Rubber output likely to touch record 9 lakh tonnes

Rubber output likely to touch record 9 lakh tonnes


Imports expected to fall 45 per cent to 1.02 lakh tonnes

CHENNAI, JUNE 2:
The country's natural rubber production this year could be a record nine lakh tonnes with output likely to register a 5.8 per cent growth.

According to the Association of Natural Rubber Producing Countries (ANPRC), the production is estimated to have increased 5.6 per cent in the first quarter of the calendar year and in the second quarter the growth is projected at 7.2 per cent.

During January-April, production increased by 5.7 per cent to 2.67 lakh tonnes (lt) from 2.53 lt in the same period a year ago.

The projection is against 8.51 lt produced last year and 8.20 lt in 2009. Rubber production in 2008 hit a record 8.81 lt before factors such as dry weather and labour woes dragged the output.

If the production hits the projected level, it will be just 75,000 tonnes lower than the world's third largest producer Malaysia. The traditional plantation country is seen producing 9.75 lt this year with a 3.6 per cent growth. Last year, production growth was 9.6 per cent against India's 3.8 per cent.

The ANPRC, whose members makes up 92 per cent of the global rubber supply, has made the projection after computing the actual production figures for January and February. Overall, the global production is expected to increase 4.9 per cent to 9.93 million tonnes.

Going by the association, the growth in the first quarter comes after a drop of 2.5 per cent in the fourth quarter last year.

According to it, consumption this year is likely to increase 4.3 per cent to 9.74 lt. Last year, the consumption was 9.44 lt.

OFFTAKE

The offtake is projected to have increased 2.1 per cent in the first quarter.

CHINA CONSUMPTION

Consumption in China is seen rising 8.6 per cent to 3.5 million tonnes with growth in the first quarter pegged at 5.2 per cent.

Imports of rubber this year could be lower at 1.02 lakh tonnes against 1.87 lakh tonnes last year. (According to the Rubber Board, imports during the last fiscal totalled 1.77 lakh tonnes).

On the other hand, China is expected to import 2.8 million tonnes, including compounds that have a high natural rubber content.

EXPORTS

On the other hand, rubber exports may more than double this year to 57,000 tonnes against 21,700 tonnes last year. The ANPRC has estimated a 40 per cent growth in exports during January-May.

According to the Rubber Board, exports increased 47 per cent during January-May to 24,665 tonnes against 16,724 tonnes during the same period a year ago.

Overall, exports from all countries are projected to increased 10.3 per cent this year to 7.7 million tonnes against 7.4 million tonnes a year ago.





Spot rubber stretches gains as rain affects tapping

KOTTAYAM, JUNE 2:
Spot rubber prices increased further on Thursday. Heavy rain has already affected production and supplies to a great extent in almost all plantations. Most of the traders were expecting an increase in prices on supply concerns during the ongoing monsoon season.

According to sources, there were enquiries from major manufactures in the past couple of days, possibly reacting to the change in weather though they have not been visibly very active. The market might suffer from acute shortage of the raw material during the ongoing season, they predicted.

Sheet rubber increased to Rs. 226 (223.50) a kg, according to traders. The grade improved to Rs 225 (224) a kg both at Kottayam and Kochi, as quoted by the Rubber Board.

The June series recovered partially to Rs 228.40 (226.60), July to Rs 233.35 (231.44), August to Rs 234.44 (232.16), September to Rs 231.50 (230.02) and October to Rs 230.98 (225.90) a kg for RSS 4 on National Multi Commodity Exchange.

RSS 3 (spot) dropped to Rs. 234.63 (236.36) a kg at Bangkok. The June futures for the grade moved down to ¥ 415.0 (Rs. 230.49) from ¥ 420.05 a kg during the day session on Tokyo Commodity Exchange.

Physical rubber rates (Rs/kg) were: RSS-4: 226 (223.50); RSS-5: 221 (220); ungraded: 217 (216); ISNR 20: 214 (212); and Latex 60%: 132.50 (131)