Rubber board estimates 2011-12 consumption at 9.77 lakh tn

Rubber board estimates 2011-12 consumption at 9.77 lakh tn
FRIDAY, APRIL 22, 2011

New Delhi, Apr 22 (PTI) Natural rubber consumption is expected to increase to 9.77 lakh tonnes in the 2011-12 fiscal, around three per cent increase from the last fiscal, as a result of growing demand from the automobile sector, Rubber Board Chairman Sheela Thomas said.
India had consumed 9.49 lakh tonnes of natural rubber in the previous fiscal largely on back of growth in tyre production in the automobile sector, which grew by 23 per cent.
"The consumption is definitely increasing with growth in the automobile sector and in the 2011-12 period we are expecting an increase in demand from tyre manufacturing industry," Indian Rubber Dealers Federation President George Valy told PTI.
The natural rubber production for 2011-12 is being anticipated at 9.02 lakhs tonnes, Thomas added.
According to the International Rubber Study Group, global rubber demand is likely to rise by 4.6 per cent to 26.1 million tonnes in 2011 and by 3.8 per cent to 27.5 million tonnes in 2012.




India: Spot rubber remains steady
SUNDAY, APRIL 24, 2011

KOTTAYAM, APRIL 23:
Spot rubber was steady on Saturday. The market continued to be in a holiday mood prior to Easter.
Sheet rubber finished unchanged at Rs 240 a kg amidst scattered transactions.
The volumes were extremely dull as most of the traders had been on long holidays.
FUTURES IMPROVE
The May series improved to Rs 244.87 (243.68), June to Rs 249.74 (248.14), July to Rs 250.45 (248.55), August to Rs 242 (241) and September to Rs 233.05 (232.50) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
Spot rates were (Rs/kg): RSS-4: 240 (240); RSS-5: 236 (236); ungraded: 222 (222); ISNR 20: 233 (233) and latex 60 per cent: 147 (147).




Rubber output may dip, tyres to be expensive
FRIDAY, APRIL 22, 2011

Rubber production in Thailand, the world’s largest grower and exporter, may decline for the first time in four years if rain persists across key plantations in the country’s south, according to the Thai Rubber Association.
Output may fall to 3.2 million tonnes this year, down from an earlier estimate of 3.49 million tonnes, said Luckchai Kittipol, president of the group. Production last year totaled 3.25 million tonnes, according to the group. That would be the first annual decline since 2007.
Lower output from Thailand, which accounts for 30 per cent of global supply, would mean less raw material for tyre companies such as Bridgestone Corp, Michelin & Cie. and Goodyear Tyre & Rubber Co, the top three tyre makers, potentially increasing their costs.
“Obviously, this would drive rubber prices higher and will increase production costs for tyre companies, especially truck tyre makers as they use massive volumes of rubber,” Niels Fehre, an analyst at HSBC Trinkaus & Burkhardt AG, said by phone on Thursday from Dusseldorf.
Unseasonal rain from the start of the year caused by a La Nina weather pattern boosted Thailand’s sugar output to record levels, while inundating rubber plantations in the south. Rains may have cut rubber output by 30,000 tonnes in the second quarter, Luckchai said. Futures of the commodity used in tyres and gloves have climbed 27 per cent in the past year.
‘HURTING PRODUCTION’
“Floods in southern Thailand have been hurting rubber production,” Luckchai said on Thursday in a phone interview.
The loss forecast was 50 per cent higher than an initial estimate on March 30. “We have to continue monitoring the weather to see how bad it will affect rubber output this year,” he said.
Thai production may total 3.43 million tonnes this year from 3.25 million tonnes last year, the Kuala Lumpur-based Association of Natural Rubber Producing Countries said in a March report. The September-delivery contract declined 3.2 per cent to settle at 412.3 yen a kg ($5,024 a tonne) on the Tokyo Commodity Exchange.
Unseasonal rains from the start of this year in Thailand caused floods in 10 southern provinces in March and may damage about 50,000 rai (19,641 acres) of rubber plantations, according to the Department of Disaster Prevention & Mitigation. Water levels have since receded, it said.
Fourteen provinces in Thai south account for 80 per cent of the country’s output, according to the Office of Agricultural Economics.




India: Sheet rubber ends flat
FRIDAY, APRIL 22, 2011

KOTTAYAM, APRIL 21:
Spot rubber closed unchanged on Thursday. Traders were in a holiday mood, it being Maundy Thursday. According to observers, the market is likely to remain range-bound till Monday, and it would remain closed on the 22nd owing to Good Friday. The volumes were dull.
Sheet rubber finished flat at Rs 240 a kg amid scattered transactions. The grade was steady at Rs 239 a kg both at Kottayam and Kochi, as reported by the Rubber Board.
In futures, the May series closed at Rs 243.75 (Rs 244.61), June at Rs 248.59 (Rs 248.78), July at Rs 249 (Rs 249.58), August at Rs 241 (Rs 242.90), September at Rs 233.80 (Rs 232.65) and October at Rs 232.50 (Rs 233) a kg for RSS-4 on the National Multi-Commodity Exchange.
The volumes totalled 6,018 lots and open interest 7,113 lots. The turnover was Rs 146.99 crores.
RSS-3 (spot) slipped to Rs 262.16 (Rs 263.02) a kg at Bangkok. The April futures for the grade weakened to ¥445 (Rs 240.48) from ¥454.9 a kg during the day session, but recovered partially to ¥452 (Rs 244.26) in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 240 (240); RSS-5: 236 (236); ungraded: 222 (222); ISNR 20: 233 (233) and latex 60 per cent: 147 (147).




India should follow China to enhance rubber output
SUNDAY, APRIL 24, 2011

New Delhi, Apr 24 (PTI) The domestic rubber industry has suggested the government to expand the country''s rubber output by following the Chinese model of acquiring land in other countries for plantation.
"We have recommended the government to follow China for expansion in rubber production. China has recently been acquiring land in other countries to undertake rubber plantation to meet its growing demand," Indian Rubber Dealers Federation (IRDF) President George Valy told PTI.
India should study the Chinese model of rubber expansion (in Southeast Asia and Africa) as the former is also facing the problem of limited land resources for rubber plantation, he said.
According to IRDF, "Sri Lanka can be a possible destination for acquiring plantations due to its proximity, favourable climate and un-tapped potential."
Echoing similar views, South-based rubber producers said that there is limited scope to expand rubber plantation in states like Kerala, Tamil Nadu and North East. "So, foreign location is a viable option," they suggested.
The proposal emerged during the recent consultative workshop on the rubber sector organised by the Commerce Ministry for taking views of the domestic rubber industry for designing a rubber policy for the 12th Five Year Plan.
Besides IRDF, All India Rubber Industry Association and Automotive Tyre Manufacturers'' Association (ATMA) were among others present in the workshop.
The industry bodies said the domestic rubber availability is a matter of concern as the demand-supply gap is widening.
"In the medium to long-term, prospects of availability of natural rubber is a concern and it is about time that the government should look for options abroad," an ATMA official said, adding that the gap is expected to rise this fiscal in view of rising demand from the automobile sector.
According to official data, the demand supply-gap in the 2010-11 fiscal was 87,255 tonnes, as compared to 99,165 tonnes in the previous year.
By 2020, the demand and supply gap is expected to widen by 3-5 lakh tonnes considering the current pace of development in automobile and other rubber users industry.
The domestic production of natural rubber is 8,61,950 tonnes FY''11, as against the demand of 9,49,205 tonnes in the same period.





Rubber mart to remain quiet next week
SATURDAY, APRIL 23, 2011

The Malaysian rubber market is likely to remain quiet next week as some players are expected to stay on the sidelines and await further drop in prices, dealers said.
However, they said the market's underlying fundamentals remained intact due to the tight supply in major producing countries.
During the week just-ended, local rubber prices eased amid a lack of strong buying.
The rubber market was closed on Friday due to the Good Friday celebration.
On a Friday-to-Thursday basis, the Malaysian Rubber Board's official daily physical price for tyre-grade SMR 20 declined 59.0 sen to 1,478 per kg from 1,537.0 last Friday and latex-in-bulk eased 35.5 sen to 1,029.0 sen per kg from to 1,064.5 sen per kg previously.
Meanwhile, MRB's unofficial price for tyre-grade SMR 20 fell 62.5 sen to 1,470.0 sen per kg from to 1,532.5 sen per kg last Friday and latex-in-bulk slipped 35.5 sen to 1,025.0 sen per kg from 1,060.5 sen per kg previously. – Bernama




Rubber Futures in Tokyo Advance as China, India Demand May Exceed Supplies
FRIDAY, APRIL 22, 2011

Rubber, set for a second weekly decline, climbed on concerns that demand may outpace supply during the low-production season in Southeast Asia.
The September-delivery contract advanced as much as 3.1 percent to 425 yen per kilogram ($5,200 a metric ton) and traded at 421.2 yen on the Tokyo Commodity Exchange at 10:43 a.m. Futures are set for a 3.1 percent decline this week.
“Rubber demand from China and India is still high, while supply remains low in the short term,” said Masahiro Tamagawa, senior manager at H.S. Futures Co. Prices are in so-called backwardation, when nearby contracts are more expensive than long-term ones, he said.
Consumption in China, the largest buyer, is expected to grow by 6 percent this year to 3.5 million tons, the Kuala Lumpur-based Association of Natural Rubber Producing Countries said in a March report. India’s demand may rise 5 percent to 991,000 tons, it said.
Michelin & Cie., the world’s second-largest tire maker, said first-quarter revenue rose 28 percent 5.05 billion euros ($7.36 billion), led by surging demand for speciality tires to equip construction equipment and agricultural vehicles.
Thai output may decline from last year if rains that caused floods persist, according to the Thai Rubber Association. Production may be 3.2 million tons this year, Luckchai Kittipol, president of the group, said April 21. That compares with last year’s 3.25 million tons and an earlier 2011 target of 3.49 million tons.
Thai Output
Unseasonal rains from the start of this year in Thailand caused floods in 10 southern provinces in March that may have damaged about 50,000 rai (19,641 acres) of rubber plantations, according to the Department of Disaster Prevention & Mitigation. Water levels have since receded, 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, according to the Association of Natural Rubber Producing Countries.
The physical price of Thai rubber was unchanged at 177.05 baht ($5.90) per kilogram yesterday, according to the Rubber Research Institute of Thailand.
Rubber for September delivery in Shanghai advanced as much as 2 percent to 35,195 yuan ($5,420) a ton before trading at 35,135 yuan at 09:09 a.m. local time.