/NMCE-Rubber-slumps-on-profit-selling-22736.html)
NR Producers Put Support Measures on Hold as Prices Rise
WEDNESDAY, MARCH 23, 2011
Natural Rubber producing countries have put on hold plans to support prices. Falling prices had prompted Thailand Indonesia and other countries to announce price support plans scheduled to take effect if prices fell to around $4/kg, but these have been put on hold, as prices have continues to rise in recent days. Today (Mar 22) prices reached around $5.50/kg in Tokyo
Specifically, a meeting by the International Rubber Consortium to discuss measures supporting natural rubber prices is now on hold as prices have rebounded strongly in the last few days, IRCo acting chief executive Yium Tavarolit said Monday (Mar 21). "Because natural rubber prices have breached the floor rate of THB120/kg (stipulated by the Thai government), that meeting is now not needed for the time being," said the Bangkok-based Yium after the Thai national rubber committee meeting held Monday (Mar 21) afternoon.
If prices fall below the floor rate, measures that have been mentioned last week, such as an export suspension, would be again considered.
Yium also said IRCo and the International Tripartite Rubber Council would be writing to the Tocom and the Shanghai Futures Exchange to ascertain the causes of price swings in the last few weeks, and to ask the exchanges to cooperate in reducing price volatility.
(European Rubber Journal, March 22, 2011)
Monday, March 21, 2011
Commodity Trends: Rubber recovers fast
SUNDAY, MARCH 20, 2011
Rubber prices rebounded on easing of demand concerns caused by Japan earthquake and closure of automobile plants and market returned back to fundamentals. Natural rubber continues to be supported by higher prices of crude oil and tight supplies in producing countries. Pepper gained this week on tight supplies but higher prices of Indian parity weakened export demand. However, export demnad would pick up if prices ease.
COMMODITY ANALYSIS
Rubber
Rubber prices have recovered from the tsunami impact and gained in the domestic market due to thin supplies. Rubber growers are holding back their produce on hopes of better prices. Tocom rubber futures are tumbled 12 percent last week as largest-ever quake created concerns about the demand for the commodity. Several automobile majors had stopped production in Japan causing concerns about demand for tyres.
Association of Natural Rubber Producing Countries (ANRPC) stated that quake hit Japan accounts for seven per cent of the global demand for natural rubber. The crisis in the automobile sector in Japan cannot have a major impact on rubber prices Meanwhile Tokyo rubber futures rebounded sharply towards weekend on supply concerns and hopes of a possible intervention by producing countries to prop up prices.
Tocom Rubber surged on Friday climbing as much as 7.2 percent to 425.5 yen a kilogram ($5,210 a ton) after Thailand, Indonesia and Malaysia, the biggest growers, said they may reduce shipments, Bloomberg reported.
Spot prices monitored by India’s Rubber Board has risen from 21,600 per 100 last week to Rs 22,200 after hitting a low of Rs 18,700 levels.
Spot rubber prices in Thailand are quoted higher at Rs 22,692 on tight supplies while SMR-20 grade at Kuala Lumpur is quoted at Rs 20,234.
The benchmark April rubber contract on India's National Multi-Commodity Exchange (NMCE) rose 12 percent higher at 23134 while May contract rose from Rs 20789 to Rs 23698. Towards weekend, NMCE futures hit higher circuit levels on fresh buying and short covering.
India's natural rubber production in February rose by 5.8 percent on year to 54,500 tonnes, according to Rubber Board, as farmers increased tapping to cash in on a price rally.
(Source: http://www.commodityonline.com/news/Commodity-Trends-Rubber-recovers-fast-uptrend-in-pepper-37387-2-1.html)
Top rubber producers' meet to prop up prices
SUNDAY, MARCH 20, 2011
BANGKOK: The world's top rubber-producing countries, Thailand, Indonesia and Malaysia, will hold an urgent meeting this week to find ways to support prices that have collapsed this month, an senior industry official said yesterday.
The price of Thai USS3, a raw material for export grade rubber sheet (RSS3), fell to 90 baht a kg yesterday from 95 baht (100 baht = RM10.04) on Monday. That is half the record high of 180 baht hit in mid-February.
Rubber futures on the Tokyo Commodity Exchange (TOCOM), which tend to set global price trends, started falling this month when unrest in the Middle East raised concerns about the global economy and rubber demand.
Friday's earthquake in Japan added to these concerns. "We need to do something this week to stop prices from falling," Yium Tavarolit, acting chief executive of the International Rubber Consortium, said, adding that the meeting to discuss the measures will probably be held in Thailand.
"We will consider whether we should stop exporting for a while or cut production, as we used to do in the past, to help support prices." The consortium, which will coordinate the meeting, brings together rubber industry officials, exporters and government officials from the three countries that together account for 70 per cent of global rubber output.
Any decision by the IRCo would have to be ratified by the International Tripartite Rubber Corporation, which groups senior government officials from IRCo countries. TOCOM's benchmark rubber contract for August delivery hit a low of 335.0 yen (100 yen = RM3.75) a kg yesterday, 12 per cent down from Monday's close of 384.1 yen.
At that point, it had lost nearly 40 per cent from a record high of 535.7 yen hit in mid-February.
The benchmark settled at 353.0 yen a kg. TOCOM rubber futures had slumped on Monday, leading to a temporary halt in trade, as rumours circulated that some buyers had defaulted on shipments of physical rubber.
Thai RSS3 traded at a four-month low of US$4.18 to US$4.20 (US$1 = RM3.04) a kg yesterday, against record-high offers at US$6.40 in mid-February.
However, there were no reports of shipment cancellations.
When the global economy faced recession in late 2008, the top three rubber producers said they would cut shipments in 2009 to prop up export prices, which had fallen to around US$1.50 a kg.
However, the measure was effectively dropped when rubber prices recovered because of strong demand from the tyre industry in China and a gradual recovery in the global economy from the second half of 2009.
Thailand may draw up separate plans to intervene in the domestic market, partly to help the government win farmers' vote in a general election likely by July.
The government would do everything within its means to push the price of USS3 higher, Deputy Prime Minister Suthep Thuagsuban said yesterday, urging farmers not to sell at current levels.
"I suggest farmers keep their rubber for a while as the government is pushing prices up very soon, so please wait to sell at 120 baht a per kg, not at this low level," he told reporters. – Reuters
(Source: http://www.btimes.com.my/Current_News/BTIMES/articles/topruta/Article/)
Rubber industries seek lower import duty on latex
SUNDAY, MARCH 20, 2011
KOCHI, MARCH 18:
In the backdrop of the recent surge and wane in natural rubber prices, the All India Rubber Industries Association (AIRIA) has asked for the immediate correction in the inverted duty structure in rubber latex, on the lines of natural rubber that was effected recently. The import duty on latex stands at a significant 70 per cent, even as that on the finished product is less than 7.5 per cent, AIRIA said.
While growth in natural rubber production has been modest, huge capacity build up is being undertaken by the tyre industry, which could increase the demand for natural rubber in the immediate future. According to the Rubber Board, the cumulative production of natural rubber in the country grew by three per cent to 8,04,450 tonnes during April-February period. Consumption, meanwhile, grew by 1.9 per cent to 8,68,230 tonnes.
The growing demand and prices has prompted AIRIA to write to the Finance Ministry pointing out that the increase in price of latex is threatening the very survival of the industry which comprises mainly of small units. Latex is largely consumed in the country in the production of foam mattresses, medical and surgical articles including gloves, balloons, hot water bottles and some sports goods.
Latex prices
Along with the price of rubber sheet, latex prices have also surged from around Rs 55 a kg in January 2009 to Rs 117 at present , after having peaked to Rs 148. It is surprising that the import duty on latex has been gradually enhanced from 25 per cent in 1999-2000 to 70 per cent recently, while that on finished goods has been reduced from 40 per cent to less than 7.5 per cent during the same period, Mr Vinod Simon, President of AIRIA said.
Mr Simon added, “The facilitated import of finished goods is antithetical to the Government's avowed policy of enhancing domestic value addition.” A large number of the small and medium scale units are not able to pass the price hike to the consumers.
The Government has all along considered natural rubber and latex as co-existing products. Natural latex is the first stage output of the rubber tree and is processed to obtain natural rubber. While considering the reduction in customs duty on natural rubber to 7.5 per cent for a limited quantity till March 2011 and subsequently a cap of Rs 20 per kg, the Government should have considered a reduction in customs duty on rubber latex as well, AIRIA said. While natural rubber is attracting duty at Rs 20 a kg at current prices, latex is attracting customs duty of over Rs 100 a kg.
Meanwhile, the Rubber Board has said that rubber production for February has increased by 5.8 per cent to 54,500 tonnes, while consumption has decreased by 2.5 per cent to 79,000 tonnes.
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1550860.ece?homepage=true)
Steps for regular export of rubber latex sought
SUNDAY, MARCH 20, 2011
KOTTAYAM: Rubber Board chairperson Sheela Thomas has called for the export of rubber latex on a regular basis.
Addressing a meeting of latex producers convened by the Rubber Board here on Thursday, Ms. Thomas urged latex producers to make long-term arrangements for exports. She said the public-sector rubber companies should make special efforts in this direction as they were the major producers of latex.
Price differential
The meeting noted that the prevailing market situation, wherein the international latex price is ruling higher than the domestic price, was favourable for exports.
The participants observed that it would be advantageous for the Rubber Producers' Societies (RPSs), which market their produce as latex, to switch to sheet-making considering the existing price differential.
Association of Latex Producers of India president Satheesh Abraham, representatives of the Plantation Corporation of Kerala (PCK), the State Farming Corporation, the Rehabilitation Plantations, Harrisons Malayalam Ltd., and Periyar Latex Ltd., participated in the meeting.
Sunny Sebastian, Director (Processing & Product Development); Ramesh B. Nair, Joint Director (Statistics & Planning) and Binoi Kurian, Deputy Director (Marketing) of the Rubber Board also attended the meeting.
(Source: http://www.hindu.com/2011/03/19/stories/2011031951321600.htm)
SUNDAY, MARCH 20, 2011
Rubber prices rebounded on easing of demand concerns caused by Japan earthquake and closure of automobile plants and market returned back to fundamentals. Natural rubber continues to be supported by higher prices of crude oil and tight supplies in producing countries. Pepper gained this week on tight supplies but higher prices of Indian parity weakened export demand. However, export demnad would pick up if prices ease.
COMMODITY ANALYSIS
Rubber
Rubber prices have recovered from the tsunami impact and gained in the domestic market due to thin supplies. Rubber growers are holding back their produce on hopes of better prices. Tocom rubber futures are tumbled 12 percent last week as largest-ever quake created concerns about the demand for the commodity. Several automobile majors had stopped production in Japan causing concerns about demand for tyres.
Association of Natural Rubber Producing Countries (ANRPC) stated that quake hit Japan accounts for seven per cent of the global demand for natural rubber. The crisis in the automobile sector in Japan cannot have a major impact on rubber prices Meanwhile Tokyo rubber futures rebounded sharply towards weekend on supply concerns and hopes of a possible intervention by producing countries to prop up prices.
Tocom Rubber surged on Friday climbing as much as 7.2 percent to 425.5 yen a kilogram ($5,210 a ton) after Thailand, Indonesia and Malaysia, the biggest growers, said they may reduce shipments, Bloomberg reported.
Spot prices monitored by India’s Rubber Board has risen from 21,600 per 100 last week to Rs 22,200 after hitting a low of Rs 18,700 levels.
Spot rubber prices in Thailand are quoted higher at Rs 22,692 on tight supplies while SMR-20 grade at Kuala Lumpur is quoted at Rs 20,234.
The benchmark April rubber contract on India's National Multi-Commodity Exchange (NMCE) rose 12 percent higher at 23134 while May contract rose from Rs 20789 to Rs 23698. Towards weekend, NMCE futures hit higher circuit levels on fresh buying and short covering.
India's natural rubber production in February rose by 5.8 percent on year to 54,500 tonnes, according to Rubber Board, as farmers increased tapping to cash in on a price rally.
(Source: http://www.commodityonline.com/news/Commodity-Trends-Rubber-recovers-fast-uptrend-in-pepper-37387-2-1.html)
Top rubber producers' meet to prop up prices
SUNDAY, MARCH 20, 2011
BANGKOK: The world's top rubber-producing countries, Thailand, Indonesia and Malaysia, will hold an urgent meeting this week to find ways to support prices that have collapsed this month, an senior industry official said yesterday.
The price of Thai USS3, a raw material for export grade rubber sheet (RSS3), fell to 90 baht a kg yesterday from 95 baht (100 baht = RM10.04) on Monday. That is half the record high of 180 baht hit in mid-February.
Rubber futures on the Tokyo Commodity Exchange (TOCOM), which tend to set global price trends, started falling this month when unrest in the Middle East raised concerns about the global economy and rubber demand.
Friday's earthquake in Japan added to these concerns. "We need to do something this week to stop prices from falling," Yium Tavarolit, acting chief executive of the International Rubber Consortium, said, adding that the meeting to discuss the measures will probably be held in Thailand.
"We will consider whether we should stop exporting for a while or cut production, as we used to do in the past, to help support prices." The consortium, which will coordinate the meeting, brings together rubber industry officials, exporters and government officials from the three countries that together account for 70 per cent of global rubber output.
Any decision by the IRCo would have to be ratified by the International Tripartite Rubber Corporation, which groups senior government officials from IRCo countries. TOCOM's benchmark rubber contract for August delivery hit a low of 335.0 yen (100 yen = RM3.75) a kg yesterday, 12 per cent down from Monday's close of 384.1 yen.
At that point, it had lost nearly 40 per cent from a record high of 535.7 yen hit in mid-February.
The benchmark settled at 353.0 yen a kg. TOCOM rubber futures had slumped on Monday, leading to a temporary halt in trade, as rumours circulated that some buyers had defaulted on shipments of physical rubber.
Thai RSS3 traded at a four-month low of US$4.18 to US$4.20 (US$1 = RM3.04) a kg yesterday, against record-high offers at US$6.40 in mid-February.
However, there were no reports of shipment cancellations.
When the global economy faced recession in late 2008, the top three rubber producers said they would cut shipments in 2009 to prop up export prices, which had fallen to around US$1.50 a kg.
However, the measure was effectively dropped when rubber prices recovered because of strong demand from the tyre industry in China and a gradual recovery in the global economy from the second half of 2009.
Thailand may draw up separate plans to intervene in the domestic market, partly to help the government win farmers' vote in a general election likely by July.
The government would do everything within its means to push the price of USS3 higher, Deputy Prime Minister Suthep Thuagsuban said yesterday, urging farmers not to sell at current levels.
"I suggest farmers keep their rubber for a while as the government is pushing prices up very soon, so please wait to sell at 120 baht a per kg, not at this low level," he told reporters. – Reuters
(Source: http://www.btimes.com.my/Current_News/BTIMES/articles/topruta/Article/)
Rubber industries seek lower import duty on latex
SUNDAY, MARCH 20, 2011
KOCHI, MARCH 18:
In the backdrop of the recent surge and wane in natural rubber prices, the All India Rubber Industries Association (AIRIA) has asked for the immediate correction in the inverted duty structure in rubber latex, on the lines of natural rubber that was effected recently. The import duty on latex stands at a significant 70 per cent, even as that on the finished product is less than 7.5 per cent, AIRIA said.
While growth in natural rubber production has been modest, huge capacity build up is being undertaken by the tyre industry, which could increase the demand for natural rubber in the immediate future. According to the Rubber Board, the cumulative production of natural rubber in the country grew by three per cent to 8,04,450 tonnes during April-February period. Consumption, meanwhile, grew by 1.9 per cent to 8,68,230 tonnes.
The growing demand and prices has prompted AIRIA to write to the Finance Ministry pointing out that the increase in price of latex is threatening the very survival of the industry which comprises mainly of small units. Latex is largely consumed in the country in the production of foam mattresses, medical and surgical articles including gloves, balloons, hot water bottles and some sports goods.
Latex prices
Along with the price of rubber sheet, latex prices have also surged from around Rs 55 a kg in January 2009 to Rs 117 at present , after having peaked to Rs 148. It is surprising that the import duty on latex has been gradually enhanced from 25 per cent in 1999-2000 to 70 per cent recently, while that on finished goods has been reduced from 40 per cent to less than 7.5 per cent during the same period, Mr Vinod Simon, President of AIRIA said.
Mr Simon added, “The facilitated import of finished goods is antithetical to the Government's avowed policy of enhancing domestic value addition.” A large number of the small and medium scale units are not able to pass the price hike to the consumers.
The Government has all along considered natural rubber and latex as co-existing products. Natural latex is the first stage output of the rubber tree and is processed to obtain natural rubber. While considering the reduction in customs duty on natural rubber to 7.5 per cent for a limited quantity till March 2011 and subsequently a cap of Rs 20 per kg, the Government should have considered a reduction in customs duty on rubber latex as well, AIRIA said. While natural rubber is attracting duty at Rs 20 a kg at current prices, latex is attracting customs duty of over Rs 100 a kg.
Meanwhile, the Rubber Board has said that rubber production for February has increased by 5.8 per cent to 54,500 tonnes, while consumption has decreased by 2.5 per cent to 79,000 tonnes.
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1550860.ece?homepage=true)
Steps for regular export of rubber latex sought
SUNDAY, MARCH 20, 2011
KOTTAYAM: Rubber Board chairperson Sheela Thomas has called for the export of rubber latex on a regular basis.
Addressing a meeting of latex producers convened by the Rubber Board here on Thursday, Ms. Thomas urged latex producers to make long-term arrangements for exports. She said the public-sector rubber companies should make special efforts in this direction as they were the major producers of latex.
Price differential
The meeting noted that the prevailing market situation, wherein the international latex price is ruling higher than the domestic price, was favourable for exports.
The participants observed that it would be advantageous for the Rubber Producers' Societies (RPSs), which market their produce as latex, to switch to sheet-making considering the existing price differential.
Association of Latex Producers of India president Satheesh Abraham, representatives of the Plantation Corporation of Kerala (PCK), the State Farming Corporation, the Rehabilitation Plantations, Harrisons Malayalam Ltd., and Periyar Latex Ltd., participated in the meeting.
Sunny Sebastian, Director (Processing & Product Development); Ramesh B. Nair, Joint Director (Statistics & Planning) and Binoi Kurian, Deputy Director (Marketing) of the Rubber Board also attended the meeting.
(Source: http://www.hindu.com/2011/03/19/stories/2011031951321600.htm)
Saturday, March 19, 2011
Rubber in Tokyo jumps most in 2 yrs
Rubber in Tokyo jumps most in 2 yrs
FRIDAY, MARCH 18, 2011
Rubber jumped the most in more than two years as supply tightened after the Thai government asked exporters to halt shipments and as Japanese tire plants resumed production after last week’s earthquake. The August-delivery contract surged as much as 8.1%, the most since January 5, 2009, recovering from a four-month low of 335 yen reached on March 15. The price closed at 396.9 yen ($5,032 a tonne). In after-hours trade, futures extended gains to as high as 409.2 yen.
Rubber Fundamentals to Stay Strong on Tight Supply
FRIDAY, MARCH 18, 2011
18 March 2011
The current tight supply in major natural rubber producing countries will help support prices, after the market plunged from record high levels following an earthquake and tsunami in Japan, the Malaysian Rubber Board said Thursday.
Rubber prices plunged earlier this week after damage to tire and automobile factories in Japan raised concerns of a slowdown in natural rubber demand.
Malaysia is the world's third-largest producer of natural rubber after Thailand and Indonesia. The three countries comprise the International Rubber Consortium and account for about 70% of global natural rubber output.
The Thai government, through the International Rubber Consortium, has asked Indonesia and Malaysia to maintain prices after Thailand announced a minimum price for the commodity, IRCo acting Chief Executive Yium Tavarolit said.
He added that the three members have agreed to work together on any potential price control measures, which could include export suspension below a certain price level.
"Japan is not a major price-determining factor where natural rubber consumption is concerned. Nevertheless, we are closely watching the market and will take necessary measures if the need arises," an MRB official, who didn't wish to be named, told Dow Jones Newswires.
He refused to disclose whether Malaysia will follow Thailand's move to set a minimum price for the commodity.
However, officials at the Indonesian Rubber Association and MRB confirmed that they may meet with Thai exporters to discuss measures to halt the downtrend in prices.
Thailand's deputy prime minister Suthep Thaugsuban Monday pledged to maintain local rubber prices at no less than THB120 a kilogram. He also urged suspension of exports and is calling for a meeting of agencies Monday to discuss the measure, the Bangkok Post reported Wednesday.
(Source: http://www.irco.biz/BlogMoreDetial.php?id=2739&ShowContent=news)
Indonesia Rubber Group Says $4 Price Should Be Defended
FRIDAY, MARCH 18, 2011
The Rubber Association of Indonesia wants a price of $4 per kilogram defended and
urged its members not to sell in a panic after prices plunged.
Rubber is in short supply because of the wintering now in growing regions and the
potential demand from consumers and tire manufacturers is still strong because of
the economic recovery in the U.S. and growth in China, the association, also known
as Gapkindo, in a statement. Indonesia is the world’s second-largest producer.
The International Rubber Consortium Ltd., which comprises Thailand, Malaysia and
Indonesia, will probably delay exports to counter a price slump as demand outpaces
supply during the low production period, Yium Tavarolit, the acting chief executive
officer said today (Mar 17). Rubber futures have plunged 26 percent from a record
535.7 yen a kilogram ($6,778 a ton) on Feb. 18 on Middle East tensions and slowing
vehicle sales in China.
“We hope that by this measure we can stem the natural rubber prices from falling
further and all members can conduct the trade in an orderly manner,” the association
said.
The price of Indonesian benchmark SIR-20 grade has plunged from $5.7 a kilogram
in mid-February, the statement said, without providing the current level. SIR-20 was
traded at about $4.6 a kilogram as of March 11, according to data from the
International Rubber Consortium Ltd.
(Bloomberg, March 17, 2011)
Rubber May Extend Rebound on Export-Curb Plan, Quake Rebuilding
FRIDAY, MARCH 18, 2011
Rubber may extend a rebound from a four-month low as exporting nations said they may curb shipments and demand from the auto industry in China, the largest consumer, and rebuilding efforts in quake-hit Japan spur buying.
“The underlying supply-and-demand imbalance, where there‟s basically insufficient supply, isn‟t going to disappear very quickly,” said Peter Kelly, head of tire and rubber research at LMC International Ltd. “Demand will still be very strong.”
Rubber has jumped after Thailand, the largest producer, asked exporters to halt shipments and as tire plants in Japan resumed production after last week‟s earthquake. Harvests in Thailand, Indonesia and Malaysia will fail to meet demand for a second year in 2011, Goldman Sachs Group Inc. estimates. Annual vehicle sales in China surged about 10-fold in the past decade.
“Prices may rise again after the recent drop,” Sun Huaijian, general manager for commercial tire department at Giti Tire (China) Investment Co., said in an interview yesterday (Mar 17) in Qingdao, China. “Governments of producing countries will introduce various policies to stem the decline in prices.”
Thailand, Indonesia and Malaysia, the biggest producers, will probably delay shipments to counter a price slump, according to International Rubber Consortium Ltd. In 2009, the three nations cut exports to combat a 56 percent price slump amid the global financial crisis.
Thailand‟s Deputy Prime Minister Suthep Thaugsuban said this week that he‟d asked exporters to suspend shipments to stem the plunge in prices and will ask banks to offer low-interest loans to help shippers stockpile the raw material.
Record Price
August-delivery futures climbed as much as 7.2 percent 425.5 yen per kilogram on the Tokyo Commodity Exchange and were at 413.1 yen at 10:17 a.m. today (Mar 18). The price, which reached a record 535.7 yen on Feb. 18, plunged to 335 yen March 15, the lowest intraday price since Nov. 4, after Japan‟s strongest earthquake and a tsunami forced manufacturers to halt production.
The 9.0 quake and tsunami hit northeastern Japan on March 11, damaging several nuclear reactors and killing at least 4,277 people. Technicians have struggled to contain fires and radiation leaks at the Fukushima Dai-Ichi nuclear power station north of Tokyo as rescue workers battled to come to terms with the aftermath of the quake, which has left hundreds of thousands stranded without food and water.
Toyo Tire & Rubber Co. suspended most operations at three plants in northern Japan, the company said yesterday (Mar 17). Toyo Tire gave no timeframe for resuming operations, saying the facilities were not badly damaged.
Quake Assessment
Still, natural-rubber demand won‟t be significantly affected by the earthquake, the Association of Natural Rubber Producing Countries said on March 15. Japan accounts for 7 percent of global natural-rubber demand.
“People are concerned that Japan‟s earthquake may slow or derail the global economic recovery, because it‟s a big economy,” Forest Hu, manager at the rubber department of PKU Founder Commodities Group Co. Still, “the earthquake alone can‟t justify the slump we saw in prices.”
Prices had lost as much as 37 percent from the Feb. 18 record as worsening Middle East tensions and slowing car sales growth in China raised concerns demand may drop. Losses deepened after the quake forced Japanese carmakers to halt production.
Bridgestone Corp., the world‟s biggest tiremaker, restarted three plants in Tochigi, Japan, the company said on March 16.
„Trigger Demand‟
“Japan‟s rebuilding process probably will trigger demand for rubber, for vehicles that are deployed for reconstruction and also the automobiles coming back onto the roads,” Rajiv Budhraja, head of India‟s Automotive Tyre Manufacturers‟ Association, said March 16. The auto industries in China and India will also fuel demand for rubber, Budhraja said.
Natural-rubber demand in China, the biggest consumer, will rise 8 percent this year, lifted by record car-tire production, said Deng Yali, deputy head of the China Rubber Industry Association. Consumption will be 3.24 million metric tons, while tire output will climb 7.9 percent to an all-time high of 453 million units, Deng said on March 16.
Passenger-vehicle sales surged 33 percent in 2010, as government stimulus measures and economic growth helped the nation remain the world‟s largest auto market for a second year.
Strong demand will come amid reduced output from the main Southeast Asian producers. Heavier-than-usual rain in Southeast Asia, which supplies 70 percent of the world‟s rubber, disrupted harvests over the past several months.
While farmers will increase supply by 9 percent this year, they won‟t eliminate shortages, as demand advances to its highest level since at least 2000, according to a team of Goldman analysts led by Tokyo-based Yuichiro Isayama.
(Bloomberg, March 18, 2011)
Thai Govt Says Asked Exporters To Halt Rubber Shipments
FRIDAY, MARCH 18, 2011
The Thai Government Has Asked Rubber Exporters To Halt Shipments And A State Body Overseeing The Sector Will Meet Next Week To Look At Further Ways To Support Prices, Deputy Prime Minister Suthep Thaugsuban Said On Thursday (Mar 17).
"I Will Call An Urgent Meeting On Monday To Discuss How To Push Rubber Prices Higher So They Stay At Those High Levels," Suthep Told Parliament On Thursday (Mar 17).
The Government Had Already Asked Exporters To Halt Exports And Keep Rubber In Stock, He Said, Adding That They Had Around 300,000 Tonnes Of Smoked Rubber Sheet (RSS3) In Stock Now.
Thailand Is The World's Biggest Rubber Exporter.
(Reuters, March 17, 2011)
NMCE Rubber regains on fresh buying
FRIDAY, MARCH 18, 2011
NMCE rubber futures continued the uptrend on fresh buying on previous losses on Wednesday. Domestic spot market also extended the recovery which supported the upside and prices again traded above 20,000 per quintal at spot.
Rubber futures at TOCOM also traded on positive side after a huge fall in prices. Thus on cues from above stated factors fresh buying pushed the prices at NMCE and futures ended in 4% upper circuit.
The rubbers futures are projected to continue the positive trend on extended fresh buying on Thursday. Recovery at domestic and international market rubber prices might support the prices.
Reports of government of Thailand has asked exporters to stop the shipments as Auto manufacturing companies in Japan have resumed their activity is likely to push the prices.
Factors to Watch For
Rubber spot market of Kochi again crossed the `20,000 per quintal yesterday taking cues from global rubber market sentiments
As per the Committee on rubber policy of Thailand Government, Thai government will negotiate with commercial banks to extend loans to exporters to buy rubber from farmers at a minimum price of 120 baht per Kg
According to rubber board of India, Indian February Natural Rubber Output is 54,500 Tons Vs 51,500 Tons, consumption is 79,000 Tons Vs 76,350 Tons and imports are 6,831 Tons Vs 12,278 Tons
As per data released by rubber board, the year end deficit in natural rubber in India is estimated around 1.2 lakh tons and it is expected to be increase to 2 lakh tons during 2011-12
According to the Rubber Research Institute of Thailand, physical price of Thai rubber was up by 1.5 percent to 137.25 baht ($4.51) a kilogram on Wednesday
According to the Association of Natural Rubber Producing Countries, Consumption in China, India and Malaysia, representing 48% of global usage, will increase this year
DERIVATIVE ANALYSIS
Indian Futures (NMCE)
The NMCE March contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.
Japan Futures (TOCOM)
The TOCOM active August contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.
Shanghai Futures (SHFE)
The SHFE active July contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.
(Source: http://www.commodityonline.com/futures-trading/technical/NMCE-Rubber-regains-on-fresh-buying-22622.html)
Natural rubber prices rise for 3rd straight day to Rs 215/kg
FRIDAY, MARCH 18, 2011
New Delhi, Mar 17 (PTI) Continuing upward trend for the third day in a row, natural rubber (NR) prices today jumped Rs 14 per kg to Rs 215 in the domestic spot market on firm cues from the international market.
Prices of natural rubber were ruling at at Rs 201 per kg yesterday, the Rubber Board data showed.
"Spot prices are increasing here taking cues from the Tokyo Commodity Exchange (TOCOM), where natural rubber is trading on a positive direction," Indian Rubber Dealers Association President George Valy told PTI.
The spot prices also took firm indication from the domestic commodity exchange NMCE, where natural rubber prices were trading upward following a rise in global prices,he said.
In Bangkok, NR spot prices were up Rs 3.89 at Rs 208.51 per kg against Rs 204.62 yesterday.
Global NR prices have been rising for last two days fears of shortages in view of rising demand, analysts said.
In the first 11 months of the current fiscal, natural rubber production in the country increased 3 per cent to 8.04 lakh tonnes, the official data showed.
(Source: http://in.news.yahoo.com/natural-rubber-prices-rise-3rd-straight-day-rs-20110317-065500-420.html)
Thailand Moves to Shore Up Rubber Prices
FRIDAY, MARCH 18, 2011
The Thai government has asked rubber exporters to halt shipments and a state body overseeing the sector will meet next week to look at further ways to support prices, Deputy Prime Minister Suthep Thaugsuban said on Thursday.
Rubber prices hit record highs in mid-February but have plunged this month as doubts grew over demand and the global economy, in reaction first to unrest in the Middle East and then to last week's devastating earthquake in Japan.
"I will call an urgent meeting on Monday to discuss how to push rubber prices higher so they stay at those high levels," Suthep told parliament on Thursday.
The government had already asked exporters to halt exports and keep rubber in stock, he said, adding that they had around 300,000 tonnes of smoked rubber sheet (RSS3) in stock now.
Thailand is the world's biggest rubber producer and exporter.
Major rubber exporters said they had stopped offering rubber in new deals but that was due as much to the volatility in prices as to the request from the government.
"I can't sell at these low prices as our costs are higher," said Vorathep Wongsasuthikul, CEO of Thai Rubber Latex, one of Thailand's top five rubber-exporting firms.
Tokyo rubber futures, which set the global trend, jumped as much as 8 percent on Thursday to 399.0 yen ($4.94) per kg, with dealers citing heavy buying by investment funds after prices climbed above major resistance at 390 yen.
Even though prices have picked up from the lows, the top three rubber producers -- Thailand, Indonesia and Malaysia -- are looking for ways to push them higher.
However, a meeting of the International Rubber Consortium (IRCo), which brings together rubber industry officials, exporters and government officials from the three countries, has been pushed back from this week.
"We need to wait for the outcome of Thailand's national rubber committee meeting first and then we will call a meeting with the other two allies on whether they agree with us," said Yium Tavarolit, the Thai acting chief executive of the IRCo.
The IRCo meeting would be held in March, he added.
Thai Government Moves Boost Natural Rubber Prices
FRIDAY, MARCH 18, 2011
Recent moves by Thailand, the world's largest natural rubber producer and exporter, have shored up the commodity's prices, which fell sharply this month from record high levels in February.
The Thai government, through the International Rubber Consortium, has asked Indonesia and Malaysia to maintain prices after Thailand announced a minimum price for the commodity, IRCo acting Chief Executive Yium Tavarolit said Thursday.
IRCo comprises officials and exporters from Thailand, Indonesia and Malaysia, which collectively account for about 70% of global natural rubber output.
Yium said the three members have agreed to work together on any potential price control measures, which could include export suspension below a certain price level.
In late 2008, IRCo members had decided to reduce supply in 2009, but the measure didn't kick in as prices recovered.
Yium said Tuesday that the three countries would meet this week to discuss measures to stem falling prices, but that meeting is now on hold as prices have recovered somewhat and as the Thai authorities hold their own meeting first.
Meanwhile, the Thai authorities and industry players have also been taking steps to support the market. Thailand accounts for about one-third of global rubber output.
Deputy Prime Minister Suthep Thaugsuban Monday pledged to maintain local rubber prices at no less than THB120 a kilogram. He also urged suspension of exports and is calling for a meeting of agencies Monday to discuss the measure, the Bangkok Post reported Wednesday.
Meanwhile, leaders of the Rubber Growers Cooperative Federation of Thailand will meet Prime Minister Abhisit Vejjajiva next week to ask the government to intervene in the issue of falling rubber prices, the paper said Thursday.
Yium said agricultural authorities in Thailand will also meet soon to discuss the issue of price controls before contacting Indonesia and Malaysia.
IRCo said Wednesday it is also setting up a joint working group with the China Rubber Industry Association to counter price volatility. China is the world's largest consumer and importer of the commodity.
The moves by Thailand have boosted prices, with Thai unsmoked sheet 3-grade rubber breaching the THB120/kg level Thursday at the central markets versus THB89.00-THB102.59/kg Monday.
Traders and farmers are also taking cues from Suthep's statement to stockpile the commodity and to not try to push prices down, said a trader in southern Thailand.
This sent USS3 arrivals down to 3.5 metric tons Thursday at the central markets--down from 122.5 tons Monday.
On the bellwether Tokyo Commodity Exchange, whose benchmark contract rubber price has been recovering since Wednesday, the August contract settled at Y396.9/kg Thursday, off a fourth-month low of Y335 Tuesday.
Tocom rubber prices hit a record high of Y535.7/kg on Feb. 18 before sliding sharply, as market sentiment was damped by geopolitical tensions in the Middle East, tightening fears in China and the earthquake and tsunami in Japan, despite the fact that major producing countries are in the low-production season.
(Source: http://www.irco.biz/BlogMoreDetial.php?id=2732&ShowContent=news)
'Markets favourable for more rubber latex exports'
FRIDAY, MARCH 18, 2011
KOTTAYAM (Commodity Online) : Latex producers should make long term arrangements to export their produce on a regular and steady basis, said Sheela Thomas, Chairman, Rubber Board of India while speaking in a meeting of the latex producers convened by the Board, here Thursday.
She said that public sector rubber companies, being major producers of latex, should make special efforts in this direction.
The meeting noted that the prevailing market situation, wherein the international latex price is ruling higher than the domestic price, is favourable for exports. Participants also observed that it would be advantageous for Rubber Producers’ Societies, which market their produce as latex, to switch to sheet making considering the price differential.
(Source: http://www.commodityonline.com/news/Markets-favourable-for-more-rubber-latex-exports-37340-3-1.html)
Thailand Asks Indonesia, Malaysia to Maintain Rubber Prices
FRIDAY, MARCH 18, 2011
The Thai government via the International Rubber Consortium has asked Indonesia and Malaysia to set minimum levels for rubber prices after Thailand announced a similar move, IRCo acting Chief Executive Yium Tavarolit said Thursday.
Yium said that the three IRCo member countries have agreed to work together on any potential price-control measures.
Thailand Monday pledged to maintain local rubber prices at no less than THB120 a kilogram, amid a sharp slide in prices from record highs in February.
Yium said that agricultural authorities in Thailand will meet this week to discuss the issue of the price controls before contacting Indonesia and Malaysia.
Thailand, Indonesia and Malaysia account for about 70% of global natural rubber production.
(Source: http://www.irco.biz/BlogMoreDetial.php?id=2733&ShowContent=news)
Rubber market to rebound on favourable fundamentals
FRIDAY, MARCH 18, 2011
PETALING JAYA: The natural rubber (NR) market is expected to rebound due to favourable fundamentals, said Malaysian Rubber Board (MRB) director-general Datuk Dr Salmiah Ahmad.
“The strong economic growth of China and India coupled with anticipated higher average oil prices in 2010, points towards demand for the NR industry.
“A higher level of NR price is expected especially in view of tight global supply and declining stocks that are currently affecting both the producers and consumers,” she said in a statement yesterday.
“Also, Thailand and Malaysia would be experiencing the delayed seasonal lull of wintering from March to April which will reduce output by some 30% to 40%.”
She said the MRB was “deeply concerned” with the decline in prices and the volatility of the rubber markets.
Compared with the peak, prices have declined by more than 31% with tyre-grade SMR (Standard Malaysia Rubber) 20 closing at RM11.83 per kg on Wednesday.
However, MRB’s noon official physical price for SMR 20 rose 63.5 sen to RM12.59 per kg yesterday while latex-in-bulk improved 10 sen to RM8.705 sen per kg.
The MRB statement quoted the Association of Natural Rubber Producing Countries as saying that the Japanese earthquake would have limited impact on global demand as there was no damage to plants owned by major firms in Japan such as Bridgestone Corp and Michelin.
Bloomberg reported yesterday that Thailand, Indonesia and Malaysia would probably delay exports to counter a price slump, quoting Yium Tavarolit, the acting CEO of the International Rubber Consortium Ltd.
(Source: http://biz.thestar.com.my/news/story.asp?file=/2011/3/18/business/8295407&sec=business)
Rubber in Tokyo jumpson Thai supply concerns
FRIDAY, MARCH 18, 2011
Bangkok: Rubber jumped the most in more than two years as supply tightened after the Thai government asked exporters to halt shipments and as Japanese tyre plants resumed production after last week's earthquake.
August-delivery futures climbed as much as 8.1 per cent, the most since January 5, 2009, to 399 yen (Dh18.62) a kilogram ($5,043 a metric tonne) on the Tokyo Commodity Exchange before trading at 398.6 yen at 2.15pm. The contract has surged 19 per cent from a four-month low of 335 yen on March 15 after Thailand's Deputy Prime Minister Suthep Thaugsuban asked exporters to suspend shipments to stem a plunge in prices and will ask banks to offer low-interest loans to help them stockpile the raw material.
"The Thai government intervention on exports is making rubber-sheet supply become tight, supporting the price," Kazunori Kokubo, general manager for the international business department at Yutaka Shoji Co said by phone from Tokyo.
Thailand, the largest producer, will negotiate with commercial banks to extend loans to exporters to buy unsmoked sheets from farmers at a minimum price of 120 baht ($3.96) a kilogram, said Suthep, who chairs the rubber policy committee.
The government will also encourage farmers not to sell below the minimum level, he said.
"The news provided positive psychological sentiment, prompting buyers to snap up the commodity," Pornthip Wongjirattikarn, marketing manager at Future Agri Trade Co., said by phone from Bangkok.
Free-on-board price
The free-on-board price, or cost without freight and insurance, for Thailand's benchmark ribbed smoked sheet gained for a second day, rising 3.6 per cent to 142.25 baht a kilogram boosted by the Thai government measures, according to the Rubber Research Institute of Thailand. Supplies have declined as the country entered low-production season, it said. The price reached a record 198.30 baht on February 21.
Rubber plunged from a record 535.7 yen reached February 18 as worsening Middle East tensions and slowing car sales in China, the largest buyer, raised concern that demand may decline. Losses intensified after the earthquake struck Japan, which is battling to prevent a meltdown at a stricken nuclear power plant.
"Demand in Japan is expected to recover after plants resume operations," Yutaka Shoji's Kokubo said.
Japan accounts for 7 per cent of global natural rubber demand. The closure of a handful of tyre plants in the country's northeast region for a few days won't impact global demand in a significant way, according to the Association of Natural Rubber Producing Countries. "If there is any marginal impact, it will be for the short-term only," the group said.
Operations resume
Bridgestone restarted three plants in Tochigi prefecture in eastern Japan yesterday, the company said in a faxed statement. Two of the plants will begin delivering tyres for cars, trucks and motorcycles from today, the company said. It closed the factories after the earthquake off the coast of Sendai, northern Japan on March 11.
Yokohama Rubber Co resumed partial production at five plants. A plant in Ibaraki prefecture damaged in the quake remains closed, the company said in a statement yesterday.
(Source: http://gulfnews.com/business/media-marketing/rubber-in-tokyo-jumpson-thai-supply-concerns-1.778706)
Thailand, Indonesia May Curb Rubber Exports to Stem Drop
FRIDAY, MARCH 18, 2011
Thailand, Indonesia and Malaysia, the world‟s biggest rubber growers, will probably
delay exports to counter a price slump as demand outpaces supply during the low
production period, according to a producers‟ group.
“If the price continues to fall, we will definitely do it,” Yium Tavarolit, the acting chief
executive officer of the International Rubber Consortium Ltd., said in a phone
interview today (Mar 17). “Representatives of the three countries agreed in principle
to temporarily delay the exports.”
Rubber has plunged 26 percent from a record 535.7 yen reached Feb. 18 as
worsening Middle East tensions and slowing car sales in China, the largest buyer,
raised concern demand may decline. The decline worsened after Japan‟s strongest
earthquake and on the risk of radiation from a damaged nuclear power plant.
Thailand, Indonesia and Malaysia will have to decide on a minimum price, Yium said.
The nations cut exports to combat a 56 percent price slump amid the global financial
crisis in 2009. “If the price stabilizes and moves in line with demand and
supply fundamentals, exporters will export as normal,” Yium said. The group
represents growers and exporters in the three nations and represents about 70
percent of global supply.
August-delivery futures climbed as much as 8.1 percent, the most since Jan. 5,
2009, to settle at 396.9 yen a kilogram ($5,043 a metric ton) on the Tokyo
Commodity Exchange today (Mar 17). The contract has rallied about 18 percent from
a four-month low of 335 yen on March 15 after Thailand‟s Deputy Prime Minister
Suthep Thaugsuban asked exporters to suspend shipments.
„No Panic Selling‟
The Indonesia Rubber Association today (Mar 17) said it has proposedthat a price of
$4 per kilogram should be defended and urged its members not to sell in a “panic.”
There is still a shortage because of wintering now in growing regions and potential
demand
from consumers and tire manufacturers is strong because of the U.S. economic
recovery and growth in China, it said.
Farmers in Thailand, Indonesia and Malaysia reduce tapping during so-called
wintering from February to May, when trees shed leaves and latex production drops.
Thai output declines as much as 60 percent compared with peak levels, according to
the Association of Natural Rubber Producing Countries.
Malaysia wants to see stable rubber prices, Deputy Plantation Industries &
Commodities Minister Hamzah Zainuddin said March 4. “Prices of rubber should be
around 12 ringgit to 15 ringgit and it‟s enough for everyone to make money.”
„Price Volatility‟
The three countries will work together with China Rubber Industry Association on
measures and a market mechanism to “reduce price volatility,” Yium said after a
meeting with representatives of growers and Chinese buyers. Setting up a regional
rubber market for forward trading is an option, he said.
“What happened to Japan doesn‟t change demand and supply fundamentals, but
affects sentiment prompting investors to seek safe-haven assets,” Yium said.
Japan‟s earthquake on record and a seven-meter high tsunami last week caused
power shortages, forcing car and tires makers to halt production and threatening the
economic recovery.
Natural rubber output may grow by 6.2 percent this year and by 6.5 percent next
year, while demand is estimated to gain by 4.6 percent this year and by 3.8 percent
next year, the International Rubber Study Group said March 11, without providing a
tonnage forecast.
(Bloomberg, March 17, 2011)
FRIDAY, MARCH 18, 2011
Rubber jumped the most in more than two years as supply tightened after the Thai government asked exporters to halt shipments and as Japanese tire plants resumed production after last week’s earthquake. The August-delivery contract surged as much as 8.1%, the most since January 5, 2009, recovering from a four-month low of 335 yen reached on March 15. The price closed at 396.9 yen ($5,032 a tonne). In after-hours trade, futures extended gains to as high as 409.2 yen.
Rubber Fundamentals to Stay Strong on Tight Supply
FRIDAY, MARCH 18, 2011
18 March 2011
The current tight supply in major natural rubber producing countries will help support prices, after the market plunged from record high levels following an earthquake and tsunami in Japan, the Malaysian Rubber Board said Thursday.
Rubber prices plunged earlier this week after damage to tire and automobile factories in Japan raised concerns of a slowdown in natural rubber demand.
Malaysia is the world's third-largest producer of natural rubber after Thailand and Indonesia. The three countries comprise the International Rubber Consortium and account for about 70% of global natural rubber output.
The Thai government, through the International Rubber Consortium, has asked Indonesia and Malaysia to maintain prices after Thailand announced a minimum price for the commodity, IRCo acting Chief Executive Yium Tavarolit said.
He added that the three members have agreed to work together on any potential price control measures, which could include export suspension below a certain price level.
"Japan is not a major price-determining factor where natural rubber consumption is concerned. Nevertheless, we are closely watching the market and will take necessary measures if the need arises," an MRB official, who didn't wish to be named, told Dow Jones Newswires.
He refused to disclose whether Malaysia will follow Thailand's move to set a minimum price for the commodity.
However, officials at the Indonesian Rubber Association and MRB confirmed that they may meet with Thai exporters to discuss measures to halt the downtrend in prices.
Thailand's deputy prime minister Suthep Thaugsuban Monday pledged to maintain local rubber prices at no less than THB120 a kilogram. He also urged suspension of exports and is calling for a meeting of agencies Monday to discuss the measure, the Bangkok Post reported Wednesday.
(Source: http://www.irco.biz/BlogMoreDetial.php?id=2739&ShowContent=news)
Indonesia Rubber Group Says $4 Price Should Be Defended
FRIDAY, MARCH 18, 2011
The Rubber Association of Indonesia wants a price of $4 per kilogram defended and
urged its members not to sell in a panic after prices plunged.
Rubber is in short supply because of the wintering now in growing regions and the
potential demand from consumers and tire manufacturers is still strong because of
the economic recovery in the U.S. and growth in China, the association, also known
as Gapkindo, in a statement. Indonesia is the world’s second-largest producer.
The International Rubber Consortium Ltd., which comprises Thailand, Malaysia and
Indonesia, will probably delay exports to counter a price slump as demand outpaces
supply during the low production period, Yium Tavarolit, the acting chief executive
officer said today (Mar 17). Rubber futures have plunged 26 percent from a record
535.7 yen a kilogram ($6,778 a ton) on Feb. 18 on Middle East tensions and slowing
vehicle sales in China.
“We hope that by this measure we can stem the natural rubber prices from falling
further and all members can conduct the trade in an orderly manner,” the association
said.
The price of Indonesian benchmark SIR-20 grade has plunged from $5.7 a kilogram
in mid-February, the statement said, without providing the current level. SIR-20 was
traded at about $4.6 a kilogram as of March 11, according to data from the
International Rubber Consortium Ltd.
(Bloomberg, March 17, 2011)
Rubber May Extend Rebound on Export-Curb Plan, Quake Rebuilding
FRIDAY, MARCH 18, 2011
Rubber may extend a rebound from a four-month low as exporting nations said they may curb shipments and demand from the auto industry in China, the largest consumer, and rebuilding efforts in quake-hit Japan spur buying.
“The underlying supply-and-demand imbalance, where there‟s basically insufficient supply, isn‟t going to disappear very quickly,” said Peter Kelly, head of tire and rubber research at LMC International Ltd. “Demand will still be very strong.”
Rubber has jumped after Thailand, the largest producer, asked exporters to halt shipments and as tire plants in Japan resumed production after last week‟s earthquake. Harvests in Thailand, Indonesia and Malaysia will fail to meet demand for a second year in 2011, Goldman Sachs Group Inc. estimates. Annual vehicle sales in China surged about 10-fold in the past decade.
“Prices may rise again after the recent drop,” Sun Huaijian, general manager for commercial tire department at Giti Tire (China) Investment Co., said in an interview yesterday (Mar 17) in Qingdao, China. “Governments of producing countries will introduce various policies to stem the decline in prices.”
Thailand, Indonesia and Malaysia, the biggest producers, will probably delay shipments to counter a price slump, according to International Rubber Consortium Ltd. In 2009, the three nations cut exports to combat a 56 percent price slump amid the global financial crisis.
Thailand‟s Deputy Prime Minister Suthep Thaugsuban said this week that he‟d asked exporters to suspend shipments to stem the plunge in prices and will ask banks to offer low-interest loans to help shippers stockpile the raw material.
Record Price
August-delivery futures climbed as much as 7.2 percent 425.5 yen per kilogram on the Tokyo Commodity Exchange and were at 413.1 yen at 10:17 a.m. today (Mar 18). The price, which reached a record 535.7 yen on Feb. 18, plunged to 335 yen March 15, the lowest intraday price since Nov. 4, after Japan‟s strongest earthquake and a tsunami forced manufacturers to halt production.
The 9.0 quake and tsunami hit northeastern Japan on March 11, damaging several nuclear reactors and killing at least 4,277 people. Technicians have struggled to contain fires and radiation leaks at the Fukushima Dai-Ichi nuclear power station north of Tokyo as rescue workers battled to come to terms with the aftermath of the quake, which has left hundreds of thousands stranded without food and water.
Toyo Tire & Rubber Co. suspended most operations at three plants in northern Japan, the company said yesterday (Mar 17). Toyo Tire gave no timeframe for resuming operations, saying the facilities were not badly damaged.
Quake Assessment
Still, natural-rubber demand won‟t be significantly affected by the earthquake, the Association of Natural Rubber Producing Countries said on March 15. Japan accounts for 7 percent of global natural-rubber demand.
“People are concerned that Japan‟s earthquake may slow or derail the global economic recovery, because it‟s a big economy,” Forest Hu, manager at the rubber department of PKU Founder Commodities Group Co. Still, “the earthquake alone can‟t justify the slump we saw in prices.”
Prices had lost as much as 37 percent from the Feb. 18 record as worsening Middle East tensions and slowing car sales growth in China raised concerns demand may drop. Losses deepened after the quake forced Japanese carmakers to halt production.
Bridgestone Corp., the world‟s biggest tiremaker, restarted three plants in Tochigi, Japan, the company said on March 16.
„Trigger Demand‟
“Japan‟s rebuilding process probably will trigger demand for rubber, for vehicles that are deployed for reconstruction and also the automobiles coming back onto the roads,” Rajiv Budhraja, head of India‟s Automotive Tyre Manufacturers‟ Association, said March 16. The auto industries in China and India will also fuel demand for rubber, Budhraja said.
Natural-rubber demand in China, the biggest consumer, will rise 8 percent this year, lifted by record car-tire production, said Deng Yali, deputy head of the China Rubber Industry Association. Consumption will be 3.24 million metric tons, while tire output will climb 7.9 percent to an all-time high of 453 million units, Deng said on March 16.
Passenger-vehicle sales surged 33 percent in 2010, as government stimulus measures and economic growth helped the nation remain the world‟s largest auto market for a second year.
Strong demand will come amid reduced output from the main Southeast Asian producers. Heavier-than-usual rain in Southeast Asia, which supplies 70 percent of the world‟s rubber, disrupted harvests over the past several months.
While farmers will increase supply by 9 percent this year, they won‟t eliminate shortages, as demand advances to its highest level since at least 2000, according to a team of Goldman analysts led by Tokyo-based Yuichiro Isayama.
(Bloomberg, March 18, 2011)
Thai Govt Says Asked Exporters To Halt Rubber Shipments
FRIDAY, MARCH 18, 2011
The Thai Government Has Asked Rubber Exporters To Halt Shipments And A State Body Overseeing The Sector Will Meet Next Week To Look At Further Ways To Support Prices, Deputy Prime Minister Suthep Thaugsuban Said On Thursday (Mar 17).
"I Will Call An Urgent Meeting On Monday To Discuss How To Push Rubber Prices Higher So They Stay At Those High Levels," Suthep Told Parliament On Thursday (Mar 17).
The Government Had Already Asked Exporters To Halt Exports And Keep Rubber In Stock, He Said, Adding That They Had Around 300,000 Tonnes Of Smoked Rubber Sheet (RSS3) In Stock Now.
Thailand Is The World's Biggest Rubber Exporter.
(Reuters, March 17, 2011)
NMCE Rubber regains on fresh buying
FRIDAY, MARCH 18, 2011
NMCE rubber futures continued the uptrend on fresh buying on previous losses on Wednesday. Domestic spot market also extended the recovery which supported the upside and prices again traded above 20,000 per quintal at spot.
Rubber futures at TOCOM also traded on positive side after a huge fall in prices. Thus on cues from above stated factors fresh buying pushed the prices at NMCE and futures ended in 4% upper circuit.
The rubbers futures are projected to continue the positive trend on extended fresh buying on Thursday. Recovery at domestic and international market rubber prices might support the prices.
Reports of government of Thailand has asked exporters to stop the shipments as Auto manufacturing companies in Japan have resumed their activity is likely to push the prices.
Factors to Watch For
Rubber spot market of Kochi again crossed the `20,000 per quintal yesterday taking cues from global rubber market sentiments
As per the Committee on rubber policy of Thailand Government, Thai government will negotiate with commercial banks to extend loans to exporters to buy rubber from farmers at a minimum price of 120 baht per Kg
According to rubber board of India, Indian February Natural Rubber Output is 54,500 Tons Vs 51,500 Tons, consumption is 79,000 Tons Vs 76,350 Tons and imports are 6,831 Tons Vs 12,278 Tons
As per data released by rubber board, the year end deficit in natural rubber in India is estimated around 1.2 lakh tons and it is expected to be increase to 2 lakh tons during 2011-12
According to the Rubber Research Institute of Thailand, physical price of Thai rubber was up by 1.5 percent to 137.25 baht ($4.51) a kilogram on Wednesday
According to the Association of Natural Rubber Producing Countries, Consumption in China, India and Malaysia, representing 48% of global usage, will increase this year
DERIVATIVE ANALYSIS
Indian Futures (NMCE)
The NMCE March contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.
Japan Futures (TOCOM)
The TOCOM active August contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.
Shanghai Futures (SHFE)
The SHFE active July contract, prices are rising while volumes and open interest are falling. Market is running out of traders willing to open or hold an open long/buy. Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower at some point.
(Source: http://www.commodityonline.com/futures-trading/technical/NMCE-Rubber-regains-on-fresh-buying-22622.html)
Natural rubber prices rise for 3rd straight day to Rs 215/kg
FRIDAY, MARCH 18, 2011
New Delhi, Mar 17 (PTI) Continuing upward trend for the third day in a row, natural rubber (NR) prices today jumped Rs 14 per kg to Rs 215 in the domestic spot market on firm cues from the international market.
Prices of natural rubber were ruling at at Rs 201 per kg yesterday, the Rubber Board data showed.
"Spot prices are increasing here taking cues from the Tokyo Commodity Exchange (TOCOM), where natural rubber is trading on a positive direction," Indian Rubber Dealers Association President George Valy told PTI.
The spot prices also took firm indication from the domestic commodity exchange NMCE, where natural rubber prices were trading upward following a rise in global prices,he said.
In Bangkok, NR spot prices were up Rs 3.89 at Rs 208.51 per kg against Rs 204.62 yesterday.
Global NR prices have been rising for last two days fears of shortages in view of rising demand, analysts said.
In the first 11 months of the current fiscal, natural rubber production in the country increased 3 per cent to 8.04 lakh tonnes, the official data showed.
(Source: http://in.news.yahoo.com/natural-rubber-prices-rise-3rd-straight-day-rs-20110317-065500-420.html)
Thailand Moves to Shore Up Rubber Prices
FRIDAY, MARCH 18, 2011
The Thai government has asked rubber exporters to halt shipments and a state body overseeing the sector will meet next week to look at further ways to support prices, Deputy Prime Minister Suthep Thaugsuban said on Thursday.
Rubber prices hit record highs in mid-February but have plunged this month as doubts grew over demand and the global economy, in reaction first to unrest in the Middle East and then to last week's devastating earthquake in Japan.
"I will call an urgent meeting on Monday to discuss how to push rubber prices higher so they stay at those high levels," Suthep told parliament on Thursday.
The government had already asked exporters to halt exports and keep rubber in stock, he said, adding that they had around 300,000 tonnes of smoked rubber sheet (RSS3) in stock now.
Thailand is the world's biggest rubber producer and exporter.
Major rubber exporters said they had stopped offering rubber in new deals but that was due as much to the volatility in prices as to the request from the government.
"I can't sell at these low prices as our costs are higher," said Vorathep Wongsasuthikul, CEO of Thai Rubber Latex, one of Thailand's top five rubber-exporting firms.
Tokyo rubber futures, which set the global trend, jumped as much as 8 percent on Thursday to 399.0 yen ($4.94) per kg, with dealers citing heavy buying by investment funds after prices climbed above major resistance at 390 yen.
Even though prices have picked up from the lows, the top three rubber producers -- Thailand, Indonesia and Malaysia -- are looking for ways to push them higher.
However, a meeting of the International Rubber Consortium (IRCo), which brings together rubber industry officials, exporters and government officials from the three countries, has been pushed back from this week.
"We need to wait for the outcome of Thailand's national rubber committee meeting first and then we will call a meeting with the other two allies on whether they agree with us," said Yium Tavarolit, the Thai acting chief executive of the IRCo.
The IRCo meeting would be held in March, he added.
Thai Government Moves Boost Natural Rubber Prices
FRIDAY, MARCH 18, 2011
Recent moves by Thailand, the world's largest natural rubber producer and exporter, have shored up the commodity's prices, which fell sharply this month from record high levels in February.
The Thai government, through the International Rubber Consortium, has asked Indonesia and Malaysia to maintain prices after Thailand announced a minimum price for the commodity, IRCo acting Chief Executive Yium Tavarolit said Thursday.
IRCo comprises officials and exporters from Thailand, Indonesia and Malaysia, which collectively account for about 70% of global natural rubber output.
Yium said the three members have agreed to work together on any potential price control measures, which could include export suspension below a certain price level.
In late 2008, IRCo members had decided to reduce supply in 2009, but the measure didn't kick in as prices recovered.
Yium said Tuesday that the three countries would meet this week to discuss measures to stem falling prices, but that meeting is now on hold as prices have recovered somewhat and as the Thai authorities hold their own meeting first.
Meanwhile, the Thai authorities and industry players have also been taking steps to support the market. Thailand accounts for about one-third of global rubber output.
Deputy Prime Minister Suthep Thaugsuban Monday pledged to maintain local rubber prices at no less than THB120 a kilogram. He also urged suspension of exports and is calling for a meeting of agencies Monday to discuss the measure, the Bangkok Post reported Wednesday.
Meanwhile, leaders of the Rubber Growers Cooperative Federation of Thailand will meet Prime Minister Abhisit Vejjajiva next week to ask the government to intervene in the issue of falling rubber prices, the paper said Thursday.
Yium said agricultural authorities in Thailand will also meet soon to discuss the issue of price controls before contacting Indonesia and Malaysia.
IRCo said Wednesday it is also setting up a joint working group with the China Rubber Industry Association to counter price volatility. China is the world's largest consumer and importer of the commodity.
The moves by Thailand have boosted prices, with Thai unsmoked sheet 3-grade rubber breaching the THB120/kg level Thursday at the central markets versus THB89.00-THB102.59/kg Monday.
Traders and farmers are also taking cues from Suthep's statement to stockpile the commodity and to not try to push prices down, said a trader in southern Thailand.
This sent USS3 arrivals down to 3.5 metric tons Thursday at the central markets--down from 122.5 tons Monday.
On the bellwether Tokyo Commodity Exchange, whose benchmark contract rubber price has been recovering since Wednesday, the August contract settled at Y396.9/kg Thursday, off a fourth-month low of Y335 Tuesday.
Tocom rubber prices hit a record high of Y535.7/kg on Feb. 18 before sliding sharply, as market sentiment was damped by geopolitical tensions in the Middle East, tightening fears in China and the earthquake and tsunami in Japan, despite the fact that major producing countries are in the low-production season.
(Source: http://www.irco.biz/BlogMoreDetial.php?id=2732&ShowContent=news)
'Markets favourable for more rubber latex exports'
FRIDAY, MARCH 18, 2011
KOTTAYAM (Commodity Online) : Latex producers should make long term arrangements to export their produce on a regular and steady basis, said Sheela Thomas, Chairman, Rubber Board of India while speaking in a meeting of the latex producers convened by the Board, here Thursday.
She said that public sector rubber companies, being major producers of latex, should make special efforts in this direction.
The meeting noted that the prevailing market situation, wherein the international latex price is ruling higher than the domestic price, is favourable for exports. Participants also observed that it would be advantageous for Rubber Producers’ Societies, which market their produce as latex, to switch to sheet making considering the price differential.
(Source: http://www.commodityonline.com/news/Markets-favourable-for-more-rubber-latex-exports-37340-3-1.html)
Thailand Asks Indonesia, Malaysia to Maintain Rubber Prices
FRIDAY, MARCH 18, 2011
The Thai government via the International Rubber Consortium has asked Indonesia and Malaysia to set minimum levels for rubber prices after Thailand announced a similar move, IRCo acting Chief Executive Yium Tavarolit said Thursday.
Yium said that the three IRCo member countries have agreed to work together on any potential price-control measures.
Thailand Monday pledged to maintain local rubber prices at no less than THB120 a kilogram, amid a sharp slide in prices from record highs in February.
Yium said that agricultural authorities in Thailand will meet this week to discuss the issue of the price controls before contacting Indonesia and Malaysia.
Thailand, Indonesia and Malaysia account for about 70% of global natural rubber production.
(Source: http://www.irco.biz/BlogMoreDetial.php?id=2733&ShowContent=news)
Rubber market to rebound on favourable fundamentals
FRIDAY, MARCH 18, 2011
PETALING JAYA: The natural rubber (NR) market is expected to rebound due to favourable fundamentals, said Malaysian Rubber Board (MRB) director-general Datuk Dr Salmiah Ahmad.
“The strong economic growth of China and India coupled with anticipated higher average oil prices in 2010, points towards demand for the NR industry.
“A higher level of NR price is expected especially in view of tight global supply and declining stocks that are currently affecting both the producers and consumers,” she said in a statement yesterday.
“Also, Thailand and Malaysia would be experiencing the delayed seasonal lull of wintering from March to April which will reduce output by some 30% to 40%.”
She said the MRB was “deeply concerned” with the decline in prices and the volatility of the rubber markets.
Compared with the peak, prices have declined by more than 31% with tyre-grade SMR (Standard Malaysia Rubber) 20 closing at RM11.83 per kg on Wednesday.
However, MRB’s noon official physical price for SMR 20 rose 63.5 sen to RM12.59 per kg yesterday while latex-in-bulk improved 10 sen to RM8.705 sen per kg.
The MRB statement quoted the Association of Natural Rubber Producing Countries as saying that the Japanese earthquake would have limited impact on global demand as there was no damage to plants owned by major firms in Japan such as Bridgestone Corp and Michelin.
Bloomberg reported yesterday that Thailand, Indonesia and Malaysia would probably delay exports to counter a price slump, quoting Yium Tavarolit, the acting CEO of the International Rubber Consortium Ltd.
(Source: http://biz.thestar.com.my/news/story.asp?file=/2011/3/18/business/8295407&sec=business)
Rubber in Tokyo jumpson Thai supply concerns
FRIDAY, MARCH 18, 2011
Bangkok: Rubber jumped the most in more than two years as supply tightened after the Thai government asked exporters to halt shipments and as Japanese tyre plants resumed production after last week's earthquake.
August-delivery futures climbed as much as 8.1 per cent, the most since January 5, 2009, to 399 yen (Dh18.62) a kilogram ($5,043 a metric tonne) on the Tokyo Commodity Exchange before trading at 398.6 yen at 2.15pm. The contract has surged 19 per cent from a four-month low of 335 yen on March 15 after Thailand's Deputy Prime Minister Suthep Thaugsuban asked exporters to suspend shipments to stem a plunge in prices and will ask banks to offer low-interest loans to help them stockpile the raw material.
"The Thai government intervention on exports is making rubber-sheet supply become tight, supporting the price," Kazunori Kokubo, general manager for the international business department at Yutaka Shoji Co said by phone from Tokyo.
Thailand, the largest producer, will negotiate with commercial banks to extend loans to exporters to buy unsmoked sheets from farmers at a minimum price of 120 baht ($3.96) a kilogram, said Suthep, who chairs the rubber policy committee.
The government will also encourage farmers not to sell below the minimum level, he said.
"The news provided positive psychological sentiment, prompting buyers to snap up the commodity," Pornthip Wongjirattikarn, marketing manager at Future Agri Trade Co., said by phone from Bangkok.
Free-on-board price
The free-on-board price, or cost without freight and insurance, for Thailand's benchmark ribbed smoked sheet gained for a second day, rising 3.6 per cent to 142.25 baht a kilogram boosted by the Thai government measures, according to the Rubber Research Institute of Thailand. Supplies have declined as the country entered low-production season, it said. The price reached a record 198.30 baht on February 21.
Rubber plunged from a record 535.7 yen reached February 18 as worsening Middle East tensions and slowing car sales in China, the largest buyer, raised concern that demand may decline. Losses intensified after the earthquake struck Japan, which is battling to prevent a meltdown at a stricken nuclear power plant.
"Demand in Japan is expected to recover after plants resume operations," Yutaka Shoji's Kokubo said.
Japan accounts for 7 per cent of global natural rubber demand. The closure of a handful of tyre plants in the country's northeast region for a few days won't impact global demand in a significant way, according to the Association of Natural Rubber Producing Countries. "If there is any marginal impact, it will be for the short-term only," the group said.
Operations resume
Bridgestone restarted three plants in Tochigi prefecture in eastern Japan yesterday, the company said in a faxed statement. Two of the plants will begin delivering tyres for cars, trucks and motorcycles from today, the company said. It closed the factories after the earthquake off the coast of Sendai, northern Japan on March 11.
Yokohama Rubber Co resumed partial production at five plants. A plant in Ibaraki prefecture damaged in the quake remains closed, the company said in a statement yesterday.
(Source: http://gulfnews.com/business/media-marketing/rubber-in-tokyo-jumpson-thai-supply-concerns-1.778706)
Thailand, Indonesia May Curb Rubber Exports to Stem Drop
FRIDAY, MARCH 18, 2011
Thailand, Indonesia and Malaysia, the world‟s biggest rubber growers, will probably
delay exports to counter a price slump as demand outpaces supply during the low
production period, according to a producers‟ group.
“If the price continues to fall, we will definitely do it,” Yium Tavarolit, the acting chief
executive officer of the International Rubber Consortium Ltd., said in a phone
interview today (Mar 17). “Representatives of the three countries agreed in principle
to temporarily delay the exports.”
Rubber has plunged 26 percent from a record 535.7 yen reached Feb. 18 as
worsening Middle East tensions and slowing car sales in China, the largest buyer,
raised concern demand may decline. The decline worsened after Japan‟s strongest
earthquake and on the risk of radiation from a damaged nuclear power plant.
Thailand, Indonesia and Malaysia will have to decide on a minimum price, Yium said.
The nations cut exports to combat a 56 percent price slump amid the global financial
crisis in 2009. “If the price stabilizes and moves in line with demand and
supply fundamentals, exporters will export as normal,” Yium said. The group
represents growers and exporters in the three nations and represents about 70
percent of global supply.
August-delivery futures climbed as much as 8.1 percent, the most since Jan. 5,
2009, to settle at 396.9 yen a kilogram ($5,043 a metric ton) on the Tokyo
Commodity Exchange today (Mar 17). The contract has rallied about 18 percent from
a four-month low of 335 yen on March 15 after Thailand‟s Deputy Prime Minister
Suthep Thaugsuban asked exporters to suspend shipments.
„No Panic Selling‟
The Indonesia Rubber Association today (Mar 17) said it has proposedthat a price of
$4 per kilogram should be defended and urged its members not to sell in a “panic.”
There is still a shortage because of wintering now in growing regions and potential
demand
from consumers and tire manufacturers is strong because of the U.S. economic
recovery and growth in China, it said.
Farmers in Thailand, Indonesia and Malaysia reduce tapping during so-called
wintering from February to May, when trees shed leaves and latex production drops.
Thai output declines as much as 60 percent compared with peak levels, according to
the Association of Natural Rubber Producing Countries.
Malaysia wants to see stable rubber prices, Deputy Plantation Industries &
Commodities Minister Hamzah Zainuddin said March 4. “Prices of rubber should be
around 12 ringgit to 15 ringgit and it‟s enough for everyone to make money.”
„Price Volatility‟
The three countries will work together with China Rubber Industry Association on
measures and a market mechanism to “reduce price volatility,” Yium said after a
meeting with representatives of growers and Chinese buyers. Setting up a regional
rubber market for forward trading is an option, he said.
“What happened to Japan doesn‟t change demand and supply fundamentals, but
affects sentiment prompting investors to seek safe-haven assets,” Yium said.
Japan‟s earthquake on record and a seven-meter high tsunami last week caused
power shortages, forcing car and tires makers to halt production and threatening the
economic recovery.
Natural rubber output may grow by 6.2 percent this year and by 6.5 percent next
year, while demand is estimated to gain by 4.6 percent this year and by 3.8 percent
next year, the International Rubber Study Group said March 11, without providing a
tonnage forecast.
(Bloomberg, March 17, 2011)
Thursday, March 17, 2011
Earthquake Likely To Affect Japanese Automakers' China Ventures--Rubber Export Put on Hold
Rubber Export Put on Hold
THURSDAY, MARCH 17, 2011
The government rubber committee has ordered suspension of rubber export due to the price that is not in line with trading nature as the figure should be over 80 baht per kilogram.
Deputy Prime Minister in charge of security and head of the National Rubber Policy Committee, Suthep Thaugsuban, commented on the panel's decision to halt rubber export, saying that export activities will be suspended until the price stabilizes as it has declined irregularly when compared to the trading nature.
The deputy premier said he has scheduled a meeting with related agencies next Monday to discuss the issue since rubber export must be given special attention as it is one of the country’s biggest earners.
When asked about farmers’ demand for the government to set a 100-baht per kilogram guarantee price, Suthep said that the media must carefully present facts about the issue as when the government started tackling the low rubber price, the figure was set at 80 baht and he felt that 120 baht per kilogram is appropriate.
Suthep added that some areas have seen improvement with rubber price at 90 baht per kilogram and it is expected to continue to gradually improve as retailers and exporters receive loans from commercial banks and will purchase rubber from farmers.
On a speculation that some exporters are trying to hoard rubber, the deputy premier believes it is a misunderstanding among the press due to the price which is not in line with trading nature.
Earthquake Likely To Affect Japanese Automakers' China Ventures
THURSDAY, MARCH 17, 2011
The earthquake in Japan will pose a serious impact on the supply of components Japanese automakers' joint ventures in China, according to auto industry analysts.
China-Japan auto joint ventures in Guangzhou, such as Guangzhou Toyota Motor Company and Guangqi Honda Automobile Company, can still maintain normal production. But how long this situation can last depends on the follow-up component supply.
"We have decided to prolong production shutdowns in Japan as we need to confirm the damage of its plants and are unsure of the supply of component suppliers," Honda's liaison in China said on March 14. Honda will prolong the production shutdowns of all plants in Japan until March 20 and is uncertain whether it can resume production thereafter.
Toyota Motor has shut down all of its plants in Japan and will not resume production until March 16. It was estimated that output would drop by 40,000 units because of the three-day production suspension. Toyota's output in Japan accounts for about 45 percent of its total output around the world.
Production of joint auto ventures depends on imports of key components.
The production shutdown of these Japanese auto enterprises is undoubtedly bad news for joint ventures in China. Although the current localization degree of joint venture brands has reached more than 90 percent, production may be halted at any time if the supply of key components imported from Japan is ceased.
Honda said that they can only momentarily guarantee one week of normal production in vehicle factories in China. In regards to motor vehicles, production at Guangzhou Honda, Dongfeng Honda and Honda Motors (China) located in Guangzhou, which produce and export the Jazz, will not be affected before this weekend, according to sources within the company.
In regard to motorcycles, the production of Wuyang Honda Motors and Honda Sundiro will not be affected before the end of March. In regards to general products, the production of Jialing Honda and Honda Mingdong will not be affected before the end of March.
"The normal production of Guangzhou Toyota and FAW Toyota will not be affected," Toyota China said. However, the impact on other supporting parties depends on the situation in Japan.
(People's Daily Online, China, March 16, 2011)
Tokyo Futures Jump On Supply Concerns
THURSDAY, MARCH 17, 2011
Tokyo rubber futures rebounded sharply for a second consecutive day on Thursday (Mar 17) on supply concerns and hopes of a possible intervention by producing countries to prop up prices.
FUNDAMENTAL
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose more than 4 percent to the session's high of 385.5 yen ($4.77) per kg.
However, prices were still well below a record high of 535.7 yen, hit in mid-Feb. The benchmark contract touched a four-month low earlier this week.
The most active rubber contract on Shanghai Commodity Exchange for May delivery fell 335 yuan to stay at 33,910 yuan per kg by 0119 GMT.
The world's top rubber producing countries, Thailand, Indonesia and Malaysia, will hold an urgent meeting this week to find ways to support prices that have collapsed this month, a senior industry official said on Tuesday (Mar 15).
U.S. oil prices slipped as much as 1.4 percent to below $97 on Thursday (Mar 17), as the worsening nuclear crisis in Japan offset intensifying clashes in the streets of Bahrain.
The yen soared to a record high against the dollar on Thursday (Mar 17) in chaotic trading as a break of the previous peak triggered a host of stop-loss and option-related selling, which in turn caused a cascade of algorithmic sales.
(Reuters, March 17, 2011)
Rubber gains for second consecutive day after the free fall
THURSDAY, MARCH 17, 2011
AHMEDABAD (Commodity Online): Rubber prices have slide about 26% from its all-time high of around Rs 24,778 per 100 kg before few weeks on NMCE. The fall cached fire after Japan’s quake but the crash was mainly due to speculation in the commodities market.
Earthquake which struck Japan and spurred a nuclear crisis will have limited impact on global demand because there is no damage to plants owned by major firms such as Bridgestone Corp and Michelin , the Association of Natural Rubber Producing Countries said on Tuesday
The closure of a handful of auto-tire plants in the country's northeast region for a few days cannot impact on the commodity's global demand in a significant way "If at all there is any marginal impact, it will be for a short-term only."
Japan accounts for seven per cent of the global demand for natural rubber. India’s auto demand has been robust and this is expected to sustain. Rubber prices nearly doubled over the last one year but due to fears of lower global demand for at least for two-three quarters amid Japanese crisis led to traders offloading stock rapidly, which brought down the price.
Once Japan will start rebuilding there will be a huge demand for natural rubber and prices may rebound.
Yesterday Rubber April contract at NMCE opened near to its low but gave smart recovery on all arround buying and closed on buyer’s circuit of 20570. Rubber made hammer on daily chart and today even it is on buyers cap which gave the confirmation of its long term bullish trend .
“Technically, Long term traders are advised to maintain buying positions with the stop loss of recent low of 18400.” said Bharti Navlani, technical analyst with Commodity Online.
Bridgestone Restarts Japan Production, TBR Tyres Given Priority
THURSDAY, MARCH 17, 2011
Bridgestone has given further information on restarting production in its factories located in Japan’s Kanto region or north of that region. Production at the company’s Yokohama and Tokyo factories has already recommenced, although electricity supply and other issues are still restricting a return to full production at the Yokohama site. It is anticipated that Bridgestone’s Tochigi, Nasu and Kurioso factories will recommence production on March 16. Deliveries from the Tokyo plant are expected to restart on March 16 and deliveries from Tochigi and Nasu on March 18 or thereafter.
In announcing this schedule, Bridgestone points out that “though there is no critical damage at the factories, there are some facilities or equipment damaged, and earthquake aftershocks have been following.” The tyre maker has also determined that truck and bus tyre manufacture will take priority when production restarts, as these products are most needed for the recovery of the devastated areas in Japan. Bridgestone also says it will “appropriately” cooperate with the rolling blackouts that have been announced, adding: “At the same time, we will endeavour to minimise the impact of the blackouts through the full utilisation of co-generation systems which are installed at each factory.”
(Tyrepress.com, March 16, 2011)
Key TOCOM Rubber Contract Up 3 Pct On Short-Covering
THURSDAY, MARCH 17, 2011
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose significantly on Wednesday (Mar 16) on short-covering and supply concerns.
"Prices rebound in line with stock market and investors buy back contracts on news that Asian government would push physical prices higher," said a Tokyo-based dealer.
The benchmark contract rose 3.2 percent to the session high of 364.5 yen ($4.51) per kg, from Tuesday's (Mar 15) close of 353.0 yen per kg.
(Reuters, March 16, 2011)
Domestic natural rubber prices up by Rs 4 to Rs 201/kg
THURSDAY, MARCH 17, 2011
Natural rubber (NR) prices today rose by Rs 4 to Rs 201 per kg in the domestic spot markets on the back of adjustment of prices in the international and domestic future markets.
The prices of NR in the domestic spot market were ruling at Rs 187 per kg yesterday, according to the Rubber Board data.
"The prices in the spot markets here were guided by the adjustment in prices at the major international spot and future markets," Cochin Rubber Merchants Association Advisor N Radhakrishnan said.
Radhakrishnan said Tokyo Commodity Exchange (TOCOM) is the major international future market prices indicator and the prices of rubber contracts increased a bit on TOCOM, which led to price adjustments in the domestic future and spot markets.
"The international spot markets also have risen on back of price adjustments in TOCOM," he added. The rate of NR at the international spot market at Bangkok rose by almost Rs 3.24 to Rs 204.62 per kg today as against Rs 201.38 yesterday, Rubber Board data said.
Radhakrishnan said the market situation is still unstable but a major flare-up in the NR rate is not expected likely. "There could be minor adjustments in the NR prices in the coming days," he added.
According to experts, flare up in NR prices is not anticipated as there are sufficient stocks in the country. In the first 11 months of the current fiscal, natural rubber production in the country increased by 3 per cent to 8.04 lakh tonnes, according to the Rubber Board data.
(Source: http://www.business-standard.com/india/news/domestic-natural-rubber-pricesby-rs-4-to-rs-201kg/129257/on)
THAILAND SUSPENDS RUBBER EXPORTS
THURSDAY, MARCH 17, 2011
BANGKOK, March 16 (Bernama) -- Thailand has suspended its rubber exports until declining prices of the commodity on the domestic market improves, Thai News Agency (TNA) reported Deputy Prime Minister Suthep Thaugsuban as saying Wednesday in his capacity as chairman of the National Rubber Policy Committee. The prices of Thai rubber have been down from a record high of 187 baht (RM18.75) a kilogramme to 95 baht now (RM9.50). The decline has been attributed to weak demand from China, a major rubber importer, and the massive earthquake and tsunami that hit Japan on March 11.
According to the Thai deputy premier, the current prices of rubber on the domestic market remained higher than the Thai government''s target, but a suitable rubber price should be about 120 baht (RM12) a kilogramme. The Thai deputy premier said he believes that the domestic rubber prices will gradually improve, as local traders have now received additional loans from commercial banks to purchase rubber from local plantations.
Brainstorming in the offing to check falling rubber prices
THURSDAY, MARCH 17, 2011
BANGKOK (Commodity Online) : In an effort to combat the free fall of rubber prices, the top rubber producing nations of the world—Thailand, Indonesia and Malaysia—will hold an urgent meeting this week.
Thai USS3 prices dropped to 90 baht ($2.95) per kilogram on Tuesday from 95 baht on Monday which is 50% of the record high of 180 baht achieved in February, reported http://www.thejakartaglobe.com.
TOCOM rubber futures have been going down since the Japan crisis has started unfolding.
Tokyo August contract rubber hit 12% down when compared to Monday’s close of 384.1 yen at 335.0 yen ($4.10) per kilogram. This figure is 40% drop from the record-setting mid-February high of 535.7 yen.
Yesterday, there were reports that the Thailand government had asked exporters to suspend operations. However there have been no reports of export cancellations.
The Thailand authorities are also keen to stockpile rubber as they have asked farmers not to sell below minimum level and have asked banks to issue credit to traders to hoard rubber.
The three countries account for 70% of global rubber output.
THURSDAY, MARCH 17, 2011
The government rubber committee has ordered suspension of rubber export due to the price that is not in line with trading nature as the figure should be over 80 baht per kilogram.
Deputy Prime Minister in charge of security and head of the National Rubber Policy Committee, Suthep Thaugsuban, commented on the panel's decision to halt rubber export, saying that export activities will be suspended until the price stabilizes as it has declined irregularly when compared to the trading nature.
The deputy premier said he has scheduled a meeting with related agencies next Monday to discuss the issue since rubber export must be given special attention as it is one of the country’s biggest earners.
When asked about farmers’ demand for the government to set a 100-baht per kilogram guarantee price, Suthep said that the media must carefully present facts about the issue as when the government started tackling the low rubber price, the figure was set at 80 baht and he felt that 120 baht per kilogram is appropriate.
Suthep added that some areas have seen improvement with rubber price at 90 baht per kilogram and it is expected to continue to gradually improve as retailers and exporters receive loans from commercial banks and will purchase rubber from farmers.
On a speculation that some exporters are trying to hoard rubber, the deputy premier believes it is a misunderstanding among the press due to the price which is not in line with trading nature.
Earthquake Likely To Affect Japanese Automakers' China Ventures
THURSDAY, MARCH 17, 2011
The earthquake in Japan will pose a serious impact on the supply of components Japanese automakers' joint ventures in China, according to auto industry analysts.
China-Japan auto joint ventures in Guangzhou, such as Guangzhou Toyota Motor Company and Guangqi Honda Automobile Company, can still maintain normal production. But how long this situation can last depends on the follow-up component supply.
"We have decided to prolong production shutdowns in Japan as we need to confirm the damage of its plants and are unsure of the supply of component suppliers," Honda's liaison in China said on March 14. Honda will prolong the production shutdowns of all plants in Japan until March 20 and is uncertain whether it can resume production thereafter.
Toyota Motor has shut down all of its plants in Japan and will not resume production until March 16. It was estimated that output would drop by 40,000 units because of the three-day production suspension. Toyota's output in Japan accounts for about 45 percent of its total output around the world.
Production of joint auto ventures depends on imports of key components.
The production shutdown of these Japanese auto enterprises is undoubtedly bad news for joint ventures in China. Although the current localization degree of joint venture brands has reached more than 90 percent, production may be halted at any time if the supply of key components imported from Japan is ceased.
Honda said that they can only momentarily guarantee one week of normal production in vehicle factories in China. In regards to motor vehicles, production at Guangzhou Honda, Dongfeng Honda and Honda Motors (China) located in Guangzhou, which produce and export the Jazz, will not be affected before this weekend, according to sources within the company.
In regard to motorcycles, the production of Wuyang Honda Motors and Honda Sundiro will not be affected before the end of March. In regards to general products, the production of Jialing Honda and Honda Mingdong will not be affected before the end of March.
"The normal production of Guangzhou Toyota and FAW Toyota will not be affected," Toyota China said. However, the impact on other supporting parties depends on the situation in Japan.
(People's Daily Online, China, March 16, 2011)
Tokyo Futures Jump On Supply Concerns
THURSDAY, MARCH 17, 2011
Tokyo rubber futures rebounded sharply for a second consecutive day on Thursday (Mar 17) on supply concerns and hopes of a possible intervention by producing countries to prop up prices.
FUNDAMENTAL
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose more than 4 percent to the session's high of 385.5 yen ($4.77) per kg.
However, prices were still well below a record high of 535.7 yen, hit in mid-Feb. The benchmark contract touched a four-month low earlier this week.
The most active rubber contract on Shanghai Commodity Exchange for May delivery fell 335 yuan to stay at 33,910 yuan per kg by 0119 GMT.
The world's top rubber producing countries, Thailand, Indonesia and Malaysia, will hold an urgent meeting this week to find ways to support prices that have collapsed this month, a senior industry official said on Tuesday (Mar 15).
U.S. oil prices slipped as much as 1.4 percent to below $97 on Thursday (Mar 17), as the worsening nuclear crisis in Japan offset intensifying clashes in the streets of Bahrain.
The yen soared to a record high against the dollar on Thursday (Mar 17) in chaotic trading as a break of the previous peak triggered a host of stop-loss and option-related selling, which in turn caused a cascade of algorithmic sales.
(Reuters, March 17, 2011)
Rubber gains for second consecutive day after the free fall
THURSDAY, MARCH 17, 2011
AHMEDABAD (Commodity Online): Rubber prices have slide about 26% from its all-time high of around Rs 24,778 per 100 kg before few weeks on NMCE. The fall cached fire after Japan’s quake but the crash was mainly due to speculation in the commodities market.
Earthquake which struck Japan and spurred a nuclear crisis will have limited impact on global demand because there is no damage to plants owned by major firms such as Bridgestone Corp and Michelin , the Association of Natural Rubber Producing Countries said on Tuesday
The closure of a handful of auto-tire plants in the country's northeast region for a few days cannot impact on the commodity's global demand in a significant way "If at all there is any marginal impact, it will be for a short-term only."
Japan accounts for seven per cent of the global demand for natural rubber. India’s auto demand has been robust and this is expected to sustain. Rubber prices nearly doubled over the last one year but due to fears of lower global demand for at least for two-three quarters amid Japanese crisis led to traders offloading stock rapidly, which brought down the price.
Once Japan will start rebuilding there will be a huge demand for natural rubber and prices may rebound.
Yesterday Rubber April contract at NMCE opened near to its low but gave smart recovery on all arround buying and closed on buyer’s circuit of 20570. Rubber made hammer on daily chart and today even it is on buyers cap which gave the confirmation of its long term bullish trend .
“Technically, Long term traders are advised to maintain buying positions with the stop loss of recent low of 18400.” said Bharti Navlani, technical analyst with Commodity Online.
Bridgestone Restarts Japan Production, TBR Tyres Given Priority
THURSDAY, MARCH 17, 2011
Bridgestone has given further information on restarting production in its factories located in Japan’s Kanto region or north of that region. Production at the company’s Yokohama and Tokyo factories has already recommenced, although electricity supply and other issues are still restricting a return to full production at the Yokohama site. It is anticipated that Bridgestone’s Tochigi, Nasu and Kurioso factories will recommence production on March 16. Deliveries from the Tokyo plant are expected to restart on March 16 and deliveries from Tochigi and Nasu on March 18 or thereafter.
In announcing this schedule, Bridgestone points out that “though there is no critical damage at the factories, there are some facilities or equipment damaged, and earthquake aftershocks have been following.” The tyre maker has also determined that truck and bus tyre manufacture will take priority when production restarts, as these products are most needed for the recovery of the devastated areas in Japan. Bridgestone also says it will “appropriately” cooperate with the rolling blackouts that have been announced, adding: “At the same time, we will endeavour to minimise the impact of the blackouts through the full utilisation of co-generation systems which are installed at each factory.”
(Tyrepress.com, March 16, 2011)
Key TOCOM Rubber Contract Up 3 Pct On Short-Covering
THURSDAY, MARCH 17, 2011
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose significantly on Wednesday (Mar 16) on short-covering and supply concerns.
"Prices rebound in line with stock market and investors buy back contracts on news that Asian government would push physical prices higher," said a Tokyo-based dealer.
The benchmark contract rose 3.2 percent to the session high of 364.5 yen ($4.51) per kg, from Tuesday's (Mar 15) close of 353.0 yen per kg.
(Reuters, March 16, 2011)
Domestic natural rubber prices up by Rs 4 to Rs 201/kg
THURSDAY, MARCH 17, 2011
Natural rubber (NR) prices today rose by Rs 4 to Rs 201 per kg in the domestic spot markets on the back of adjustment of prices in the international and domestic future markets.
The prices of NR in the domestic spot market were ruling at Rs 187 per kg yesterday, according to the Rubber Board data.
"The prices in the spot markets here were guided by the adjustment in prices at the major international spot and future markets," Cochin Rubber Merchants Association Advisor N Radhakrishnan said.
Radhakrishnan said Tokyo Commodity Exchange (TOCOM) is the major international future market prices indicator and the prices of rubber contracts increased a bit on TOCOM, which led to price adjustments in the domestic future and spot markets.
"The international spot markets also have risen on back of price adjustments in TOCOM," he added. The rate of NR at the international spot market at Bangkok rose by almost Rs 3.24 to Rs 204.62 per kg today as against Rs 201.38 yesterday, Rubber Board data said.
Radhakrishnan said the market situation is still unstable but a major flare-up in the NR rate is not expected likely. "There could be minor adjustments in the NR prices in the coming days," he added.
According to experts, flare up in NR prices is not anticipated as there are sufficient stocks in the country. In the first 11 months of the current fiscal, natural rubber production in the country increased by 3 per cent to 8.04 lakh tonnes, according to the Rubber Board data.
(Source: http://www.business-standard.com/india/news/domestic-natural-rubber-pricesby-rs-4-to-rs-201kg/129257/on)
THAILAND SUSPENDS RUBBER EXPORTS
THURSDAY, MARCH 17, 2011
BANGKOK, March 16 (Bernama) -- Thailand has suspended its rubber exports until declining prices of the commodity on the domestic market improves, Thai News Agency (TNA) reported Deputy Prime Minister Suthep Thaugsuban as saying Wednesday in his capacity as chairman of the National Rubber Policy Committee. The prices of Thai rubber have been down from a record high of 187 baht (RM18.75) a kilogramme to 95 baht now (RM9.50). The decline has been attributed to weak demand from China, a major rubber importer, and the massive earthquake and tsunami that hit Japan on March 11.
According to the Thai deputy premier, the current prices of rubber on the domestic market remained higher than the Thai government''s target, but a suitable rubber price should be about 120 baht (RM12) a kilogramme. The Thai deputy premier said he believes that the domestic rubber prices will gradually improve, as local traders have now received additional loans from commercial banks to purchase rubber from local plantations.
Brainstorming in the offing to check falling rubber prices
THURSDAY, MARCH 17, 2011
BANGKOK (Commodity Online) : In an effort to combat the free fall of rubber prices, the top rubber producing nations of the world—Thailand, Indonesia and Malaysia—will hold an urgent meeting this week.
Thai USS3 prices dropped to 90 baht ($2.95) per kilogram on Tuesday from 95 baht on Monday which is 50% of the record high of 180 baht achieved in February, reported http://www.thejakartaglobe.com.
TOCOM rubber futures have been going down since the Japan crisis has started unfolding.
Tokyo August contract rubber hit 12% down when compared to Monday’s close of 384.1 yen at 335.0 yen ($4.10) per kilogram. This figure is 40% drop from the record-setting mid-February high of 535.7 yen.
Yesterday, there were reports that the Thailand government had asked exporters to suspend operations. However there have been no reports of export cancellations.
The Thailand authorities are also keen to stockpile rubber as they have asked farmers not to sell below minimum level and have asked banks to issue credit to traders to hoard rubber.
The three countries account for 70% of global rubber output.
Subscribe to:
Posts (Atom)
