At Least 50,000T Thai Rubber Shipments Delayed By Floods

At Least 50,000T Thai Rubber Shipments Delayed By Floods
THURSDAY, MARCH 31, 2011

At least 50,000 tonnes of rubber shipments from Thailand, the world's bigges rubber producer and exporter, were delayed by severe floods in the country's major rubber producing areas, disrupting transportation, senior industry officials said on Thursday (Mar 31).
"At least 50,000 tonnes of rubber had to be delayed and I expect more could be delayed if the flood persists longer than expected," Luckchai Kittipol, president of the Thai Rubber Association, told Reuters.
(Reuters, March 31, 2011)




Malaysian Rubber Goods Exports Jump As Recovery Takes Hold
THURSDAY, MARCH 31, 2011

The Malaysian rubber product industry recovered in 2010 after a difficult year in 2009, with a 21.5 percent growth in exports, year-on-year, according to new data released by the Malaysian Rubber Export Promotion Council (MREPC).
In 2010, exports of rubber products registered RM12.86 billion (euro 3020 million), surpassing by 14.5 percent the pre- crisis exports recorded in 2008 of RM11.2 billion.
Exports to all regions recorded positive growth in 2010 when compared to 2009. Major increases in exports in 2010 were recorded to Central Asia (78 percent), Eastern Europe (47 percent), South Asia (30 percent), South America (30 percent) and North America (26 percent). The North America region was Malaysia’s largest export destination, taking 30 percent or RM3.9 billion worth of Malaysian exports of rubber products, followed by EU27 with 26 percent or RM3.3 billion, East Asia (14 percent or RM1.7 billion) and ASEAN (9 percent or RM1.1 billion).
All the top ten exported product categories showed growth in 2010 when compared to 2009. Significant increases in exports were registered for rubber gloves (24.8 percent), latex threads (11.8 percent), tyres (29 percent), rubber hoses (44 percent), catheters (45 percent) and condoms (21 percent).
The contribution of the latex sector to total Malaysian exports of rubber products increased significantly to reach a high of 80.3 percent in 2010 or RM10.3 billion from 78.8 percent or RM8.3 billion in 2009.
In 2010, rubber gloves continued to contribute significantly to the total exports of rubber products, registering RM8.9 billion in export value or 69 percent of the total value of all rubber products exported. Significant increases were registered for exports to China (20 percent), USA (27 percent), EU27 (26 percent), Japan (31 percent), Russia (54 percent) and South Korea (63 percent). The markets for rubber gloves continued to be dominated by the USA and EU27, which combined accounted for 67 percent of the total exports of rubber gloves from Malaysia in 2010. The average price of rubber gloves exported increased 5 percent in 2010, year-on-year.
(European Rubber Journal, March 30, 2011)




Off-season woes hit rubber production
THURSDAY, MARCH 31, 2011

Thiruvananthapuram: India may be a leader in natural rubber production, but the two-month long off-season has resulted in immense shrinkage in rubber production, if latest estimates put together by ANRPC (Association of Natural Rubber Producing Countries) is anything to go by. The decline has been attributed to climatic factors.
Even when the Kuala Lampur-based global rubber organisation says that the world rubber supply growth would fall from 9.6% in January to 5.4% in March, it adds that this estimate has 'a downward risk'. One reason for this is the 'abnormally high day temperatures in Kerala,” says Djoko S Damardjati, secretary general at ANRPC, in the latest bulletin of the association.
At present, Kerala accounts for about 89% of the total natural rubber produced in India.
All the top-four rubber producers (Thailand, Indonesia, Malaysia) are impacted by the 'wintering season' in rubber plantations in March and April. World over, while the months of October and November see about 10-11% of total produce, in the March-April period, this is as low as 4.8-5.8%.
A close look at the off-season natural rubber production shrinkage in the top-four rubber-producing countries shows that the this fall in output is worst in India.
Natural rubber production in India in March and April is 5.6% and 6.4% of total annual production.
In 2010, the country's average yield (kg per hectare of tapped area) scored as high as 1,784, compared to just 1,211 in Thailand, the world's largest producer. In total, as far as rubber cultivation area is concerned, India ranks sixth. The present tightness in global rubber supply is likely to continue till April-end, according to the latest estimates.
Total production among ANRPC members is expected to reach 10.06 million tonne t in 2011. This is up 6.2% from 9.4 million tonne last year. The growth in supply in 2011 comes from the expansion in yielding area by an expected 2,03,000 hectare and increase in average yield by 43 kg per hectare.




Rubber output seen up 4% despite low productivity
THURSDAY, MARCH 31, 2011


KOCHI, MARCH 30:
Despite having large acreage under low-yielding aged trees and resultant stagnant levels of productivity, India's natural rubber output is slated to grow 3.9 per cent to 8.84 lakh tonnes this year. “It is noteworthy that despite high prices and commercial introduction of improved clones, average yield expected this year is considerably below the level achieved even five years before,” the Association of Natural Rubber Producing Countries (ANRPC) has observed.
While the country had notched up productivity of 1,903 kg a hectare in 2008, the current year's productivity is expected to be 1,800 kg – a growth of 16 kg for a hectare over last year. The unprecedented growth in rubber prices in the last couple of years has been the primary cause for the low productivity. With ailing high prices prevailing in the market, farmers have been averse to re-planting aged trees with new and high yielding clones, sources in the Rubber Board said. Moreover, it will take seven years for newly-planted saplings to be start yielding.
It was in 1979 that the country first introduced a subsidy scheme for promoting rubber new-planting, was followed by a popular integrated scheme launched in 1980. Consequently, there was a planting boom in the country during the 1980's and an estimated 46 per cent of the yielding trees are now in the 20-28 year category and another 13 per cent in the 29-31 year age group.
Farmers' postponement of replanting during the last couple of years, in response to high prices, has aggravated the unfavourable age profile further, the ANRPC said. The increasing focus on non-traditional regions has also contributed to the relatively low yields.
Consumption of natural rubber in India has also been slow this year. Consumption has grown by only 0.6 per cent in January and by 3.4 per cent in February. It is expected to grow 1.9 per cent during the first quarter of the current year. The slow growth in consumption is reflected in the slow growth in the truck and bus tyre segment.
While the auto tyre production in the country grew by 15 per cent in January, it fell 0.4 per cent in the truck and bus tyre segment, according to data provided by the Automotive Tyre Manufacturers Association. It is the bus and truck tyre segment that accounts for the bulk of the natural rubber consumption in the country. Production of passenger cars rose by 25 per cent in January which was coupled with a fall in the production of truck and bus tyres. This is likely to bring down the consumption of natural rubber in the country and trigger a marked tilt in favour of consumption of synthetic rubber, ANRPC said.
Following the production trends of the last couple of years, global rubber production is slated to grow by 6.2 per cent to 10.06 million tonnes in 2011 as against 9.47 million tonnes in 2010. The growth last year was 6.4 per cent. The supply growth was mainly on account of expansion of yielding area by 2,03,000 hectares and productivity growth of 43 kg a hectare.




Natural Rubber rise to Rs 229/kg on firm global cues
WEDNESDAY, MARCH 30, 2011

New Delhi, Mar 30 (PTI) Natural rubber prices today rose by Rs 2 to Rs 229 per kg in spot markets on the back of a rise in rates in international and domestic future markets.
Prices of natural rubber were ruling at Rs 227 per kg yesterday, the Rubber Board data showed.
"Natural rubber prices followed the upward trend in the global and domestic future markets," Indian Rubber Dealers Association President George Valy told PTI.
The Bangkok spot rubber prices also increased marginally, which strengthened the prices back home in the physical markets, Valy added.
The prices of natural rubber at the Bangkok market today rose marginally by Rs 0.86 to Rs 254.09 per kg as against Rs 253.23 per kg yesterday, Rubber Board data said.
Similarly, at the Tokyo Commodity Exchange (TOCOM),rubber futures prices for April delivery were ruling at 455 yen per kg (Rs 245.05/kg), a rise of 10.1 yen (Rs 5.43/kg) from the last trading price.
According to experts, physical markets have received natural rubber supply from the farmers (producers), which could soften the prices in the coming days.
"Some parts of rubber producing areas in Kerala have witnessed unexpected summer rains, which is a signal that the tapping could continue. So farmers have brought in rubber supplies in the markets that could soften the prices," Valy pointed out.