Rubber likely to rebound soon
Written by HMH | May 30, 2011 | 0
KOCHI: Natural rubber prices have seen a steep decline in the past few weeks due to better production and rising imports. However, prices are expected to recover in the coming days as production is about to enter a lean phase with the onset of monsoon.
Spot prices of rubber saw a 11% decline in May as tyre companies decided to postpone their purchase. The tyre companies’ purchases, which accounts for 62% of the total rubber consumption, registered a 25% decline in May, market sources said.
The domestic production of rubber was higher by almost 6% in April. Rubber growers and dealers are of the view that a similar trend would hold good for May also. Production was higher by almost 4% in 2010-11. “Widespread rain guarding of trees and change in import duty structure from 20% to Rs 20 or 20%, whichever is lower, has also contributed to the price fall,” said George Valy, president of Indian Rubber Dealers’ Federation. The import of rubber by the industry stood at 16,668 tonne between April and May 27. However, it is around 35% lower than the imports during the same period of the previous year. The industry is likely to bring in more rubber in the coming days, sources said.
Market analysts are of the view that the prices will bounce back once production enters a lean period during the monsoon. The earlier-than-expected arrival of monsoon showers over the Kerala coast might revive prices as production is expected to see a decline. The prices have already seen a slight increase from Rs 215 per kg on May 28 to Rs 218 on Monday.
In the international market, the prices have been witnessing a fall in the first half of the current month from Rs 245.80 per kg to Rs 230.63. However, by Monday, it recovered slightly to Rs 233.50. Market analysts project further recovery of prices in the international market due to a slowdown in field operations on account of rains. Market sources cite one more reason for the recovery in prices — the tyre companies, which stayed away from the market in May, have to come back for purchases.
Rubber advances on speculation of jump in demand by Beijing
Written by HMH | May 30, 2011 | 0
Tokyo: Rubber gained after data showed supplies in China declined to the lowest level in eight years, stoking speculation the world’s biggest consumer may step up purchases to replenish stockpiles.
November-delivery rubber advanced as much as 1 per cent to 390.9 yen a kg before trading at 388 yen on the Tokyo Commodity Exchange at 11:08am. The most active contract extended last week’s 2.4 per cent advance.
Natural-rubber stockpiles monitored by the Shanghai Futures Exchange fell 3,655 tonnes to 10,291 tonnes, the lowest level since January 2003, the bourse said on May 27. The volume decreased as shipments from Southeast Asian countries declined because of the low-production period from February to May, said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo.
“Supply remains tight as rain disrupted tapping in Thailand, supporting cash-rubber prices,” Saito said by phone. “Chinese importers, which had delayed purchases on hopes of lower prices, may resume buying.”
Harvest
Farmers in Southeast Asia began harvesting after the low production season. Output from the region’s major producers, which represent 92 per cent of global supply, may miss estimates this year as supplies from Indonesia and Philippines slow, according to the Association of Natural Rubber Producing Countries.
Production may expand 4.9 per cent to 9.94 million tons this year, less than the 5.8 per cent gain forecast last month, the group said in an e-mailed report May 26. Output may increase 5.8 per cent in the second quarter, lower than the 10.5 per cent estimated last month, the group said. Supply jumped 10.1 per cent in the first three months of the year. Import demand is expected to expand in China and Malaysia in the second quarter, although it may decline in India, the group said.
The price of Thai rubber remained unchanged at 156.30 baht (Dh19) a kg on May 27, according to the Rubber Research Institute of Thailand. Gains in rubber futures were limited amid concern that European governments will struggle to resolve the sovereign-debt crisis, damping demand for riskier assets, Saito said.
The euro weakened after Greek Prime Minister George Papandreou said he’ll press ahead with new austerity measures even as he failed to win backing from opposition parties.
Despite tight Rubber supply, prices unlikely to rise
Written by HMH | May 30, 2011 | 0
COCHIN (Commodity Online): Rubber market is expected to remain firm in the wake of unexpected rains in major rubber producing regions including that of India.
Malaysian market will also experience short supply. But prices are unlikely to have a steep rise as China’s demand is not expected to rise. On the contrary, dealers say, the demand may come down thereby offsetting the supply deficit.
However, consumers like tyre manufacturers may face shortage in the long run. India’s tyre manufacturer, Appollo Tyres, in fact is toying with the idea of buying rubber plantations to fight surging rubber prices.
NR prices drift upwards
Written by HMH | May 30, 2011 | 0
Tokyo — Prices on Tokyo’s rubber exchanges rose marginally over the weekendt.
On Tokyo’s Tocom Exchange, prices for the six-month contract rose by about yen 1, trading at yen 389 ($4.81) per kg on Monday 30 May. Shorter-dated prices moved down, trading at around 410.
In Singapore, SGX said short-dated RSS3 were trading up $0.03 at around $5.17 with longer-dated contracts down slightly at around $4.97. Short-dated TSR 20 was trading up $0.02 at $4.66.
In India, the NMCE saw June deliveries rise by a fraction of a rupee to close at around Rs217 ($4.81) per kilo
In China, the Shanghai Futures Exchange also saw prices ease by a fraction of a yuan, with June deliveries trading at around Yuan 34.9 ($5.38) per kilo.
India: Spot rubber improves on covering buys
Written by HMH | May 29, 2011
KOTTAYAM, MAY 29:
The domestic rubber prices finished better on Saturday. In spot, the market recovered partially on covering purchases at lower levels in tune with the gains on NMCE.
Sheet rubber improved to Rs 215.00 (214.00) a kg according to traders. The trend was mixed as ungraded rubber and ISNR 20 remained flat and comparatively inactive.
The volumes were dull.
In futures, the June series improved to Rs 217.16 (215.08), July to Rs 221.50 (219.04), August to Rs 221.06 (218.72), September to Rs 219.30 (218.00), October to Rs 217.49 (215.55) and November to Rs 219.40 (217.15 ) per kg for RSS 4 on National Multi Commodity Exchange (NMCE). The spot rubber rates per kg (in Rs): RSS-4: 215.00 (214.00), RSS-5: 213.00 (212.00), Ungraded: 210.00 (210.00), ISNR 20: 207.00 (207.00), and Latex 60 per cent: 128 .00 (128 .00).
A Daily report on Natural Rubber: May 30, 2011
Written by HMH | May 30, 2011
Natural rubber prices in the domestic market are hovering near a two month low. Priceshave been falling broadly in the domestic market owing to higher production in Indiaduring last few months, favorable weather etc. Arrival of South West monsoons mayprovide support to the falling prices as heavy rains may hinder tapping and therebyarrivals to the market. Monsoon rains in southern parts of Thailand have affects suppliesto the market. Natural rubber prices in the international market may firm up in comingdays on limited supplies. ANRPC have revised down its production forecasts for 2011 aswell as for the second quarter of 2011. Meanwhile, stocks in China, largest rubberconsumer, have also been dwindling. Rubber inventories in warehouse monitored by SHFEdeclined 26.21 per cent last week, to their lowest in eight years. SHFE will raise marginrequirements for all its forward contracts from June 02 settlement in order to curbvolatility ahead of the Dragon Boat Festival.
Tuesday, May 31, 2011
Saturday, May 28, 2011
Global Tire Demand Exceeding Supply Helps Bridgestone, Goodyear, Sumitomo
FRIDAY, MAY 27, 2011
Global tire demand is expanding at a faster pace than production, led by growth in China, as vehicle sales are increasing, Sumitomo Rubber Industries Ltd. (5110) said.
Tire sales in China, the world’s largest auto market, may increase 30 percent this year, or at 10 times the global rate, President Ikuji Ikeda said in an interview. Sumitomo Rubber, the largest Japanese tiremaker after Bridgestone Corp. (5108), said sales will increase 3.1 percent to 93.7 million tires this year.
Rubber prices climbed 38 percent in the past year and reached a record in February after auto sales in China surged 32 percent in 2010 to an all-time high, surpassing the U.S. market for a second year. Increasing costs spurred tiremakers from Bridgestone to Akron, Ohio-based Goodyear Tire & Rubber Co. to raise prices. Commodities beat stocks, bonds and the dollar for five straight months through April, prompting central banks from Beijing to Brasilia to raise interest rates to cool inflation.
“Tire supply/demand is tight globally and particularly in North America,” Goldman Sachs Group Inc. analysts including Yuichiro Isayama said. “In contrast to many makers that retrenched due to the financial crisis, Bridgestone and Sumitomo Rubber increased capacity and are benefitting from growth in demand amid a global supply shortage,” they said May 12.
Bridgestone shares advanced 24 percent in the past year and traded at 1,825 yen in Tokyo today, while Sumitomo Rubber shares increased 15 percent to 923 yen.
China Sales
While auto sales in China reached a record 18 million last year, they slowed in 2011 as the nation increased retail gasoline and diesel prices and tightened monetary policy to cool the fastest inflation since 2008. The government increased interest rates and raised bank reserve-ratio requirements to curb price gains that have exceeded the government’s 4 percent target every month this year. Demand for replacement tires is growing in China as car ownershipexpands, Ikeda said.
Sumitomo Rubber, which controls about 6 percent of the global tire market, said it can process 46,000 tons of rubber a month this year, up 3.5 percent from last year. The Kobe-based company said May 17 it is building a plant in Brazil that will have a capacity of 2,200 tons a month by 2013 and is also expanding production capacity in Thailand and China.
“Our production capacity is not large enough to meet expanding demand,” Ikeda said in Tokyoon May 25. “The shortage may worsen” as global consumption is expected to grow by 3 percent annually in coming years, he said.
Tire Demand
Global sales of passenger-car tires are forecast to grow 6.1 percent this year from 2010, while sales of commercial- vehicle tires are forecast to rise 11 percent, International Rubber Study Group forecast on Jan. 26.
Natural-rubber production in key growing countries may miss estimates this year as output slows in the second quarter, the Association of Natural Rubber Producing Countries said yesterday. Production from member countries, representing 92 percent of global supply, may expand 4.9 percent, less than the 5.8 percent forecast last month, the group said in an e-mailed report.
Rubber futures in Tokyo tumbled to 335 yen a kilogram ($4,098 a metric ton) on March 15 from a record high of 535.7 yen reached on Feb. 18. The March 11 earthquake and tsunami disrupted supplies of car parts, forcing Toyota Motor Corp. and rivals to slash output and stoking concerns that tire demand from automakers will weaken. Futures traded at 387.3 yen at 1:06 p.m. local time.
Pre-Quake Level
The disaster will reduce tire sales for new cars in Japan by about 2 million units from March to June, Ikeda said. The loss may be recouped in the second half of this year as automakers step up efforts to restore production, he said.
“Some of the carmakers may return their production to pre- quake levels by July,” Ikeda said.
The company plans to use 505,000 tons of natural and synthetic rubber this year for tire production, gaining 6.5 percent from last year. Natural rubber represents more than half of the volume, said Shizuma Kubota, general manager at Sumitomo Rubber’s public relations department.
More than 80 percent of the natural rubber used by the company is technically specified rubber, which is cheaper and easier to process than ribbed-smoked-sheet rubber, Ikeda said.
Technically specified rubber for June delivery on the Singapore Exchange closed at $4.62 a kilogram yesterday. The price reached a record $5.75 on Feb. 10 amid speculation the supply shortage may worsen after heavy rains disrupted output in Thailand, Indonesia and Malaysia -- the top-three producers.
Seasonal Increase
Ribbed-smoked-sheet rubber for June delivery on the Singapore bourse closed at $5.14 a kilogram yesterday, retreating from a record $6.488 reached on Feb. 17.
The company expects to buy so-called TSR-20 rubber at $5.5 a kilogram on average for the second quarter of this year, $5.2 for the third quarter and $5 for the fourth quarter as a seasonal increase in supply from Thailand, the world’s largest producer and exporter, will put a drag on prices.
“I don’t expect the price will exceed $6,” Ikeda said. Supply will also increase as trees planted five to seven years ago in Southeast Asia will become available for tapping, he said.
Rubber prices to depend on Japan’s recovery
FRIDAY, MAY 27, 2011
By Jithendra Antonio
Though future of rubber prices are encouraging, Chairman of Balangoda Plantations PLC (BALA) Harry Jayawardena said, all depends on factors such as the change in global weather patterns, and Japan’s recovery.
Jayawardena in his review for the financial year ended in 31 December 2011 said, tensions spreading across the Middle East will also affect future of Rubber prices. In the lately published annual report of Balangoda Plantations PLC, Jayawardena goes on to explain that the country’s rubber production has recorded an increase of 16 million kilogrammes during 2010, in spite of unfavourable weather conditions experienced during the 3rd and the 4th quarters in the Sabaragamuwa District.
“Rubber prices have been at better levels last year,” Jayawardena notes adding that the main driving force being emerging economies of China and India where car production leapfrogged. “There were instances when the price of Sheet Rubber exceeded the premium grades of Crepe in 2010, which was mainly due to the increased rubber demand for tyre and automobile industries.”
Tokyo futures at 1-month high
FRIDAY, MAY 27, 2011
BANGKOK: Tokyo rubber futures rose to a one-month high on Thursday on the back of firmer oil prices and rising Shanghai rubber futures, but profit-taking limited the gains, dealers said.
The newly launched benchmark contract on the Tokyo Commodity Exchange for November delivery rose 2.5 yen to settle at 391.4 yen ($4.773) per kg. It rose as high as 392.2 yen, the highest since April 28.
"Players, as well as investment funds, resumed buying contracts again after seeing a rise in other commodities, while strongerShanghai futures provided additional support," said a Tokyo-based trader.
The most-active Shanghai rubber contract for September delivery rose 395 yuan to finish at 32,690 yuan ($5,033.933) per tonne.
Brent crude rose above $115 a barrel on Thursday due to a softer dollar and an unexpected drop in US distillate stocks, which overshadowed gains in gasoline and crude inventories.
However, dealers said small players took profit when prices broke above 390 yen per kg, capping further rises.
Dealers said TOCOM rubber could rise further on Friday after finishing above the key resistance of 390 yen, but the rise was seen as capped, with players still cautious about recent rises.
Tokyo Futures Rise On Higher Oil, Share Prices
FRIDAY, MAY 27, 2011
Tokyo rubber futures climbed early on Thursday (May 26) as a rebound in oil prices to two-week highs and rises in share prices brightened market sentiment.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for November delivery, which debuted on Thursday (May 26), stood at at 389.1 yen per kg as of 0040 GMT.
The previous benchmark contract for October delivery was up 9.3 yen, or 2.4 percent, at 395.1 yen, after settling up 2.6 percent on Wednesday at 385.8 yen ($4.709) per kg. That was the highest since May 19 and above resistance of 385 yen.
The May TOCOM rubber futures contract expired at 408.0 yen per kg on Wednesday (May 25), down 9.7 percent from the April contract's 451.6 yen expiry price.
Deliveries against the May rubber contract fell 21 percent from April, to 241 lots or 1,205 tonnes, the exchange said on Wednesday (May 25).
The most active Shanghai rubber contract for September delivery rose 680 yuan to finish at 32,295 yuan ($4,969.555) per tonne on Wednesday (May 25).
Oil prices rose 2 percent on Wednesday (May 25), climbing to two-week highs as an unexpected drop in U.S. distillate inventories trumped a sharp rise in gasoline stocks and as a softer dollar supported fresh commodities buying.
The dollar rose 0.1 percent to 81.98 yen against the yen. The euro came under further pressure against the dollar as investors fretted about Greece's ability to repay its debts.
MARKET NEWS
Delphi Automotive filed to raise up to $100 million in an initial public offering, the U.S. auto supplier said in a securities filing on Wednesday (May 25), less than two years after emerging from bankruptcy.
Electric car maker Tesla Motors Inc plans to raise up to $214 million through a share offering to help fund development of its Model X SUV, and said its chief executive would buy a portion of those shares.
The Nikkei stock average gained on Thursday (May 26), bouncing off a two-month closing low hit the previous day, helped by a rise in Wall Street shares and commodity prices, though market players said it was too early to say risk reduction has run its course.
U.S. stocks ended a three-day losing streak on Wednesday (May 25) as recent underperformers led a thinly traded rally that wasn't seen as strong enough to overcome worries about waning global demand.
(Reuters, May 26, 2011)
India: Spot rubber rules steady
FRIDAY, MAY 27, 2011
KOTTAYAM, MAY 26:
Spot rubber finished unchanged on Thursday. Market activities were dull as there were no active participants, on either side, to set a definite trend. Major manufacturers were seen almost inactive.
According to traders, sheet rubber was steady at Rs 217 a kg amidst scattered transactions. The grade dropped to Rs 217 (217.50) a kg both at Kottayam and Kochi, according to Rubber Board.
The June series weakened to Rs 216.56 (218.43), July to Rs 220.50 (221.67) and August to Rs 219.63 (220.69) while the September series firmed up to Rs 218.50 (217.47) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 improved at its June futures to ¥417 (Rs 230.97) from ¥409 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange. The grade (spot) increased to Rs 233.32 (231.17) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 217 (217); RSS-5: 214 (214); ungraded: 212 (212); ISNR 20: 209 (209) and latex 60 per cent: 130 (130).
NR prices remain unchanged
FRIDAY, MAY 27, 2011
Tokyo -- Prices on Tokyo’s rubber exchanges eased slightly overnight.
On Tokyo's Tocom Exchange, prices for the six-month contract eased by about yen 1, trading at yen 387 ($4.73) per kg on Thursday 26 May. Shorter-dated prices moved up slightly, trading at around 413.
In Singapore, SGX said short-dated RSS3 were trading up by 4 cents at around $5.14 with longer-dated contracts up by around $0.10 at around $4.98. Short-dated TSR 20 was trading up at $4.60.
In India, the NMCE saw June deliveries ease slightly, to close at around Rs218.4 ($4.82) per kilo
In China, the Shanghai Futures Exchange also saw prices rise by a fraction of a yuan, with June deliveries trading at around Yuan 34.8 ($5.36) per kilo.
FRIDAY, MAY 27, 2011
Global tire demand is expanding at a faster pace than production, led by growth in China, as vehicle sales are increasing, Sumitomo Rubber Industries Ltd. (5110) said.
Tire sales in China, the world’s largest auto market, may increase 30 percent this year, or at 10 times the global rate, President Ikuji Ikeda said in an interview. Sumitomo Rubber, the largest Japanese tiremaker after Bridgestone Corp. (5108), said sales will increase 3.1 percent to 93.7 million tires this year.
Rubber prices climbed 38 percent in the past year and reached a record in February after auto sales in China surged 32 percent in 2010 to an all-time high, surpassing the U.S. market for a second year. Increasing costs spurred tiremakers from Bridgestone to Akron, Ohio-based Goodyear Tire & Rubber Co. to raise prices. Commodities beat stocks, bonds and the dollar for five straight months through April, prompting central banks from Beijing to Brasilia to raise interest rates to cool inflation.
“Tire supply/demand is tight globally and particularly in North America,” Goldman Sachs Group Inc. analysts including Yuichiro Isayama said. “In contrast to many makers that retrenched due to the financial crisis, Bridgestone and Sumitomo Rubber increased capacity and are benefitting from growth in demand amid a global supply shortage,” they said May 12.
Bridgestone shares advanced 24 percent in the past year and traded at 1,825 yen in Tokyo today, while Sumitomo Rubber shares increased 15 percent to 923 yen.
China Sales
While auto sales in China reached a record 18 million last year, they slowed in 2011 as the nation increased retail gasoline and diesel prices and tightened monetary policy to cool the fastest inflation since 2008. The government increased interest rates and raised bank reserve-ratio requirements to curb price gains that have exceeded the government’s 4 percent target every month this year. Demand for replacement tires is growing in China as car ownershipexpands, Ikeda said.
Sumitomo Rubber, which controls about 6 percent of the global tire market, said it can process 46,000 tons of rubber a month this year, up 3.5 percent from last year. The Kobe-based company said May 17 it is building a plant in Brazil that will have a capacity of 2,200 tons a month by 2013 and is also expanding production capacity in Thailand and China.
“Our production capacity is not large enough to meet expanding demand,” Ikeda said in Tokyoon May 25. “The shortage may worsen” as global consumption is expected to grow by 3 percent annually in coming years, he said.
Tire Demand
Global sales of passenger-car tires are forecast to grow 6.1 percent this year from 2010, while sales of commercial- vehicle tires are forecast to rise 11 percent, International Rubber Study Group forecast on Jan. 26.
Natural-rubber production in key growing countries may miss estimates this year as output slows in the second quarter, the Association of Natural Rubber Producing Countries said yesterday. Production from member countries, representing 92 percent of global supply, may expand 4.9 percent, less than the 5.8 percent forecast last month, the group said in an e-mailed report.
Rubber futures in Tokyo tumbled to 335 yen a kilogram ($4,098 a metric ton) on March 15 from a record high of 535.7 yen reached on Feb. 18. The March 11 earthquake and tsunami disrupted supplies of car parts, forcing Toyota Motor Corp. and rivals to slash output and stoking concerns that tire demand from automakers will weaken. Futures traded at 387.3 yen at 1:06 p.m. local time.
Pre-Quake Level
The disaster will reduce tire sales for new cars in Japan by about 2 million units from March to June, Ikeda said. The loss may be recouped in the second half of this year as automakers step up efforts to restore production, he said.
“Some of the carmakers may return their production to pre- quake levels by July,” Ikeda said.
The company plans to use 505,000 tons of natural and synthetic rubber this year for tire production, gaining 6.5 percent from last year. Natural rubber represents more than half of the volume, said Shizuma Kubota, general manager at Sumitomo Rubber’s public relations department.
More than 80 percent of the natural rubber used by the company is technically specified rubber, which is cheaper and easier to process than ribbed-smoked-sheet rubber, Ikeda said.
Technically specified rubber for June delivery on the Singapore Exchange closed at $4.62 a kilogram yesterday. The price reached a record $5.75 on Feb. 10 amid speculation the supply shortage may worsen after heavy rains disrupted output in Thailand, Indonesia and Malaysia -- the top-three producers.
Seasonal Increase
Ribbed-smoked-sheet rubber for June delivery on the Singapore bourse closed at $5.14 a kilogram yesterday, retreating from a record $6.488 reached on Feb. 17.
The company expects to buy so-called TSR-20 rubber at $5.5 a kilogram on average for the second quarter of this year, $5.2 for the third quarter and $5 for the fourth quarter as a seasonal increase in supply from Thailand, the world’s largest producer and exporter, will put a drag on prices.
“I don’t expect the price will exceed $6,” Ikeda said. Supply will also increase as trees planted five to seven years ago in Southeast Asia will become available for tapping, he said.
Rubber prices to depend on Japan’s recovery
FRIDAY, MAY 27, 2011
By Jithendra Antonio
Though future of rubber prices are encouraging, Chairman of Balangoda Plantations PLC (BALA) Harry Jayawardena said, all depends on factors such as the change in global weather patterns, and Japan’s recovery.
Jayawardena in his review for the financial year ended in 31 December 2011 said, tensions spreading across the Middle East will also affect future of Rubber prices. In the lately published annual report of Balangoda Plantations PLC, Jayawardena goes on to explain that the country’s rubber production has recorded an increase of 16 million kilogrammes during 2010, in spite of unfavourable weather conditions experienced during the 3rd and the 4th quarters in the Sabaragamuwa District.
“Rubber prices have been at better levels last year,” Jayawardena notes adding that the main driving force being emerging economies of China and India where car production leapfrogged. “There were instances when the price of Sheet Rubber exceeded the premium grades of Crepe in 2010, which was mainly due to the increased rubber demand for tyre and automobile industries.”
Tokyo futures at 1-month high
FRIDAY, MAY 27, 2011
BANGKOK: Tokyo rubber futures rose to a one-month high on Thursday on the back of firmer oil prices and rising Shanghai rubber futures, but profit-taking limited the gains, dealers said.
The newly launched benchmark contract on the Tokyo Commodity Exchange for November delivery rose 2.5 yen to settle at 391.4 yen ($4.773) per kg. It rose as high as 392.2 yen, the highest since April 28.
"Players, as well as investment funds, resumed buying contracts again after seeing a rise in other commodities, while strongerShanghai futures provided additional support," said a Tokyo-based trader.
The most-active Shanghai rubber contract for September delivery rose 395 yuan to finish at 32,690 yuan ($5,033.933) per tonne.
Brent crude rose above $115 a barrel on Thursday due to a softer dollar and an unexpected drop in US distillate stocks, which overshadowed gains in gasoline and crude inventories.
However, dealers said small players took profit when prices broke above 390 yen per kg, capping further rises.
Dealers said TOCOM rubber could rise further on Friday after finishing above the key resistance of 390 yen, but the rise was seen as capped, with players still cautious about recent rises.
Tokyo Futures Rise On Higher Oil, Share Prices
FRIDAY, MAY 27, 2011
Tokyo rubber futures climbed early on Thursday (May 26) as a rebound in oil prices to two-week highs and rises in share prices brightened market sentiment.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for November delivery, which debuted on Thursday (May 26), stood at at 389.1 yen per kg as of 0040 GMT.
The previous benchmark contract for October delivery was up 9.3 yen, or 2.4 percent, at 395.1 yen, after settling up 2.6 percent on Wednesday at 385.8 yen ($4.709) per kg. That was the highest since May 19 and above resistance of 385 yen.
The May TOCOM rubber futures contract expired at 408.0 yen per kg on Wednesday (May 25), down 9.7 percent from the April contract's 451.6 yen expiry price.
Deliveries against the May rubber contract fell 21 percent from April, to 241 lots or 1,205 tonnes, the exchange said on Wednesday (May 25).
The most active Shanghai rubber contract for September delivery rose 680 yuan to finish at 32,295 yuan ($4,969.555) per tonne on Wednesday (May 25).
Oil prices rose 2 percent on Wednesday (May 25), climbing to two-week highs as an unexpected drop in U.S. distillate inventories trumped a sharp rise in gasoline stocks and as a softer dollar supported fresh commodities buying.
The dollar rose 0.1 percent to 81.98 yen against the yen. The euro came under further pressure against the dollar as investors fretted about Greece's ability to repay its debts.
MARKET NEWS
Delphi Automotive filed to raise up to $100 million in an initial public offering, the U.S. auto supplier said in a securities filing on Wednesday (May 25), less than two years after emerging from bankruptcy.
Electric car maker Tesla Motors Inc plans to raise up to $214 million through a share offering to help fund development of its Model X SUV, and said its chief executive would buy a portion of those shares.
The Nikkei stock average gained on Thursday (May 26), bouncing off a two-month closing low hit the previous day, helped by a rise in Wall Street shares and commodity prices, though market players said it was too early to say risk reduction has run its course.
U.S. stocks ended a three-day losing streak on Wednesday (May 25) as recent underperformers led a thinly traded rally that wasn't seen as strong enough to overcome worries about waning global demand.
(Reuters, May 26, 2011)
India: Spot rubber rules steady
FRIDAY, MAY 27, 2011
KOTTAYAM, MAY 26:
Spot rubber finished unchanged on Thursday. Market activities were dull as there were no active participants, on either side, to set a definite trend. Major manufacturers were seen almost inactive.
According to traders, sheet rubber was steady at Rs 217 a kg amidst scattered transactions. The grade dropped to Rs 217 (217.50) a kg both at Kottayam and Kochi, according to Rubber Board.
The June series weakened to Rs 216.56 (218.43), July to Rs 220.50 (221.67) and August to Rs 219.63 (220.69) while the September series firmed up to Rs 218.50 (217.47) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 improved at its June futures to ¥417 (Rs 230.97) from ¥409 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange. The grade (spot) increased to Rs 233.32 (231.17) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 217 (217); RSS-5: 214 (214); ungraded: 212 (212); ISNR 20: 209 (209) and latex 60 per cent: 130 (130).
NR prices remain unchanged
FRIDAY, MAY 27, 2011
Tokyo -- Prices on Tokyo’s rubber exchanges eased slightly overnight.
On Tokyo's Tocom Exchange, prices for the six-month contract eased by about yen 1, trading at yen 387 ($4.73) per kg on Thursday 26 May. Shorter-dated prices moved up slightly, trading at around 413.
In Singapore, SGX said short-dated RSS3 were trading up by 4 cents at around $5.14 with longer-dated contracts up by around $0.10 at around $4.98. Short-dated TSR 20 was trading up at $4.60.
In India, the NMCE saw June deliveries ease slightly, to close at around Rs218.4 ($4.82) per kilo
In China, the Shanghai Futures Exchange also saw prices rise by a fraction of a yuan, with June deliveries trading at around Yuan 34.8 ($5.36) per kilo.
Thursday, May 26, 2011
Tokyo Futures Rise On Firmness In Other Commodities
Tokyo Futures Rise On Firmness In Other Commodities
WEDNESDAY, MAY 25, 2011
Key Tokyo rubber futures rose on Wednesday (May 25), tracking other commodities higher, while market participants kept a close eye on Shanghai futures to gauge demand from China, the world's top consumer of rubber.
FUNDAMENTALS
The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery rose 6.6 yen or 1.8 percent to 382.5 yen per kg as of 0019 GMT.
The May contract will expire later on Wednesday (May 25), and the benchmark will switch to November delivery from Thursday (May 26).
Some dealers have said they expect futures to rise after the price finished above resistance at 370 yen on Tuesday (May 24).
The most active contract on the Shanghai rubber market for September delivery rose 785 yuan to settle at 31,615 yuan ($4,860.174) per tonne on Tuesday (May 24).
Oil prices were lower in early Asia on Wednesday (May 25) after rising 2 percent the day before in choppy trading when Goldman Sachs raised its price forecasts for Brent crude, saying demand from economic growth will eat into stockpiles and OPEC spare capacity.
The euro rose against the dollar in early Asia on Wednesday (May 25) following a slight relief rally across most markets after Monday's (May 23) widespread sell-off. Investors are encouraged by Spain's successful short-term debt offering and better-than-expected data from Germany and the United States.
MARKET NEWS
Japan's exports fell 12.5 percent in April from a year earlier, pushing the country into its first trade deficit in three months, Ministry of Finance data showed on Wednesday (May 25), after the earthquake in March disrupted supply chains and hurt output.
The volume of Japan's customs-cleared crude oil imports fell 14.0 percent in April from the same month a year earlier, the Ministry of Finance said on Wednesday (May 25).
Federal Reserve officials on Tuesday (May 24) expressed confidence in the U.S. economic recovery despite high gas prices and European financial jitters, and one suggested the U.S. central bank could reverse its ultra-loose monetary policy this year.
JK Tyre and Industries is looking to acquire a rubber plantation to offset rising input costs that are eroding the tyre maker's profits, a top official said on Tuesday (May 24).
Japan's benchmark Nikkei stock average opened up 0.16 percent.
U.S. stocks dipped in light volume on Tuesday (May 24) as lingering concerns about a slowdown in growth more than offset gains in energy shares.
(Reuters, May 25, 2011)
Indonesia: Govt told to better fund rubber producers
WEDNESDAY, MAY 25, 2011
The government needs to better fund small plantations and improve planting policies to boost Indonesia’s rubber production, according to an international industry group.
Lekshmi Nairm a senior economist with the International Rubber Study Group, said on Monday that Indonesia’s rubber output per hectare was still far lower than other rubber producers in Southeast Asia, such as Malaysia and Thailand.
“If some level of capital assistance for small holdings is given through different government policies, as has already implemented in the cases of Thailand and Malaysia, then surely [local producers] can increase productivity and Indonesia can be a leading producer,” she said on the sidelines of the Asian Commodities and Derivatives Conference 2011 in Jakarta.
Lekshmi said that Indonesia also needed to improve implementation of its plantation revitalization scheme.
According to recent information from the Indonesian Rubber Association (Gapkindo), Indonesian plantations produce an average of 880 kilograms of rubber per hectare every year, or about half of output of plantations in Thailand or India, which can produce more than 1,500 kilograms.
Gapkindo executive director Suharto Honggokusumo said the government’s revitalization program had failed to help small plantations to raise output since the scheme’s implementation in 2007.
Small scale rubber plantations comprise 86 percent of Indonesia’s rubber plantations, while 14 percent are controlled by private and state-owned firms.
“Many farmers could not access the funds because most of them did not have the required land certificates as collateral,” he said.
The government revitalization program covered Indonesia’s three main commodities — oil palm, rubber and cacao.
Under the program, the government allocated Rp 4.4 trillion (US$514.8 billion) between 2007 and 2010 for interest-subsidized investment loans to be issued by seven state-owned banks, including Bank Mandiri and Bank Rakyat Indonesia.
The scheme was aimed at, among other things, opening 1.5 million hectares of new plantations, including 1.3 million hectares of oil palm plantations, 50,000 hectares of rubber plantations and 110,00 hectares of cacao plantations.
However, only 6,000 hectares of new rubber plantations have been opened under the program.
Suharto said the low productivity of Indonesian plantations could be partly attributed to the use of low-yield, poor quality clones and improper tapping and planting techniques.
“The problem lies in the poor education of our farmers and their poor purchasing power,” he said, adding that around 40 percent of rubber farmers still used poor quality clones.
Indonesia is currently the world’s second largest producer of natural rubber after Thailand. The nation’s rubber plantations, located principally in Sumatra, Java and Kalimantan, are slated to produce 3.08 million tons of rubber this year, up 8 percent from 2.85 million tons last year. World rubber production for 2011 has been estimated to top 10 million tons.
Vietnam Rubber Exports Forecast at 40,000 Tons in May
WEDNESDAY, MAY 25, 2011
Vietnam, the fourth-biggest rubber exporter in 2010, may ship 40,000 metric tons this month, according to figures today from the General Statistics Office in Hanoi.
The nation shipped 36,000 metric tons in April, 20 percent lower than a previous assessment of 45,000 tons, revised figures from the Statistics Office show. Exports in the first five months were 240,000 tons, up 31 percent from a year earlier.
Lack of buyers weakens spot rubber
KOTTAYAM, MAY 25:
Spot rubber weakened on Wednesday. The market continued to shed the gains as there were no positive signals to trigger an uptrend either from the domestic or international scene. There has been selling from dealers and growers but the trading volumes were low in the absence of quantity buyers on any grade.
Sheet rubber declined to Rs 217 (218) a kg according to traders. The grade slipped to Rs 217.50 (218.50) a kg both at Kottayam and Kochi, according to the Rubber Board.
The June series concluded the session at Rs 218.40 (218.87), July at Rs 221.65 (221.82), August at Rs 220.50 (220.85), September at Rs 217.08 (216.70), October at Rs 210 (212.25) and November at Rs 214 (211) a kg for RSS 4 on the National Multi Commodity Exchange.
The key Tokyo rubber futures bounced back in tune with other commodities, while market participants kept a close eye on Shanghai futures to assess the demand from China.
The May futures for RSS 3 expired at ¥408 (Rs 225.52) a kg while the June futures improved to ¥409 (Rs 226.03) from ¥403.5 during the day session and then to ¥414 (Rs 228.79) a kg in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 231.17 (230.25) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 217 (218); RSS-5: 214 (216); ungraded: 212 (213); ISNR 20: 209 (211) and latex 60 per cent: 130 (131).
WEDNESDAY, MAY 25, 2011
Key Tokyo rubber futures rose on Wednesday (May 25), tracking other commodities higher, while market participants kept a close eye on Shanghai futures to gauge demand from China, the world's top consumer of rubber.
FUNDAMENTALS
The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery rose 6.6 yen or 1.8 percent to 382.5 yen per kg as of 0019 GMT.
The May contract will expire later on Wednesday (May 25), and the benchmark will switch to November delivery from Thursday (May 26).
Some dealers have said they expect futures to rise after the price finished above resistance at 370 yen on Tuesday (May 24).
The most active contract on the Shanghai rubber market for September delivery rose 785 yuan to settle at 31,615 yuan ($4,860.174) per tonne on Tuesday (May 24).
Oil prices were lower in early Asia on Wednesday (May 25) after rising 2 percent the day before in choppy trading when Goldman Sachs raised its price forecasts for Brent crude, saying demand from economic growth will eat into stockpiles and OPEC spare capacity.
The euro rose against the dollar in early Asia on Wednesday (May 25) following a slight relief rally across most markets after Monday's (May 23) widespread sell-off. Investors are encouraged by Spain's successful short-term debt offering and better-than-expected data from Germany and the United States.
MARKET NEWS
Japan's exports fell 12.5 percent in April from a year earlier, pushing the country into its first trade deficit in three months, Ministry of Finance data showed on Wednesday (May 25), after the earthquake in March disrupted supply chains and hurt output.
The volume of Japan's customs-cleared crude oil imports fell 14.0 percent in April from the same month a year earlier, the Ministry of Finance said on Wednesday (May 25).
Federal Reserve officials on Tuesday (May 24) expressed confidence in the U.S. economic recovery despite high gas prices and European financial jitters, and one suggested the U.S. central bank could reverse its ultra-loose monetary policy this year.
JK Tyre and Industries is looking to acquire a rubber plantation to offset rising input costs that are eroding the tyre maker's profits, a top official said on Tuesday (May 24).
Japan's benchmark Nikkei stock average opened up 0.16 percent.
U.S. stocks dipped in light volume on Tuesday (May 24) as lingering concerns about a slowdown in growth more than offset gains in energy shares.
(Reuters, May 25, 2011)
Indonesia: Govt told to better fund rubber producers
WEDNESDAY, MAY 25, 2011
The government needs to better fund small plantations and improve planting policies to boost Indonesia’s rubber production, according to an international industry group.
Lekshmi Nairm a senior economist with the International Rubber Study Group, said on Monday that Indonesia’s rubber output per hectare was still far lower than other rubber producers in Southeast Asia, such as Malaysia and Thailand.
“If some level of capital assistance for small holdings is given through different government policies, as has already implemented in the cases of Thailand and Malaysia, then surely [local producers] can increase productivity and Indonesia can be a leading producer,” she said on the sidelines of the Asian Commodities and Derivatives Conference 2011 in Jakarta.
Lekshmi said that Indonesia also needed to improve implementation of its plantation revitalization scheme.
According to recent information from the Indonesian Rubber Association (Gapkindo), Indonesian plantations produce an average of 880 kilograms of rubber per hectare every year, or about half of output of plantations in Thailand or India, which can produce more than 1,500 kilograms.
Gapkindo executive director Suharto Honggokusumo said the government’s revitalization program had failed to help small plantations to raise output since the scheme’s implementation in 2007.
Small scale rubber plantations comprise 86 percent of Indonesia’s rubber plantations, while 14 percent are controlled by private and state-owned firms.
“Many farmers could not access the funds because most of them did not have the required land certificates as collateral,” he said.
The government revitalization program covered Indonesia’s three main commodities — oil palm, rubber and cacao.
Under the program, the government allocated Rp 4.4 trillion (US$514.8 billion) between 2007 and 2010 for interest-subsidized investment loans to be issued by seven state-owned banks, including Bank Mandiri and Bank Rakyat Indonesia.
The scheme was aimed at, among other things, opening 1.5 million hectares of new plantations, including 1.3 million hectares of oil palm plantations, 50,000 hectares of rubber plantations and 110,00 hectares of cacao plantations.
However, only 6,000 hectares of new rubber plantations have been opened under the program.
Suharto said the low productivity of Indonesian plantations could be partly attributed to the use of low-yield, poor quality clones and improper tapping and planting techniques.
“The problem lies in the poor education of our farmers and their poor purchasing power,” he said, adding that around 40 percent of rubber farmers still used poor quality clones.
Indonesia is currently the world’s second largest producer of natural rubber after Thailand. The nation’s rubber plantations, located principally in Sumatra, Java and Kalimantan, are slated to produce 3.08 million tons of rubber this year, up 8 percent from 2.85 million tons last year. World rubber production for 2011 has been estimated to top 10 million tons.
Vietnam Rubber Exports Forecast at 40,000 Tons in May
WEDNESDAY, MAY 25, 2011
Vietnam, the fourth-biggest rubber exporter in 2010, may ship 40,000 metric tons this month, according to figures today from the General Statistics Office in Hanoi.
The nation shipped 36,000 metric tons in April, 20 percent lower than a previous assessment of 45,000 tons, revised figures from the Statistics Office show. Exports in the first five months were 240,000 tons, up 31 percent from a year earlier.
Lack of buyers weakens spot rubber
KOTTAYAM, MAY 25:
Spot rubber weakened on Wednesday. The market continued to shed the gains as there were no positive signals to trigger an uptrend either from the domestic or international scene. There has been selling from dealers and growers but the trading volumes were low in the absence of quantity buyers on any grade.
Sheet rubber declined to Rs 217 (218) a kg according to traders. The grade slipped to Rs 217.50 (218.50) a kg both at Kottayam and Kochi, according to the Rubber Board.
The June series concluded the session at Rs 218.40 (218.87), July at Rs 221.65 (221.82), August at Rs 220.50 (220.85), September at Rs 217.08 (216.70), October at Rs 210 (212.25) and November at Rs 214 (211) a kg for RSS 4 on the National Multi Commodity Exchange.
The key Tokyo rubber futures bounced back in tune with other commodities, while market participants kept a close eye on Shanghai futures to assess the demand from China.
The May futures for RSS 3 expired at ¥408 (Rs 225.52) a kg while the June futures improved to ¥409 (Rs 226.03) from ¥403.5 during the day session and then to ¥414 (Rs 228.79) a kg in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 231.17 (230.25) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 217 (218); RSS-5: 214 (216); ungraded: 212 (213); ISNR 20: 209 (211) and latex 60 per cent: 130 (131).
Wednesday, May 25, 2011
Tokyo Futures Inch Up, But Uncertain Demand Limits Gains
Tokyo Futures Inch Up, But Uncertain Demand Limits Gains
TUESDAY, MAY 24, 2011
Key Tokyo rubber futures inched higher early on Tuesday (May 24) after heavy selling the previous day, but weaker oil prices and further signs of a slowdown in China, the world's top rubber consumer, limited gains.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for October delivery was up 0.6 yen, or 0.2 percent, at 368.5 yen as of 0030GMT.
The most active Shanghai rubber contract for September delivery fell 655 yuan on Monday (May 23) to settle at 30,830 yuan ($4,748.128) per tonne.
The dollar was flat against the Japanese currency, but spiked to a two-month high against the euro as economic worries in Greece, Spain and Italy fanned renewed risk aversion.
U.S. crude oil fell by $1.05 to $96.65 per barrel in early Asian trade on Tuesday (May 24) on a stronger dollar due to renewed concerns over euro zone debt.
MARKET NEWS
South Korea's Hyundai Motor has stopped production of diesel engines at its Ulsan plant due to a protracted strike from component supplier Yoosung Enterprise, Yonhap news reported on Tuesday (May 24).
Toyota Motor Corp and cloud computing company Salesforce.com Inc will build a social network service that will enable owners to become "friends" with their cars and get tweet-like reminders for maintenance checks and other notices.
U.S. drivers enjoyed the biggest one-week drop in gasoline prices since December 2008, as cheaper crude oil cut costs at the pump, the Energy Department said on Monday.
Japan's Nikkei share average opened down 0.58 percent at 9,406.04 on Tuesday (May 24) after U.S. shares closed at their lowest level in a month on worries over recent weakness in global manufacturing.
(Reuters, May 24, 2011)
Rubber Production To Grow, Michelin Says
TUESDAY, MAY 24, 2011
Michelin & Cie., the world’s second-largest tiremaker, said it expects global rubber production to grow 40% in the next decade, averting a market shortage and a price surge, Bloomberg News reported.
Three-quarters of the expected output gain will come from productivity improvements by Asian producers, Managing Partner Jean-Dominique Senard told shareholders May 13 at the annual meeting near Michelin headquarters in Clermont-Ferrand, France, Bloomberg said.
Michelin said it still expects price increases to cover rising material costs, even after last month it raised its predicted negative effects on full-year profit to 1.8 billion euros ($2.6 billion) from the 1.5 billion euros predicted in February, Bloomberg said.
Michelin ranks behind Japan’s Bridgestone Corp. in global tire production.
The French tire maker is aiming to add the equivalent of a new plant globally each year to harness tire demand growth averaging 9% in emerging markets, Bloomberg said.
(Transport Topic, May 23, 2011)
Rubber Falls Most in a Week as Debt Woes Raises Growth Concern
TUESDAY, MAY 24, 2011
Rubber tumbled the most in more than a week as a reduction in Greece’s credit rating and a selloff in global equities boosted concern that the economic recovery may falter, curbing demand for the commodity used in tires.
The October-delivery contract lost as much as 4 percent to 363 yen a kilogram ($4,429 a metric ton) before settling at 367.9 yen on the Tokyo Commodity Exchange. The contract gained 1.8 percent last week, the second weekly advance.
Asian stocks extended a global decline, with the regional benchmark index heading for a two-month low, as Fitch Ratings cut Greece’s credit rating three levels and the euro weakened, reducing the outlook for export earnings. The index of U.S. leading indicators slipped in April after nine months of increases, while manufacturing in the Philadelphia area grew in May at the slowest pace in seven months.
“Concern about U.S. and European economies spurred sales of industrial commodities,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said today by phone. “Rubber was sold in tandem with oil and base metals.”
Fitch Ratings cut Greece three levels to B+, four steps below investment grade, from BB+. Fitch said even a “soft” restructuring of debt being studied by European Union policy makers would be considered a default. Fitch said Greece could face a further reduction in its creditworthiness.
“The biggest concern about Europe is the risk of contagion and of credit markets drying up globally,” said Prasad Patkar, who helps manage about $1.8 billion at Platypus Asset Management Ltd. in Sydney. “The memory of the global financial crisis is fresh in everyone’s mind, and everybody’s preference is that we don’t go there again.”
China Demand
“Supply is outpacing demand and declining inventories in China reflects that orders from there are still low,” said Chaiwat Muenmee, analyst at Bangkok-based commodity broker DS Futures Co.
Natural-rubber stockpiles monitored by the Shanghai Futures Exchange fell 215 tons to 13,946 tons last week, the bourse said on May 20. Inventories reached 11,851 tons earlier this month, the lowest level since 2003.
Rubber also declined amid expectation that supply from Thailand, the world’s largest exporter, will increase as the low-production period is set to end this month, Saito said.
Natural-rubber output will expand as farmers resume harvesting after the traditional low-production season, easing global supplies, the Association of Natural Rubber Producing Countries said in a monthly report in April.
Production from its member countries, representing 92 percent of global supply, may climb 10.5 percent to 2.3 million tons in the three months through June, the report said. Output in the first quarter is estimated to have advanced 6.1 percent to 2.27 million tons, the group said.
The physical price of Thai rubber declined 0.3 percent to 154.25 baht ($5.08) a kilogram today, according to the Rubber Research Institute of Thailand.
In Shanghai, September-delivery rubber lost 2.1 percent to close at 30,830 yuan ($4,741) a ton.
Source: http://www.bloomberg.com/news/2011-05-23/rubber-falls-most-in-a-week-as-debt-woes-raises-growth-concern.html
TUESDAY, MAY 24, 2011
Key Tokyo rubber futures inched higher early on Tuesday (May 24) after heavy selling the previous day, but weaker oil prices and further signs of a slowdown in China, the world's top rubber consumer, limited gains.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for October delivery was up 0.6 yen, or 0.2 percent, at 368.5 yen as of 0030GMT.
The most active Shanghai rubber contract for September delivery fell 655 yuan on Monday (May 23) to settle at 30,830 yuan ($4,748.128) per tonne.
The dollar was flat against the Japanese currency, but spiked to a two-month high against the euro as economic worries in Greece, Spain and Italy fanned renewed risk aversion.
U.S. crude oil fell by $1.05 to $96.65 per barrel in early Asian trade on Tuesday (May 24) on a stronger dollar due to renewed concerns over euro zone debt.
MARKET NEWS
South Korea's Hyundai Motor has stopped production of diesel engines at its Ulsan plant due to a protracted strike from component supplier Yoosung Enterprise, Yonhap news reported on Tuesday (May 24).
Toyota Motor Corp and cloud computing company Salesforce.com Inc will build a social network service that will enable owners to become "friends" with their cars and get tweet-like reminders for maintenance checks and other notices.
U.S. drivers enjoyed the biggest one-week drop in gasoline prices since December 2008, as cheaper crude oil cut costs at the pump, the Energy Department said on Monday.
Japan's Nikkei share average opened down 0.58 percent at 9,406.04 on Tuesday (May 24) after U.S. shares closed at their lowest level in a month on worries over recent weakness in global manufacturing.
(Reuters, May 24, 2011)
Rubber Production To Grow, Michelin Says
TUESDAY, MAY 24, 2011
Michelin & Cie., the world’s second-largest tiremaker, said it expects global rubber production to grow 40% in the next decade, averting a market shortage and a price surge, Bloomberg News reported.
Three-quarters of the expected output gain will come from productivity improvements by Asian producers, Managing Partner Jean-Dominique Senard told shareholders May 13 at the annual meeting near Michelin headquarters in Clermont-Ferrand, France, Bloomberg said.
Michelin said it still expects price increases to cover rising material costs, even after last month it raised its predicted negative effects on full-year profit to 1.8 billion euros ($2.6 billion) from the 1.5 billion euros predicted in February, Bloomberg said.
Michelin ranks behind Japan’s Bridgestone Corp. in global tire production.
The French tire maker is aiming to add the equivalent of a new plant globally each year to harness tire demand growth averaging 9% in emerging markets, Bloomberg said.
(Transport Topic, May 23, 2011)
Rubber Falls Most in a Week as Debt Woes Raises Growth Concern
TUESDAY, MAY 24, 2011
Rubber tumbled the most in more than a week as a reduction in Greece’s credit rating and a selloff in global equities boosted concern that the economic recovery may falter, curbing demand for the commodity used in tires.
The October-delivery contract lost as much as 4 percent to 363 yen a kilogram ($4,429 a metric ton) before settling at 367.9 yen on the Tokyo Commodity Exchange. The contract gained 1.8 percent last week, the second weekly advance.
Asian stocks extended a global decline, with the regional benchmark index heading for a two-month low, as Fitch Ratings cut Greece’s credit rating three levels and the euro weakened, reducing the outlook for export earnings. The index of U.S. leading indicators slipped in April after nine months of increases, while manufacturing in the Philadelphia area grew in May at the slowest pace in seven months.
“Concern about U.S. and European economies spurred sales of industrial commodities,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said today by phone. “Rubber was sold in tandem with oil and base metals.”
Fitch Ratings cut Greece three levels to B+, four steps below investment grade, from BB+. Fitch said even a “soft” restructuring of debt being studied by European Union policy makers would be considered a default. Fitch said Greece could face a further reduction in its creditworthiness.
“The biggest concern about Europe is the risk of contagion and of credit markets drying up globally,” said Prasad Patkar, who helps manage about $1.8 billion at Platypus Asset Management Ltd. in Sydney. “The memory of the global financial crisis is fresh in everyone’s mind, and everybody’s preference is that we don’t go there again.”
China Demand
“Supply is outpacing demand and declining inventories in China reflects that orders from there are still low,” said Chaiwat Muenmee, analyst at Bangkok-based commodity broker DS Futures Co.
Natural-rubber stockpiles monitored by the Shanghai Futures Exchange fell 215 tons to 13,946 tons last week, the bourse said on May 20. Inventories reached 11,851 tons earlier this month, the lowest level since 2003.
Rubber also declined amid expectation that supply from Thailand, the world’s largest exporter, will increase as the low-production period is set to end this month, Saito said.
Natural-rubber output will expand as farmers resume harvesting after the traditional low-production season, easing global supplies, the Association of Natural Rubber Producing Countries said in a monthly report in April.
Production from its member countries, representing 92 percent of global supply, may climb 10.5 percent to 2.3 million tons in the three months through June, the report said. Output in the first quarter is estimated to have advanced 6.1 percent to 2.27 million tons, the group said.
The physical price of Thai rubber declined 0.3 percent to 154.25 baht ($5.08) a kilogram today, according to the Rubber Research Institute of Thailand.
In Shanghai, September-delivery rubber lost 2.1 percent to close at 30,830 yuan ($4,741) a ton.
Source: http://www.bloomberg.com/news/2011-05-23/rubber-falls-most-in-a-week-as-debt-woes-raises-growth-concern.html
Tuesday, May 24, 2011
Malaysia rubber market to follow performance of commodities in Tokyo
Malaysia rubber market to follow performance of commodities in Tokyo
MONDAY, MAY 23, 2011
KUALA LUMPUR: The Malaysian rubber market is expected to follow the performance of the futures market on the Tokyo Commodity Exchange this week amid continuous tight supply, dealers said.
They said the tight supply was expected to continue this week due to the current wet season in major producer countries.
A dealer said buying activities this week were expected to be minimal due to the competition from the regional markets.
On a holiday-shortened week, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 rose 44.5 sen to 1,361.5 sen per kg from previous Friday's 1,317 sen.
Latex-in-bulk rose 8.5 sen to 949.5 sen per kg from last week's 941 sen.
The unofficial closing price for SMR 20 jumped 32 sen to 1,358 sen from 1,326 sen per kg registered in the previous week and latex-in-bulk added five sen to 949.5 sen per kg from 944.5 sen previously.
The marekt was closed last Tuesday for Wesak Day. Bernama
MONDAY, MAY 23, 2011
KUALA LUMPUR: The Malaysian rubber market is expected to follow the performance of the futures market on the Tokyo Commodity Exchange this week amid continuous tight supply, dealers said.
They said the tight supply was expected to continue this week due to the current wet season in major producer countries.
A dealer said buying activities this week were expected to be minimal due to the competition from the regional markets.
On a holiday-shortened week, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 rose 44.5 sen to 1,361.5 sen per kg from previous Friday's 1,317 sen.
Latex-in-bulk rose 8.5 sen to 949.5 sen per kg from last week's 941 sen.
The unofficial closing price for SMR 20 jumped 32 sen to 1,358 sen from 1,326 sen per kg registered in the previous week and latex-in-bulk added five sen to 949.5 sen per kg from 944.5 sen previously.
The marekt was closed last Tuesday for Wesak Day. Bernama
Monday, May 23, 2011
Malaysia rubber market to follow performance of commodities in Tokyo
Malaysia rubber market to follow performance of commodities in Tokyo
MONDAY, MAY 23, 2011
KUALA LUMPUR: The Malaysian rubber market is expected to follow the performance of the futures market on the Tokyo Commodity Exchange this week amid continuous tight supply, dealers said.
They said the tight supply was expected to continue this week due to the current wet season in major producer countries.
A dealer said buying activities this week were expected to be minimal due to the competition from the regional markets.
On a holiday-shortened week, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 rose 44.5 sen to 1,361.5 sen per kg from previous Friday's 1,317 sen.
Latex-in-bulk rose 8.5 sen to 949.5 sen per kg from last week's 941 sen.
The unofficial closing price for SMR 20 jumped 32 sen to 1,358 sen from 1,326 sen per kg registered in the previous week and latex-in-bulk added five sen to 949.5 sen per kg from 944.5 sen previously.
The marekt was closed last Tuesday for Wesak Day. Bernama
Rubber prices may dip by 11 pc from May-end: Experts
SUNDAY, MAY 22, 2011
New Delhi, May 22 (PTI) Rubber, used in tyre and other industries, is expected to get cheaper by 11 per cent from May-end onwards on expectation of higher domestic output and cheaper imports.
Rubber prices, which are currently ruling at Rs 222 per kg, are likely to decline further to Rs 200 per kg from May-end, say industry experts.
Spot rubber prices have been sliding since April 25.
"Rubber prices may fall to Rs 200/kg from last week of May onwards and this negative trend may spill over in June," Indian Rubber Dealers Federation President George Valy said.
Prices are down because good weather condition is supporting rubber tapping, signalling prospects of higher production. Besides, the international market is conducive for import of rubber as global prices are also down, he said.
The country''s natural rubber production is expected to touch 9,02,000 tonnes in 2011-12.
Valy also said that farmers are expected to sell off maximum of their stored stock before the peak monsoon and this may weigh on prices.
In the rainy season, rubber gets damaged by catching fungus due to wet and humid weather conditions, he said.
"Import of rubber, especially crumb rubber, is picking up as global prices are ruling at Rs 200/kg and adding a Rs 20 per kg import duty to it, the commodity is still cheaper than the domestic rates," Valy noted.
Global natural rubber prices (at Bangkok) are down in the range Rs 228-230 per kg, the Rubber Board data said.
Presently, 1,000 tonnes of rubber is imported daily.
MONDAY, MAY 23, 2011
KUALA LUMPUR: The Malaysian rubber market is expected to follow the performance of the futures market on the Tokyo Commodity Exchange this week amid continuous tight supply, dealers said.
They said the tight supply was expected to continue this week due to the current wet season in major producer countries.
A dealer said buying activities this week were expected to be minimal due to the competition from the regional markets.
On a holiday-shortened week, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 rose 44.5 sen to 1,361.5 sen per kg from previous Friday's 1,317 sen.
Latex-in-bulk rose 8.5 sen to 949.5 sen per kg from last week's 941 sen.
The unofficial closing price for SMR 20 jumped 32 sen to 1,358 sen from 1,326 sen per kg registered in the previous week and latex-in-bulk added five sen to 949.5 sen per kg from 944.5 sen previously.
The marekt was closed last Tuesday for Wesak Day. Bernama
Rubber prices may dip by 11 pc from May-end: Experts
SUNDAY, MAY 22, 2011
New Delhi, May 22 (PTI) Rubber, used in tyre and other industries, is expected to get cheaper by 11 per cent from May-end onwards on expectation of higher domestic output and cheaper imports.
Rubber prices, which are currently ruling at Rs 222 per kg, are likely to decline further to Rs 200 per kg from May-end, say industry experts.
Spot rubber prices have been sliding since April 25.
"Rubber prices may fall to Rs 200/kg from last week of May onwards and this negative trend may spill over in June," Indian Rubber Dealers Federation President George Valy said.
Prices are down because good weather condition is supporting rubber tapping, signalling prospects of higher production. Besides, the international market is conducive for import of rubber as global prices are also down, he said.
The country''s natural rubber production is expected to touch 9,02,000 tonnes in 2011-12.
Valy also said that farmers are expected to sell off maximum of their stored stock before the peak monsoon and this may weigh on prices.
In the rainy season, rubber gets damaged by catching fungus due to wet and humid weather conditions, he said.
"Import of rubber, especially crumb rubber, is picking up as global prices are ruling at Rs 200/kg and adding a Rs 20 per kg import duty to it, the commodity is still cheaper than the domestic rates," Valy noted.
Global natural rubber prices (at Bangkok) are down in the range Rs 228-230 per kg, the Rubber Board data said.
Presently, 1,000 tonnes of rubber is imported daily.
Thursday, May 19, 2011
Tokyo rubber futures rise
Tokyo rubber futures rise
WEDNESDAY, MAY 18, 2011
Tokyo (may 18, 2011) : key tokyo rubber futures rose 3 percent on tuesday, supported by a weaker yen and strength in the shanghai rubber futures market. the benchmark tocom rubber futures for october delivery settled up 11 yen or 3 percent at 381.4 yen per kg. the benchmark settled slightly above its 200-moving average, which stood around 379 yen on tuesday, suggesting the bearish technical outlook may be changing, traders said.
the most active shanghai rubber futures contract for september delivery closed up 365 yuan or 1.2 percent at 31,570 yuan ($4,850.415) per tonne on tuesday. volume stood at 1.4 million lots. brent oil hovered near $111 a barrel on tuesday as investors tread cautiously given debt issues in the eurozone and ahead of weekly us data expected to show builds in us crude and gasoline stocks.
the euro held steady against the dollar on tuesday, pulling away from a seven-week low hit the previous day, but downside risks persisted after its recent breach of a technical support level and due to the lingering threat of further long liquidation. the yen fell broadly, with the dollar rising 0.6 percent to 81.30 yen. rubber in asia changed hands at below $5 a kg for nearby delivery, with buying interest coming from major tyre makers, but main consumer china was elusive because of high inventories in bonded warehouses, dealers said on monday.
Vietnam may beat india in rubber output
WEDNESDAY, MAY 18, 2011
KOCHI: Troubled by a stagnating trend in production, India may soon lose its position as the fourth-largest producer of rubber in the world.
Vietnam, which has seen a fast growth in acreage under rubber in the recent years, may dislodge India from the fourth slot. The fifth-largest producer of rubber, Vietnam's total planted area saw a cumulative increase of 3,78,700 hectares between 2003 and 2010.
Taking into account this growth, the rubber industry experts say that Vietnam "will soon be ahead of India" in rubber production. We expect this to happen in 2012," said Vinod T Simon , president of All India Rubber Industries Association .
But the cumulative growth in total planted area achieved by India is 2,30,200 hectares during the same period. Industry's concern stems from the fact that rubber production in India has not seen any major increase in the last 4-5 years.
India's production stood at 8.53 lakh tonne in 2006. Though the production increased slightly to 8.81 lakh tonne in 2008, it declined in the subsequent years. In 2010 the production stood at 8.51 lakh tonne. Compared to this, the production in Vietnam has seen a steady increase from 5.55 lakh tonne in 2006 to 6.60 lakh tonne in 2008. It stood at 7.55 lakh tonne in 2010.
India's projected output for 2011 is 9.02 lakh tonne while that of Vietnam is 7.8 lakh tonne.
A official of the Rubber Board said that Vietnam might take a few more years to emerge as a bigger rubber producer.
Rising rubber costs inflate tyre prices
WEDNESDAY, MAY 18, 2011
The cost of running a car is about to rise again with tyre manufacturer Bridgestone New Zealand increasing its prices for car tyres by up to 16 per cent.
Bridgestone says car tyres sold under its own brand and the Firestone brand will increase by up to 9 per cent, while other associate branded tyres will be by as much as 16 per cent next month.
Commercial vehicle tyres, tubes and retreaded tyre prices will increase by up to 5 per cent from July 1.
Bridgestone New Zealand business director Ken Oyama blamed the increases, the second round of rises this year, on the price raw materials remaining at historically high levels.
Further price rises would be necessary if those costs did not reduce.
The price of natural rubber has continued to increase at an unprecedented rate, Mr Oyama said.
In addition the price of petrochemical-based materials like synthetic rubber and carbon black remain high.
LN: Czechs cultivate plant that may replace rubber trees
WEDNESDAY, MAY 18, 2011
Prague, May 17 (CTK) - Czech botanists have cultivated a new plant, a hybrid of "kok-saghyz" from Kazakhstan and other Asian dandelions, that can potentially replace dying rubber trees afflicted by mould, the daily Lidove noviny (LN) reports Tuesday.
The new dandelion, cultivated at the Botanical Institute of the Czech Academy of Sciences (AV), is bigger and has a stronger root than the original kok-saghyz, and consequently it would give more rubber, LN writes.
Czech botanists have thereby taken the first step to avert a worldwide collapse over the lack of rubber, which is necessary in many fields, such as road traffic (tyres), hockey (pucks), medicine (surgical gloves) and birth control (condoms), the paper adds.
Natural rubber is applied to the same extent as the synthetic one. However, the rubber tree plantations in Latin America are threatened with extinction as the para rubber trees (Hevea brasiliensis) are hit by the Microcyclus ulei fungiform disease that is spreading quickly. It has not yet afflicted the rubber tree plantations in Asia, but the risk is high, LN writes.
This is why an alternative plant to replace the rubber tree should be prepared as a reserve.
The demand for rubber has been rising mainly in the expanding economies of China and India. These countries used to produce rubber, but now they have to import it. The rubber prices are increasing, too, LN notes.
Moreover, the current way of rubber harvesting is dependent on a cheap and available workforce, while computer-controlled machines could be used for the alternative new plant, LN says.
In reaction to the above-mentioned risks, a European project was launched with the participation of the Czech Republic, France, Germany, Kazakhstan, the Netherlands, Spain, Switzerland as well as the United States.
Czech botanists were invited to the project as they had been mapping the area with a variety of dandelions in Asia for over ten years, team head Jan Kirschner, from the AV's Botanical Institute, told the paper.
Czech botanists were asked to cultivate a new form of dandelion that would grow fast, be sufficiently big, and thus contain a lot of rubber, and reproduce easily.
"It was extremely difficult to cross kok-saghyz with other dandelion species to achieve the required qualities," Kirschner told LN.
Colleagues from Germany and the Netherlands will now be finding out whether the new plant contains enough rubber, he added.
The new dandelion form does not need pollinating for reproduction, it is resistant to drought and soils with a high salt content. This is why it could be grown in south Europe, for instance, on abandoned fields in Spain, the paper says.
Another group of the international team is developing a combine harvester for the new plant that would catch rubber from the roots in a reservoir, while leaves and stalks would be used as fodder, LN writes.
Moreover, in adds, the plants could give inulin, a polysaccharide that can be used in foodstuffs in the form of a fine white sweet low-caloric powder. According to some experts, the new dandelion might be primarily the source of inulin, while rubber would be a by-product.
The first dandelion plantations should appear after 2012 when the European project is to be completed, LN writes.
The paper also reminds of the history of kok-saghyz that botanists first uncovered in Kazakhstan in 1931. The Soviet leader Joseph Stalin ordered to grow it en masse as a source of natural rubber.
Before World War Two, Adolf Hitler was interested in it at the time when the Soviet Union supported Nazi Germany with strategic raw materials. The plant was then experimentally grown in Germany and Austria.
After Germany invaded the Soviet Union in 1941, Germans tried to grow kok-saghyz in Ukraine but they were not very successful. The Soviet Union then gave the plant's seeds to its allies. Experiments with the plant started to be carried out in the United States.
After the war when rubber export from southeast Asia was revived, kok-saghyz's importance declined and it was almost forgotten after Stalin's death in 1953. Since then kok-saghyz has appeared outside Kazakhstan only in collections of botanical gardens and seed banks, LN recalls.
Tyre Markets Continue To Grow In April
WEDNESDAY, MAY 18, 2011
Pirelli has updated its website with tyre sales for the month of April and the first four months of 2011. Japan and other countries saw significant declines in April, almost certainly due to the effects of the 11 March earthquake and tsunami.
The company reports truck tyre sales still growing around the world, but sales of car tyres easing. The company reports only percentage changes, not absolute numbers.
Pirelli said European truck tyre replacement sales increased by 16 percent in the first four months, but the April figure was up by 13 percent compared with a year ago. European OE figures slowed sharply, showing an increase of 69 percent in the year to date but just 16 percent in April, down from 70 percent growth the previous month.
OE truck tyre sales in the NAFTA region also slowed significantly, increasing by 59 percent in the year to date, but just 17 percent in the most recent month, compared with 61 percent growth in March. On the replacement side sales also slowed, with an increase iof 17 percent in the first four months but just 2 percent in April. Sales data for the Mercosur region was not available. Neither was the China data
Replacement sales in Japan showed 20 percent growth over the first four months of 2011 though the replacement figure was up by 15 percent in the month of April, showing a significant post-tsunami recovery from the 18 percent decline seen last month..
In the car and light truck segment, sales were significantly less healthy. European OE sales were up by 8 percent for the first four months, but moved into negative territory, with a 2 percent decline in the month of April. Replacement sales were up by 5 percent in the year to date but down by 3 percent in April.
North American (NAFTA) sales of car and light truck tyres grew, but also at a slower rate. On the replacement side, sales in the four months were up by 4 percent, despite a decline of 3 percent in April. On the OE side, the first four months saw growth of 13 percent, while April sales increased by just 2 percent. In the Mercosur region, OE sales were up by 8 percent in the first four months with an increase of 6 percent in the month of April. Replacement sales were weaker, down by 3 percent in the year so far and down by 6 percent in the month of April.
Sales data from China were not yet available and will be updated in the coming days. Japanese sales of replacement tyres fell by 2 percent in the first four months and fell by 8 percent in the month of April, as the impact of the 11 March earthquake took hold.
(European Rubber Journal, May 17, 2011)
Poor Rubber production rings alarm bells in consumer circles
WEDNESDAY, MAY 18, 2011
KOCHI (Commodity Online): Rubber production is now officially a matter of concern in India. Despite the high prices, production has not touched where it should have been mainly because of the unpredictable weather in rubber producing regions and a huge slump of prices post Japan quake.
Despite being the fourth largest producer of rubber, India still faces a huge shortage of rubber in for domestic consumption. With the rising global rubber prices Indian tyre and non-tyre industry have posed a great concern for the rubber imports for meeting the deficit due to low level of domestic rubber production. Rubber production in India has not seen any major increase in the last 4-5 years. The cumulative growth in the total rubber-plantation area has been significantly low further aggravating the problems of shortage of rubber in the domestic market.
The tyre companies heavily depend on the rubber imports. They form a large share of the total rubber demand. The rising rubber prices will result in an increase in the auto tyres prices. With the decrease in the production of natural rubber the imports are heavily exceeding exports which further increase the pressure on the domestic rubber industry.
Taxes on the import of natural rubber is as high as 20% and increasing global prices has created an alarm among the tyre manufacturing companies in India. The Rubber Board has expressed hope for the increase in the natural rubber production. However, it would still not be sufficient to meet the domestic demand.
Stretching the options for rubber
THURSDAY, MAY 19, 2011
Given the exploding demand from tyre makers and shrinking availability of land, it makes sense to look abroad for tracts to grow rubber on.
The rubber industry and tyre manufacturers are stretching out in a different direction. Moving away from their usual demand for duty free imports, they are asking the Government to replicate China's experiment of acquiring land abroad to grow natural rubber and meet rising domestic demand in the Twelfth Plan. India's natural rubber consumption last year was 0.94 million tonnes, against production of 0.85 million tonnes. The demand-supply gap can only be expected to widen. The data on new plantations and replanting would seem to support the rubber industry's argument. Replanting has taken a hit with rubber prices ruling over Rs 150 a kg since March last year, as growers did not want to replace old trees that were still giving them returns aplenty. New planting, particularly in non-traditional areas, is not yielding the desired results, with productivity being lower than expected. The traditional areas of Kerala have reached a saturation point, with ever increasing demand for land for other purposes, such as realty, tourism and other plantation crops. In such circumstances, the best option seems to be look abroad.
China has begun acquiring rubber plantations in countries such as Laos, Cambodia, Ethiopia and Vietnam. It is attempting to build a strategic reserve in rubber, just as it has done for crude oil. This is aimed at giving it a controlling interest in natural rubber. It need not be at the mercy of one country or another to get the required supply of the commodity. India's rubber industries and tyre manufacturers would like the Centre to emulate China's approach.
India can use its credibility and good offices to acquire land in Africa or in the East Asian countries. On the other hand, it will also pose a new challenge to the Rubber Board to replicate its success at home. It should be remembered that the success stories around corporates acquiring land in Africa or East Asia to grow flowers, vegetables or oilseeds may not extend naturally to rubber. Flowers, vegetables and oilseeds provide quick returns on investments, whereas it takes seven years for a new rubber plantation to begin yielding. Therefore, some sort of bilateral investment protection pact between India and the country where lands are to be acquired will provide some security. Such a long-term view is the need of the hour, given the fact that land availability in the country is shrinking fast and the explosion of growth in automobiles puts the tyre manufacturers in an unenviable position.
WEDNESDAY, MAY 18, 2011
Tokyo (may 18, 2011) : key tokyo rubber futures rose 3 percent on tuesday, supported by a weaker yen and strength in the shanghai rubber futures market. the benchmark tocom rubber futures for october delivery settled up 11 yen or 3 percent at 381.4 yen per kg. the benchmark settled slightly above its 200-moving average, which stood around 379 yen on tuesday, suggesting the bearish technical outlook may be changing, traders said.
the most active shanghai rubber futures contract for september delivery closed up 365 yuan or 1.2 percent at 31,570 yuan ($4,850.415) per tonne on tuesday. volume stood at 1.4 million lots. brent oil hovered near $111 a barrel on tuesday as investors tread cautiously given debt issues in the eurozone and ahead of weekly us data expected to show builds in us crude and gasoline stocks.
the euro held steady against the dollar on tuesday, pulling away from a seven-week low hit the previous day, but downside risks persisted after its recent breach of a technical support level and due to the lingering threat of further long liquidation. the yen fell broadly, with the dollar rising 0.6 percent to 81.30 yen. rubber in asia changed hands at below $5 a kg for nearby delivery, with buying interest coming from major tyre makers, but main consumer china was elusive because of high inventories in bonded warehouses, dealers said on monday.
Vietnam may beat india in rubber output
WEDNESDAY, MAY 18, 2011
KOCHI: Troubled by a stagnating trend in production, India may soon lose its position as the fourth-largest producer of rubber in the world.
Vietnam, which has seen a fast growth in acreage under rubber in the recent years, may dislodge India from the fourth slot. The fifth-largest producer of rubber, Vietnam's total planted area saw a cumulative increase of 3,78,700 hectares between 2003 and 2010.
Taking into account this growth, the rubber industry experts say that Vietnam "will soon be ahead of India" in rubber production. We expect this to happen in 2012," said Vinod T Simon , president of All India Rubber Industries Association .
But the cumulative growth in total planted area achieved by India is 2,30,200 hectares during the same period. Industry's concern stems from the fact that rubber production in India has not seen any major increase in the last 4-5 years.
India's production stood at 8.53 lakh tonne in 2006. Though the production increased slightly to 8.81 lakh tonne in 2008, it declined in the subsequent years. In 2010 the production stood at 8.51 lakh tonne. Compared to this, the production in Vietnam has seen a steady increase from 5.55 lakh tonne in 2006 to 6.60 lakh tonne in 2008. It stood at 7.55 lakh tonne in 2010.
India's projected output for 2011 is 9.02 lakh tonne while that of Vietnam is 7.8 lakh tonne.
A official of the Rubber Board said that Vietnam might take a few more years to emerge as a bigger rubber producer.
Rising rubber costs inflate tyre prices
WEDNESDAY, MAY 18, 2011
The cost of running a car is about to rise again with tyre manufacturer Bridgestone New Zealand increasing its prices for car tyres by up to 16 per cent.
Bridgestone says car tyres sold under its own brand and the Firestone brand will increase by up to 9 per cent, while other associate branded tyres will be by as much as 16 per cent next month.
Commercial vehicle tyres, tubes and retreaded tyre prices will increase by up to 5 per cent from July 1.
Bridgestone New Zealand business director Ken Oyama blamed the increases, the second round of rises this year, on the price raw materials remaining at historically high levels.
Further price rises would be necessary if those costs did not reduce.
The price of natural rubber has continued to increase at an unprecedented rate, Mr Oyama said.
In addition the price of petrochemical-based materials like synthetic rubber and carbon black remain high.
LN: Czechs cultivate plant that may replace rubber trees
WEDNESDAY, MAY 18, 2011
Prague, May 17 (CTK) - Czech botanists have cultivated a new plant, a hybrid of "kok-saghyz" from Kazakhstan and other Asian dandelions, that can potentially replace dying rubber trees afflicted by mould, the daily Lidove noviny (LN) reports Tuesday.
The new dandelion, cultivated at the Botanical Institute of the Czech Academy of Sciences (AV), is bigger and has a stronger root than the original kok-saghyz, and consequently it would give more rubber, LN writes.
Czech botanists have thereby taken the first step to avert a worldwide collapse over the lack of rubber, which is necessary in many fields, such as road traffic (tyres), hockey (pucks), medicine (surgical gloves) and birth control (condoms), the paper adds.
Natural rubber is applied to the same extent as the synthetic one. However, the rubber tree plantations in Latin America are threatened with extinction as the para rubber trees (Hevea brasiliensis) are hit by the Microcyclus ulei fungiform disease that is spreading quickly. It has not yet afflicted the rubber tree plantations in Asia, but the risk is high, LN writes.
This is why an alternative plant to replace the rubber tree should be prepared as a reserve.
The demand for rubber has been rising mainly in the expanding economies of China and India. These countries used to produce rubber, but now they have to import it. The rubber prices are increasing, too, LN notes.
Moreover, the current way of rubber harvesting is dependent on a cheap and available workforce, while computer-controlled machines could be used for the alternative new plant, LN says.
In reaction to the above-mentioned risks, a European project was launched with the participation of the Czech Republic, France, Germany, Kazakhstan, the Netherlands, Spain, Switzerland as well as the United States.
Czech botanists were invited to the project as they had been mapping the area with a variety of dandelions in Asia for over ten years, team head Jan Kirschner, from the AV's Botanical Institute, told the paper.
Czech botanists were asked to cultivate a new form of dandelion that would grow fast, be sufficiently big, and thus contain a lot of rubber, and reproduce easily.
"It was extremely difficult to cross kok-saghyz with other dandelion species to achieve the required qualities," Kirschner told LN.
Colleagues from Germany and the Netherlands will now be finding out whether the new plant contains enough rubber, he added.
The new dandelion form does not need pollinating for reproduction, it is resistant to drought and soils with a high salt content. This is why it could be grown in south Europe, for instance, on abandoned fields in Spain, the paper says.
Another group of the international team is developing a combine harvester for the new plant that would catch rubber from the roots in a reservoir, while leaves and stalks would be used as fodder, LN writes.
Moreover, in adds, the plants could give inulin, a polysaccharide that can be used in foodstuffs in the form of a fine white sweet low-caloric powder. According to some experts, the new dandelion might be primarily the source of inulin, while rubber would be a by-product.
The first dandelion plantations should appear after 2012 when the European project is to be completed, LN writes.
The paper also reminds of the history of kok-saghyz that botanists first uncovered in Kazakhstan in 1931. The Soviet leader Joseph Stalin ordered to grow it en masse as a source of natural rubber.
Before World War Two, Adolf Hitler was interested in it at the time when the Soviet Union supported Nazi Germany with strategic raw materials. The plant was then experimentally grown in Germany and Austria.
After Germany invaded the Soviet Union in 1941, Germans tried to grow kok-saghyz in Ukraine but they were not very successful. The Soviet Union then gave the plant's seeds to its allies. Experiments with the plant started to be carried out in the United States.
After the war when rubber export from southeast Asia was revived, kok-saghyz's importance declined and it was almost forgotten after Stalin's death in 1953. Since then kok-saghyz has appeared outside Kazakhstan only in collections of botanical gardens and seed banks, LN recalls.
Tyre Markets Continue To Grow In April
WEDNESDAY, MAY 18, 2011
Pirelli has updated its website with tyre sales for the month of April and the first four months of 2011. Japan and other countries saw significant declines in April, almost certainly due to the effects of the 11 March earthquake and tsunami.
The company reports truck tyre sales still growing around the world, but sales of car tyres easing. The company reports only percentage changes, not absolute numbers.
Pirelli said European truck tyre replacement sales increased by 16 percent in the first four months, but the April figure was up by 13 percent compared with a year ago. European OE figures slowed sharply, showing an increase of 69 percent in the year to date but just 16 percent in April, down from 70 percent growth the previous month.
OE truck tyre sales in the NAFTA region also slowed significantly, increasing by 59 percent in the year to date, but just 17 percent in the most recent month, compared with 61 percent growth in March. On the replacement side sales also slowed, with an increase iof 17 percent in the first four months but just 2 percent in April. Sales data for the Mercosur region was not available. Neither was the China data
Replacement sales in Japan showed 20 percent growth over the first four months of 2011 though the replacement figure was up by 15 percent in the month of April, showing a significant post-tsunami recovery from the 18 percent decline seen last month..
In the car and light truck segment, sales were significantly less healthy. European OE sales were up by 8 percent for the first four months, but moved into negative territory, with a 2 percent decline in the month of April. Replacement sales were up by 5 percent in the year to date but down by 3 percent in April.
North American (NAFTA) sales of car and light truck tyres grew, but also at a slower rate. On the replacement side, sales in the four months were up by 4 percent, despite a decline of 3 percent in April. On the OE side, the first four months saw growth of 13 percent, while April sales increased by just 2 percent. In the Mercosur region, OE sales were up by 8 percent in the first four months with an increase of 6 percent in the month of April. Replacement sales were weaker, down by 3 percent in the year so far and down by 6 percent in the month of April.
Sales data from China were not yet available and will be updated in the coming days. Japanese sales of replacement tyres fell by 2 percent in the first four months and fell by 8 percent in the month of April, as the impact of the 11 March earthquake took hold.
(European Rubber Journal, May 17, 2011)
Poor Rubber production rings alarm bells in consumer circles
WEDNESDAY, MAY 18, 2011
KOCHI (Commodity Online): Rubber production is now officially a matter of concern in India. Despite the high prices, production has not touched where it should have been mainly because of the unpredictable weather in rubber producing regions and a huge slump of prices post Japan quake.
Despite being the fourth largest producer of rubber, India still faces a huge shortage of rubber in for domestic consumption. With the rising global rubber prices Indian tyre and non-tyre industry have posed a great concern for the rubber imports for meeting the deficit due to low level of domestic rubber production. Rubber production in India has not seen any major increase in the last 4-5 years. The cumulative growth in the total rubber-plantation area has been significantly low further aggravating the problems of shortage of rubber in the domestic market.
The tyre companies heavily depend on the rubber imports. They form a large share of the total rubber demand. The rising rubber prices will result in an increase in the auto tyres prices. With the decrease in the production of natural rubber the imports are heavily exceeding exports which further increase the pressure on the domestic rubber industry.
Taxes on the import of natural rubber is as high as 20% and increasing global prices has created an alarm among the tyre manufacturing companies in India. The Rubber Board has expressed hope for the increase in the natural rubber production. However, it would still not be sufficient to meet the domestic demand.
Stretching the options for rubber
THURSDAY, MAY 19, 2011
Given the exploding demand from tyre makers and shrinking availability of land, it makes sense to look abroad for tracts to grow rubber on.
The rubber industry and tyre manufacturers are stretching out in a different direction. Moving away from their usual demand for duty free imports, they are asking the Government to replicate China's experiment of acquiring land abroad to grow natural rubber and meet rising domestic demand in the Twelfth Plan. India's natural rubber consumption last year was 0.94 million tonnes, against production of 0.85 million tonnes. The demand-supply gap can only be expected to widen. The data on new plantations and replanting would seem to support the rubber industry's argument. Replanting has taken a hit with rubber prices ruling over Rs 150 a kg since March last year, as growers did not want to replace old trees that were still giving them returns aplenty. New planting, particularly in non-traditional areas, is not yielding the desired results, with productivity being lower than expected. The traditional areas of Kerala have reached a saturation point, with ever increasing demand for land for other purposes, such as realty, tourism and other plantation crops. In such circumstances, the best option seems to be look abroad.
China has begun acquiring rubber plantations in countries such as Laos, Cambodia, Ethiopia and Vietnam. It is attempting to build a strategic reserve in rubber, just as it has done for crude oil. This is aimed at giving it a controlling interest in natural rubber. It need not be at the mercy of one country or another to get the required supply of the commodity. India's rubber industries and tyre manufacturers would like the Centre to emulate China's approach.
India can use its credibility and good offices to acquire land in Africa or in the East Asian countries. On the other hand, it will also pose a new challenge to the Rubber Board to replicate its success at home. It should be remembered that the success stories around corporates acquiring land in Africa or East Asia to grow flowers, vegetables or oilseeds may not extend naturally to rubber. Flowers, vegetables and oilseeds provide quick returns on investments, whereas it takes seven years for a new rubber plantation to begin yielding. Therefore, some sort of bilateral investment protection pact between India and the country where lands are to be acquired will provide some security. Such a long-term view is the need of the hour, given the fact that land availability in the country is shrinking fast and the explosion of growth in automobiles puts the tyre manufacturers in an unenviable position.
Tuesday, May 17, 2011
India: Spot rubber declines on global cues
India: Spot rubber declines on global cues
TUESDAY, MAY 17, 2011
KOTTAYAM, MAY 16:
Domestic rubber prices ruled weak on Monday. On the spot, the market fell in tune with the declines on the National Multi Commodity Exchange (NMCE), which subsequently reflected the global weakness in the commodity. There was no fresh demand from the tyre sector. The volumes were dull.
Sheet rubber surrendered to Rs 226 (228) a kg, according to traders. The grade slipped to Rs 227.50 (229) a kg both at Kottayam and Kochi, according to the Rubber Board.
In futures, the June series weakened to Rs 227 (230.58), July to Rs 229.61 (233.43), August to Rs 227.49 (230.01) and September to Rs 223.75 (226.62) a kg for RSS 4 on the NMCE.
The May futures for RSS 3 dropped to ¥397.2 (Rs 222.11) from ¥403.3 during the day session but then recovered partially to ¥400.6 (Rs 224.05) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 226 (228); RSS-5: 225 (226); ungraded: 222 (224); ISNR 20: 217 (219) and latex 60 per cent: 136 (136).
Tokyo rubber futures ease
TUESDAY, MAY 17, 2011
Tokyo (may 17, 2011) : key tokyo rubber futures eased on monday after gaining 3 percent last week, pulled lower by a drop in oil prices and weaker technical indicators. the benchmark tocom rubber futures for october delivery settled down 1.1 yen or 0.3 percent at 370.4 yen per kg. the contract's 3 percent climb last week was the first weekly gain for a benchmark contract since mid-april.
the october contract settled below the 200-day moving average, which stood at 379.2 yen on monday, indicating a bearish technical outlook, traders said. the most active shanghai rubber futures contract for september delivery closed down 305 yuan or 1 percent at 31,205 yuan ($4,802.137) per tonne on monday against friday's close of 31,510 yuan. volume rose to 1.2 million lots from friday's 1.16 million lots. japan's crude rubber inventories rose 8.5 percent in the 10 days to april 30, rubber trade association of japan data showed on monday, reflecting weaker demand from automakers, whose production was hit by the march 11 earthquake and tsunami.
India: Dumping duty to continue on rubber chemicals from EU, China
TUESDAY, MAY 17, 2011
NEW DELHI, MAY 16:
The Designated Authority in the Commerce Ministry has proposed continuation of the definitive anti-dumping duty on imports of certain rubber chemicals from the European Union and China, even as the extant dumping duty on the subject goods expired on May 11.
It, however, made no case for continued injury of the subject goods from Chinese Taipei and the US, which were paying the dumping duty in the past, on grounds that there was no export from these countries during the period of present probe and in the last two years.
THE PRODUCTS
In its final findings on the sunset review it has undertaken following the petition it received from the original mover, the Authority clarified that the product under review relates to certain rubber chemicals namely ‘PX13' from the EU and Chinese Taipei, ‘MOR' from China and ‘TDQ' from the EU and Chinese Taipei.
These rubber chemicals are extensively used in treating natural rubber, synthetic rubber (SBR, Butadiene rubber, nitrile rubber, carboxylated rubber) and other synthetic rubber based compounds used for manufacture of various rubber products.
In its final findings in the sunset review, the Authority said despite the existence of the anti-dumping duty, the imports of ‘PX13' increased marginally over the injury period. More importantly, these imports are at dumped prices and they are undercutting and underselling the prices of the subject goods of the domestic industry. Hence it feared that the cessation of the anti-dumping duty is likely to lead to the persistence of dumping and consequent injury to the indigenous industry.
In the case of another rubber chemical ‘MOR', the Authority found that the dumping margin from the EU is negative, while in the case of China the price under-cutting and price under-selling is positive even after applying the anti-dumping duty in force.
As injury to the domestic industry is likely to recur in case the present anti-dumping duty lapses and based on information available on record, the Authority said the anti-dumping duty on ‘MOR' for China is required to be extended and modified.
In the case of ‘TDQ' rubber chemicals, the dumping margin from the EU is significant and above the de-minimis limit prescribed. Hence the Authority has proposed to extend and modify the existing anti-dumping duty on this product from China.
THE DUTY
Thus in the case of the producer-exporter of rubber chemical ‘PX13' Solutia Inc from the EU would have to shell out a definitive anti-dumping duty of $810 a tonne, any other producer or exporter from the EU would have to pay $928 a tonne for export of the subject goods to India.
In the case of rubber chemical ‘MOR' while producers/exporters from China would have to pay a definitive anti-dumping duty of $770 a tonne, producers/exporters from the EU would have to fork out a definitive anti-dumping duty of $262 a tonne, the Authority said.
Natural rubber output may rise 4.6%, says Board
TUESDAY, MAY 17, 2011
The Rubber Board has projected an increase of 4.6 per cent in natural rubber (NR) output at 902,000 tonnes for the current financial year as against 861,950 tonnes in 2010-11. According to the board, total domestic consumption of NR would be 977,000 tonnes depicting a growth of 2.9 per cent as against 949,205 tonnes in the last financial year.
The board’s latest projection differ with the estimates of All India Rubber Industries Association (AIRIA) and Automotive Tyre Manufacturers Association (Atma). The associations had said that in the last four financial years NR production had increased only one per cent, while the consumption increased more than 15 per cent.
In the current financial year, according to industry estimates, domestic consumption is likely to lag behind production by 189,000 tonnes. New capacities and major expansion plans undertaken by tyre companies to cater to booming automobile industry will lead to an increase of 150,000 tonnes in consumption.
Refuting board’s projection on consumption, AIRIA and Atma said by the end of this financial year consumption would be 1.08 million tonnes, up 150,000 tonnes, leading to a gap of 189,000 tonnes in the local supply and demand. But the board projects a shortage of 75,000 tonnes only.
There would be a reduction in imports, this year, according to board’s projection. It projects imports to be 120,000 tonnes as against 177,637 tonnes last year. Also, it projects export of 50,000 tonnes of NR as against 29,851 tonnes in 2010-11.
Though the supply-demand gap of NR is widening every year and both AIRIA and Atma strongly argue for revamping calculation of stock in the country, the board expressed optimism that there would be 271,000 tonnes of stock by March 31, 2012, against 276,110 tonnes in this March.
In a submission to the Rubber Board, AIRIA and Atma have demanded that the definition of NR stock should be changed to that of ‘saleable stock’ in line with market realities. Despite high NR prices, prevailing for the last three-four years, domestic stock is progressively on an increase. This is contrary to the real situation in the market and to the trend in other major NR producing and consuming countries.
According to the latest estimates of the board, 32 per cent of the total rubber production is kept as stock as on March 31. This is a highly inflated figure and the method of calculating the stock should be thoroughly revamped.
This misleading figure of the Board wrongly influences the government policy decisions. This influences the ministry of commerce not to allow duty-free import. AIRIA and Atma had demanded 200,000 tonnes of duty-free import this financial year.
Meanwhile, in April, NR production increased to 56,800 tonnes, up 6.2 per cent, against 53,500 tonnes in last April. Monthly consumption in April increased 1.2 per cent to 82,500 tonnes as against 78,250 tonnes in April, 2010. The month end stock was 250,250 tonnes.
TUESDAY, MAY 17, 2011
KOTTAYAM, MAY 16:
Domestic rubber prices ruled weak on Monday. On the spot, the market fell in tune with the declines on the National Multi Commodity Exchange (NMCE), which subsequently reflected the global weakness in the commodity. There was no fresh demand from the tyre sector. The volumes were dull.
Sheet rubber surrendered to Rs 226 (228) a kg, according to traders. The grade slipped to Rs 227.50 (229) a kg both at Kottayam and Kochi, according to the Rubber Board.
In futures, the June series weakened to Rs 227 (230.58), July to Rs 229.61 (233.43), August to Rs 227.49 (230.01) and September to Rs 223.75 (226.62) a kg for RSS 4 on the NMCE.
The May futures for RSS 3 dropped to ¥397.2 (Rs 222.11) from ¥403.3 during the day session but then recovered partially to ¥400.6 (Rs 224.05) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 226 (228); RSS-5: 225 (226); ungraded: 222 (224); ISNR 20: 217 (219) and latex 60 per cent: 136 (136).
Tokyo rubber futures ease
TUESDAY, MAY 17, 2011
Tokyo (may 17, 2011) : key tokyo rubber futures eased on monday after gaining 3 percent last week, pulled lower by a drop in oil prices and weaker technical indicators. the benchmark tocom rubber futures for october delivery settled down 1.1 yen or 0.3 percent at 370.4 yen per kg. the contract's 3 percent climb last week was the first weekly gain for a benchmark contract since mid-april.
the october contract settled below the 200-day moving average, which stood at 379.2 yen on monday, indicating a bearish technical outlook, traders said. the most active shanghai rubber futures contract for september delivery closed down 305 yuan or 1 percent at 31,205 yuan ($4,802.137) per tonne on monday against friday's close of 31,510 yuan. volume rose to 1.2 million lots from friday's 1.16 million lots. japan's crude rubber inventories rose 8.5 percent in the 10 days to april 30, rubber trade association of japan data showed on monday, reflecting weaker demand from automakers, whose production was hit by the march 11 earthquake and tsunami.
India: Dumping duty to continue on rubber chemicals from EU, China
TUESDAY, MAY 17, 2011
NEW DELHI, MAY 16:
The Designated Authority in the Commerce Ministry has proposed continuation of the definitive anti-dumping duty on imports of certain rubber chemicals from the European Union and China, even as the extant dumping duty on the subject goods expired on May 11.
It, however, made no case for continued injury of the subject goods from Chinese Taipei and the US, which were paying the dumping duty in the past, on grounds that there was no export from these countries during the period of present probe and in the last two years.
THE PRODUCTS
In its final findings on the sunset review it has undertaken following the petition it received from the original mover, the Authority clarified that the product under review relates to certain rubber chemicals namely ‘PX13' from the EU and Chinese Taipei, ‘MOR' from China and ‘TDQ' from the EU and Chinese Taipei.
These rubber chemicals are extensively used in treating natural rubber, synthetic rubber (SBR, Butadiene rubber, nitrile rubber, carboxylated rubber) and other synthetic rubber based compounds used for manufacture of various rubber products.
In its final findings in the sunset review, the Authority said despite the existence of the anti-dumping duty, the imports of ‘PX13' increased marginally over the injury period. More importantly, these imports are at dumped prices and they are undercutting and underselling the prices of the subject goods of the domestic industry. Hence it feared that the cessation of the anti-dumping duty is likely to lead to the persistence of dumping and consequent injury to the indigenous industry.
In the case of another rubber chemical ‘MOR', the Authority found that the dumping margin from the EU is negative, while in the case of China the price under-cutting and price under-selling is positive even after applying the anti-dumping duty in force.
As injury to the domestic industry is likely to recur in case the present anti-dumping duty lapses and based on information available on record, the Authority said the anti-dumping duty on ‘MOR' for China is required to be extended and modified.
In the case of ‘TDQ' rubber chemicals, the dumping margin from the EU is significant and above the de-minimis limit prescribed. Hence the Authority has proposed to extend and modify the existing anti-dumping duty on this product from China.
THE DUTY
Thus in the case of the producer-exporter of rubber chemical ‘PX13' Solutia Inc from the EU would have to shell out a definitive anti-dumping duty of $810 a tonne, any other producer or exporter from the EU would have to pay $928 a tonne for export of the subject goods to India.
In the case of rubber chemical ‘MOR' while producers/exporters from China would have to pay a definitive anti-dumping duty of $770 a tonne, producers/exporters from the EU would have to fork out a definitive anti-dumping duty of $262 a tonne, the Authority said.
Natural rubber output may rise 4.6%, says Board
TUESDAY, MAY 17, 2011
The Rubber Board has projected an increase of 4.6 per cent in natural rubber (NR) output at 902,000 tonnes for the current financial year as against 861,950 tonnes in 2010-11. According to the board, total domestic consumption of NR would be 977,000 tonnes depicting a growth of 2.9 per cent as against 949,205 tonnes in the last financial year.
The board’s latest projection differ with the estimates of All India Rubber Industries Association (AIRIA) and Automotive Tyre Manufacturers Association (Atma). The associations had said that in the last four financial years NR production had increased only one per cent, while the consumption increased more than 15 per cent.
In the current financial year, according to industry estimates, domestic consumption is likely to lag behind production by 189,000 tonnes. New capacities and major expansion plans undertaken by tyre companies to cater to booming automobile industry will lead to an increase of 150,000 tonnes in consumption.
Refuting board’s projection on consumption, AIRIA and Atma said by the end of this financial year consumption would be 1.08 million tonnes, up 150,000 tonnes, leading to a gap of 189,000 tonnes in the local supply and demand. But the board projects a shortage of 75,000 tonnes only.
There would be a reduction in imports, this year, according to board’s projection. It projects imports to be 120,000 tonnes as against 177,637 tonnes last year. Also, it projects export of 50,000 tonnes of NR as against 29,851 tonnes in 2010-11.
Though the supply-demand gap of NR is widening every year and both AIRIA and Atma strongly argue for revamping calculation of stock in the country, the board expressed optimism that there would be 271,000 tonnes of stock by March 31, 2012, against 276,110 tonnes in this March.
In a submission to the Rubber Board, AIRIA and Atma have demanded that the definition of NR stock should be changed to that of ‘saleable stock’ in line with market realities. Despite high NR prices, prevailing for the last three-four years, domestic stock is progressively on an increase. This is contrary to the real situation in the market and to the trend in other major NR producing and consuming countries.
According to the latest estimates of the board, 32 per cent of the total rubber production is kept as stock as on March 31. This is a highly inflated figure and the method of calculating the stock should be thoroughly revamped.
This misleading figure of the Board wrongly influences the government policy decisions. This influences the ministry of commerce not to allow duty-free import. AIRIA and Atma had demanded 200,000 tonnes of duty-free import this financial year.
Meanwhile, in April, NR production increased to 56,800 tonnes, up 6.2 per cent, against 53,500 tonnes in last April. Monthly consumption in April increased 1.2 per cent to 82,500 tonnes as against 78,250 tonnes in April, 2010. The month end stock was 250,250 tonnes.
Saturday, May 14, 2011
Malaysia March rubber output down 7.7pc
Malaysia March rubber output down 7.7pc
THURSDAY, MAY 12, 2011
Natural rubber output fell 29.1 per cent to 64,932 tonnes in March, from 91,580 tonnes registered a month earlier, and dipped 7.7 per cent when compared with 70,318 tonnes produced in the same month last year.
The Statistics Department said stocks declined 18.9 per cent to 154,493 tonnes, at end-March, from 190,565 tonnes, recorded end-February.
Exports surged 59.4 per cent to 111,020 tonnes in March from an offtake of 69,638 tonnes registered in February.
However, natural rubber imports increased 8.8 per cent to 58,833 tonnes compared with 54,083 tonnes imported in the previous month.
Domestic consumption rose 17.4 per cent to 36,161 tonnes in March from 30,810 tonnes recorded in February. -- Bernama
Read more: Malaysia March rubber output down 7.7pc http://www.btimes.com.my/articles/20110512132242/Article/#ixzz1M93BVrJ2
Monsoon may break over Kerala on May 31: IMD
THIRUVANANTHAPURAM, MAY 13:
The south-west monsoon is likely to break over Kerala on May 31 with a model error of four days to either side of the mean, India Meteorological Department (IMD) announced on Friday.
The monsoon normally advances over Andaman Sea around May 20, the IMD said in a special bulletin.
As of now, the monsoon flow is expected to make the onset over Andaman Sea within “the next few days” and is likely to cover the Andaman Sea close to its normal date.
Past data suggest absence of any one to one association between the date of monsoon advance over Andaman Sea and the date of monsoon onset over Kerala.
From 2005 onwards, the IMD has been issuing operational forecasts for the monsoon onset over Kerala using an indigenously developed statistical model with a model error of plus or minus four days.
For predicting the 2011 monsoon onset over Kerala, the model based on ‘principal component regression technique' uses the six predictors of (i) Minimum temperature over northwest India, (ii) pre-monsoon rainfall peak over south peninsula, (iii) outgoing long wave radiation (OLR) over south China Sea, (iv) lower tropospheric zonal wind over southeast Indian ocean, (v) upper tropospheric zonal wind over the east equatorial Indian Ocean, and (vi) OLR over southwest Pacific region.
While the IMD has given out a four-day margin on either side of the May 31 mean for the onset over Kerala, global models seem to suggest that it could happen any time after May 25.
It is more or less likely that it would unfold before May 31 and not after it, making the onset fall within the four-day band ahead of the date set by IMD.
Meanwhile, the 24 hours ending Friday morning saw fairly widespread rainfall being reported from Assam and Meghalaya, Arunachal Pradesh and sub-Himalayan
West Bengal as the pre-monsoon season prospered to the east.
The rains were scattered over western Himalayan region and isolated over Punjab, Haryana, west Uttar Pradesh, Gangetic West Bengal, Nagaland, Manipur, Mizoram, Tripura, Orissa, coastal Andhra Pradesh, Kerala and south interior Karnataka. Satellite imagery on Friday afternoon showed the presence of convective (rain-bearing) clouds over Assam, Meghalaya, Bihar, north Andaman Sea and southwest Arabian Sea.
A weather warning issued by the IMD said that isolated thunder squalls would occur over Bihar, Jharkhand, West Bengal, Sikkim and the Northeastern States until Monday.
Isolated dust storms or thunderstorms accompanied with squall would occur over Rajasthan, Punjab, Haryana, Delhi and west Uttar Pradesh until Sunday.
An extended outlook valid until Wednesday said that fairly widespread rain or thundershowers would occur over the Northeastern States and scattered over adjoining east India, Kerala and Lakshadweep.
Natural rubber output up 6% in April
Natural rubber production in April increased by more than six per cent to 56,800 tonnes while consumption also rose by more than five per cent to 82,500 tonnes, according to the latest Rubber Board data.
The country’s natural rubber production and consumption in the year-ago period stood at 53,500 tonnes and 78,250 tonnes, respectively, the data said.
Demand for natural rubber on a month-on-month basis rose 1.22 per cent in April to 82,500 tonnes compared with 81,500 tonnes. However, the exports projected a dismal picture.
Outbound shipments of the commodity declined by 53.16 per cent to 1,043 tonnes compared with 2,227 tonnes in the corresponding period of the previous year, the Rubber Data said.
Similarly, import of natural rubber during the period under review declined by more than 92 per cent to 843 tonnes from 10,876 tonnes in the year-ago period, it added.
Natural rubber stocks also rose by almost 28 per cent to 2,50,250 tonnes from 1,96,015 tonnes.
Keywords: natural rubber, production, consumption, Rubber Board data
THURSDAY, MAY 12, 2011
Natural rubber output fell 29.1 per cent to 64,932 tonnes in March, from 91,580 tonnes registered a month earlier, and dipped 7.7 per cent when compared with 70,318 tonnes produced in the same month last year.
The Statistics Department said stocks declined 18.9 per cent to 154,493 tonnes, at end-March, from 190,565 tonnes, recorded end-February.
Exports surged 59.4 per cent to 111,020 tonnes in March from an offtake of 69,638 tonnes registered in February.
However, natural rubber imports increased 8.8 per cent to 58,833 tonnes compared with 54,083 tonnes imported in the previous month.
Domestic consumption rose 17.4 per cent to 36,161 tonnes in March from 30,810 tonnes recorded in February. -- Bernama
Read more: Malaysia March rubber output down 7.7pc http://www.btimes.com.my/articles/20110512132242/Article/#ixzz1M93BVrJ2
Monsoon may break over Kerala on May 31: IMD
THIRUVANANTHAPURAM, MAY 13:
The south-west monsoon is likely to break over Kerala on May 31 with a model error of four days to either side of the mean, India Meteorological Department (IMD) announced on Friday.
The monsoon normally advances over Andaman Sea around May 20, the IMD said in a special bulletin.
As of now, the monsoon flow is expected to make the onset over Andaman Sea within “the next few days” and is likely to cover the Andaman Sea close to its normal date.
Past data suggest absence of any one to one association between the date of monsoon advance over Andaman Sea and the date of monsoon onset over Kerala.
From 2005 onwards, the IMD has been issuing operational forecasts for the monsoon onset over Kerala using an indigenously developed statistical model with a model error of plus or minus four days.
For predicting the 2011 monsoon onset over Kerala, the model based on ‘principal component regression technique' uses the six predictors of (i) Minimum temperature over northwest India, (ii) pre-monsoon rainfall peak over south peninsula, (iii) outgoing long wave radiation (OLR) over south China Sea, (iv) lower tropospheric zonal wind over southeast Indian ocean, (v) upper tropospheric zonal wind over the east equatorial Indian Ocean, and (vi) OLR over southwest Pacific region.
While the IMD has given out a four-day margin on either side of the May 31 mean for the onset over Kerala, global models seem to suggest that it could happen any time after May 25.
It is more or less likely that it would unfold before May 31 and not after it, making the onset fall within the four-day band ahead of the date set by IMD.
Meanwhile, the 24 hours ending Friday morning saw fairly widespread rainfall being reported from Assam and Meghalaya, Arunachal Pradesh and sub-Himalayan
West Bengal as the pre-monsoon season prospered to the east.
The rains were scattered over western Himalayan region and isolated over Punjab, Haryana, west Uttar Pradesh, Gangetic West Bengal, Nagaland, Manipur, Mizoram, Tripura, Orissa, coastal Andhra Pradesh, Kerala and south interior Karnataka. Satellite imagery on Friday afternoon showed the presence of convective (rain-bearing) clouds over Assam, Meghalaya, Bihar, north Andaman Sea and southwest Arabian Sea.
A weather warning issued by the IMD said that isolated thunder squalls would occur over Bihar, Jharkhand, West Bengal, Sikkim and the Northeastern States until Monday.
Isolated dust storms or thunderstorms accompanied with squall would occur over Rajasthan, Punjab, Haryana, Delhi and west Uttar Pradesh until Sunday.
An extended outlook valid until Wednesday said that fairly widespread rain or thundershowers would occur over the Northeastern States and scattered over adjoining east India, Kerala and Lakshadweep.
Natural rubber output up 6% in April
Natural rubber production in April increased by more than six per cent to 56,800 tonnes while consumption also rose by more than five per cent to 82,500 tonnes, according to the latest Rubber Board data.
The country’s natural rubber production and consumption in the year-ago period stood at 53,500 tonnes and 78,250 tonnes, respectively, the data said.
Demand for natural rubber on a month-on-month basis rose 1.22 per cent in April to 82,500 tonnes compared with 81,500 tonnes. However, the exports projected a dismal picture.
Outbound shipments of the commodity declined by 53.16 per cent to 1,043 tonnes compared with 2,227 tonnes in the corresponding period of the previous year, the Rubber Data said.
Similarly, import of natural rubber during the period under review declined by more than 92 per cent to 843 tonnes from 10,876 tonnes in the year-ago period, it added.
Natural rubber stocks also rose by almost 28 per cent to 2,50,250 tonnes from 1,96,015 tonnes.
Keywords: natural rubber, production, consumption, Rubber Board data
Wednesday, May 11, 2011
Rubber-based industry slowing down
Rubber-based industry slowing down
TUESDAY, MAY 10, 2011
BANGKOK, 9 May 2011 – Over 30,000 workers in the rubber-based industry have been affected by the twin disasters in Japan as car tyre factories are reducing production capacity, according to the Federation of Thai Industries (FTI).
FTI Rubber Based Industry Club President Dr Chayo Trangadisaikul stated that 15 domestic car tyre manufacturers have reduced production capacity by 30-40% and cut overtime (OT) operations; thereby, over 30,000 workers in the industry are affected.
Car tyre production is slowing down after the auto industry has reduced vehicle production by 150,000 units in the second quarter this year since car factories are lacking supplies of auto parts from Japan which was struck by a massive earthquake and a deadly tsunami in March.
Dr Chayo further reported that the rubber-based industry hence could shrink by about 20% and lose approximately 900 million baht in revenue in the second quarter. He admitted that damages would be higher if the auto industry in Thailand could not resume production in the third quarter this year.
The president expected that the value of the rubber-based industry for the whole year would be around 100 billion baht, down from the value last year of 120-130 billion baht. According to him, the stagnant auto industry is tentatively the major factor of the fall since it accounts for 60% of the rubber-based industrial outputs.
Dr Chayo suggested that entrepreneurs should export para rubber and car tyre materials to other countries such as Russia, China, Brazil and India where para rubber demands are high, as well as to other ASEAN countries such as Indonesia, the Philippines, Vietnam and Myanmar.
Tyre units seek duty-free import of 2 L. tonnes NR
TUESDAY, MAY 10, 2011
KOCHI, MAY 10:
Projecting a 1,89,000-tonne deficit in production of natural rubber during 2011-12, the tyre industry has asked the Government to bridge the gap by allowing duty-free import of 200,000 tonnes.
In the last four financial years, the production has increased by only 1 per cent, while consumption has increased by over 15 per cent, the All-India Tyre Manufacturers Association (ATMA) Director-General, Mr Rajiv Budhraja, told reporters here today.
During the current fiscal, domestic consumption is likely to lag behind production by 189,000 tonnes.
New capacities and major expansions undertaken by tyre companies to cater to the booming automobile industry will lead to an increase in consumption by 15,000 tonnes, he said.
The Rubber Board has projected an increase in consumption by only 40,000 tonnes during the current financial year and the gap between domestic production and consumption has been projected at 75,000 tonnes.
The “conservative consumption estimates by the board might impact the desired policy making for rubber sector”, he said.
AITMA and the All-India Rubber Industries Association (AIRIA) also made presentations before the Rubber Board at Kottayam, stating that taking a cue from China, urgent policy interventions are imperative to ensure timely and competitively priced availability of natural rubber to user industries.
In view of the widening gap between natural rubber supply and demand, coupled with growth in tyre demand, a rise in volume of imports of finished products is likely in light of the constraints to domestic production.
As a result, value addition of natural rubber to produce finished products, particularly tyres, will take place outside the country, especially in China, which has ensured adequate and timely availability of natural rubber to its industry through timely interventions, including acquisition of land outside the country, he said.
The AIRIA President, Mr Vinod Simon, said with the growing deficit between production and consumption, rubber imports were inevitable, failing which the import of finished products will take place, denying the opportunity of value addition within the country.
Domestic natural rubber deficit and expensive imports have been inhibiting the “full blossoming” of the industry in the country, he added.
Natural rubber deficit projected at 1,89,000 tonnes
TUESDAY, MAY 10, 2011
Kochi, May 10 (PTI) Projecting a 1,89,000-tonne deficit in production of natural rubber in the country during 2011-12, the tyre industry today asked the government to bridge the gap by allowing the duty-free import of 200,000 tonnes.
In the last four financial years, natural rubber production has increased by only 1 per cent, while consumption has increased by over 15 per cent, All-India Tyre Manufacturers Association (ATMA) Director General Rajiv Budhraja told reporters here.
In the current fiscal, domestic consumption is likely to lag behind production by 189,000 tonnes.
New capacities and major expansions undertaken by tyre companies to cater to the booming automobile industry will lead to an increase in consumption by 15,000 tonnes, he said.
The Rubber Board has projected an increase in consumption by only 40,000 tonnes during the current financial year and the gap between domestic production and consumption has been projected at 75,000 tonnes.
The "conservative consumption estimates by the board might impact the desired policy making for rubber sector", he said.
AITMA and the All-India Rubber Industries Association (AIRIA) also made presentations before the Rubber Board at Kottayam, stating that taking a cue from China, urgent policy interventions are imperative to ensure timely and competitively priced availability of natural rubber to user industries.
In view of the widening gap between natural rubber supply and demand, coupled with growth in tyre demand, a rise in volume of imports of finished products is likely in light of the constraints to domestic production.
As a result, value addition of natural rubber to produce finished products, particularly tyres, will take place outside the country, especially in China, which has ensured adequate and timely availability of natural rubber to its industry through timely interventions, including acquisition of land outside the country, he said.
AIRIA President Vinod Simon said with the growing deficit between production and consumption, rubber imports were inevitable, failing which the import of finished products will take place, denying the opportunity of value addition within the country.
The domestic natural rubber deficit and expensive imports have been inhibiting the "full blossoming" of the rubber industry in the country, he added.
Tokyo rubber futures up
TUESDAY, MAY 10, 2011
Tokyo (may 10, 2011) : key tokyo rubber futures inched higher on monday as sentiment improved with stabilising commodity markets, and investors found price levels attractive after a sell-off late last week. the benchmark tocomrubber futures for october delivery was up 1.4 yen, or 0.4 percent, at 362.5 yen per kg as of 0009 gmt.
tokyo rubber futures dropped 6.6 percent on friday on heavy stop-loss selling, triggered by a strengthening japanese yen and weaker oil prices, while a broad sell-off in other commodities added to the downward pressure on prices, dealers said. on friday, the october contract fell as much as 8 percent to an intra-day low of 353.2 yen, its lowest since march 16.
the most active shanghai rubber futures contract for september delivery was down 90 yuan to settle at 30,290 yuan ($4,664.660) per tonne on friday. honda motor co said it has decided to market its civic gx natural-gas-powered car in the united states, starting this fall, the nikkei business daily said.
japan's crude rubber inventories inched down 8 tonnes in the 10 days to april 20, rubber trade association of japan data showed on friday. rubber inventories in warehouses monitored by the shanghai futures exchange fell 8.4 percent last week, the exchange said.
SICOM Futures To Move To SGX Next Week
TUESDAY, MAY 10, 2011
Singapore Exchange said its derivative market will from 16 May add rubber futures to its commodities suite with the migration of SICOM rubber contracts onto the SGX trading platform.
SGX said, "The addition of SICOM TSR 20 and SICOM RSS 3 rubber futures will enable more international traders to participate in the contracts, thereby enhancing liquidity." The rubber contracts have a history which dates back to the 1920s and are pricing benchmarks for regional and global rubber producers, manufacturers, traders and consumers. From 16 May, TSR 20 rubber contracts traded over-the-counter will also be cleared by SGX AsiaClear.
Mr Gan Seow Ann, president of SGX said, “By bringing together all our commodities futures on our derivatives market, SGX strengthens its commitment to deliver Asia with Global Reach. Our customers will benefit from more opportunities to trade and manage their risk exposures in the region.”
(European Rubber Journal, May 9, 2011)
Tyre Firms in India Plan To Raise Prices
TUESDAY, MAY 10, 2011
Tyre companies in India are planning one more raise in prices, from next month, to cover the rising cost of rubber, a key raw material.
“Tyre companies have raised their prices in the past to deal with high rubber prices, but it still does not cover the total cost of production,” said Rajiv Budharaja, director general of the Automotive Tyre Manufacturers’ Association, the apex body.
Natural rubber prices on the spot market in India had touched a high of Rs 242 per kg this year, 40 per cent higher from a year before. These have since moderated to Rs 228 a kg, on increasing arrivals of the new crop. More softening is expected on increased arrival. Ceat had increased prices by five per cent in April and is planning a further one in May, by another four to five per cent. “It is inevitable,” said Arnab Banerjee, executive director, operations. “Consumers might not be able to accept full cost but a certain amount of price hike is necessary.”
MRF says its raw material costs have risen by 51 per cent over the past year. As a result, its profits declined to Rs 898 million from Rs 958 million, a fall of six per cent. Ceat’s raw material costs have gone up by 55 per cent. It has reported a net loss of Rs 179 million compared to a net profit of Rs 215 million a year before.
(Sify Finance, India, May 10, 2011)
NR Prices In Up-And-Down Movements
TUESDAY, MAY 10, 2011
Prices on Tokyo’s rubber exchanges moved sharply upward over the weekend, though forecasters say prices are likely to drop further this week.
On Tokyo's Tocom Exchange, prices for the six-month contract closed up by yen 14 at yen 373 ($4.62) per kg on Monday 9 May. Shorter-dated prices were higher, at around yen 410.
In Singapore, Sicom said short-dated RSS3 closed down by some $0.12 at around $5.10 with longer-dated contracts trading at around $4.65. Short-dated TSR 20 closed down by $0.10 at $4.34
Prices on India's NMCE exchange closed up Rs 6 at Rs 227 ($5.08 per kilo).
In China, the Shanghai Futures Exchange saw prices recover by about half a yuan, with May deliveries trading at around Yuan 34.7 ($5.34) per kilo
(European Rubber Journal, May 9, 2011)
Rubber prices may stabilize next few weeks - CRTA
TUESDAY, MAY 10, 2011
The recent tumble of rubber prices, both in international and domestic markets are expected to pick up at least by the end of May, said Vice Chairman of Colombo Rubber Traders’ Association (CRTA) and Managing Director of Kegalle Plantations PLC, Sunil Poholiyadde.
“The reason for the slight dip in prices has been the falling rubber prices in the global market, especially those supplied by Thailand which represents 30%-40% of natural rubber requirement.”
He pointed out that commodity prices as a whole have come down due to the unfavorable weather conditions in the country as well as global events taking place. The recent natural disasters also affected main buyer Japan.
“We are heading towards the south-western monsoon, where tapping will end. However, we don’t expect to see a drastic drop in prices,” Poholiyadde added. He mentioned that the present supply cannot meet both local and international market demands, due to low production capacities in Thailand.
Damitha Fernando of Forbes and Walker said that prices were overdone in the market in the recent past. “Due to continuous rains, production has been quite low, but now the prices are stabilizing gradually,” he added. “We can expect the prices to come down to between Rs. 475-500 as long as there is no extensive damage to the crops.”
Malaysian Rubber Players May Opt To Stay Sidelined
TUESDAY, MAY 10, 2011
Prices on the Malaysian rubber market are expected to trade soft next week on lack demand due the current higher prices, dealers said.
They said the prices are expected to decline between eight and 10 per cent lower on the back of weak demand for the commodity.
"Most players may opt to delay fresh purchases and remain sidelined until prices begin to fall," a dealer said.
On a week-to-week basis, the Malaysian Rubber board (MRB) official physical price for tyre grade SMR 20, decreased 59.0 sen to 1,304.5 sen per kg from the 1,363.5 sen per kg last Friday (May 6).
Latex in bulk fell 30.0 sen to settle at 956.0 sen per kg from 985.0 sen per kg previously.
The unofficial closing price for SMR 20 lost 73.0 sen to 1,292.0 sen per kg from 1,365.0 sen per kg last Friday (May 6) and latex-in-bulk shed 30.0 sen to 951.0 sen per kg from 982.0 sen per kg previously.
(Business Times, Malaysia, May 7, 2011)
Asian physical rubber underpressure
TUESDAY, MAY 10, 2011
Singapore (may 08, 2011) : a few cargoes of tyre grade rubber changed hands for nearby shipments, but the physical market was under pressure from a lack of demand from main consumer china despite falling inventories there, dealers said on wednesday. rubber inventories monitored by the shanghai futures exchange stood at 5,065 tonnes as of last week, the lowest in at least two years.
prices of tyre grade have tumbled since hitting a record on february after a devastating earthquake in japan hit auto production, and china tightened the economy - triggering heavy selling in tokyo and shanghai rubber futures. thai rss3, often seen as benchmark in the physical market, was traded late on tuesday at $5.30 a kg for june shipment, far below a record of $6.40 quoted in february. indonesia and malaysian grades changed hands below $5 a kg.
"china consumers realise the market is being kept down and are just buying hand to mouth," said a dealer in singapore, who mainly trades indonesian grade. the most active contract on shanghai rubber futures, september 2011 ended at 31,145 yuan a tonne on wednesday, down from tuesday's closing of 31,760 yuan on worries about more measures from china to fight inflation. tokyo rubber futures, which set the tone for physical prices, were closed for a holiday.
the official china securities journal cited central bank vice governor yi gang as saying that china would keep mopping up excess cash in the economy by raising cash reserve requirements for banks, adding that measures taken dampen prices would show results in the second half of the year. "the physical consumption has been falling month on month china's economic growth in the second quarter will definitely slow down," said guo cheng, an analyst with yong'an futures.
dealers said tyre makers such as bridgestone were still in the market, while china's lack of interest showed that local tyre makers turned to rely on inventories in qingdao bonded area, which are not disclosed to the public, but make up the bulk of the country's rubber stocks.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1186308:asian-physical-rubber-underpressure.html?hl=rubber)
Rubber to trade soft this week
TUESDAY, MAY 10, 2011
KUALA LUMPUR: Prices on the Malaysian rubber market are expected to trade soft this week on lack demand due the current higher prices, dealers said.
They said the prices are expected to decline between eight and 10% lower on the back of weak demand for the commodity.
“Most players may opt to delay fresh purchases and remain sidelined until prices begin to fall,” a dealer said.
On a week-to-week basis, the Malaysian Rubber board (MRB) official physical price for tyre grade SMR 20, decreased 59.0 sen to 1,304.5 sen per kg from the 1,363.5 sen per kg previous Friday. Latex in bulk fell 30.0 sen to settle at 956.0 sen per kg from 985.0 sen per kg previously.
The unofficial closing price for SMR 20 lost 73.0 sen to 1,292.0 sen per kg from 1,365.0 sen per kg previous Friday and latex-in-bulk shed 30.0 sen to 951.0 sen per kg from 982.0 sen per kg previously. Bernama
China continues anti-dumping measures against imported chloroprene rubber
TUESDAY, MAY 10, 2011
BEIJING, May 9 (Xinhua)-- The Chinese Ministry of Commerce (MOC) announced on Monday that it will continue to impose anti-dumping measures on chloroprene rubber imported from Japan, the United States and the European Union for another five years.
The extended anti-dumping measures will take effect beginning Tuesday with a term of five years, according to a statement on the MOC's web.
The decision came after a 12-month investigation by the MOC to review measures it had imposed in 2005.
China's domestic chloroprene rubber producers filed an application for a re-examination of the anti-dumping measures against Japanese, U.S and EU rubber exporters in March of last year.
During the investigation that began on May 9, 2010, the MOC found that dumping by Japan, the U.S. and the EU would be very likely to continue if the anti-dumping measures came to an end, which would damage China's chloroprene rubber industry, according to the statement.
In May 2005 the MOC imposed anti-dumping duties ranging from 2 percent to 151 percent on imported chloroprene rubber from Japan, the U.S. and the EU with a term of 5 years.
Chloroprene rubber, commonly known as Neoprene, is mostly used in manufacturing electrical cables and other types of cables, as well as water-proof products.
TUESDAY, MAY 10, 2011
BANGKOK, 9 May 2011 – Over 30,000 workers in the rubber-based industry have been affected by the twin disasters in Japan as car tyre factories are reducing production capacity, according to the Federation of Thai Industries (FTI).
FTI Rubber Based Industry Club President Dr Chayo Trangadisaikul stated that 15 domestic car tyre manufacturers have reduced production capacity by 30-40% and cut overtime (OT) operations; thereby, over 30,000 workers in the industry are affected.
Car tyre production is slowing down after the auto industry has reduced vehicle production by 150,000 units in the second quarter this year since car factories are lacking supplies of auto parts from Japan which was struck by a massive earthquake and a deadly tsunami in March.
Dr Chayo further reported that the rubber-based industry hence could shrink by about 20% and lose approximately 900 million baht in revenue in the second quarter. He admitted that damages would be higher if the auto industry in Thailand could not resume production in the third quarter this year.
The president expected that the value of the rubber-based industry for the whole year would be around 100 billion baht, down from the value last year of 120-130 billion baht. According to him, the stagnant auto industry is tentatively the major factor of the fall since it accounts for 60% of the rubber-based industrial outputs.
Dr Chayo suggested that entrepreneurs should export para rubber and car tyre materials to other countries such as Russia, China, Brazil and India where para rubber demands are high, as well as to other ASEAN countries such as Indonesia, the Philippines, Vietnam and Myanmar.
Tyre units seek duty-free import of 2 L. tonnes NR
TUESDAY, MAY 10, 2011
KOCHI, MAY 10:
Projecting a 1,89,000-tonne deficit in production of natural rubber during 2011-12, the tyre industry has asked the Government to bridge the gap by allowing duty-free import of 200,000 tonnes.
In the last four financial years, the production has increased by only 1 per cent, while consumption has increased by over 15 per cent, the All-India Tyre Manufacturers Association (ATMA) Director-General, Mr Rajiv Budhraja, told reporters here today.
During the current fiscal, domestic consumption is likely to lag behind production by 189,000 tonnes.
New capacities and major expansions undertaken by tyre companies to cater to the booming automobile industry will lead to an increase in consumption by 15,000 tonnes, he said.
The Rubber Board has projected an increase in consumption by only 40,000 tonnes during the current financial year and the gap between domestic production and consumption has been projected at 75,000 tonnes.
The “conservative consumption estimates by the board might impact the desired policy making for rubber sector”, he said.
AITMA and the All-India Rubber Industries Association (AIRIA) also made presentations before the Rubber Board at Kottayam, stating that taking a cue from China, urgent policy interventions are imperative to ensure timely and competitively priced availability of natural rubber to user industries.
In view of the widening gap between natural rubber supply and demand, coupled with growth in tyre demand, a rise in volume of imports of finished products is likely in light of the constraints to domestic production.
As a result, value addition of natural rubber to produce finished products, particularly tyres, will take place outside the country, especially in China, which has ensured adequate and timely availability of natural rubber to its industry through timely interventions, including acquisition of land outside the country, he said.
The AIRIA President, Mr Vinod Simon, said with the growing deficit between production and consumption, rubber imports were inevitable, failing which the import of finished products will take place, denying the opportunity of value addition within the country.
Domestic natural rubber deficit and expensive imports have been inhibiting the “full blossoming” of the industry in the country, he added.
Natural rubber deficit projected at 1,89,000 tonnes
TUESDAY, MAY 10, 2011
Kochi, May 10 (PTI) Projecting a 1,89,000-tonne deficit in production of natural rubber in the country during 2011-12, the tyre industry today asked the government to bridge the gap by allowing the duty-free import of 200,000 tonnes.
In the last four financial years, natural rubber production has increased by only 1 per cent, while consumption has increased by over 15 per cent, All-India Tyre Manufacturers Association (ATMA) Director General Rajiv Budhraja told reporters here.
In the current fiscal, domestic consumption is likely to lag behind production by 189,000 tonnes.
New capacities and major expansions undertaken by tyre companies to cater to the booming automobile industry will lead to an increase in consumption by 15,000 tonnes, he said.
The Rubber Board has projected an increase in consumption by only 40,000 tonnes during the current financial year and the gap between domestic production and consumption has been projected at 75,000 tonnes.
The "conservative consumption estimates by the board might impact the desired policy making for rubber sector", he said.
AITMA and the All-India Rubber Industries Association (AIRIA) also made presentations before the Rubber Board at Kottayam, stating that taking a cue from China, urgent policy interventions are imperative to ensure timely and competitively priced availability of natural rubber to user industries.
In view of the widening gap between natural rubber supply and demand, coupled with growth in tyre demand, a rise in volume of imports of finished products is likely in light of the constraints to domestic production.
As a result, value addition of natural rubber to produce finished products, particularly tyres, will take place outside the country, especially in China, which has ensured adequate and timely availability of natural rubber to its industry through timely interventions, including acquisition of land outside the country, he said.
AIRIA President Vinod Simon said with the growing deficit between production and consumption, rubber imports were inevitable, failing which the import of finished products will take place, denying the opportunity of value addition within the country.
The domestic natural rubber deficit and expensive imports have been inhibiting the "full blossoming" of the rubber industry in the country, he added.
Tokyo rubber futures up
TUESDAY, MAY 10, 2011
Tokyo (may 10, 2011) : key tokyo rubber futures inched higher on monday as sentiment improved with stabilising commodity markets, and investors found price levels attractive after a sell-off late last week. the benchmark tocomrubber futures for october delivery was up 1.4 yen, or 0.4 percent, at 362.5 yen per kg as of 0009 gmt.
tokyo rubber futures dropped 6.6 percent on friday on heavy stop-loss selling, triggered by a strengthening japanese yen and weaker oil prices, while a broad sell-off in other commodities added to the downward pressure on prices, dealers said. on friday, the october contract fell as much as 8 percent to an intra-day low of 353.2 yen, its lowest since march 16.
the most active shanghai rubber futures contract for september delivery was down 90 yuan to settle at 30,290 yuan ($4,664.660) per tonne on friday. honda motor co said it has decided to market its civic gx natural-gas-powered car in the united states, starting this fall, the nikkei business daily said.
japan's crude rubber inventories inched down 8 tonnes in the 10 days to april 20, rubber trade association of japan data showed on friday. rubber inventories in warehouses monitored by the shanghai futures exchange fell 8.4 percent last week, the exchange said.
SICOM Futures To Move To SGX Next Week
TUESDAY, MAY 10, 2011
Singapore Exchange said its derivative market will from 16 May add rubber futures to its commodities suite with the migration of SICOM rubber contracts onto the SGX trading platform.
SGX said, "The addition of SICOM TSR 20 and SICOM RSS 3 rubber futures will enable more international traders to participate in the contracts, thereby enhancing liquidity." The rubber contracts have a history which dates back to the 1920s and are pricing benchmarks for regional and global rubber producers, manufacturers, traders and consumers. From 16 May, TSR 20 rubber contracts traded over-the-counter will also be cleared by SGX AsiaClear.
Mr Gan Seow Ann, president of SGX said, “By bringing together all our commodities futures on our derivatives market, SGX strengthens its commitment to deliver Asia with Global Reach. Our customers will benefit from more opportunities to trade and manage their risk exposures in the region.”
(European Rubber Journal, May 9, 2011)
Tyre Firms in India Plan To Raise Prices
TUESDAY, MAY 10, 2011
Tyre companies in India are planning one more raise in prices, from next month, to cover the rising cost of rubber, a key raw material.
“Tyre companies have raised their prices in the past to deal with high rubber prices, but it still does not cover the total cost of production,” said Rajiv Budharaja, director general of the Automotive Tyre Manufacturers’ Association, the apex body.
Natural rubber prices on the spot market in India had touched a high of Rs 242 per kg this year, 40 per cent higher from a year before. These have since moderated to Rs 228 a kg, on increasing arrivals of the new crop. More softening is expected on increased arrival. Ceat had increased prices by five per cent in April and is planning a further one in May, by another four to five per cent. “It is inevitable,” said Arnab Banerjee, executive director, operations. “Consumers might not be able to accept full cost but a certain amount of price hike is necessary.”
MRF says its raw material costs have risen by 51 per cent over the past year. As a result, its profits declined to Rs 898 million from Rs 958 million, a fall of six per cent. Ceat’s raw material costs have gone up by 55 per cent. It has reported a net loss of Rs 179 million compared to a net profit of Rs 215 million a year before.
(Sify Finance, India, May 10, 2011)
NR Prices In Up-And-Down Movements
TUESDAY, MAY 10, 2011
Prices on Tokyo’s rubber exchanges moved sharply upward over the weekend, though forecasters say prices are likely to drop further this week.
On Tokyo's Tocom Exchange, prices for the six-month contract closed up by yen 14 at yen 373 ($4.62) per kg on Monday 9 May. Shorter-dated prices were higher, at around yen 410.
In Singapore, Sicom said short-dated RSS3 closed down by some $0.12 at around $5.10 with longer-dated contracts trading at around $4.65. Short-dated TSR 20 closed down by $0.10 at $4.34
Prices on India's NMCE exchange closed up Rs 6 at Rs 227 ($5.08 per kilo).
In China, the Shanghai Futures Exchange saw prices recover by about half a yuan, with May deliveries trading at around Yuan 34.7 ($5.34) per kilo
(European Rubber Journal, May 9, 2011)
Rubber prices may stabilize next few weeks - CRTA
TUESDAY, MAY 10, 2011
The recent tumble of rubber prices, both in international and domestic markets are expected to pick up at least by the end of May, said Vice Chairman of Colombo Rubber Traders’ Association (CRTA) and Managing Director of Kegalle Plantations PLC, Sunil Poholiyadde.
“The reason for the slight dip in prices has been the falling rubber prices in the global market, especially those supplied by Thailand which represents 30%-40% of natural rubber requirement.”
He pointed out that commodity prices as a whole have come down due to the unfavorable weather conditions in the country as well as global events taking place. The recent natural disasters also affected main buyer Japan.
“We are heading towards the south-western monsoon, where tapping will end. However, we don’t expect to see a drastic drop in prices,” Poholiyadde added. He mentioned that the present supply cannot meet both local and international market demands, due to low production capacities in Thailand.
Damitha Fernando of Forbes and Walker said that prices were overdone in the market in the recent past. “Due to continuous rains, production has been quite low, but now the prices are stabilizing gradually,” he added. “We can expect the prices to come down to between Rs. 475-500 as long as there is no extensive damage to the crops.”
Malaysian Rubber Players May Opt To Stay Sidelined
TUESDAY, MAY 10, 2011
Prices on the Malaysian rubber market are expected to trade soft next week on lack demand due the current higher prices, dealers said.
They said the prices are expected to decline between eight and 10 per cent lower on the back of weak demand for the commodity.
"Most players may opt to delay fresh purchases and remain sidelined until prices begin to fall," a dealer said.
On a week-to-week basis, the Malaysian Rubber board (MRB) official physical price for tyre grade SMR 20, decreased 59.0 sen to 1,304.5 sen per kg from the 1,363.5 sen per kg last Friday (May 6).
Latex in bulk fell 30.0 sen to settle at 956.0 sen per kg from 985.0 sen per kg previously.
The unofficial closing price for SMR 20 lost 73.0 sen to 1,292.0 sen per kg from 1,365.0 sen per kg last Friday (May 6) and latex-in-bulk shed 30.0 sen to 951.0 sen per kg from 982.0 sen per kg previously.
(Business Times, Malaysia, May 7, 2011)
Asian physical rubber underpressure
TUESDAY, MAY 10, 2011
Singapore (may 08, 2011) : a few cargoes of tyre grade rubber changed hands for nearby shipments, but the physical market was under pressure from a lack of demand from main consumer china despite falling inventories there, dealers said on wednesday. rubber inventories monitored by the shanghai futures exchange stood at 5,065 tonnes as of last week, the lowest in at least two years.
prices of tyre grade have tumbled since hitting a record on february after a devastating earthquake in japan hit auto production, and china tightened the economy - triggering heavy selling in tokyo and shanghai rubber futures. thai rss3, often seen as benchmark in the physical market, was traded late on tuesday at $5.30 a kg for june shipment, far below a record of $6.40 quoted in february. indonesia and malaysian grades changed hands below $5 a kg.
"china consumers realise the market is being kept down and are just buying hand to mouth," said a dealer in singapore, who mainly trades indonesian grade. the most active contract on shanghai rubber futures, september 2011 ended at 31,145 yuan a tonne on wednesday, down from tuesday's closing of 31,760 yuan on worries about more measures from china to fight inflation. tokyo rubber futures, which set the tone for physical prices, were closed for a holiday.
the official china securities journal cited central bank vice governor yi gang as saying that china would keep mopping up excess cash in the economy by raising cash reserve requirements for banks, adding that measures taken dampen prices would show results in the second half of the year. "the physical consumption has been falling month on month china's economic growth in the second quarter will definitely slow down," said guo cheng, an analyst with yong'an futures.
dealers said tyre makers such as bridgestone were still in the market, while china's lack of interest showed that local tyre makers turned to rely on inventories in qingdao bonded area, which are not disclosed to the public, but make up the bulk of the country's rubber stocks.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1186308:asian-physical-rubber-underpressure.html?hl=rubber)
Rubber to trade soft this week
TUESDAY, MAY 10, 2011
KUALA LUMPUR: Prices on the Malaysian rubber market are expected to trade soft this week on lack demand due the current higher prices, dealers said.
They said the prices are expected to decline between eight and 10% lower on the back of weak demand for the commodity.
“Most players may opt to delay fresh purchases and remain sidelined until prices begin to fall,” a dealer said.
On a week-to-week basis, the Malaysian Rubber board (MRB) official physical price for tyre grade SMR 20, decreased 59.0 sen to 1,304.5 sen per kg from the 1,363.5 sen per kg previous Friday. Latex in bulk fell 30.0 sen to settle at 956.0 sen per kg from 985.0 sen per kg previously.
The unofficial closing price for SMR 20 lost 73.0 sen to 1,292.0 sen per kg from 1,365.0 sen per kg previous Friday and latex-in-bulk shed 30.0 sen to 951.0 sen per kg from 982.0 sen per kg previously. Bernama
China continues anti-dumping measures against imported chloroprene rubber
TUESDAY, MAY 10, 2011
BEIJING, May 9 (Xinhua)-- The Chinese Ministry of Commerce (MOC) announced on Monday that it will continue to impose anti-dumping measures on chloroprene rubber imported from Japan, the United States and the European Union for another five years.
The extended anti-dumping measures will take effect beginning Tuesday with a term of five years, according to a statement on the MOC's web.
The decision came after a 12-month investigation by the MOC to review measures it had imposed in 2005.
China's domestic chloroprene rubber producers filed an application for a re-examination of the anti-dumping measures against Japanese, U.S and EU rubber exporters in March of last year.
During the investigation that began on May 9, 2010, the MOC found that dumping by Japan, the U.S. and the EU would be very likely to continue if the anti-dumping measures came to an end, which would damage China's chloroprene rubber industry, according to the statement.
In May 2005 the MOC imposed anti-dumping duties ranging from 2 percent to 151 percent on imported chloroprene rubber from Japan, the U.S. and the EU with a term of 5 years.
Chloroprene rubber, commonly known as Neoprene, is mostly used in manufacturing electrical cables and other types of cables, as well as water-proof products.
Sunday, May 8, 2011
Rubber prices likely to be lower next week
Rubber prices likely to be lower next week
SUNDAY, MAY 8, 2011
Lack of demand especially from China due to its high level of rubber inventory is likely to drag prices in Malaysia down next week.
Thailand also was selling their latex at lower prices compared to the market in Malaysia, a dealer said.
Rising supply from major rubber producing countries could also put pressure on prices, he added.
This week, the Malaysian Rubber Board's official daily physical price for tyre-grade SMR 20 dropped 114.5 sen to 1,363.5 sen per kg from 1,478 per kg while latex-in-bulk fell 43.5 sen to 985.5 sen per kg from 1,029.0 sen per kg.
Meanwhile, the unofficial price for tyre-grade SMR 20 fell 105.0 sen to 1,365.0 sen per kg from 1,470.0 sen per kg and latex-in-bulk slipped 43.0 sen to 982.0 sen per kg from 1,025.0 sen per kg.
The market will close on Monday due to Labour Day holiday. -- Bernama
(Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20110430114930/Article/index_html)
India: Spot rubber slips further
SUNDAY, MAY 8, 2011
KOTTAYAM, MAY 6:
Spot rubber weakened further on Friday. Sharp declines in the Japanese futures and the absence of genuine buyers in the domestic scene kept the traders under pressure during the day. Marginal recovery on the NMCE failed to strengthen the sentiments since the near month May series ruled below the prevailing price in the physical market.
Sheet rubber moved down to Rs 226.50 (227.50) a kg according to traders. The grade dropped to Rs 227 (230) a kg both at Kottayam and Kochi as per Rubber Board.
In futures, RSS 4 recovered partially at its May series to Rs 224.60 (221.53), June to Rs 231.60 (227.04), July to Rs 234.60 (230.30), August to Rs 233 (227.40) and September to Rs 229 (224.85) a kg for on the National Multi Commodity Exchange (NMCE).
The Key Tokyo rubber futures plunged to touch the lowest level in almost two months. “It was not only the weaker oil prices and other falling commodities that dragged TOCOM down, but also the strengthening Japanese yen that triggered stop-loss selling on rubber futures,” an analyst said.
The May futures nosedived to ¥403 (Rs 224.40) from ¥427 a kg for RSS 3 during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) closed at Rs 236.27 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 226.50 (227.50); RSS-5: 225 (225.50); ungraded: 219 (221.50); ISNR 20: 219 (220) and latex 60 per cent: 139 (141).
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1996932.ece)
Key tocom rubber futures plunge
SUNDAY, MAY 8, 2011
Tokyo (may 07, 2011) : key tokyo rubber futures plunged on friday, dragged lower by a slump in commodities across the board on concerns about a global economic slowdown. the benchmark rubber futures contract on the tokyo commodity exchange for october delivery dropped more than 8 percent to 354.3 yen per kg from monday's settlement of 386.8 yen. japanese financial markets were closed from tuesday to thursday for national holidays.
trade in rubber futures was halted earlier after circuit breakers were hit as the price for the key contract at the open indicated a fall of over 9 percent, or more than 30 yen. the singapore exchange (sgx) will offer rubber futures starting may 16, moving the contracts over from the singapore commodities market (sicom) platform to give it greater liquidity, the exchange announced on friday. the sicom tsr 20 and sicom rss 3 rubber futures will be moved over from sicom and offered on the sgx platform with the tsr 20 contracts traded over-the-counter allowed clearance through sgx asiaclear come may 16.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1186009:key-tocom-rubber-futures-plunge.html?hl=rubber)
Rubber prices to slip over 12% in May on higher supply
MONDAY, MAY 9, 2011
NEW DELHI: Domestic rubber prices are likely to decline by over 12 per cent to Rs 200-215 per kg this month on higher domestic supplies due to ongoing tapping in Kerala and Tamil Nadu, according to industry experts.
The commodity prices have been falling since April 25; they closed lower last week at Rs 228 per kg after touching this year's high of Rs 241 per kg last month.
Indian Rubber Dealers Federation (IRDF) and Cochin Rubber Merchants Association (CRMA) have said that domestic prices could further decline in the range of Rs 200-215 per kg by month-end on expected higher supply in the domestic market.
"We expect the prices to decline further in the coming days as tapping will continue till May-end," IRDF President George Valy told PTI.
Tapping generally takes place in summer till the commencement of south west monsoon.
CRMA Ex-President N Radhakrishnan said, "The rubber price outlook seems weak for May as more supplies are coming into mandis. I think they would rule at around Rs 215 per kg."
He also said that farmers could hold back the stock after May 20 in anticipation of higher prices.
Even in the global market, rubber supply is expected to rise in the coming days in major rubber growing countries where tapping has begun. As a result, prices are also expected remain on a sluggish side, said an analyst with commodity brokerage firm Geojit Comtrade.
With the Reserve Bank increasing short-term borrowing rates and its likely effect in terms of higher interest on auto loans may also weigh in on the domestic demand for this commodity, he said.
Meanwhile, the domestic futures prices of natural rubber are expected to trade on the weaker side in line with the global market and strong industry fundamentals.
SUNDAY, MAY 8, 2011
Lack of demand especially from China due to its high level of rubber inventory is likely to drag prices in Malaysia down next week.
Thailand also was selling their latex at lower prices compared to the market in Malaysia, a dealer said.
Rising supply from major rubber producing countries could also put pressure on prices, he added.
This week, the Malaysian Rubber Board's official daily physical price for tyre-grade SMR 20 dropped 114.5 sen to 1,363.5 sen per kg from 1,478 per kg while latex-in-bulk fell 43.5 sen to 985.5 sen per kg from 1,029.0 sen per kg.
Meanwhile, the unofficial price for tyre-grade SMR 20 fell 105.0 sen to 1,365.0 sen per kg from 1,470.0 sen per kg and latex-in-bulk slipped 43.0 sen to 982.0 sen per kg from 1,025.0 sen per kg.
The market will close on Monday due to Labour Day holiday. -- Bernama
(Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20110430114930/Article/index_html)
India: Spot rubber slips further
SUNDAY, MAY 8, 2011
KOTTAYAM, MAY 6:
Spot rubber weakened further on Friday. Sharp declines in the Japanese futures and the absence of genuine buyers in the domestic scene kept the traders under pressure during the day. Marginal recovery on the NMCE failed to strengthen the sentiments since the near month May series ruled below the prevailing price in the physical market.
Sheet rubber moved down to Rs 226.50 (227.50) a kg according to traders. The grade dropped to Rs 227 (230) a kg both at Kottayam and Kochi as per Rubber Board.
In futures, RSS 4 recovered partially at its May series to Rs 224.60 (221.53), June to Rs 231.60 (227.04), July to Rs 234.60 (230.30), August to Rs 233 (227.40) and September to Rs 229 (224.85) a kg for on the National Multi Commodity Exchange (NMCE).
The Key Tokyo rubber futures plunged to touch the lowest level in almost two months. “It was not only the weaker oil prices and other falling commodities that dragged TOCOM down, but also the strengthening Japanese yen that triggered stop-loss selling on rubber futures,” an analyst said.
The May futures nosedived to ¥403 (Rs 224.40) from ¥427 a kg for RSS 3 during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) closed at Rs 236.27 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 226.50 (227.50); RSS-5: 225 (225.50); ungraded: 219 (221.50); ISNR 20: 219 (220) and latex 60 per cent: 139 (141).
(Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1996932.ece)
Key tocom rubber futures plunge
SUNDAY, MAY 8, 2011
Tokyo (may 07, 2011) : key tokyo rubber futures plunged on friday, dragged lower by a slump in commodities across the board on concerns about a global economic slowdown. the benchmark rubber futures contract on the tokyo commodity exchange for october delivery dropped more than 8 percent to 354.3 yen per kg from monday's settlement of 386.8 yen. japanese financial markets were closed from tuesday to thursday for national holidays.
trade in rubber futures was halted earlier after circuit breakers were hit as the price for the key contract at the open indicated a fall of over 9 percent, or more than 30 yen. the singapore exchange (sgx) will offer rubber futures starting may 16, moving the contracts over from the singapore commodities market (sicom) platform to give it greater liquidity, the exchange announced on friday. the sicom tsr 20 and sicom rss 3 rubber futures will be moved over from sicom and offered on the sgx platform with the tsr 20 contracts traded over-the-counter allowed clearance through sgx asiaclear come may 16.
(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1186009:key-tocom-rubber-futures-plunge.html?hl=rubber)
Rubber prices to slip over 12% in May on higher supply
MONDAY, MAY 9, 2011
NEW DELHI: Domestic rubber prices are likely to decline by over 12 per cent to Rs 200-215 per kg this month on higher domestic supplies due to ongoing tapping in Kerala and Tamil Nadu, according to industry experts.
The commodity prices have been falling since April 25; they closed lower last week at Rs 228 per kg after touching this year's high of Rs 241 per kg last month.
Indian Rubber Dealers Federation (IRDF) and Cochin Rubber Merchants Association (CRMA) have said that domestic prices could further decline in the range of Rs 200-215 per kg by month-end on expected higher supply in the domestic market.
"We expect the prices to decline further in the coming days as tapping will continue till May-end," IRDF President George Valy told PTI.
Tapping generally takes place in summer till the commencement of south west monsoon.
CRMA Ex-President N Radhakrishnan said, "The rubber price outlook seems weak for May as more supplies are coming into mandis. I think they would rule at around Rs 215 per kg."
He also said that farmers could hold back the stock after May 20 in anticipation of higher prices.
Even in the global market, rubber supply is expected to rise in the coming days in major rubber growing countries where tapping has begun. As a result, prices are also expected remain on a sluggish side, said an analyst with commodity brokerage firm Geojit Comtrade.
With the Reserve Bank increasing short-term borrowing rates and its likely effect in terms of higher interest on auto loans may also weigh in on the domestic demand for this commodity, he said.
Meanwhile, the domestic futures prices of natural rubber are expected to trade on the weaker side in line with the global market and strong industry fundamentals.
Saturday, May 7, 2011
Spot rubber slips further
Spot rubber slips further
Kottayam, May 6:
Spot rubber weakened further on Friday. Sharp declines in the Japanese futures and the absence of genuine buyers in the domestic scene kept the traders under pressure during the day. Marginal recovery on the NMCE failed to strengthen the sentiments since the near month May series ruled below the prevailing price in the physical market.
Sheet rubber moved down to Rs 226.50 (227.50) a kg according to traders. The grade dropped to Rs 227 (230) a kg both at Kottayam and Kochi as per Rubber Board.
In futures, RSS 4 recovered partially at its May series to Rs 224.60 (221.53), June to Rs 231.60 (227.04), July to Rs 234.60 (230.30), August to Rs 233 (227.40) and September to Rs 229 (224.85) a kg for on the National Multi Commodity Exchange (NMCE).
The Key Tokyo rubber futures plunged to touch the lowest level in almost two months. “It was not only the weaker oil prices and other falling commodities that dragged TOCOM down, but also the strengthening Japanese yen that triggered stop-loss selling on rubber futures,” an analyst said.
The May futures nosedived to ¥403 (Rs 224.40) from ¥427 a kg for RSS 3 during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) closed at Rs 236.27 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 226.50 (227.50); RSS-5: 225 (225.50); ungraded: 219 (221.50); ISNR 20: 219 (220) and latex 60 per cent: 139 (141).
Natural rubber prices dip 1.7% in a week on improved supplies
FRIDAY, MAY 6, 2011
The natural rubber (NR) mart across the globe is now in a correction mode due to increased production. Both, the domestic and international prices of the commodity have fallen in the current week owing to fresh developments in production and supply of the commodity.
The unusual rainfall in the main producing areas of Kerala has brought in a slight correction in prices as production has gathered momentum. The price of benchmark grade RSS-4 fell Rs 4 a kg compared to last week’s price. In spot trading on Thursday in Kochi market, price was Rs 233 a kg which was Rs 237.50, a week back. A month back, Kochi market quoted Rs 243, since production was low due to summer heat.
A majority of plantations had stopped tapping then and this resulted in a serious supply crunch in the local market.
The abnormal heavy rainfall has now caused a fresh start of tapping and the much higher prices forced growers to re-start tapping well in advance of monsoon.
According to ANRPC (Association of Natural Rubber Producing Countries) after two successive months of decline, China’s import turned positive this March by clocking 1.4 per cent year-to-year growth to 297,000 tonnes.
The Chinese government anticipates a sharp increase in import demand this month. However, the global market had showed signs of correction beginning from the last week of April largely on concerns about the global economy, Japanese Yen appreciation and a marginal drop in crude oil prices. Price for RSS-4 grade in Bangkok market has slipped to Rs 243 a kg as on Wednesday. A month back the market recorded Rs 258 a kg.
Market sources expect that if monsoon would be normal and arrives at the right time, local production would sharply increase, leading to further fall in prices.
The second busiest production season of natural rubber in Kerala is June-August. ANRPC estimates indicate global NR supply is expected to ease in the coming weeks as farmers resume tapping due to widespread rainfall in major producing countries like Thailand, Indonesia and Malaysia.
Total supply from the ANRPC member countries is expected to reach 651,000 tonnes in April and 753,000 tonnes in May. In March, the production stood at 580,000 tonnes only. In April-June (Q2), the total global supply is likely to increase 10.5 per cent at 2.3 million tonnes as against 2.08 million tones in the same period last year.
(Source: http://www.business-standard.com/india/news/natural-rubber-prices-dip-17-inweekimproved-supplies/434598/)
Latex Price Toppish, Says OSK
FRIDAY, MAY 6, 2011
OSK Research believes the latex price is toppish and on the high side due to heavy rain and severe floods in southern Thailand as well as weaker Japanese auto sales.
The commodity which of late is locked between RM8.61 per kg (recent low) to about RM11 per kg (all time-high)had been on an uptrend since September last year.
"This price band is attributed to a clash between two factors, namely heavy rain and severe floods in southern Thailand, resulting in a scarcity of latex supply, being offset by weaker Japanese auto sales after the devastating earthquake created an auto parts shortage that will dampen tyre demand," it said.
In a research note, it also said the risk of a potential auto parts shortage, especially in Japan would then have a negative impact on the global supply chain.
Japan is the world's second largest auto parts exporter behind Germany.
"Other than this, we believe that automakers in the other parts of Asia may also face the same risk as nearly half of all Japanese auto parts shipments are destined for China and other Asian nations," OSK explained.
As such, the research house viewed the demand for rubber, to drop significantly.
Top Glove, Supermax and Kossan remained as OSK's top pick of the industry players as these companies would be the main beneficiaries when latex price eases, since they have a higher natural rubber glove mix.
Besides that, the three companies would also benefit when latex price falls as they have the largest production capacity for medical gloves.
OSK maintained an "overweight" call for the rubber gloves industry.
(Bernama, Malaysia, May 5, 2011)
Kottayam, May 6:
Spot rubber weakened further on Friday. Sharp declines in the Japanese futures and the absence of genuine buyers in the domestic scene kept the traders under pressure during the day. Marginal recovery on the NMCE failed to strengthen the sentiments since the near month May series ruled below the prevailing price in the physical market.
Sheet rubber moved down to Rs 226.50 (227.50) a kg according to traders. The grade dropped to Rs 227 (230) a kg both at Kottayam and Kochi as per Rubber Board.
In futures, RSS 4 recovered partially at its May series to Rs 224.60 (221.53), June to Rs 231.60 (227.04), July to Rs 234.60 (230.30), August to Rs 233 (227.40) and September to Rs 229 (224.85) a kg for on the National Multi Commodity Exchange (NMCE).
The Key Tokyo rubber futures plunged to touch the lowest level in almost two months. “It was not only the weaker oil prices and other falling commodities that dragged TOCOM down, but also the strengthening Japanese yen that triggered stop-loss selling on rubber futures,” an analyst said.
The May futures nosedived to ¥403 (Rs 224.40) from ¥427 a kg for RSS 3 during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) closed at Rs 236.27 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 226.50 (227.50); RSS-5: 225 (225.50); ungraded: 219 (221.50); ISNR 20: 219 (220) and latex 60 per cent: 139 (141).
Natural rubber prices dip 1.7% in a week on improved supplies
FRIDAY, MAY 6, 2011
The natural rubber (NR) mart across the globe is now in a correction mode due to increased production. Both, the domestic and international prices of the commodity have fallen in the current week owing to fresh developments in production and supply of the commodity.
The unusual rainfall in the main producing areas of Kerala has brought in a slight correction in prices as production has gathered momentum. The price of benchmark grade RSS-4 fell Rs 4 a kg compared to last week’s price. In spot trading on Thursday in Kochi market, price was Rs 233 a kg which was Rs 237.50, a week back. A month back, Kochi market quoted Rs 243, since production was low due to summer heat.
A majority of plantations had stopped tapping then and this resulted in a serious supply crunch in the local market.
The abnormal heavy rainfall has now caused a fresh start of tapping and the much higher prices forced growers to re-start tapping well in advance of monsoon.
According to ANRPC (Association of Natural Rubber Producing Countries) after two successive months of decline, China’s import turned positive this March by clocking 1.4 per cent year-to-year growth to 297,000 tonnes.
The Chinese government anticipates a sharp increase in import demand this month. However, the global market had showed signs of correction beginning from the last week of April largely on concerns about the global economy, Japanese Yen appreciation and a marginal drop in crude oil prices. Price for RSS-4 grade in Bangkok market has slipped to Rs 243 a kg as on Wednesday. A month back the market recorded Rs 258 a kg.
Market sources expect that if monsoon would be normal and arrives at the right time, local production would sharply increase, leading to further fall in prices.
The second busiest production season of natural rubber in Kerala is June-August. ANRPC estimates indicate global NR supply is expected to ease in the coming weeks as farmers resume tapping due to widespread rainfall in major producing countries like Thailand, Indonesia and Malaysia.
Total supply from the ANRPC member countries is expected to reach 651,000 tonnes in April and 753,000 tonnes in May. In March, the production stood at 580,000 tonnes only. In April-June (Q2), the total global supply is likely to increase 10.5 per cent at 2.3 million tonnes as against 2.08 million tones in the same period last year.
(Source: http://www.business-standard.com/india/news/natural-rubber-prices-dip-17-inweekimproved-supplies/434598/)
Latex Price Toppish, Says OSK
FRIDAY, MAY 6, 2011
OSK Research believes the latex price is toppish and on the high side due to heavy rain and severe floods in southern Thailand as well as weaker Japanese auto sales.
The commodity which of late is locked between RM8.61 per kg (recent low) to about RM11 per kg (all time-high)had been on an uptrend since September last year.
"This price band is attributed to a clash between two factors, namely heavy rain and severe floods in southern Thailand, resulting in a scarcity of latex supply, being offset by weaker Japanese auto sales after the devastating earthquake created an auto parts shortage that will dampen tyre demand," it said.
In a research note, it also said the risk of a potential auto parts shortage, especially in Japan would then have a negative impact on the global supply chain.
Japan is the world's second largest auto parts exporter behind Germany.
"Other than this, we believe that automakers in the other parts of Asia may also face the same risk as nearly half of all Japanese auto parts shipments are destined for China and other Asian nations," OSK explained.
As such, the research house viewed the demand for rubber, to drop significantly.
Top Glove, Supermax and Kossan remained as OSK's top pick of the industry players as these companies would be the main beneficiaries when latex price eases, since they have a higher natural rubber glove mix.
Besides that, the three companies would also benefit when latex price falls as they have the largest production capacity for medical gloves.
OSK maintained an "overweight" call for the rubber gloves industry.
(Bernama, Malaysia, May 5, 2011)
Friday, May 6, 2011
Spot rubber prices decline
Spot rubber prices decline
Kottayam, May 5:
The physical rubber prices declined on Thursday. The market seemed to be reacting closely to the declines in domestic futures which hit the lower circuit on the NMCE. Traders were taking advantage of a gap for speculation since the trend setting Japanese markets remain closed since last Tuesday, an analyst said.
According to observers, rubber prices had jumped to a high of Rs 240 a kg on April 20 and prices began to fall since then as farmers started clearing off their old stocks. Besides, tapping has also begun and it might continue till the month-end. The commencement of tapping in other rubber producing countries has affected global market also.
Sheet rubber surrendered to Rs 227.50 (232.50) a kg according to dealers. The grade closed weak at Rs 230 (233) a kg both at Kottayam and Kochi as quoted by the Rubber Board.
The May series nose dived to Rs 221.90 (230.52), June to Rs 227.30 (235.47), July to Rs 230 (237.61), August to Rs 227.50 (233.18), and September to Rs 225 (228.70) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
The volumes totalled 11010 lots and open interest 7255 lots. The turnover was Rs 252.43 crores. The Tokyo Commodity Exchange (TOCOM) remained closed owing to Children's Day. Spot rates were (Rs/kg): RSS-4: 227.50 (232.50); RSS-5: 225.50 (230); ungraded: 221.50 (227.50);
ISNR 20: 220 (222) and latex 60 per cent: 141 (142).
Kottayam, May 5:
The physical rubber prices declined on Thursday. The market seemed to be reacting closely to the declines in domestic futures which hit the lower circuit on the NMCE. Traders were taking advantage of a gap for speculation since the trend setting Japanese markets remain closed since last Tuesday, an analyst said.
According to observers, rubber prices had jumped to a high of Rs 240 a kg on April 20 and prices began to fall since then as farmers started clearing off their old stocks. Besides, tapping has also begun and it might continue till the month-end. The commencement of tapping in other rubber producing countries has affected global market also.
Sheet rubber surrendered to Rs 227.50 (232.50) a kg according to dealers. The grade closed weak at Rs 230 (233) a kg both at Kottayam and Kochi as quoted by the Rubber Board.
The May series nose dived to Rs 221.90 (230.52), June to Rs 227.30 (235.47), July to Rs 230 (237.61), August to Rs 227.50 (233.18), and September to Rs 225 (228.70) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).
The volumes totalled 11010 lots and open interest 7255 lots. The turnover was Rs 252.43 crores. The Tokyo Commodity Exchange (TOCOM) remained closed owing to Children's Day. Spot rates were (Rs/kg): RSS-4: 227.50 (232.50); RSS-5: 225.50 (230); ungraded: 221.50 (227.50);
ISNR 20: 220 (222) and latex 60 per cent: 141 (142).
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