Malaysia: Rubber prices may weaken next week
June 4, 2011


The Malaysian rubber market is likely to ease next week as regional markets remain volatile amid uncertainties over the global economic recovery, dealers said.

“Next week would be difficult to predict as prices would most probably move in line with regional rubber markets in the absence of domestic factors,” a dealer said.

Concerns were also mounting over US economic data, released on Wednesday, that indicated the US manufacturing sector may slow to its lowest since 2009.

Consistent demand from China may, however, help to support prices.

On a week-to-week basis, the Malaysian Rubber Board official physical noon price for tyre-grade SMR 20 shed 1.0 sen to 1,389.0 sen per kg from last Friday’s 1,390.0 sen, while latex-in-bulk lost 8.5 sen to 947.0 sen, from 955.5 sen, previously.

The unofficial closing price for tyre-grade SMR 20 gained 1.0 sen to 1,395.5 sen per kg, from 1,394.5 sen per kg, last week, while latex-in-bulk dropped 7.0 sen to 949.0 sen per kg, from 956.0 sen per kg, previously. -





SME units in crisis over natural rubber supply
June 3, 2011


Unless a multi-faceted action plan is implemented to enhance natural rubber (NR) production in the country, used industries will suffer due to supply shortage. The production-consumption gap is increasing since the last five years and there had been many-fold increase in NR price, endangering the existence of rubber-based small and medium enterprises (SME).

According to industry estimates, 500-800 small units like sandal, rubber band makers, etc, have shut in the last year due to swelling raw material prices.

In India, the number of rubber-based SME units is at least 4,500 plus and a large number of them are on the verge of closing down, according to the All India Rubber Industries Association (AIRIA).

Talking to Business Standard, Vinod Simon, president, AIRIA, said big companies can continue production, whatever might be the price tag. They can either opt to buy rubber at a higher price tag or import, which SME units can’t. He said AIRIA was in the process of collecting statistics on the status of SME units and closed units in recent years.

During 2006-07, rubber supply was in excess by 32,590 tonnes, but from 2007-08 onwards consumption exceeded production. In 2007-08, there was a shortage of 36,110 tonnes which increased to 99,165 tonnes in 2009-10. In the current financial year, the Rubber Board estimates a shortfall of 75,000 tonnes, but industry associations like AIRIA and Automotive Tyre Manufacturers Association project a shortfall of 189,000 tonnes.





Mixed trend in rubber
June 3, 2011


KOTTAYAM, JUNE 3:
Spot rubber saw a mixed trend on Friday. The under current was bullish as there were no quantity sellers on any grade and the market made all-round gains on fresh buying and short covering. The trend was mixed, while sheet rubber finished flat amidst scattered transactions as the domestic futures ended slightly lower on late trades. The rains continued to lash heavily and it would affect the rubber production in the State as reported by the official circles.

Sheet rubber closed unchanged at Rs 226 a kg according to traders. The grade improved to Rs 226 (225) a kg both at Kottayam and Kochi as reported by the Rubber Board.

In futures, the June series closed at Rs 227.85 (228.40), July at Rs 232.80 (233.28), August at Rs 234.16 (234.10), September at Rs 232 (231.83), October at Rs 229.80 (230.98) and November at Rs 231 (231) a kg for RSS 4 on the National Multi Commodity Exchange.

RSS 3 (spot) inched up to Rs 234.72 (234.63) a kg at Bangkok. The June futures for the grade recovered to ¥421 (Rs 234.67) from ¥415 a kg during the day session but then finished unchanged in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 226 (226); RSS-5: 222 (221); ungraded: 218 (217); ISNR 20: 215 (214) and latex 60 per cent 135 (132.50).





NR prices rise slightly
June 3, 2011


Tokyo — Prices on Tokyo’s rubber exchanges moved upward overnight on thin trading.

On Tokyo’s Tocom Exchange, prices for the six-month contract rose by about yen 6, closing at yen 389 ($4.72) per kg on Friday 3 June. Shorter-dated prices remained unchanged, trading at around yen 415.

In Singapore, SGX said short-dated RSS3 were trading up by $0.01 at around $5.21 on thin trading with longer-dated contracts unchanged at around $4.99. Short-dated TSR 20 was trading up by about $0,07 at $4.67.

In India, the NMCE saw June deliveries rise by Rs 2 to close at around Rs228 ($5.08) 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 35.6 ($5.49) per kilo.