Welcome-This is my 500th blog

Welcome-This is my 500th blog--atish kumar jain



UPDATE: IRCo, China Association To Seek To Stabilize Rubber Prices
WEDNESDAY, MARCH 16, 2011

SINGAPORE (Dow Jones) - The International Rubber Consortium, representing the Southeast Asian countries that produce two thirds of world natural rubber, will work with the Association of the China Rubber Industry to offset the volatility of the price of rubber , IRCO chief said Wednesday.
Benchmark Tokyo rubber futures hit a record last month, but have since fallen to multi-month lows due to tensions in the Middle East and the earthquake and tsunami that struck Japan last week.
The two organizations agreed on collaboration during an industry conference in China Tuesday, IRCO Yium Tavarolit CEO said by telephone.
"The CRIA made the request to work together to reduce price volatility. We will come up with a plan to work together in the future. They said they were suffering due to high rubber prices before, "he said.
The associations created a working group this year to determine what actions can be taken to combat price volatility, he said.
China is the world's largest natural rubber consumer and importer. IRCO is composed of Thailand, Indonesia and Malaysia, which together represent 70% of world production of natural rubber.
The collaboration between IRCO and ERIC occurs after Yium IRCO said Tuesday that it is likely to convene a meeting this week to discuss measures to support rubber prices.
Rubber futures on the Commodity Exchange in Tokyo climbed to a record Y535.7 a kilo on 18 February but have since fallen sharply, reaching a minimum of four months of Y335/kg Tuesday. The benchmark August contract was trading at Y363.5/kg at 0607 GMT on Wednesday.
The contract fell more than 10% in the first two days this week because of concerns over demand, but recovered in the evening session on Tuesday, which is considered part of the deal the following day.
IRCO market monitoring
Yium said IRCO member countries are monitoring the prices of rubber and convene an emergency meeting if prices resume their steep declines.
"We will be monitoring prices closely," he said.
He said the recent drop in prices have been driven by the bearish sentiment due to the Middle East and Japan, but that the grounds for the rubber are currently undertaking.
Seasonal factors will reduce production in the first half of the year, while large consumers like China, India and the U.S. positive reported car sales figures in February, he said.
Yium said that although it may take measures to support rubber prices when they fall below what the fundamentals suggest that there is little producers can do when prices rise sharply as they did at a rally spread between December and February, as upward movement was driven by speculation in the futures market.




Suthep halts rubber exports
WEDNESDAY, MARCH 16, 2011

Deputy Prime Minister and chairman of the National Rubber Policy Committee Suthep Thaugsuban said he has ordered a temporary halt to rubber exports until the price improves.
Mr Suthep said on Wednesday the current decline in the rubber price was not in line with its trading nature.
The price of rubber is down from a record high of 187 baht a kilogram to 95 baht. The decline has been attributed to weak demand from China, a major rubber importer, and the massive quake and deadly tsunami in Japan.
Mr Suthep said he will call a meeting of agencies on Monday to discuss the matter.
“Rubber is one of the country’s major sources of foreign exchange and therefore the government must give it special attention,” he said.
Asked about rubber farmers' call for the government to provide a price guarantee of 100 baht per kilogram, Mr Suthep said when the government first stepped in to settle problem of low rubber prices the targeted price was set at 80 baht.
The current price is still higher than the set target, but a suitable market price was about 120 baht a kilogram, he added.
The deputy premier believed the rubber price would gradually improve. Rubber traders had now received additional loans from commercial banks and could start to buy rubber from farmers.




NR prices fall, but ANRPC not worried
WEDNESDAY, MARCH 16, 2011

NR prices tumble; ANRPC says Japan disaster won’t affect NR demand
KUALA LUMPUR, Malaysia (March 15, 2011)—World natural rubber markets remained volatile in the face of the March 11 earthquake, tsunami and nuclear plant disaster that struck northern Japan, although an organization of rubber-producing nations said it doesn’t expect an appreciable affect on NR demand.
“The disaster is unlikely to have a noticeable impact on global economy, as Japan has not been a driver of the global recovery from the economic meltdown in 2008,” the Association of Natural Rubber Producing Countries in a press release issued from its Kuala Lumpur headquarters. “Moreover, the tsunami-hit region is far from Japan’s economic hub, which is the area from Tokyo South to Osaka.”
“Japan accounts for 7 percent of the global demand for natural rubber,” the ANPRC said. “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.”
Meanwhile, NR prices have fallen by more than 20 percent on world markets in the past two weeks, though the latest market figures show them going up again.
March 15 prices on the Singapore Commodity Exchange show Technically Specified Rubber 20, or tire-grade rubber, at $4 per kilogram for June delivery, down from $5.18 per kilo March 2. Rubber Smoked Sheets 3 stood at $4.39 per kilo for June delivery today, compared with $6 per kilo March 2.
Nevertheless, RSS 3 traded 11 to 19 cents per kilo higher on March 15 than the previous trading day, according to the daily newsletter from RCMA Commodities Asia. TSR 20 traded 15 to 20 cents higher, RCMA said.




Tyre firms stock up rubber on price dip
WEDNESDAY, MARCH 16, 2011

KOCHI: Car tyre companies are stocking up on rubber as prices slid for the third day after the Japan earthquake to hit a five-month low on Tuesday.
"With a fall in prices we are buying small quantities from the local market," said S Gopakumar, who heads the Kerala unit of India's biggest tyre maker Apollo Tyres . "Prices have to be steady before companies start buying large quantities to ramp up their inventory," he said.
Rubber is cheaper by 15% on Tuesday compared to March 10. International prices slumped from Rs 244.92 per kg on March 10 to Rs 201.38 per kg on Tuesday.
On NMCE, the April contract that fell 2.5 % fall on Monday dropped further to Rs 189.88 per kg on Tuesday morning before recovering to Rs 198.60. Market players said it was the demand support from tyre companies that cushioned the fall in prices.
George Valy , president of industry body Indian Rubber Dealers Federation , said tyre companies were active in the market but face budgetary constraints in the last month of the current fiscal. "Prices fell when the speculators moved away from the market," he pointed out.
Thailand, the biggest producer, has announced it will curtail rubber exports and its procurement to arrest the price slide. The Association of Natural Rubber Producing Countries said the impact of the Japan quake would be minimal on rubber. It said the disaster-hit area is far from Japan's economic hub, which is stretched from Tokyo to Osaka.




ANRPC PRESS RELEASE March 15, 2011: Catastrophe in Japan: Impact on Rubber Demand will be Minimal
WEDNESDAY, MARCH 16, 2011

The disaster in northeast Japan on March 11 and subsequent nuclear plant meltdowns and explosions will not have significant impact on rubber demand from the country. Auto-tyre companies having plants in the country’s northeast have already confirmed that there is no damage to their plant buildings or facilities. A few plants which have to be shut down, due to power supply stoppage and safety concerns, will resume production on restoration of electricity supply.
Japan accounts for seven per cent of the global demand for natural rubber. The closure of a handful of auto-tyre 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.
Bridgestone Corporation has reported that all its five plants in the northeast Japan are unaffected although production has to be stopped due to power supply problems and on safety considerations. Plants can be reopened on restoration of power supply and completion of safety verification. Production has already been partly resumed in one of the five plants closed. Toyo Tire & Rubber Co. Ltd. confirmed that buildings or facilities in any of its plants in the region have not been damaged although a plant has been temporarily shut down due to power outage.
No damage has been reported for Sumitomo Rubber Industries Ltd., Yokohama Rubber Co. Ltd. and Michelin which are the three other auto-tyre manufacturing companies running plants in Japan.
The disaster is unlikely to have a noticeable impact on global economy as Japan has not been a driver of the global recovery from the economic meltdown in 2008. Moreover, the tsunami-hit region is far from Japan’s economic hub which is the area from Tokyo South to Osaka. Although the country's economic and manufacturing activities may be affected in the short-term, rebuilding activities could help revive the economy in the medium term.
Sd/-
Prof. Djoko S. Damardjati
Secretary-General
(Source: http://www.anrpc.org)




Japan tsunami pulls down rubber prices
WEDNESDAY, MARCH 16, 2011

Thiruvananthapuram: The impact of devastating earthquake and tsunami in Japan has started spreading into the Indian rubber industry. On the spot market, price of export-grade RSS-4 (ribbed smoked sheet) rubber has declined by R30 per kg during the last two days, bringing unexpected relief to tyre companies.
From its price zenith of R240 per kg last month, Monday's market has pummelled down the RSS-4 price to R185 per kg. Stockists, who were putting together the end-of-the- season sheets, did not anticipate the decline prices.
On Tuesday, there has been no recovery from R185 per kg. But, there is more buyer interest, says dealers, signifying that tyre companies have warmed up to new market options.
Japan's Tokyo Commodity Exchange (Tocom) is one of the biggest bourses in rubber futures. From 551 yen, Tocom price for RSS-4 has fallen to 380 yen.
Rubber growers shared apprehensions that the post-tsunami standstill in Japan's industrial sector and automobile sector could leave further after-quakes in the rubber price.
“We are keeping fingers crossed that the bearishness is a short-term phenomenon. But, if the price continues to fall to further depths, it will be a major concern,” Siby Monipalli, general secretary, Indian Rubber Growers Association (IRGA) told FE. A meeting of IRGA will be convened the soonest to study the market situation.
Reports are that in Japan, the factories of two automobile giants Honda and Nissan, have ground to a halt. On the flip side, Toyota and Hino Motors expect to be back to business as usual from March 18.
Conventionally, during off-season (March, April and May) Indian tyre firms tend to build buffer stocks in rubber, anticipating about 3000 tonne consumption per day. Association of Natural Rubber Producing Countries (ANRPC) had forecast about 5% more rubber demand in India and 9% in China for the current year.
Although the deadline for importing rubber at 7% slashed-duty rate is close at March 31, tyre companies were not too bullish about using this import option as the landed cost would add upto R200 per kg. It is into this bleak scenario for tyre firms that the price of R185 per kilo comes in as a sudden tsunami bonanza.
However, ATMA is not uncorking any champagne yet. Kaushik Roy, Convenor Purchase Group Automotive Tyre Manufacturers Association (ATMA) said, when contacted, that “it wastoo early to comment. The fall in prices is primarily linked to the crisis in Japan.” Roy sought more time to judge the situation. Sources in ATMA hinted that this development may slowdown the decision on proposed hike in tyre prices.
Rubber growers and tyre industry are equally watchful of the fall in industrial demand in China.
(Source: http://www.financialexpress.com/news/japan-tsunami-pulls-down-rubber-prices/762964/0)



NR prices tumble; ANRPC says Japan disaster won’t affect demand
WEDNESDAY, MARCH 16, 2011

KUALA LUMPUR (March 15, 2011) — World natural rubber (NR) markets remained volatile in the face of the March 11 triple catastrophe — earthquake, tsunami and nuclear plant disaster — that struck northern Japan, even as the Association of Natural Rubber Producing Countries (ANRPC) said the tragedy wouldn’t appreciably affect NR demand from Japan or elsewhere.
“The disaster is unlikely to have a noticeable impact on global economy, as Japan has not been a driver of the global recovery from the economic meltdown in 2008,” the ANRPC said in a press release issued from its Kuala Lumpur headquarters. “Moreover, the tsunami-hit region is far from Japan’s economic hub, which is the area from Tokyo south to Osaka.”
Bridgestone Corp. said its five plants in northeast Japan were unaffected by the earthquake. Power supply and safety problems forced the Bridgestone facilities to stop production, but one has partially resumed operations, the ANRPC said. Toyo Tire & Rubber Co., Sumitomo Rubber Industries Ltd., Yokohama Rubber Co. Ltd. and Michelin likewise reported no damage to their facilities from the quake or tsunami, the association said.
“Japan accounts for 7 percent of the global demand for natural rubber,” the ANPRC said. “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.”
Meanwhile, NR prices have fallen by more than 20 percent on world markets in the past two weeks, though the latest market figures show them going up again.
March 15 prices on the Singapore Commodity Exchange (SICOM) show Technically Specified Rubber 20, or tire-grade rubber, at $4 per kilogram for June delivery, down from $5.18 per kilo March 2. Rubber Smoked Sheets 3 stood at $4.39 per kilo for June delivery today, compared with $6 per kilo March 2.
Nevertheless, RSS 3 traded 11 to 19 cents per kilo higher on March 15 than the previous trading day, according to the daily newsletter from RCMA Commodities Asia. TSR 20 traded 15 to 20 cents higher, RCMA said.




Rubber pares losses on covering buys
WEDNESDAY, MARCH 16, 2011

KOTTAYAM, MARCH 15:
Domestic rubber prices improved on Tuesday. On the spot, the market moved up marginally on covering purchases at lower levels, following sharp gains on the National Multi Commodity Exchange (NMCE) and a late recovery on the Tokyo Commodity Exchange (TOCOM). Traders were mostly hesitant to enlarge their commitments as the impact of the global turmoil has not yet been completely analysed. According to observers, certain tyre companies were in the buyers queue but they kept a low profile.
Sheet rubber increased to Rs 187.50 (184) after hitting an intra-day low of Rs 180 a kg as quoted by the traders. The grade firmed up to Rs 187 (185) a kg both at Kottayam and Kochi, according to Rubber Board.
In futures, the March series improved to Rs 198.68 (191.04), April to Rs 205.70 (197.79), May to Rs 210.72 (202.62), June to Rs 216.50 (208.26) and July to Rs 218.02 (209.64) a kg for RSS 4 on the NMCE.
RSS 3 (spot) declined further to Rs 201.38 (223.74) a kg at Bangkok. The March futures for the grade nosedived to ¥361 (Rs 200.84) from ¥405 a kg during the day session but then recovered partially to ¥375.7 (Rs 209.04) in the night session on the TOCOM.
Spot rates were (Rs/kg): RSS-4: 187.50 (184); RSS-5: 184 (180); ungraded: 180 (175); ISNR 20: 183 (183) and latex 60 per cent: 115 (115).
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1540389.ece)



‘Japan crisis will not have significant impact on rubber’
WEDNESDAY, MARCH 16, 2011

KUALA LUMPUR(Commodity Online): The disaster in northeast Japan on March 11 and subsequent nuclear plant meltdowns and explosions will not have significant impact on rubber demand from the country, said a press release from Association of Natural Rubber Producing Countries.
“Auto-tyre companies having plants in the country’s northeast have already confirmed that there is no damage to their plant buildings or facilities. A few plants which have to be shut down, due to power supply stoppage and safety concerns, will resume production on restoration of electricity supply.” –said the press release.
Japan accounts for seven per cent of the global demand for natural rubber. The closure of a handful of auto-tyre 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, the press release continued.
"Bridgestone Corporation has reported that all its five plants in the northeast Japan are unaffected although production has to be stopped due to power supply problems and on safety considerations. Plants can be reopened on restoration of power supply and completion of safety verification. Production has already been partly resumed in one of the five plants closed. Toyo Tire & Rubber Co. Ltd. confirmed that buildings or facilities in any of its plants in the region have not been damaged although a plant has been temporarily shut down due to power outage.", the news release informed.
No damage has been reported for Sumitomo Rubber Industries Ltd., Yokohama Rubber Co. Ltd. and Michelin which are the three other auto-tyre manufacturing companies running plants in Japan, the press release elaborated.
“The disaster is unlikely to have a noticeable impact on global economy as Japan has not been a driver of the global recovery from the economic meltdown in 2008. Moreover, the tsunami-hit region is far from Japan’s economic hub which is the area from Tokyo South to Osaka. Although the country's economic and manufacturing activities may be affected in the short-term, rebuilding activities could help revive the economy in the medium term.” –the press release concluded.
ANRPC has 11 members; Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
These 11 countries accounted for about 94 per cent of the global production of natural rubber during 2009.
(Source: http://www.commodityonline.com/news/%E2%80%98Japan-crisis-will-not-have-significant-impact-on-rubber%E2%80%99-37245-3-1.html)




Rubber up by Rs 2 to Rs 187/kg on slight global recovery
WEDNESDAY, MARCH 16, 2011

New Delhi, Mar 15 (PTI) After witnessing a fall in the last four days, natural rubber prices today rose by Rs 2 to Rs 187 per kg in the domestic spot markets on slight recovery in global and domestic future markets.
"Domestic spot markets of natural rubber recovered marginally in the late afternoon after slight recovery in the Tokyo Commodity Exchange (TOCOM), which also led to the domestic future markets (NMCE) stabilising a bit," Indian Rubber Dealer Association President George Valy told PTI.
Valy pointed out that it cannot be stated for sure that the recovery in rubber markets would continue tomorrow as international markets are still reeling under pressure of the shutdown of almost whole of the economy in Japan.
Natural rubber prices at Bangkok fell by Rs 22.36 to Rs 201.38 as against Rs 223.74, rubber board data said.
Commodity Analyst Vibhu Ratandhara said that the strong selling sentiment in the domestic future markets witnessed in the past three-four days neutralised a bit today with the international futures markets recovering slightly.
"The sentiment in the future markets also passed to the spot markets here and there was a slight price correction," he added.
Ratandhara opined that short-term prospects are still weak owing to the devastation in Japan but the medium to long term prospects are bullish.
"The disruption is temporary and when the world''s third-largest economy starts rebuilding again the demand for everything would zoom," he added.
Ratandhara pointed out that in that situation we can expect the prices of natural rubber rising again.
Natural rubber had witnessed a fall of almost Rs 27 in the domestic spot markets to Rs 185 per kg yesterday, the lowest for the current year, from Rs 212 per kg on March 12 due to the earthquake in Japan that sent the international rubber markets into a tizzy.
(Source: http://in.news.yahoo.com/rubber-rs-2-rs-187-kg-slight-global-20110315-063100-580.html)