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.