Tokyo futures up over 1 pct, tracking oil and shares (Aug 30)
August 30, 2011
TOKYO, Aug 30 (Reuters) – Key Tokyo rubber futures rose 1.2 percent to a two-week high in early Asian trade on Tuesday, tracking gains in equities and oil as solid U.S. consumer data brightened sentiment and drove commodity currencies sharply higher.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> was up 4.3 yen at 368.2 yen per kg as of 0020 GMT.
* The most active Shanghai rubber contract for January delivery rose 0.3 percent to close at 33,155 yuan per tonne on Monday. Volume stood at 422,704 lots.
* The yen edged lower to 76.94 yen , pulling further away from an all-time high around 75.94 set earlier in the month.
* Brent crude rose for a fifth straight session on Monday as equities rallied on a rise in consumer spending, strong financials and relief that damage from Hurricane Irene was less severe than expected.
* For the top stories in rubber market and other news, click , or
MARKET NEWS
* Mazda Motor Co said it has decided to assemble its subcompact Mazda 2 in Vietnam as early as this year, Japanese business daily the Nikkei reported.
* Hurricane Irene hit the U.S. East Coast at the most inopportune time for many businesses, keeping millions of shoppers away from stores and auto dealerships during what should have been a busy weekend.
*Japan’s benchmark Nikkei average opened up 1.2 percent at 8,958.50 on Tuesday, after U.S. stocks surged on strong consumer spending data as well as a merger between two big Greek banks which provided relief in debt-stricken Europe.
* U.S. consumer spending recorded its largest increase in five months in July in the United States, supporting the view that the economy was not falling back into recession.
Low supply. low demand keeps rubber prices high
August 29, 2011
Kuala Lumpur — Although demand for natural rubber has eased over the summer, low suply has kept prices at historic highs, albeit lower than the record highs seen in February this year. In the latest edition of its monthly publication Natural Rubber Trends & Statistics, the Association of Natural Rubber Producing Countries (ANRPC) said, “Natural rubber (NR) market has been increasingly fragile since the beginning of this month (August).”
ANRPC said, “Beginning from 9th August, key regional rubber markets have seen prices deviating from falling trend. The sentiments further improved since the fourth week of August. “
The report continues, “Supply of NR has slowed down further in July and the slow trend is expected to continue through August. Total supply from ANRPC’s member nations is estimated to have grown only by 2.9% on year in July and the same low rate is anticipated for August also. This reveals a progressive decline in the output growth from the 10.5 percent rate attained in Q1 (January to March) and 4.9% rate during Q2 (April to June) on annualised basis. “
ANRPC’s total supply anticipated for this year (January to December 2011) stands almost unchanged at the previously-reported 9.961 million tons, up 5.0 percent from a year before.
ANRPC sees China’s imports down significantly. The report says, “China’s import demand for NR (Including rubber compounds containing more than 95 percent NR) is anticipated to fall annually by 7.5 percent, to 680,000 tons during the third quarter of this year. “
Japan facing rubber, polypropylene shortage on rising automobile output
Written by HMH | August 29, 2011 | 0 |
Concerns over shortages of synthetic rubber and polypropylene are growing as major Japanese automakers are set to increase their production between October 2011 and March 2012, the Nikkei reported Monday.
Japanese tire maker Bridgestone has notified automakers that orders for passenger car tires will likely exceed its domestic output capacity, the Nikkei said. The company is expected to face a shortage of an estimated 500,000 tires, or roughly 5% of orders received, this year.
Bridgestone’s seven domestic plants making passenger car tires are operating around the clock and have no room to raise output. Procuring tires from plants overseas appears to be difficult due to strong demand there, the Nikkei said.
Japan Polypropylene is having trouble keeping up with demand for PP. Inventories are running low at its 640,000 mt/year PP plant in Kashima, which shut down for about two months following the March 11 earthquake. In addition, regular maintenance is scheduled at the plant from the end of this month through mid-October, the Japan’s leading financial daily said.
PP is a main feedstock to produce autoparts and bumpers. Toyota Motor and seven other major manufacturers of passenger cars project a 2% year-on-year increase in global output in the six months to end-March 2012, with major hikes planned in Japan.
Rubber Gains on Supply Concern, Optimism on Recovery
August 29, 2011
Rubber advanced on concerns that heavy rains in Thailand, the largest producer, may lower production and after fears the U.S. economy will stall were allayed, boosting optimism the global recovery is intact.
January-delivery rubber rose as much as 1 percent to 362.60 yen per kilogram ($4,727 a metric ton). The most-active contract gained 1.9 percent last week, the first advance since the week of July 29.
Asian stocks climbed for a third day today, joining an advance in U.S. and European equities after Federal Reserve Chairman Ben S. Bernanke said he is “more optimistic” about the long-term prospects of the U.S. economy. The extended Federal Open Market Committee meeting in September will “allow a fuller discussion” of the economy and the central bank’s possible response, he said Aug. 26.
“Bernanke’s speech helped boost sentiment to commodities markets,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said by phone from Bangkok. Rubber also advanced on concerns that production may decline in Thailand after heavy rains persist, disrupting latex tapping, she said.
A monsoon covering the Andaman Sea and the Gulf of Thailand has intensified, causing heavy rains, Thai Meteorological Department said on its website today.
The cash price of Thai rubber added 0.2 percent to 139.25 baht ($4.64) a kilogram on Aug. 26, according to the Rubber Research Institute of Thailand. The price will be updated around midday.
NYMEX-Crude rises as Irene sweeps U.S. East Coast
August 29, 2011
TOKYO, Aug 29 (Reuters) – U.S. crude futures headed higher on Monday as tropical storm Irene, downgraded from a hurricane, swept through Manhattan, but the gains were limited as most oil refiners weathered the worst of its fury.
FUNDAMENTALS
* NYMEX crude for October delivery was up 17 cents at $85.54 a barrel by 2304 GMT, after settling up 7 cents at $85.37 on Friday on firm Wall Street gains.
But the gains were limited after Federal Reserve Chairman Ben Bernanke stopped short on Friday of detailing further action to spur a flagging economy.
Last week, front-month crude gained $3.11 or 3.78 percent, snapping a four-week losing streak.
* London Brent crude for October delivery was down 13 cents at $111.23 a barrel, after settling up 74 cents on Friday.
Last week, Brent rose $2.74 or 2.52 percent, extending gains to a second straight week.
* Tropical storm Irene left at least 15 dead, as many as 3.6 million customers without electricity and thousands of downed trees. It forced the closure of New York’s mass transit system and the cancellation of thousands of flights.
Most U.S. oil refiners, terminals and pipelines along the U.S. East Coast weathered the storm, downgraded from hurricane levels early on Sunday morning, while a few shut down operations or ran at reduced rates.
U.S. nuclear facilities look to resume operations after Irene passes.
* Libya’s battered oil towns are struggling to get back to work after months of back-and-forth clashes between rebels and forces loyal to Muammar Gaddafi along the Mediterranean coast.
Rebel authorities have called on oil workers to return to their jobs to get the country’s economic lifeline flowing again but there are few signs of an imminent return to production, and many workers remain too afraid to come back.
* Al Qaeda’s new second-in-command was killed in Pakistan, U.S. officials said on Saturday, in a major blow to the group still reeling from the death of Osama bin Laden.
* The IMF’s updated forecasts to be released next month do not foresee a global recession but risks have risen, a senior IMF official said on Friday.
“I can say that our base case is certainly not a recession,” IMF First Deputy Managing Director John Lipsky told CNBC television. “There’s no doubt, however, that risks have risen given the weak performance in many economic data in the last few months,” he said.
* U.S. crude oil speculators on two rival exchanges differed in their view of the market last week, raising net longs on NYMEX but cutting them on the UK Intercontinental Exchange.
Money managers raised their net long U.S. crude futures and options positions on NYMEX in the week to Aug. 23 by 521 to 165,897 contracts, a weekly report from the Commodity Futures Trading Commission showed.
MARKETS NEWS
* U.S. stocks are setting up for another turbulent week, and while Irene passed with less damage than had been feared in many areas, the storm’s impact on public transit near Wall Street could depress trading volumes.
August is shaping up as the worst month for stocks since February 2009, partly on the belief that the U.S. economy was headed for a double-dip recession.
For the month so far, the Dow Jones industrial average is down 7.1 percent, while the Standard & Poor’s 500 Index is down 8.9 percent. The Nasdaq Composite Index is down 10 percent, still in correction mode.
India Market on Aug 27: Mixed trend in spot rubber
August 28, 2011
KOTTAYAM, AUG. 27:
Spot rubber showed a mixed mood on Saturday. The market opened steady and remained almost neutral during the morning session.
The September series closed at Rs 209 (206.69), October at Rs 206.35 (204.18), November at Rs 206.80 (204.34), January at Rs 208.50 (208.99) and February at Rs 211.10 (209) a kg for RSS 4 on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 207 (205.50); RSS-5: 198 (198); ungraded: 188 (188); ISNR 20: 198 (198) and latex 60 per cent: 127.50 (127.50).
Spot rubber improves on supply concern
KOTTAYAM, AUG. 30:
Spot rubber gained strength on Tuesday. The market sought further highs catalysed by sharp gains in domestic futures though a part of the trading community believed that the prices were manipulated by speculators. International indices also ended on a positive note as TOCOM rubber futures rose to a three-week high following the gains in oil and equities. Volumes were comparatively low.
Sheet rubber firmed up to Rs 212 (209) a kg, as quoted by the traders. The grade improved to Rs 210 (207) a kg both at Kottayam and Kochi, according to the Rubber Board.
The September series increased sharply to Rs 219 (213.10), October to Rs 217.01 (211.18), November to Rs 216.60 (211.06), December to Rs 217.02 (211.25), January to Rs 219.15 (213.03) and February to Rs 220.40 (214.00) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) inched up to Rs 214.91 (214.15) a kg at Bangkok. The September futures for the grade bounced back to ¥362.9 (Rs 217.56) from ¥352 a kg during the day session and then to ¥363 (Rs 217.69) in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 212 (209); RSS-5: 203 (200); ungraded: 197 (193); ISNR 20: 201 (198) and latex 60 per cent: 130 (129).
Wednesday, August 31, 2011
Thursday, August 25, 2011
Tokyo futures hit 1-week high, upside capped
Tokyo futures hit 1-week high, upside capped
August 24, 2011
BANGKOK, Aug 24 (Reuters) – Tokyo rubber futures rose to a one-week high on Wednesday on the back of steady oil prices and speculative buying, but gains were limited by concerns about the global economy, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery rose 3.7 yen to settle at 361.4 yen ($4.724) per kg.
It rose as much as 2 percent to an intraday high of 364.5 yen per kg, the highest since Aug. 17.
The most active Shanghai rubber contract for January delivery was down 15 yuan to finish at 33,105 yuan ($5,175) per tonne.
“Actually TOCOM sentiment was not bad, but the rises were limited by concerns about a possible global economic downturn and I thinks these concerns could last long,” one dealer said.
Brent crude prices steadied above $109 on Wednesday as investors pinned their hopes on the U.S. Federal Reserve to inject fresh stimulus to boost the world’s largest economy.
Dealers said TOCOM prices were expected to rise further after prices finished above key psychological resistance of 360 yen.
India’s synthetic rubber consumption up 8% in May
August 24, 2011
The country’s synthetic rubber consumption rose by 8% to 35,740 tonnes in May this year, while domestic production declined marginally to 9,468 tonnes in the same period, according to the Rubber Board.
Synthetic rubber consumption and output stood at 33,110 tonnes and 9,522 tonnes, respectively, in the corresponding period of the previous year, the Rubber Board data shows.
Production of synthetic rubber on a month-on-month basis rose by 2% in May, 2011, from 9,262 tonnes in April, 2011. Consumption declined by 3% in May, 2011, from 36,890 tonnes in the corresponding period a year ago.
In the first two months of the current fiscal, synthetic rubber consumption was up by 10 per cent at 72,630 tonnes, as against 65,925 tonnes in the year-ago period, while production rose by 6% to 18,730 tonnes from 17,702 tonnes in the same period last year.
Synthetic rubber is mostly used in the manufacture of tyres in the country.
The auto tyre industry alone consumed 26,022 tonnes of the produce in May this year, which is 11% higher than its consumption of 23,355 tonnes in the year-ago period.
India’s synthetic rubber imports rose by 20% to 31,497 tonnes in May, 2011, from 26,268 tonnes in the same period last year.
The total stock of synthetic rubber in the country at the end of May, 2011, stood at 41,625 tonnes.
Rubber Board focus on Assam
August 23, 2011
GUWAHATI: The national Rubber Board is looking to make Assam one of the leading states in rubber production in the country. The board, which is focusing on the future of rubber production in the northeast, said Assam should come up with a comprehensive policy on rubber plantation and production.
Tripura tops in rubber cultivation in the region, with 55,415 hectare under rubber plantation. Assam is in the second place with 28,102 hectare under rubber plantation.
Tripura produces more than 18,455 tonne of rubber per annum and the volume shows a rising trend. In fact, Tripura has emerged as the second largest rubber producer in the country after Kerala.
“The need of the hour is to formulate a comprehensive policy for rubber plantation and production in Assam.
Tripura could march ahead in rubber production because of a focused policy approach in this sector. We want Assam comes up with a rubber policy as well,” a senior Rubber Board official said over the phone from Kerala.
The official added rubber cultivation is already happening in Assam. “What we need now is to give it a proper boost. So, a focused policy approach is needed to ensure Assam emerges as one of the top rubber-producing states in the country,” he said.
Considering the importance of rubber cultivation in Assam, chief minister Tarun Gogoi has called a meeting with officials of the Rubber Board on August 24. tnn The meeting will be a crucial one on shaping a policy-approach to rubber cultivation in Assam, the official said.
The Rubber Board’s focus has shifted from traditional rubber-producing belts like Kerala and Tamil Nadu to the northeast as far as plantation is concerned.
The Tripura Rehabilitation Plantation Corporation Ltd (TRPCL) of the Tripura government played a crucial role in weaning tribals from shifting cultivation and making them shift to rubber plantation. “Rubber plantation in the northeast has scripted success stories in Tripura, and we are geared up with training and promotional exercises for popularizing rubber plantation in Assam,” the official said.
The board has set up a rubber research and training centre at Hahara in Sonapur on the outskirts of the city to train upcoming rubber cultivators in the state.
Spot rubber prices gain; latex slips
Business Line
KOTTAYAM, AUG. 24:
Spot rubber improved on Wednesday. The prices gained strength possibly owing to a pull back to reduce the gap between the domestic and international futures. There was no selling pressure in the market since RSS 4 rose above the critical Rs 200-level giving hope for a recovery from the recent fall. But the improvement in weather which is expected to initiate an increase in production and arrivals limited the overall gains, an analyst said. The trend continued to be mixed as latex 60 per cent slipped further on low demand.
Sheet rubber improved to Rs 201.50 (200.50) a kg according to traders. The grade increased to Rs 202 (200) a kg both at Kottayam and Kochi according to Rubber Board.
The September series firmed up to Rs 205.51 (205.26), October to Rs 203.50 (203.30), November to Rs 203.30 (202.91), December to Rs 203.99 (202.96), January to Rs 205.99 (203.61) and February to Rs 207.40 (205.16) a kg for RSS 4 on the National Multi Commodity Exchange.
The August futures recovered marginally to ¥351.5 (Rs 211.24) from ¥349.5 a kg during the day session but then dropped to ¥346.4 (Rs 208.15) in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 212.90 (213.01) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 201.50 (200.50); RSS-5: 195 (193); ungraded: 186 (184); ISNR 20: 196 (195) and latex 60 per cent: 126 (127).
Spot rubber back above Rs 200 a kg
KOTTAYAM, AUG. 23:
Rubber prices improved further on Tuesday. In the spot market, they extended gains following consistent recovery on the National Multi Commodity Exchange(NMCE).
According to sources, the widening gap between the domestic and international prices and the weakening rupee against dollar may have initiated the recent buying pressure which took RSS 4 back above the Rs 200 level. The trend was partially mixed.
Sheet rubber improved to Rs 200.50 (198.50) a kg, according to traders.
The grade firmed up to Rs 200 (198) a kg both at Kottayam and Kochi, as reported by the Rubber Board.
The September series increased to Rs 205.10 (204.16), October to Rs 203.32 (201.37), November to Rs 203.50 (200.83), December to Rs 203.49 (201.71), January to Rs 204.25 (203.12) and February to Rs 204.52 (202.11) a kg on the NMCE.
The August futures dropped to ¥349.5 (Rs 208.08) from ¥351 a kg during the day session but then bounced back to ¥351 (Rs 208.91) in the night session on the Tokyo Commodity Exchange.
RSS 3 (spot) closed firm at Rs 213.01 (211.12) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 200.50 (198.50); RSS-5: 193 (190); ungraded: 184 (182); ISNR 20: 195 (195) and latex 60 per cent 127 (129).
Keywords: spot rubber
August 24, 2011
BANGKOK, Aug 24 (Reuters) – Tokyo rubber futures rose to a one-week high on Wednesday on the back of steady oil prices and speculative buying, but gains were limited by concerns about the global economy, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery rose 3.7 yen to settle at 361.4 yen ($4.724) per kg.
It rose as much as 2 percent to an intraday high of 364.5 yen per kg, the highest since Aug. 17.
The most active Shanghai rubber contract for January delivery was down 15 yuan to finish at 33,105 yuan ($5,175) per tonne.
“Actually TOCOM sentiment was not bad, but the rises were limited by concerns about a possible global economic downturn and I thinks these concerns could last long,” one dealer said.
Brent crude prices steadied above $109 on Wednesday as investors pinned their hopes on the U.S. Federal Reserve to inject fresh stimulus to boost the world’s largest economy.
Dealers said TOCOM prices were expected to rise further after prices finished above key psychological resistance of 360 yen.
India’s synthetic rubber consumption up 8% in May
August 24, 2011
The country’s synthetic rubber consumption rose by 8% to 35,740 tonnes in May this year, while domestic production declined marginally to 9,468 tonnes in the same period, according to the Rubber Board.
Synthetic rubber consumption and output stood at 33,110 tonnes and 9,522 tonnes, respectively, in the corresponding period of the previous year, the Rubber Board data shows.
Production of synthetic rubber on a month-on-month basis rose by 2% in May, 2011, from 9,262 tonnes in April, 2011. Consumption declined by 3% in May, 2011, from 36,890 tonnes in the corresponding period a year ago.
In the first two months of the current fiscal, synthetic rubber consumption was up by 10 per cent at 72,630 tonnes, as against 65,925 tonnes in the year-ago period, while production rose by 6% to 18,730 tonnes from 17,702 tonnes in the same period last year.
Synthetic rubber is mostly used in the manufacture of tyres in the country.
The auto tyre industry alone consumed 26,022 tonnes of the produce in May this year, which is 11% higher than its consumption of 23,355 tonnes in the year-ago period.
India’s synthetic rubber imports rose by 20% to 31,497 tonnes in May, 2011, from 26,268 tonnes in the same period last year.
The total stock of synthetic rubber in the country at the end of May, 2011, stood at 41,625 tonnes.
Rubber Board focus on Assam
August 23, 2011
GUWAHATI: The national Rubber Board is looking to make Assam one of the leading states in rubber production in the country. The board, which is focusing on the future of rubber production in the northeast, said Assam should come up with a comprehensive policy on rubber plantation and production.
Tripura tops in rubber cultivation in the region, with 55,415 hectare under rubber plantation. Assam is in the second place with 28,102 hectare under rubber plantation.
Tripura produces more than 18,455 tonne of rubber per annum and the volume shows a rising trend. In fact, Tripura has emerged as the second largest rubber producer in the country after Kerala.
“The need of the hour is to formulate a comprehensive policy for rubber plantation and production in Assam.
Tripura could march ahead in rubber production because of a focused policy approach in this sector. We want Assam comes up with a rubber policy as well,” a senior Rubber Board official said over the phone from Kerala.
The official added rubber cultivation is already happening in Assam. “What we need now is to give it a proper boost. So, a focused policy approach is needed to ensure Assam emerges as one of the top rubber-producing states in the country,” he said.
Considering the importance of rubber cultivation in Assam, chief minister Tarun Gogoi has called a meeting with officials of the Rubber Board on August 24. tnn The meeting will be a crucial one on shaping a policy-approach to rubber cultivation in Assam, the official said.
The Rubber Board’s focus has shifted from traditional rubber-producing belts like Kerala and Tamil Nadu to the northeast as far as plantation is concerned.
The Tripura Rehabilitation Plantation Corporation Ltd (TRPCL) of the Tripura government played a crucial role in weaning tribals from shifting cultivation and making them shift to rubber plantation. “Rubber plantation in the northeast has scripted success stories in Tripura, and we are geared up with training and promotional exercises for popularizing rubber plantation in Assam,” the official said.
The board has set up a rubber research and training centre at Hahara in Sonapur on the outskirts of the city to train upcoming rubber cultivators in the state.
Spot rubber prices gain; latex slips
Business Line
KOTTAYAM, AUG. 24:
Spot rubber improved on Wednesday. The prices gained strength possibly owing to a pull back to reduce the gap between the domestic and international futures. There was no selling pressure in the market since RSS 4 rose above the critical Rs 200-level giving hope for a recovery from the recent fall. But the improvement in weather which is expected to initiate an increase in production and arrivals limited the overall gains, an analyst said. The trend continued to be mixed as latex 60 per cent slipped further on low demand.
Sheet rubber improved to Rs 201.50 (200.50) a kg according to traders. The grade increased to Rs 202 (200) a kg both at Kottayam and Kochi according to Rubber Board.
The September series firmed up to Rs 205.51 (205.26), October to Rs 203.50 (203.30), November to Rs 203.30 (202.91), December to Rs 203.99 (202.96), January to Rs 205.99 (203.61) and February to Rs 207.40 (205.16) a kg for RSS 4 on the National Multi Commodity Exchange.
The August futures recovered marginally to ¥351.5 (Rs 211.24) from ¥349.5 a kg during the day session but then dropped to ¥346.4 (Rs 208.15) in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 212.90 (213.01) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 201.50 (200.50); RSS-5: 195 (193); ungraded: 186 (184); ISNR 20: 196 (195) and latex 60 per cent: 126 (127).
Spot rubber back above Rs 200 a kg
KOTTAYAM, AUG. 23:
Rubber prices improved further on Tuesday. In the spot market, they extended gains following consistent recovery on the National Multi Commodity Exchange(NMCE).
According to sources, the widening gap between the domestic and international prices and the weakening rupee against dollar may have initiated the recent buying pressure which took RSS 4 back above the Rs 200 level. The trend was partially mixed.
Sheet rubber improved to Rs 200.50 (198.50) a kg, according to traders.
The grade firmed up to Rs 200 (198) a kg both at Kottayam and Kochi, as reported by the Rubber Board.
The September series increased to Rs 205.10 (204.16), October to Rs 203.32 (201.37), November to Rs 203.50 (200.83), December to Rs 203.49 (201.71), January to Rs 204.25 (203.12) and February to Rs 204.52 (202.11) a kg on the NMCE.
The August futures dropped to ¥349.5 (Rs 208.08) from ¥351 a kg during the day session but then bounced back to ¥351 (Rs 208.91) in the night session on the Tokyo Commodity Exchange.
RSS 3 (spot) closed firm at Rs 213.01 (211.12) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 200.50 (198.50); RSS-5: 193 (190); ungraded: 184 (182); ISNR 20: 195 (195) and latex 60 per cent 127 (129).
Keywords: spot rubber
Tuesday, August 23, 2011
Vietnam: Rubber exports have bright future
Vietnam: Rubber exports have bright future
August 22, 2011
Worker in a tire factory (Photo: SGGP)
The new factory, built at an investment of VND3,000 billion (US$146 million), is expected to roll out 600,000 tires per annum.
At present, the two most advanced tire factories in Vietnam are the Rubber Factory in Danang (DRC) and the Southern Rubber Company (Casumina).
According to Casumina, the industry in Vietnam has an edge on the market as Japan, Europe and USA are losing their market share due to a continuous increase in the cost of ra
w materials.
This is a great opportunity for Asian countries, and Vietnam in particular, as it is the fifth highest producer of raw material in the world.
The country can gain an advantageous foothold in producing and exporting car tires, truck tires, medical gloves and high-quality mattresses.
Recently, the government approved a project to expand the area for rubber plantation to 800,000 hectares by 2015 with more expansion expected by 2020.
The industry will acquire another 60,000 hectares in the North West and the Central Coastal regions of the country with a view to increase rubber exports by $5-10 billion in the future.
Malaysia: Rebounding rubber
August 22, 2011
MORE than 42,000 small farmers will receive a Hari Raya bonanza from the Rubber Industry Smallholders Development Authority (Risda). Indeed, of late, tapping rubber, which is usually associated with eking a bare existence, has been a godsend because rubber prices have stayed at high levels. At the beginning of the year, the price of SMR20 reached RM16.70 per kg. Of course, most of the rubber produced by the mainstay of the industry, the smallholders, is latex, cuplump or scrap rather than this tyre-grade rubber. Nevertheless, even at the invariably lower farm gate prices for the raw rubber, a small rubber planter with two hectares, the average size, producing 1,500 kilos of latex, the average output, would be able to receive a monthly income in excess of RM2,000.
This is a far cry from the situation some 10 years ago when prices were so low and incomes so meagre that cash assistance had to be provided to tide them over and exit schemes crafted to get them out of the rubber industry and into more rewarding sectors. Indeed, with the recovery in prices, the local rubber industry, which has long lost its position as the leading world producer, has bounced back strongly. Last year, production rose to 970,000 tons from 857,000 tons in 2009, and earned the country RM33 billion in revenue compared with RM25 billion the previous year. The number of small rubber planters has also increased from about 200,000 in 2002 to some 265,000 in 2009, reflecting the revived buoyancy of the industry.
But as the decline in rubber prices for the third straight week, and the sharp falls in oil prices, remind us, commodities are susceptible to fluctuations. True, as prices are expected to still remain stable and strong in the short-term, rubber smallholders should be able to continue enjoying lucrative incomes. But there is no guarantee that this streak will continue. Certainly, the recent peaks in prices do not provide a short-term incentive for smallholders to heed the prime minister’s advice to use the latest planting methods and tapping technologies. On the contrary, there is a tendency to overtap the trees to benefit from the price hikes. Chopping down the old trees and replanting them with higher yielding clones is also not on their minds. But without a doubt, in the long run, as the prime minister rightly said, new models and action plans are needed to address the technological and structural problems that persistently put smallholder incomes at the mercy of the volatility in world prices.
Spot rubber improves on short covering
KOTTAYAM, AUG. 22:
Spot rubber turned better on Monday. The market opened steady but improved later on fresh buying and short covering led by the moderate recovery in domestic futures. “We are expecting enquiries from major consuming sector as the international indices rule much above the Indian rates,” an observer said. The trend was partially mixed.
Meanwhile, in the international market natural rubber prices were seen rising with TOCOM rubber futures tracking the gains in other commodities.
Sheet rubber increased to Rs 198.50 (197.50) a kg, according to traders. The grade finished unchanged at Rs 198 a kg both at Kottayam and Kochi, according to the Rubber Board.
In futures, the September series recovered sharply to Rs 204.40 (198.61), October to Rs 201.90 (195.46), November to Rs 201.33 (195.52), December to Rs 201.90 (197.20), January to Rs 203 (198.09) and February to Rs 203 (209.95) a kg on the National Multi Commodity Exchange.
RSS 3 improved at its August futures to ¥351 (Rs 209.09) from ¥348 a kg during the day session but then slipped to ¥350 (Rs 208.48) in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 211.12 (211.07) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 198.50 (197.50); RSS-5: 190 (190); ungraded: 182 (180); ISNR 20: 195 (194) and latex 60 per cent: 129 (129).
August 22, 2011
Worker in a tire factory (Photo: SGGP)
The new factory, built at an investment of VND3,000 billion (US$146 million), is expected to roll out 600,000 tires per annum.
At present, the two most advanced tire factories in Vietnam are the Rubber Factory in Danang (DRC) and the Southern Rubber Company (Casumina).
According to Casumina, the industry in Vietnam has an edge on the market as Japan, Europe and USA are losing their market share due to a continuous increase in the cost of ra
w materials.
This is a great opportunity for Asian countries, and Vietnam in particular, as it is the fifth highest producer of raw material in the world.
The country can gain an advantageous foothold in producing and exporting car tires, truck tires, medical gloves and high-quality mattresses.
Recently, the government approved a project to expand the area for rubber plantation to 800,000 hectares by 2015 with more expansion expected by 2020.
The industry will acquire another 60,000 hectares in the North West and the Central Coastal regions of the country with a view to increase rubber exports by $5-10 billion in the future.
Malaysia: Rebounding rubber
August 22, 2011
MORE than 42,000 small farmers will receive a Hari Raya bonanza from the Rubber Industry Smallholders Development Authority (Risda). Indeed, of late, tapping rubber, which is usually associated with eking a bare existence, has been a godsend because rubber prices have stayed at high levels. At the beginning of the year, the price of SMR20 reached RM16.70 per kg. Of course, most of the rubber produced by the mainstay of the industry, the smallholders, is latex, cuplump or scrap rather than this tyre-grade rubber. Nevertheless, even at the invariably lower farm gate prices for the raw rubber, a small rubber planter with two hectares, the average size, producing 1,500 kilos of latex, the average output, would be able to receive a monthly income in excess of RM2,000.
This is a far cry from the situation some 10 years ago when prices were so low and incomes so meagre that cash assistance had to be provided to tide them over and exit schemes crafted to get them out of the rubber industry and into more rewarding sectors. Indeed, with the recovery in prices, the local rubber industry, which has long lost its position as the leading world producer, has bounced back strongly. Last year, production rose to 970,000 tons from 857,000 tons in 2009, and earned the country RM33 billion in revenue compared with RM25 billion the previous year. The number of small rubber planters has also increased from about 200,000 in 2002 to some 265,000 in 2009, reflecting the revived buoyancy of the industry.
But as the decline in rubber prices for the third straight week, and the sharp falls in oil prices, remind us, commodities are susceptible to fluctuations. True, as prices are expected to still remain stable and strong in the short-term, rubber smallholders should be able to continue enjoying lucrative incomes. But there is no guarantee that this streak will continue. Certainly, the recent peaks in prices do not provide a short-term incentive for smallholders to heed the prime minister’s advice to use the latest planting methods and tapping technologies. On the contrary, there is a tendency to overtap the trees to benefit from the price hikes. Chopping down the old trees and replanting them with higher yielding clones is also not on their minds. But without a doubt, in the long run, as the prime minister rightly said, new models and action plans are needed to address the technological and structural problems that persistently put smallholder incomes at the mercy of the volatility in world prices.
Spot rubber improves on short covering
KOTTAYAM, AUG. 22:
Spot rubber turned better on Monday. The market opened steady but improved later on fresh buying and short covering led by the moderate recovery in domestic futures. “We are expecting enquiries from major consuming sector as the international indices rule much above the Indian rates,” an observer said. The trend was partially mixed.
Meanwhile, in the international market natural rubber prices were seen rising with TOCOM rubber futures tracking the gains in other commodities.
Sheet rubber increased to Rs 198.50 (197.50) a kg, according to traders. The grade finished unchanged at Rs 198 a kg both at Kottayam and Kochi, according to the Rubber Board.
In futures, the September series recovered sharply to Rs 204.40 (198.61), October to Rs 201.90 (195.46), November to Rs 201.33 (195.52), December to Rs 201.90 (197.20), January to Rs 203 (198.09) and February to Rs 203 (209.95) a kg on the National Multi Commodity Exchange.
RSS 3 improved at its August futures to ¥351 (Rs 209.09) from ¥348 a kg during the day session but then slipped to ¥350 (Rs 208.48) in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 211.12 (211.07) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 198.50 (197.50); RSS-5: 190 (190); ungraded: 182 (180); ISNR 20: 195 (194) and latex 60 per cent: 129 (129).
Saturday, August 20, 2011
Commodities fall on worries about future demand
Commodities fall on worries about future demand
August 18, 2011
Commodity prices fell Thursday after fresh economic reports added to concerns about a weak global economy. Gold was a notable exception as it hit a new record near $1,830 an ounce.
U.S. economic news was discouraging: consumer prices and claims for jobless benefits rose, existing home sales fell and manufacturing weakened in the mid-Atlantic region. Overseas, Japan’s exports fell for the fifth straight month in July and European leaders continued to grapple with sovereign debt problems.
Investors sold contracts for everything from oil to wheat and industrial metals as they worried about the potential for future demand if the global economy continues to slow.
Kingsview Financial analyst Matt Zeman said debt issues are key concerns for investors. “Add to that these just extremely weak economic numbers that we’re seeing and it spells trouble and that’s what we’re seeing,” he said.
The government said the number of people applying for unemployment benefits rose last week. The Consumer Price Index increased 0.5 percent in July as Americans paid more for necessities like fuel and food.
Gold prices rose for a fourth day. The precious metal is considered a relatively stable asset during economic turmoil. Gold for December delivery rose $28.20 to finish at $1,822 an ounce after hitting $1,829.70 an ounce earlier in the day. That was a record in dollar terms but still below the 1980 peak after adjusting for inflation.
Several analysts have predicted that gold could reach $2,000 an ounce if economic troubles deepen.
Gold’s increase benefited silver and platinum, which are traded both as precious and industrial metals.
September silver rose 33.7 cents to end at $40.688 an ounce and October platinum increased $6.90 to $1,847.70 an ounce.
In other trading, September copper fell 6.6 cents to finish at $3.966 a pound and September palladium fell $18.90 to $757 an ounce.
Oil and other energy products dropped. Benchmark West Texas Intermediate crude for September delivery declined $5.20, or 5.9 percent, to finish at $82.38 per barrel on the New York Mercantile Exchange.
In other Nymex trading for September contracts, heating oil fell 8.68 cents to end at $2.8748 per gallon, gasoline futures lost 8.71 cents at $2.7832 per gallon and natural gas fell 4.1 cents to $3.892 per 1,000 cubic feet.
Wheat for September delivery fell 19.75 cents to $7.0775 a bushel, December corn lost 12.5 cents at $7.13 a bushel and November soybeans fell 5.75 cents to $13.61 a bushel.
Rubber Plunges Most in More Than One Week on Growth Concerns
August 19, 2011
Rubber declined for a fourth day, tumbling the most in more than a week, amid concerns that a global economic slowdown may reduce demand for the commodity used to make tires and gloves.
The January-delivery contract plunged as much as 2.8 percent to 352 yen a kilogram ($4,606 a metric ton), the lowest level since Aug. 9, before closing at 352.3 yen on the Tokyo Commodity Exchange.
Asian stocks slumped, dragging the region’s benchmark index to a fourth weekly loss, while oil led commodities lower amid concern that the U.S. recovery is faltering and Europe’s debt crisis will spread.
“The breakdown of stocks and oil prices put pressure on rubber market,” Gu Jiong, an analyst at commodity broker Yutaka Shoji Co., said by phone from Tokyo. A downward revision of global economic growth raised concern that demand for rubber may weaken, he said.
Morgan Stanley cut its forecast for global growth this year, citing an “insufficient” response to Europe’s sovereign debt crisis, weakened confidence and the prospect of fiscal tightening. The bank predicted an expansion of 3.9 percent, down from a previous forecast of 4.2 percent. It cut its China growth forecast for next year to 8.7 percent from 9 percent.
China will expand 8.9 percent this year, down from an earlier forecast of 9.1 percent, Deutsche Bank AG said in a report dated Aug. 17, citing the “shock” of a U.S. and European Union slowdown. It lowered its 2012 estimate to 8.3 percent from 8.6 percent.
In Shanghai, rubber for January delivery dropped 0.8 percent to close at 33,490 yuan ($5,236) a ton on the Shanghai Futures Exchange.
China
“Worries of an economic slowdown in China continue putting pressure on rubber prices,” the Rubber Research Institute of Thailand said on its website today. The downside was limited by a decline in production in the Thai south as rains covered 60 percent of the area, disrupting latex tapping, it said. The south produces about 80 percent of the country’s supply.
China is battling inflation that accelerated at the fastest pace in three years last month, Zhao Cheng, an analyst at Zhongcai Futures Co., said in a report today. “Most Chinese manufacturers are saddled with high-priced inventory while having to deal with tight cash flow, expensive labor and higher taxes,” he said.
The cash price of Thai rubber declined 0.5 percent to 138.05 baht ($4.62) a kilogram today, according to the Thai institute.
Rubber market on aug 19: Spot rubber slips below Rs 200/kg
August 19, 2011
KOTTAYAM, AUG. 19:
Physical rubber market fell further on Friday. Broad declines in the domestic and international futures weighed on the prices on early trades while the selling from dealers kept the commodity under pressure during closing hours. The technical outlook was weak as RSS 4 stayed below the Rs 200 level consecutively for the second day and the market is expected to seek further lows in the days ahead, an analyst said.
Sheet rubber moved down to Rs 197 (198) a kg according to traders. The grade closed weak at Rs 198.50 (200) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The September series weakened to Rs 197.16 (199.11), October to Rs 194.50 (197.09), November to Rs 194.40 (197.23), December to Rs 194.52 (198.01) and January to Rs 197.01 (199.28) a kg for RSS 4 on the National Multi Commodity Exchange.
India: Mani flays cut in rubber import duty
August 19, 2011
Finance Minister K.M. Mani. Photo: C. Ratheesh Kumar
Finance Minister K.M. Mani has criticised the decision of the Central government to sanction import of 40,000 tonnes of natural rubber (NR) at a concessional duty.
Speaking at a meet-the-press here on Friday, Mr. Mani said it was wrong on the part of the Centre to implement a mechanism that would lead to a fall in the price of natural rubber at a time when it brought significant profits to cultivators. “The fact that there wasn’t any system in place to compensate rubber growers at times of slump in prices made the decision all the more uncalled for,” he said. He pointed out that there was no scarcity of rubber and that the Centre’s decision was shaped by the pressure exerted by the user industry. “I am confident that there is sufficient quantity of natural rubber in the country to cater to the market demand,” he said.
Mr. Mani said the State government would soon restructure the prize system of the Kerala Lotteries. This would result in more people winning prizes and help generate more interest in lottery among the public, he said.
He said the government was committed to introducing laws that would protect the interests of the public. “The proposed Right to
Service Act is intended to ensure dispensation of service in a time-bound and effective manner,” he said.
The government would look into the possibility of bringing in a legislation that would effectively protect the interests of depositors and arrest the rising trend of swindling people out of their investments.
Mr. Mani made a special mention of the importance provided to improving waste disposal and sanitation in the revised budget of the State. “The State government envisages a significant improvement of the waste management system. We intend to implement several projects that include the conversion of biogas into electricity and recycling of wastes. This would require the cooperation and active efforts of all local bodies and various self-help groups,” he said.
August 18, 2011
Commodity prices fell Thursday after fresh economic reports added to concerns about a weak global economy. Gold was a notable exception as it hit a new record near $1,830 an ounce.
U.S. economic news was discouraging: consumer prices and claims for jobless benefits rose, existing home sales fell and manufacturing weakened in the mid-Atlantic region. Overseas, Japan’s exports fell for the fifth straight month in July and European leaders continued to grapple with sovereign debt problems.
Investors sold contracts for everything from oil to wheat and industrial metals as they worried about the potential for future demand if the global economy continues to slow.
Kingsview Financial analyst Matt Zeman said debt issues are key concerns for investors. “Add to that these just extremely weak economic numbers that we’re seeing and it spells trouble and that’s what we’re seeing,” he said.
The government said the number of people applying for unemployment benefits rose last week. The Consumer Price Index increased 0.5 percent in July as Americans paid more for necessities like fuel and food.
Gold prices rose for a fourth day. The precious metal is considered a relatively stable asset during economic turmoil. Gold for December delivery rose $28.20 to finish at $1,822 an ounce after hitting $1,829.70 an ounce earlier in the day. That was a record in dollar terms but still below the 1980 peak after adjusting for inflation.
Several analysts have predicted that gold could reach $2,000 an ounce if economic troubles deepen.
Gold’s increase benefited silver and platinum, which are traded both as precious and industrial metals.
September silver rose 33.7 cents to end at $40.688 an ounce and October platinum increased $6.90 to $1,847.70 an ounce.
In other trading, September copper fell 6.6 cents to finish at $3.966 a pound and September palladium fell $18.90 to $757 an ounce.
Oil and other energy products dropped. Benchmark West Texas Intermediate crude for September delivery declined $5.20, or 5.9 percent, to finish at $82.38 per barrel on the New York Mercantile Exchange.
In other Nymex trading for September contracts, heating oil fell 8.68 cents to end at $2.8748 per gallon, gasoline futures lost 8.71 cents at $2.7832 per gallon and natural gas fell 4.1 cents to $3.892 per 1,000 cubic feet.
Wheat for September delivery fell 19.75 cents to $7.0775 a bushel, December corn lost 12.5 cents at $7.13 a bushel and November soybeans fell 5.75 cents to $13.61 a bushel.
Rubber Plunges Most in More Than One Week on Growth Concerns
August 19, 2011
Rubber declined for a fourth day, tumbling the most in more than a week, amid concerns that a global economic slowdown may reduce demand for the commodity used to make tires and gloves.
The January-delivery contract plunged as much as 2.8 percent to 352 yen a kilogram ($4,606 a metric ton), the lowest level since Aug. 9, before closing at 352.3 yen on the Tokyo Commodity Exchange.
Asian stocks slumped, dragging the region’s benchmark index to a fourth weekly loss, while oil led commodities lower amid concern that the U.S. recovery is faltering and Europe’s debt crisis will spread.
“The breakdown of stocks and oil prices put pressure on rubber market,” Gu Jiong, an analyst at commodity broker Yutaka Shoji Co., said by phone from Tokyo. A downward revision of global economic growth raised concern that demand for rubber may weaken, he said.
Morgan Stanley cut its forecast for global growth this year, citing an “insufficient” response to Europe’s sovereign debt crisis, weakened confidence and the prospect of fiscal tightening. The bank predicted an expansion of 3.9 percent, down from a previous forecast of 4.2 percent. It cut its China growth forecast for next year to 8.7 percent from 9 percent.
China will expand 8.9 percent this year, down from an earlier forecast of 9.1 percent, Deutsche Bank AG said in a report dated Aug. 17, citing the “shock” of a U.S. and European Union slowdown. It lowered its 2012 estimate to 8.3 percent from 8.6 percent.
In Shanghai, rubber for January delivery dropped 0.8 percent to close at 33,490 yuan ($5,236) a ton on the Shanghai Futures Exchange.
China
“Worries of an economic slowdown in China continue putting pressure on rubber prices,” the Rubber Research Institute of Thailand said on its website today. The downside was limited by a decline in production in the Thai south as rains covered 60 percent of the area, disrupting latex tapping, it said. The south produces about 80 percent of the country’s supply.
China is battling inflation that accelerated at the fastest pace in three years last month, Zhao Cheng, an analyst at Zhongcai Futures Co., said in a report today. “Most Chinese manufacturers are saddled with high-priced inventory while having to deal with tight cash flow, expensive labor and higher taxes,” he said.
The cash price of Thai rubber declined 0.5 percent to 138.05 baht ($4.62) a kilogram today, according to the Thai institute.
Rubber market on aug 19: Spot rubber slips below Rs 200/kg
August 19, 2011
KOTTAYAM, AUG. 19:
Physical rubber market fell further on Friday. Broad declines in the domestic and international futures weighed on the prices on early trades while the selling from dealers kept the commodity under pressure during closing hours. The technical outlook was weak as RSS 4 stayed below the Rs 200 level consecutively for the second day and the market is expected to seek further lows in the days ahead, an analyst said.
Sheet rubber moved down to Rs 197 (198) a kg according to traders. The grade closed weak at Rs 198.50 (200) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The September series weakened to Rs 197.16 (199.11), October to Rs 194.50 (197.09), November to Rs 194.40 (197.23), December to Rs 194.52 (198.01) and January to Rs 197.01 (199.28) a kg for RSS 4 on the National Multi Commodity Exchange.
India: Mani flays cut in rubber import duty
August 19, 2011
Finance Minister K.M. Mani. Photo: C. Ratheesh Kumar
Finance Minister K.M. Mani has criticised the decision of the Central government to sanction import of 40,000 tonnes of natural rubber (NR) at a concessional duty.
Speaking at a meet-the-press here on Friday, Mr. Mani said it was wrong on the part of the Centre to implement a mechanism that would lead to a fall in the price of natural rubber at a time when it brought significant profits to cultivators. “The fact that there wasn’t any system in place to compensate rubber growers at times of slump in prices made the decision all the more uncalled for,” he said. He pointed out that there was no scarcity of rubber and that the Centre’s decision was shaped by the pressure exerted by the user industry. “I am confident that there is sufficient quantity of natural rubber in the country to cater to the market demand,” he said.
Mr. Mani said the State government would soon restructure the prize system of the Kerala Lotteries. This would result in more people winning prizes and help generate more interest in lottery among the public, he said.
He said the government was committed to introducing laws that would protect the interests of the public. “The proposed Right to
Service Act is intended to ensure dispensation of service in a time-bound and effective manner,” he said.
The government would look into the possibility of bringing in a legislation that would effectively protect the interests of depositors and arrest the rising trend of swindling people out of their investments.
Mr. Mani made a special mention of the importance provided to improving waste disposal and sanitation in the revised budget of the State. “The State government envisages a significant improvement of the waste management system. We intend to implement several projects that include the conversion of biogas into electricity and recycling of wastes. This would require the cooperation and active efforts of all local bodies and various self-help groups,” he said.
Friday, August 19, 2011
Rubber to weaken on rising output, lower crude oil prices
Rubber to weaken on rising output, lower crude oil prices
August 18, 2011
KOCHI (Commodity Online): Rubber prices are set for further weakness on rising production in India, weak demand trends and falling Crude Oil prices.
Spot rubber prices for RSS 4 grade monitored by Rubber Board has fallen from Rs 20300 levels last week to 20,000 per 100 kg on Wednesday. At National Multi-Commodity Exchange (NMCE) Rubber september contract has opened trade on Thursday at Rs 19968 levels and is currently trading at Rs 19925 levels. The contract last closed at Rs 19895 levels on Wednesday.
Meanwhile, automobile sector demand has shown weakening trend as passenger car sales have dipped in July. Passenger car sales declined 15.76 per cent to 133,747 units, from 158,767 units a year earlier, according to the Society of Indian Automobile Manufacturers (Siam).The recent hike in interest rates, coupled with the increase in fuel prices, has affected the consumer sentiment negatively. With reports of meltdown in markets worldwide, customers are exercising caution and postponing purchase decisions
At TOCOM January-delivery contract is showing weakening trends at 362.3 Yen falling 0.1 percent at 13.55 hrs JST. The stronger Yen has also reduced the appeal of yen-denominated contracts, analysts said.
According to estimates, India’s Rubber production has risen 7% in July to 62,700 tonnes on good climatic conditions, rise in tapped area and higher prevailing prices in the previous months that boosted incenvtives for tapping by growers. Consumption has grown in July at 7.6% at 82,000 tonnes.
Prices skid
August 18, 2011
Economic worries: Rubber sheets being dried in sunlight at Nenmara near Palakkad, Kerala. Asian rubber settled mostly lower on Thursday on most exchanges, despite positive supply-and-demand cues, as macroeconomic jitters and concerns about the U.S. and European debt weighed heavily. Benchmark January natural rubber futures on the Tokyo Commodity Exchange settled ¥0.2 lower at ¥362.2 a kg.
Tokyo futures nearly flat, weak technicals weigh (Aug 18)
August 18, 2011
TOKYO, Aug 18 (Reuters) – Key Tokyo rubber futures settled nearly flat on Thursday, with investors lacking fresh incentives to break out of ranges and as worries about the yen’s strength and weak technicals weighed on sentiment.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery settled at 362.2 yen per kg, down 0.2 yen on the day.
The most active Shanghai rubber contract for January delivery fell 1 percent to close at 33,745 yuan ($5,283.305) per tonne. Volume rose to 670,662 lots from Wednesday’s 574,662 lots.
Japan’s Nikkei stock average fell for a second straight day on Thursday and dropped below the closely watched 9,000 line, hurt by the yen’s persistent strength and fears the United States might be heading for another recession, with many investors on the sidelines ahead of U.S. economic data.
The Swiss franc fell against the euro and the dollar on Thursday, with traders citing talk that the Swiss National Bank was adding liquidity via the currency forwards market.
The yen has also been hovering near record highs against the dollar, hurting the already fragile Japanese economy which is struggling to recover from the March 11 earthquake. A strong yen dampens sentiment as it deflates the value of yen-priced TOCOM rubber futures prices.
Senior finance ministry and Bank of Japan officials on Thursday met to exchange views on currency rates, the central bank said, a sign that Tokyo remains geared up for further action to stem persistent rises in the yen.
The rubber market has stayed below key technical levels over the past week, such as the 50-day moving average which on Thursday stood at 375.5 yen.
Worries about global growth weighed on commodities broadly.
Brent crude fell 0.2 percent on Thursday, staying below $111 a barrel on Thursday as ongoing concerns over Europe’s debt crisis and a firmer dollar drew investors away from riskier assets like oil and into the safe havens of gold and the Swiss franc.
Rubber Futures in Tokyo May Decline as Falling Oil Price Reduces Appeal
August 18, 2011
Rubber, little changed, may decline for a third day, as concerns over the debt crisis and falling crude oil prices reduced the appeal of the commodity used in tires and gloves.
The January-delivery contract declined as much as 0.4 percent to 360.8 yen a kilogram ($4,712 a metric ton) before trading at 362.3 yen a kilogram on the Tokyo Commodity Exchange at 11:25 a.m. local time.
Asian stocks fell for the first time in four days as the yen rose toward a post-World War II high and two Federal Reserve officials said they opposed a pledge to keep U.S. interest rates at record lows. Oil dropped from a two-day high in New York as investors speculated that increasing crude stockpiles in the U.S. indicate weaker fuel demand in the world’s biggest consumer of the commodity.
“Rubber moves in tandem with negative oil prices,” Ker Chung Yang, an analyst at Phillip Futures Pte, said by phone from Singapore. The stronger Japanese currency also reduced the appeal of yen-denominated contracts, he said.
Federal Reserve Chairman Ben S. Bernanke’s pledge last week to keep rates near zero until mid-2013 was “inappropriate policy at an inappropriate time,” Charles Plosser, president of the Fed Bank of Philadelphia, said yesterday in a Bloomberg radio interview. Dallas PresidentRichard Fisher said the central bank shouldn’t enact policy to protect stock investors. Both officials dissented from the Fed’s Aug. 9 statement.
Japan Exports
Japan’s exports fell more than expected in July as a global slowdown and a strengthening currency weigh on the outlook for the nation’s sales overseas. Exports decreased 3.3 percent in July from a year earlier, the Finance Ministry said today in Tokyo. The median estimate of 24 economists surveyed by Bloomberg News was for a 2.6 percent decline, after a 1.6 percent decrease in June.
The world’s third-largest economy is counting on an export revival to aid its rebound from the record earthquake in March. The yen’s 6 percent advance against the dollar in the past three months may weigh on overseas sales at a time when demand from major markets such as China and the U.S. is faltering. The yen traded at 76.54 per dollar. The currency’s postwar high is 76.25.
In Shanghai, rubber for January delivery dropped 0.6 percent to 33,910 yuan ($5,307) a ton on the Shanghai Futures Exchange. The cash price of Thai rubber remained unchanged at 139.30 baht ($4.66) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Spot rubber declines as buyers keep off
KOTTAYAM, AUG. 17:
Physical rubber prices declined on Wednesday. According to observers, the market remained under pressure on buyer resistance rather than selling from dealers or growers. ‘But we expect more of them to join the sellers queue in the days ahead as sheet rubber broke below the long term support level of Rs 200 a kg on late trades' they added.
Sheet rubber weakened to Rs 198 (200) a kg according to traders. The grade slipped to Rs 200 (201) a kg both at Kottayam and Kochi as per Rubber Board.
In futures, the September series closed at Rs 199.95 (198.60), October at Rs 198.40 (197.30), November at Rs 197.44 (197.50), December at Rs 198.50 (198), January at Rs 198 (200.50) and February at Rs 199.50 (201) a kg for RSS 4 on the National Multi Commodity Exchange.
The August futures improved to ¥355.9 (Rs 211.37) from ¥353 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 211.58 (211.88) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 198 (200); RSS-5: 193 (195); ungraded: 182 (185); ISNR 20: 195 (197) and latex 60 per cent 130 (130)
August 18, 2011
KOCHI (Commodity Online): Rubber prices are set for further weakness on rising production in India, weak demand trends and falling Crude Oil prices.
Spot rubber prices for RSS 4 grade monitored by Rubber Board has fallen from Rs 20300 levels last week to 20,000 per 100 kg on Wednesday. At National Multi-Commodity Exchange (NMCE) Rubber september contract has opened trade on Thursday at Rs 19968 levels and is currently trading at Rs 19925 levels. The contract last closed at Rs 19895 levels on Wednesday.
Meanwhile, automobile sector demand has shown weakening trend as passenger car sales have dipped in July. Passenger car sales declined 15.76 per cent to 133,747 units, from 158,767 units a year earlier, according to the Society of Indian Automobile Manufacturers (Siam).The recent hike in interest rates, coupled with the increase in fuel prices, has affected the consumer sentiment negatively. With reports of meltdown in markets worldwide, customers are exercising caution and postponing purchase decisions
At TOCOM January-delivery contract is showing weakening trends at 362.3 Yen falling 0.1 percent at 13.55 hrs JST. The stronger Yen has also reduced the appeal of yen-denominated contracts, analysts said.
According to estimates, India’s Rubber production has risen 7% in July to 62,700 tonnes on good climatic conditions, rise in tapped area and higher prevailing prices in the previous months that boosted incenvtives for tapping by growers. Consumption has grown in July at 7.6% at 82,000 tonnes.
Prices skid
August 18, 2011
Economic worries: Rubber sheets being dried in sunlight at Nenmara near Palakkad, Kerala. Asian rubber settled mostly lower on Thursday on most exchanges, despite positive supply-and-demand cues, as macroeconomic jitters and concerns about the U.S. and European debt weighed heavily. Benchmark January natural rubber futures on the Tokyo Commodity Exchange settled ¥0.2 lower at ¥362.2 a kg.
Tokyo futures nearly flat, weak technicals weigh (Aug 18)
August 18, 2011
TOKYO, Aug 18 (Reuters) – Key Tokyo rubber futures settled nearly flat on Thursday, with investors lacking fresh incentives to break out of ranges and as worries about the yen’s strength and weak technicals weighed on sentiment.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery settled at 362.2 yen per kg, down 0.2 yen on the day.
The most active Shanghai rubber contract for January delivery fell 1 percent to close at 33,745 yuan ($5,283.305) per tonne. Volume rose to 670,662 lots from Wednesday’s 574,662 lots.
Japan’s Nikkei stock average fell for a second straight day on Thursday and dropped below the closely watched 9,000 line, hurt by the yen’s persistent strength and fears the United States might be heading for another recession, with many investors on the sidelines ahead of U.S. economic data.
The Swiss franc fell against the euro and the dollar on Thursday, with traders citing talk that the Swiss National Bank was adding liquidity via the currency forwards market.
The yen has also been hovering near record highs against the dollar, hurting the already fragile Japanese economy which is struggling to recover from the March 11 earthquake. A strong yen dampens sentiment as it deflates the value of yen-priced TOCOM rubber futures prices.
Senior finance ministry and Bank of Japan officials on Thursday met to exchange views on currency rates, the central bank said, a sign that Tokyo remains geared up for further action to stem persistent rises in the yen.
The rubber market has stayed below key technical levels over the past week, such as the 50-day moving average which on Thursday stood at 375.5 yen.
Worries about global growth weighed on commodities broadly.
Brent crude fell 0.2 percent on Thursday, staying below $111 a barrel on Thursday as ongoing concerns over Europe’s debt crisis and a firmer dollar drew investors away from riskier assets like oil and into the safe havens of gold and the Swiss franc.
Rubber Futures in Tokyo May Decline as Falling Oil Price Reduces Appeal
August 18, 2011
Rubber, little changed, may decline for a third day, as concerns over the debt crisis and falling crude oil prices reduced the appeal of the commodity used in tires and gloves.
The January-delivery contract declined as much as 0.4 percent to 360.8 yen a kilogram ($4,712 a metric ton) before trading at 362.3 yen a kilogram on the Tokyo Commodity Exchange at 11:25 a.m. local time.
Asian stocks fell for the first time in four days as the yen rose toward a post-World War II high and two Federal Reserve officials said they opposed a pledge to keep U.S. interest rates at record lows. Oil dropped from a two-day high in New York as investors speculated that increasing crude stockpiles in the U.S. indicate weaker fuel demand in the world’s biggest consumer of the commodity.
“Rubber moves in tandem with negative oil prices,” Ker Chung Yang, an analyst at Phillip Futures Pte, said by phone from Singapore. The stronger Japanese currency also reduced the appeal of yen-denominated contracts, he said.
Federal Reserve Chairman Ben S. Bernanke’s pledge last week to keep rates near zero until mid-2013 was “inappropriate policy at an inappropriate time,” Charles Plosser, president of the Fed Bank of Philadelphia, said yesterday in a Bloomberg radio interview. Dallas PresidentRichard Fisher said the central bank shouldn’t enact policy to protect stock investors. Both officials dissented from the Fed’s Aug. 9 statement.
Japan Exports
Japan’s exports fell more than expected in July as a global slowdown and a strengthening currency weigh on the outlook for the nation’s sales overseas. Exports decreased 3.3 percent in July from a year earlier, the Finance Ministry said today in Tokyo. The median estimate of 24 economists surveyed by Bloomberg News was for a 2.6 percent decline, after a 1.6 percent decrease in June.
The world’s third-largest economy is counting on an export revival to aid its rebound from the record earthquake in March. The yen’s 6 percent advance against the dollar in the past three months may weigh on overseas sales at a time when demand from major markets such as China and the U.S. is faltering. The yen traded at 76.54 per dollar. The currency’s postwar high is 76.25.
In Shanghai, rubber for January delivery dropped 0.6 percent to 33,910 yuan ($5,307) a ton on the Shanghai Futures Exchange. The cash price of Thai rubber remained unchanged at 139.30 baht ($4.66) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Spot rubber declines as buyers keep off
KOTTAYAM, AUG. 17:
Physical rubber prices declined on Wednesday. According to observers, the market remained under pressure on buyer resistance rather than selling from dealers or growers. ‘But we expect more of them to join the sellers queue in the days ahead as sheet rubber broke below the long term support level of Rs 200 a kg on late trades' they added.
Sheet rubber weakened to Rs 198 (200) a kg according to traders. The grade slipped to Rs 200 (201) a kg both at Kottayam and Kochi as per Rubber Board.
In futures, the September series closed at Rs 199.95 (198.60), October at Rs 198.40 (197.30), November at Rs 197.44 (197.50), December at Rs 198.50 (198), January at Rs 198 (200.50) and February at Rs 199.50 (201) a kg for RSS 4 on the National Multi Commodity Exchange.
The August futures improved to ¥355.9 (Rs 211.37) from ¥353 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 211.58 (211.88) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 198 (200); RSS-5: 193 (195); ungraded: 182 (185); ISNR 20: 195 (197) and latex 60 per cent 130 (130)
Thursday, August 18, 2011
India’s rubber output up by 7.2%
India’s rubber output up by 7.2%
August 17, 2011
CHENNAI (Commodity Online): The production of natural Rubber in India during April – July period this year has shown a good increase. The output was up by 7.2% in July to 62,700 tons from 58,500 tons during July 2010.
The total output for the period has raised 5.8% to 238,400 ton from 225,250 ton last year same period.
According to the Rubber Board, The total consumption during the period was up by 4.8% at 323,875 ton from 309,050 tons last year.
Mr. Onkar S Kanwar, Chairman of Apollo Tryes, had earlier mentioned that they are not concerned seriously about the price of natural Rubber but the availability matters them. quoted by Business standard as saying.
The Automotive Tyre Manufacturers Association (ATMA) and All-India Rubber Industries Association (AIRIA) have requested the government to allow duty free import of 2 million tons of rubber to curb constraint.
The imports increased to 62,056 ton from 56,208 ton whereas the export of Rubber has touched 100% growth to 9,504 ton from 4,347 ton compared with last financial year.
Tokyo futures down 0.4 pct, momentum weak (Aug 17)
August 17, 2011
TOKYO, Aug 17 (Reuters) – Key Tokyo rubber futures ended down 0.4 percent on Wednesday as a sharp deterioration in economic conditions and worries about rising supply dampened sentiment, with the market wedged into a tight range seen in the past three months.
The key Tokyo Commodity Exchange rubber contract for January delivery <0#2JRU:> settled down 1.4 yen at 362.4 yen per kg.
The most active Shanghai rubber contract for January delivery rose 0.9 percent to close at 34,100 yuan per tonne. Volume stood at 574,662 lots.
“With upward momentum very weak, the market is wedged in a very narrow range,” said Naoki Asami, chief broker at trading house Kanetsu.
“European debt woes and worries of rising supply from producing countries kept investors sidelined, despite upbeat news of a recovery in car output in the United States and solid prices in Shanghai.”
Asami expects the market to recover after hitting 355 yen, but could sag further if it breaks through the 340 yen mark.
The yen hovered near its all-time high at 76.25 yen versus the greenback on Wednesday, with traders expecting further upward pressure as they see limited likelihood of a dollar recovery given the lack of yen-selling intervention by the Bank of Japan over the past two weeks.
Brent crude rose on Wednesday, staying above $109 a barrel as a larger-than-expected draw down in U.S gasoline stocks and positive U.S. economic data trumped concerns over the euro zone debt crisis.
Industrial output in the U.S. recorded its best gain in seven months in July.
A meeting between French and German leaders didn’t result in any concrete measures to combat Europe’s sovereign debt problems.
The Nikkei average fell after the meeting.
China’s top state planner on Wednesday said that the world’s second-largest economy is expected to expand by 7 percent annually over the next five years.
August 17, 2011
CHENNAI (Commodity Online): The production of natural Rubber in India during April – July period this year has shown a good increase. The output was up by 7.2% in July to 62,700 tons from 58,500 tons during July 2010.
The total output for the period has raised 5.8% to 238,400 ton from 225,250 ton last year same period.
According to the Rubber Board, The total consumption during the period was up by 4.8% at 323,875 ton from 309,050 tons last year.
Mr. Onkar S Kanwar, Chairman of Apollo Tryes, had earlier mentioned that they are not concerned seriously about the price of natural Rubber but the availability matters them. quoted by Business standard as saying.
The Automotive Tyre Manufacturers Association (ATMA) and All-India Rubber Industries Association (AIRIA) have requested the government to allow duty free import of 2 million tons of rubber to curb constraint.
The imports increased to 62,056 ton from 56,208 ton whereas the export of Rubber has touched 100% growth to 9,504 ton from 4,347 ton compared with last financial year.
Tokyo futures down 0.4 pct, momentum weak (Aug 17)
August 17, 2011
TOKYO, Aug 17 (Reuters) – Key Tokyo rubber futures ended down 0.4 percent on Wednesday as a sharp deterioration in economic conditions and worries about rising supply dampened sentiment, with the market wedged into a tight range seen in the past three months.
The key Tokyo Commodity Exchange rubber contract for January delivery <0#2JRU:> settled down 1.4 yen at 362.4 yen per kg.
The most active Shanghai rubber contract for January delivery rose 0.9 percent to close at 34,100 yuan per tonne. Volume stood at 574,662 lots.
“With upward momentum very weak, the market is wedged in a very narrow range,” said Naoki Asami, chief broker at trading house Kanetsu.
“European debt woes and worries of rising supply from producing countries kept investors sidelined, despite upbeat news of a recovery in car output in the United States and solid prices in Shanghai.”
Asami expects the market to recover after hitting 355 yen, but could sag further if it breaks through the 340 yen mark.
The yen hovered near its all-time high at 76.25 yen versus the greenback on Wednesday, with traders expecting further upward pressure as they see limited likelihood of a dollar recovery given the lack of yen-selling intervention by the Bank of Japan over the past two weeks.
Brent crude rose on Wednesday, staying above $109 a barrel as a larger-than-expected draw down in U.S gasoline stocks and positive U.S. economic data trumped concerns over the euro zone debt crisis.
Industrial output in the U.S. recorded its best gain in seven months in July.
A meeting between French and German leaders didn’t result in any concrete measures to combat Europe’s sovereign debt problems.
The Nikkei average fell after the meeting.
China’s top state planner on Wednesday said that the world’s second-largest economy is expected to expand by 7 percent annually over the next five years.
Wednesday, August 17, 2011
Tokyo futures fall, eyes on Shanghai, oil (Aug 17)
Tokyo futures fall, eyes on Shanghai, oil (Aug 17)
August 17, 2011
TOKYO, Aug 17 (Reuters) – Key Tokyo rubber futures fell on Wednesday amid lingering bearish sentiment from the day before when the market settled below key technical levels, with investors seeking clues from the Shanghai futures market and oil prices.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery fell 3.9 yen or 1 percent to 359.9 yen per kg, a one-week low, as of 0012 GMT.
* The most active Shanghai rubber contract for January delivery closed at 33,785 yuan ($5,286) per tonne on Tuesday, down 1.5 percent from Monday’s close of 34,310 yuan per tonne. Volume picked up to 547,854 lots from 464,684 lots on Tuesday.
* The euro struggled to make any headway in Asia on Wednesday, having suffered a minor setback on a lack of progress on a common bond, while the Swiss franc stayed under pressure on expectations of imminent action to curb its strength.
* Oil recovered in early Asian trade on Wednesday after falling the day before when a meeting between French and German leaders failed to ease concerns about the euro zone debt crisis.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Under heavy pressure to restore confidence in the euro zone following a dramatic market slump, French President Nicolas Sarkozy and German Chancellor Angela Merkel stopped short of increasing the bloc’s rescue fund but vowed to stand side-by-side in defending the euro and laid the groundwork for future fiscal union.
* U.S. industrial output recorded its best gain in seven months in July as the auto sector bounced back from supply disruptions wrought by Japan’s devastating earthquake in March.
* Japanese automaker Suzuki Motor Corp will increase production of sport utility vehicles (SUVs) at its Iwata facility in Shizuoka, south of Tokyo, by adding a second shift to meet rising export demand, the Nikkei business daily reported.
* Natural rubber prices in India are likely to trade lower this week following weakness in the world market and due to a decline in demand.
* Japan’s benchmark Nikkei share average opened down 0.65 percent at 9,047.89 on Wednesday.
* U.S. stocks fell on Tuesday after three days of gains when a meeting between the heads of France and Germany failed to quell fears about euro zone leaders’ ability to contain the region’s sovereign debt woes.
Spot rubber declines on global cues
August 17, 2011
KOTTAYAM, AUGUST 16:
Domestic rubber prices declined further on Tuesday. On the spot, prices lost strength as buyers stayed away, following declines in the domestic and international futures. “We are expecting an all-round selling pressure in the market once RSS 4 break the immediate support level of Rs 200 a kg,” an observer said. Volumes were better.
Sheet rubber weakened to Rs 200 (202.50) a kg, according to traders. The grade dropped to Rs 201 (203) a kg both at Kottayam and Kochi, as reported by the Rubber Board.
The September series weakened to Rs 198.70 (201.56), October to Rs 197.45 (200.72), November to Rs 197.50 (200.90), December to Rs 198 (202.58) and January to Rs 200.50 (204.00) while the February series finished the debut trading session at Rs 201 a kg for RSS 4 on the National Multi Commodity Exchange.
The August futures moved down to ¥353 (Rs 208.92) from ¥356.8 during the day session and then to ¥351 (Rs 207.75) a kg in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 211.88 (212.83) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 200 (202.50); RSS-5: 195 (199); ungraded: 185 (191); ISNR 20: 197 (202) and latex 60 per cent: 130 (132).
August 17, 2011
TOKYO, Aug 17 (Reuters) – Key Tokyo rubber futures fell on Wednesday amid lingering bearish sentiment from the day before when the market settled below key technical levels, with investors seeking clues from the Shanghai futures market and oil prices.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery fell 3.9 yen or 1 percent to 359.9 yen per kg, a one-week low, as of 0012 GMT.
* The most active Shanghai rubber contract for January delivery closed at 33,785 yuan ($5,286) per tonne on Tuesday, down 1.5 percent from Monday’s close of 34,310 yuan per tonne. Volume picked up to 547,854 lots from 464,684 lots on Tuesday.
* The euro struggled to make any headway in Asia on Wednesday, having suffered a minor setback on a lack of progress on a common bond, while the Swiss franc stayed under pressure on expectations of imminent action to curb its strength.
* Oil recovered in early Asian trade on Wednesday after falling the day before when a meeting between French and German leaders failed to ease concerns about the euro zone debt crisis.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Under heavy pressure to restore confidence in the euro zone following a dramatic market slump, French President Nicolas Sarkozy and German Chancellor Angela Merkel stopped short of increasing the bloc’s rescue fund but vowed to stand side-by-side in defending the euro and laid the groundwork for future fiscal union.
* U.S. industrial output recorded its best gain in seven months in July as the auto sector bounced back from supply disruptions wrought by Japan’s devastating earthquake in March.
* Japanese automaker Suzuki Motor Corp will increase production of sport utility vehicles (SUVs) at its Iwata facility in Shizuoka, south of Tokyo, by adding a second shift to meet rising export demand, the Nikkei business daily reported.
* Natural rubber prices in India are likely to trade lower this week following weakness in the world market and due to a decline in demand.
* Japan’s benchmark Nikkei share average opened down 0.65 percent at 9,047.89 on Wednesday.
* U.S. stocks fell on Tuesday after three days of gains when a meeting between the heads of France and Germany failed to quell fears about euro zone leaders’ ability to contain the region’s sovereign debt woes.
Spot rubber declines on global cues
August 17, 2011
KOTTAYAM, AUGUST 16:
Domestic rubber prices declined further on Tuesday. On the spot, prices lost strength as buyers stayed away, following declines in the domestic and international futures. “We are expecting an all-round selling pressure in the market once RSS 4 break the immediate support level of Rs 200 a kg,” an observer said. Volumes were better.
Sheet rubber weakened to Rs 200 (202.50) a kg, according to traders. The grade dropped to Rs 201 (203) a kg both at Kottayam and Kochi, as reported by the Rubber Board.
The September series weakened to Rs 198.70 (201.56), October to Rs 197.45 (200.72), November to Rs 197.50 (200.90), December to Rs 198 (202.58) and January to Rs 200.50 (204.00) while the February series finished the debut trading session at Rs 201 a kg for RSS 4 on the National Multi Commodity Exchange.
The August futures moved down to ¥353 (Rs 208.92) from ¥356.8 during the day session and then to ¥351 (Rs 207.75) a kg in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 211.88 (212.83) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 200 (202.50); RSS-5: 195 (199); ungraded: 185 (191); ISNR 20: 197 (202) and latex 60 per cent: 130 (132).
Monday, August 15, 2011
India: Govt to see if futures trading pushing up rubber prices.
India: Govt to see if futures trading pushing up rubber prices.
August 13, 2011
Kochi, Aug 13 (PTI) Expressing concern over high volatility of natural rubber prices, Food and Consumer Affairs Minister K V Thomas today said he will look into allegations that futures trading is responsible for the same.
“Why is there so high volatility? I am not closing my eyes on allegations that it is due to futures trading in commodity market,” he said at an event here.
Rubber prices closed this week at Rs 203 per kg in the domestic markets after hitting this year”s high at Rs 241 per kg.
In this era of transparency, there is a need to look into various financial policies, he said.
The Indian agriculture sector is very vibrant and active.
“Our farming and irrigation area is increasing. Our fertiliser use is better, credit goes to farmers,” he said.
Sugarcane farmers feel that there will be better production and better prices in the international market and if the government agrees to export sugar, they would get a better price.
Due to the earlier experience, any decision on export of agriculture commodities like sugar, rice wheat will be taken cautiously after determining the domestic availability and demand, he said.
“…now there is a feeling in the trade that I am a villain who does not agree for exports,” the minister said.
Farmers should get a better price and consumers should also get commodities at reasonable and affordable rates.
‘Softening of rubber prices might provide temporary succor’
August 13, 2011
Mr RAJIV BUDHRAJA, DIRECTOR-GENERAL, AUTOMOTIVE TYRE MANUFACTURERS’ ASSOCIATION.
“Since the gap between domestic rubber production and consumption is widening, we do not foresee any significant reduction in prices”, says Mr Rajiv Budhraja, Director-General, Automotive Tyre Manufacturers’ Association. In a chat with Business Line, he also explains how the increase in price of natural rubber and other raw materials have led to a renewed thrust on tyre retreading. Excerpts:
Why has rubber had this unrelenting rise in recent times?
The price rise in natural rubber is linked to several factors. One, the domestic consumption of natural rubber has outpaced its production, leading to a supply crunch. In fact the Indian scenario has mirrored the international scenario as commodity prices have ruled higher worldwide in view of demand-supply gap. Forward trading in natural rubber has been another factor, fuelling speculation. Sometimes the speculation is devoid of any fundamental shift in demand-supply situation. Over the last one and a half years, the natural rubber prices have been more than doubled increasing production cost for the tyre industry to a great extent. However, they have only partially passed on the increase in view of tough competition in the market place. Companies have been resorting to measures like increase in operational efficiencies, better inventory management and reduction in wastage to offset the increase. Besides, they had to absorb the cost-push to some extent leading to a squeeze on their profitability. Industry margins have come down to 3 per cent in 2010-11 against 8 per cent the previous year.
Have the duty reductions on rubber imports helped?
That hasn’t helped much. The import duty was brought down to 7.5 per cent in December 2010 and by the time the licences were issued, it was the middle of February and imports had to be effected by March 31. It took the government over a year to take a decision. But the industry had less than six weeks to organise the imports. Secondly, the international prices that time were very high, and had move higher than domestic. So that relief was too little, too late. Since April this year too, the availability has been very tight. That is why we are continuing to plead for the one-lakh tonnes of duty free imports as almost 20 per cent of the consumption comes from imports.
Given that prices have somewhat reduced between April 2011 and now, what is the outlook?
Since the gap between domestic production and consumption is widening, we do not foresee any significant reduction in prices. Last year also the industry hoped for the softening of natural rubber prices with the onset of peak tapping season in September. However the prices went spiraling up and overshot the international prices. Current softening of prices might provide temporary succor to the industry. However as a sustainable growth enabler, the industry has asked for duty-free import of natural rubber to the extent of domestic deficit.
Is the competition from Chinese tyres a real threat ?
Yes, dumping of cheap Chinese tyres is a threat. There is no let up in import of cheap Chinese tyres despite imposition of anti-dumping duty. Aided by export incentivisation policy of Chinese Government and in view of unfair measures such as under invoicing of imports, cheaply priced Chinese tyres have swarmed Indian market. At times such tyres are priced even below the production cost by Indian companies. Normally there is a price differential of 20-30 per cent between the Chinese and locally manufactured tyres. Chinese tyres account for almost 70 per cent of total import of tyres in the country.
How is the tyre retreading market shaping up?
It is difficult to estimate the size of the retreading market primarily because of a very large segment of this is in the unorganised sector. However, increase in price of natural rubber and other raw materials have led to a renewed thrust on retreading. Other factors which augur positively for retreading in the commercial vehicle segment are curbs on overloading and an improvement in road infrastructure. An increase in operating costs for a commercial vehicle operator by way of fuel and cost of new tyres also provides impetus to retreading. Also, with the organised players getting into re-treading, the overall profile of the retreading segment is likely to change and find greater acceptance.
Where do we stand on tyre exports?
Practically all tyre manufacturers have export revenues, among which CEAT is the biggest. The largest exports would be truck and bus tyres and the markets would be Bangladesh, Pakistan, Africa and the Middle East. Latin America is also a big market. Currently, about 15-18 per cent of total industry turnover comes from exports. But the outlook is very tough; there is slowdown outside, particularly in the commercial space. A lot of excess Chinese capacity is also available. That also puts pressure on exports.
August 13, 2011
Kochi, Aug 13 (PTI) Expressing concern over high volatility of natural rubber prices, Food and Consumer Affairs Minister K V Thomas today said he will look into allegations that futures trading is responsible for the same.
“Why is there so high volatility? I am not closing my eyes on allegations that it is due to futures trading in commodity market,” he said at an event here.
Rubber prices closed this week at Rs 203 per kg in the domestic markets after hitting this year”s high at Rs 241 per kg.
In this era of transparency, there is a need to look into various financial policies, he said.
The Indian agriculture sector is very vibrant and active.
“Our farming and irrigation area is increasing. Our fertiliser use is better, credit goes to farmers,” he said.
Sugarcane farmers feel that there will be better production and better prices in the international market and if the government agrees to export sugar, they would get a better price.
Due to the earlier experience, any decision on export of agriculture commodities like sugar, rice wheat will be taken cautiously after determining the domestic availability and demand, he said.
“…now there is a feeling in the trade that I am a villain who does not agree for exports,” the minister said.
Farmers should get a better price and consumers should also get commodities at reasonable and affordable rates.
‘Softening of rubber prices might provide temporary succor’
August 13, 2011
Mr RAJIV BUDHRAJA, DIRECTOR-GENERAL, AUTOMOTIVE TYRE MANUFACTURERS’ ASSOCIATION.
“Since the gap between domestic rubber production and consumption is widening, we do not foresee any significant reduction in prices”, says Mr Rajiv Budhraja, Director-General, Automotive Tyre Manufacturers’ Association. In a chat with Business Line, he also explains how the increase in price of natural rubber and other raw materials have led to a renewed thrust on tyre retreading. Excerpts:
Why has rubber had this unrelenting rise in recent times?
The price rise in natural rubber is linked to several factors. One, the domestic consumption of natural rubber has outpaced its production, leading to a supply crunch. In fact the Indian scenario has mirrored the international scenario as commodity prices have ruled higher worldwide in view of demand-supply gap. Forward trading in natural rubber has been another factor, fuelling speculation. Sometimes the speculation is devoid of any fundamental shift in demand-supply situation. Over the last one and a half years, the natural rubber prices have been more than doubled increasing production cost for the tyre industry to a great extent. However, they have only partially passed on the increase in view of tough competition in the market place. Companies have been resorting to measures like increase in operational efficiencies, better inventory management and reduction in wastage to offset the increase. Besides, they had to absorb the cost-push to some extent leading to a squeeze on their profitability. Industry margins have come down to 3 per cent in 2010-11 against 8 per cent the previous year.
Have the duty reductions on rubber imports helped?
That hasn’t helped much. The import duty was brought down to 7.5 per cent in December 2010 and by the time the licences were issued, it was the middle of February and imports had to be effected by March 31. It took the government over a year to take a decision. But the industry had less than six weeks to organise the imports. Secondly, the international prices that time were very high, and had move higher than domestic. So that relief was too little, too late. Since April this year too, the availability has been very tight. That is why we are continuing to plead for the one-lakh tonnes of duty free imports as almost 20 per cent of the consumption comes from imports.
Given that prices have somewhat reduced between April 2011 and now, what is the outlook?
Since the gap between domestic production and consumption is widening, we do not foresee any significant reduction in prices. Last year also the industry hoped for the softening of natural rubber prices with the onset of peak tapping season in September. However the prices went spiraling up and overshot the international prices. Current softening of prices might provide temporary succor to the industry. However as a sustainable growth enabler, the industry has asked for duty-free import of natural rubber to the extent of domestic deficit.
Is the competition from Chinese tyres a real threat ?
Yes, dumping of cheap Chinese tyres is a threat. There is no let up in import of cheap Chinese tyres despite imposition of anti-dumping duty. Aided by export incentivisation policy of Chinese Government and in view of unfair measures such as under invoicing of imports, cheaply priced Chinese tyres have swarmed Indian market. At times such tyres are priced even below the production cost by Indian companies. Normally there is a price differential of 20-30 per cent between the Chinese and locally manufactured tyres. Chinese tyres account for almost 70 per cent of total import of tyres in the country.
How is the tyre retreading market shaping up?
It is difficult to estimate the size of the retreading market primarily because of a very large segment of this is in the unorganised sector. However, increase in price of natural rubber and other raw materials have led to a renewed thrust on retreading. Other factors which augur positively for retreading in the commercial vehicle segment are curbs on overloading and an improvement in road infrastructure. An increase in operating costs for a commercial vehicle operator by way of fuel and cost of new tyres also provides impetus to retreading. Also, with the organised players getting into re-treading, the overall profile of the retreading segment is likely to change and find greater acceptance.
Where do we stand on tyre exports?
Practically all tyre manufacturers have export revenues, among which CEAT is the biggest. The largest exports would be truck and bus tyres and the markets would be Bangladesh, Pakistan, Africa and the Middle East. Latin America is also a big market. Currently, about 15-18 per cent of total industry turnover comes from exports. But the outlook is very tough; there is slowdown outside, particularly in the commercial space. A lot of excess Chinese capacity is also available. That also puts pressure on exports.
Saturday, August 13, 2011
India: Removal of dumping duty on tyre imports may hit industry, growers
India: Removal of dumping duty on tyre imports may hit industry, growers
August 12, 2011
KOCHI, AUG. 12:
The removal of anti-dumping duty on truck and bus tyre imports from China and Thailand is likely to affect the tyre industry and rubber growers, sources in the trade said.
They said that China has built huge capacities in tyre commanding some of the lowest cost in production. It can swamp the Indian market with cheaper imports that will have a direct bearing on the Indian industry.
EYES ON THAILAND
Thailand has huge rubber production of around 30 lakh tonnes (lt) even as it consumes only 7-8 lt per year. This would act as a magnet for Indian tyre majors to set up production units there, said Mr N. Radhakrishnan, Advisor to the Cochin Rubber Merchants Association (CRMA).
While the country’s rubber production just about meets domestic demand, the huge surplus in Thailand and Indonesia and cheap prices could act as a major catalyst. “Prices in Thailand and Indonesia wil work out substantially lower once you cut out the broker commission, freight and handling charges and duties,” Mr Radhakrishnan said.
Already several global tyre majors are reported to be deliberating on setting up production units in Thailand. In case anti-dumping duty on tyre imports are not re-imposed, similar moves by tyre companies cannot be ruled out in the not too distant future, sources said.
CASCADING IMPACT
The cascading impact would also be felt on growers. With each truck tyre consuming close to 40 kg of rubber, the demand for Indian rubber would fall, trade sources said. And truck, bus and heavy duty tyres account for close to 70 per cent of the domestic consumption.
A section of the trade pointed out that movement of capital to set up business enterprise outside the country would be an inevitable part of globalisation and it cannot be stopped.
Movement of capital and enterprise outside the country is fine, but should it be at the cost of Indian industries and farmer remains the moot question.
Malaysia: Rubber prices set to advance next week
August 13, 2011
Malaysian rubber prices are expected to increase next week in line with the prices of other commodities which are also
projected to rise, dealers said.
A dealer said the performance of other commodities performance would influence the rubber price.
On week-to-week basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 fell 7.5 sen to 1,375.5 sen per kg against 1,383 sen the previous week.
Latex in bulk decreased 35.5 sen to 850.5 sen per kg from 886 sen last Friday.
The unofficial seller’s closing price for tyre-grade SMR 20 fell 10.5 sen to 1,367.5 sen per kg versus 1,378 sen last week while latex in bulk eased 32 sen to 850 sen per kg from 882 sen previously. — Bernama
Apollo Tyres goes to Laos for rubber to meet demand
August 11, 2011
KOCHI, AUG 11:
Considering the shortage faced by the domestic tyre industry for natural rubber, Apollo Tyres Ltd has acquired 10,000 hectares in Laos for a rubber plantation.
Mr Onkar S. Kanwar, Chairman and Managing Director, Apollo Tyres Ltd, said that the objective to acquire land abroad on lease is to meet 25 per cent of the company’s requirement in the next five years.
Apollo is the first company to acquire land for growing rubber and it would take 2-7 years for the yield to be tapped, he said.
He told reporters, after a meeting of the company’s board of directors, that the tyre industry in India is passing through a crisis due to increase in raw material prices and shortage of natural rubber.
At present there is a shortage of 2 lakh tonnes of rubber and the industry has requested the Government to allow duty-free import of rubber.
Mr Kanwar said the company proposes to invest Rs 500 crore in the current financial year to augment its production capacity in India and abroad.
Of the Rs 500-crore, €6 million would be invested in Europe, $30 million in South Africa and the remaining in India. The company will also invest Rs 40 crore in its Perambra unit in Chalakkudy and Premier Tyre facility in Kochi, he added.
The rest would be utilised for capacity augmentation at the Chennai plant, which manufactures tyres for trucks and cars. He said the plant capacity would be increased to produce 6,000 tyres per day for trucks, from 3,000 at present, and 16,000 cars tyres per day, from 8,000.
Mr Neeraj Kanwar, Vice-Chairman and Managing Director, said that the company aims to be among the top 10 global tyre companies in the next five years. The company’s largest unit is situated at Limda, in Gujarat, and its two other units are in Perambra and Kalamassery, Kerala.
Its latest next generation plant is near Chennai and the four plants together have a production capacity of around 1,180 tonnes of tyres a day.
In South Africa, the Ladysmith and Durban plants account for a combined capacity of around 180 tonnes and the Enschede plant in The Netherlands adds another 180 tonnes a day, taking its total current production capacity to around 1,550 tonnes a day.
He pointed out that India is Apollo Tyres’ largest market, accounting for 62 per cent of revenues, while Europe contributes 25 per cent and South Africa 13 per cent. The company exports tyres to over 70 countries from India, Europe and South Africa.
The drop in car sales in India is partly offset by exports to Europe, he said adding that there is every possibility for a further hike in prices of tyres due to increase in raw material costs and drop in OE sales.
Rubber market on Aug 11: Spot rubber improves on supply concern
August 11, 2011
KOTTAYAM, AUG. 11:
Physical rubber prices turned better on Thursday. The market improved on supply concerns following widespread rains during the past 48 hours. A firm closing in the international futures lent further support at lower levels, though domestic futures lost initial gains on late trades. However the gains were limited indicating that the market was still under pressure on higher production, stocks and imports. The trend was partially mixed.
Sheet rubber increased to Rs 205 (204) a kg, according to traders. The grade moved up to Rs 204.50 (203.50) a kg both at Kottayam and Kochi, as reported by the Rubber Board. The August series slipped to Rs 205.01 (206.54), September to Rs 203.70 (203.94), October to Rs 202.50 (203.90), November to Rs 202.02 (204), December to Rs 203.70 (204.70) and January to Rs 205.50 (207.27) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) firmed up to Rs 212.57 (209.93) a kg at Bangkok. The August futures increased to ¥353.5 (Rs 209.19) from ¥352 during the day session and then to ¥360 (Rs 213.11) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 205 (204); RSS-5: 201 (200); Ungraded: 194 (192); ISNR 20: 203 (203) and latex 60 per cent: 132 (132).
Rubber Board, India: Domestic rubber imports jump 12 pc in July
August 12, 2011
MUMBAI: Imports of rubber in India, the world’s second-biggest consumer, provisionally rose 11.97 percent on year to 20,127 tonnes in July as tyre makers cashed in on lower customs duties, the state-run Rubber Board said in a statement.
Rubber imports rose 10.4 percent in April-July to 62,056 tonnes. Shipments are expected to touch a record of 200,000 this fiscal year. India, the world’s fourth biggest producer, imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam.
The federal government had allowed imports with a duty of 20 percent or 20 rupees a kilogram (kg), whichever is lower, for the current financial year, effectively cutting the import duty.
Consumption rose 4.8 percent to 323,875 tonnes in the first four months of the fiscal year, while production also rose 5.8 percent 238,400 tonnes, the board said.
Tokyo futures fall as slide in oil, stocks weighs (Aug 12)
August 12, 2011
TOKYO, Aug 12 (Reuters) – Key Tokyo rubber futures erased earlier gains to settle slightly lower on Friday, as a slide in oil prices and sluggish stocks reflected concerns about the global economic outlook and raised questions about demand for raw materials.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery settled down 0.5 yen at 363.5 yen per kg, after rising as much as 6.9 yen or 1.9 percent to 370.9 yen per kg earlier in the day.
The market ended the week down about 5 percent, the biggest weekly loss in three months, as global financial markets plummeted earlier in the week on the downgrade of U.S. debt and concerns over European sovereign debt problems spreading.
The plunge in global financial markets also dragged benchmark rubber futures to the lowest for any benchmark since June 29.
Traders said the market may test the downside next week after finishing below a key technical level, its 50-day moving average, which stood at 377.1 yen on Friday.
The most active rubber contract on the Shanghai commodity exchange for January delivery rose 125 yuan to close at 34,295 yuan ($5,363.203) per tonne on Friday. Volume stood at 580,486 lots.
Tokyo stocks dipped further below the 9,000 line on Friday, extending hefty losses sustained during the most volatile week since the March 11 quake as the strong yen prompted foreigners to sell carmakers, dragging Toyota Motor to its lowest level this year.
A ban on short-selling of financial stocks in four European countries including France takes effect on Friday, a coordinated attempt to restore confidence in markets hit by rumours and higher borrowing costs.
But European stocks fell in early trade on market talk that core euro zone economy France faces a credit rating downgrade, pushing the dollar down 1 percent versus the Swiss franc while the euro also extended its losses.
The weakness of the dollar pinned the yen near its record high versus the U.S. currency, deflating yen-based TOCOM rubber futures prices and dampening investors’ appetite.
Brent slipped $1 to below $108 a barrel on Friday, reversing direction after two straight days of gains, as the dollar strengthened and concerns about demand in industrial nations weighed on prices.
Glove, tyre industries largest consumer of natural rubber
August 13, 2011
KUALA LUMPUR: The local rubber gloves, tyres and tubes and rubber thread industries remained the largest consumer of domestic natural rubber (NR), taking up 26,439 tonnes in June, said the Statistics Department.
Of the total domestic consumption at 30,874 tonnes for the month under review, rubber gloves accounted for 67.8%, rubber thread 9.3%, tyres and tubes 8.5% and others 14.4%.
The department, in its June rubber report released yesterday, said NR production in June was up 17.5% at 84,208 tonnes compared with the previous month.
The smallholding sector also continued to be the largest contributor to NR production at 94.6%, while the balance 5.4% was from the estate sector.
The department also said NR stocks were 5% higher at 122,972 tonnes in June, with 87% still held by the rubber processors.
As for NR exports, there was a 15.5% decline in total exports at 68,591 tonnes in June from a month ago.
Standard Malaysian Rubber (SMR) was still the highest type of rubber exported at 94.6% or 64,876 tonnes, of which 39.4% was from the SMR 20 grade.
A majority of NR exports goes to China (26.4%), followed by Germany (14.5%), Iran (5.6%), the United States (5.3%), South Korea (3.3%), Finland (3.2%), Turkey (3%), Britain (2.9%), Brazil (2.8%) and France (2.8%).
The NR imports in June, meanwhile, increased marginally by 0.3% to 45,954 tonnes. Almost half of the total NR imports consists of latex concentrate at 22,875 tonnes.
Thailand is the top major NR supplier to Malaysia at 66.3% or 30,448 tonnes for the month under review.
On NR prices, the Statistics Department said the average monthly price was mixed in June.
The average price of latex concentrate eased 2.1% to RM9.23 per kg and SMR 20 was up 1.4% to RM13.54 sen per kg.
For the month under review, the Statistics Department said NR productivity in the estates was recorded at 117.5 kg, up 41.4% from a month ago and 7.8% year-on-year.
The average number of tapping days recorded was 23 days with Negri Sembilan and Pahang among the states with the highest number of tapping days at 25 days.
August 12, 2011
KOCHI, AUG. 12:
The removal of anti-dumping duty on truck and bus tyre imports from China and Thailand is likely to affect the tyre industry and rubber growers, sources in the trade said.
They said that China has built huge capacities in tyre commanding some of the lowest cost in production. It can swamp the Indian market with cheaper imports that will have a direct bearing on the Indian industry.
EYES ON THAILAND
Thailand has huge rubber production of around 30 lakh tonnes (lt) even as it consumes only 7-8 lt per year. This would act as a magnet for Indian tyre majors to set up production units there, said Mr N. Radhakrishnan, Advisor to the Cochin Rubber Merchants Association (CRMA).
While the country’s rubber production just about meets domestic demand, the huge surplus in Thailand and Indonesia and cheap prices could act as a major catalyst. “Prices in Thailand and Indonesia wil work out substantially lower once you cut out the broker commission, freight and handling charges and duties,” Mr Radhakrishnan said.
Already several global tyre majors are reported to be deliberating on setting up production units in Thailand. In case anti-dumping duty on tyre imports are not re-imposed, similar moves by tyre companies cannot be ruled out in the not too distant future, sources said.
CASCADING IMPACT
The cascading impact would also be felt on growers. With each truck tyre consuming close to 40 kg of rubber, the demand for Indian rubber would fall, trade sources said. And truck, bus and heavy duty tyres account for close to 70 per cent of the domestic consumption.
A section of the trade pointed out that movement of capital to set up business enterprise outside the country would be an inevitable part of globalisation and it cannot be stopped.
Movement of capital and enterprise outside the country is fine, but should it be at the cost of Indian industries and farmer remains the moot question.
Malaysia: Rubber prices set to advance next week
August 13, 2011
Malaysian rubber prices are expected to increase next week in line with the prices of other commodities which are also
projected to rise, dealers said.
A dealer said the performance of other commodities performance would influence the rubber price.
On week-to-week basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 fell 7.5 sen to 1,375.5 sen per kg against 1,383 sen the previous week.
Latex in bulk decreased 35.5 sen to 850.5 sen per kg from 886 sen last Friday.
The unofficial seller’s closing price for tyre-grade SMR 20 fell 10.5 sen to 1,367.5 sen per kg versus 1,378 sen last week while latex in bulk eased 32 sen to 850 sen per kg from 882 sen previously. — Bernama
Apollo Tyres goes to Laos for rubber to meet demand
August 11, 2011
KOCHI, AUG 11:
Considering the shortage faced by the domestic tyre industry for natural rubber, Apollo Tyres Ltd has acquired 10,000 hectares in Laos for a rubber plantation.
Mr Onkar S. Kanwar, Chairman and Managing Director, Apollo Tyres Ltd, said that the objective to acquire land abroad on lease is to meet 25 per cent of the company’s requirement in the next five years.
Apollo is the first company to acquire land for growing rubber and it would take 2-7 years for the yield to be tapped, he said.
He told reporters, after a meeting of the company’s board of directors, that the tyre industry in India is passing through a crisis due to increase in raw material prices and shortage of natural rubber.
At present there is a shortage of 2 lakh tonnes of rubber and the industry has requested the Government to allow duty-free import of rubber.
Mr Kanwar said the company proposes to invest Rs 500 crore in the current financial year to augment its production capacity in India and abroad.
Of the Rs 500-crore, €6 million would be invested in Europe, $30 million in South Africa and the remaining in India. The company will also invest Rs 40 crore in its Perambra unit in Chalakkudy and Premier Tyre facility in Kochi, he added.
The rest would be utilised for capacity augmentation at the Chennai plant, which manufactures tyres for trucks and cars. He said the plant capacity would be increased to produce 6,000 tyres per day for trucks, from 3,000 at present, and 16,000 cars tyres per day, from 8,000.
Mr Neeraj Kanwar, Vice-Chairman and Managing Director, said that the company aims to be among the top 10 global tyre companies in the next five years. The company’s largest unit is situated at Limda, in Gujarat, and its two other units are in Perambra and Kalamassery, Kerala.
Its latest next generation plant is near Chennai and the four plants together have a production capacity of around 1,180 tonnes of tyres a day.
In South Africa, the Ladysmith and Durban plants account for a combined capacity of around 180 tonnes and the Enschede plant in The Netherlands adds another 180 tonnes a day, taking its total current production capacity to around 1,550 tonnes a day.
He pointed out that India is Apollo Tyres’ largest market, accounting for 62 per cent of revenues, while Europe contributes 25 per cent and South Africa 13 per cent. The company exports tyres to over 70 countries from India, Europe and South Africa.
The drop in car sales in India is partly offset by exports to Europe, he said adding that there is every possibility for a further hike in prices of tyres due to increase in raw material costs and drop in OE sales.
Rubber market on Aug 11: Spot rubber improves on supply concern
August 11, 2011
KOTTAYAM, AUG. 11:
Physical rubber prices turned better on Thursday. The market improved on supply concerns following widespread rains during the past 48 hours. A firm closing in the international futures lent further support at lower levels, though domestic futures lost initial gains on late trades. However the gains were limited indicating that the market was still under pressure on higher production, stocks and imports. The trend was partially mixed.
Sheet rubber increased to Rs 205 (204) a kg, according to traders. The grade moved up to Rs 204.50 (203.50) a kg both at Kottayam and Kochi, as reported by the Rubber Board. The August series slipped to Rs 205.01 (206.54), September to Rs 203.70 (203.94), October to Rs 202.50 (203.90), November to Rs 202.02 (204), December to Rs 203.70 (204.70) and January to Rs 205.50 (207.27) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) firmed up to Rs 212.57 (209.93) a kg at Bangkok. The August futures increased to ¥353.5 (Rs 209.19) from ¥352 during the day session and then to ¥360 (Rs 213.11) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 205 (204); RSS-5: 201 (200); Ungraded: 194 (192); ISNR 20: 203 (203) and latex 60 per cent: 132 (132).
Rubber Board, India: Domestic rubber imports jump 12 pc in July
August 12, 2011
MUMBAI: Imports of rubber in India, the world’s second-biggest consumer, provisionally rose 11.97 percent on year to 20,127 tonnes in July as tyre makers cashed in on lower customs duties, the state-run Rubber Board said in a statement.
Rubber imports rose 10.4 percent in April-July to 62,056 tonnes. Shipments are expected to touch a record of 200,000 this fiscal year. India, the world’s fourth biggest producer, imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam.
The federal government had allowed imports with a duty of 20 percent or 20 rupees a kilogram (kg), whichever is lower, for the current financial year, effectively cutting the import duty.
Consumption rose 4.8 percent to 323,875 tonnes in the first four months of the fiscal year, while production also rose 5.8 percent 238,400 tonnes, the board said.
Tokyo futures fall as slide in oil, stocks weighs (Aug 12)
August 12, 2011
TOKYO, Aug 12 (Reuters) – Key Tokyo rubber futures erased earlier gains to settle slightly lower on Friday, as a slide in oil prices and sluggish stocks reflected concerns about the global economic outlook and raised questions about demand for raw materials.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery settled down 0.5 yen at 363.5 yen per kg, after rising as much as 6.9 yen or 1.9 percent to 370.9 yen per kg earlier in the day.
The market ended the week down about 5 percent, the biggest weekly loss in three months, as global financial markets plummeted earlier in the week on the downgrade of U.S. debt and concerns over European sovereign debt problems spreading.
The plunge in global financial markets also dragged benchmark rubber futures to the lowest for any benchmark since June 29.
Traders said the market may test the downside next week after finishing below a key technical level, its 50-day moving average, which stood at 377.1 yen on Friday.
The most active rubber contract on the Shanghai commodity exchange for January delivery rose 125 yuan to close at 34,295 yuan ($5,363.203) per tonne on Friday. Volume stood at 580,486 lots.
Tokyo stocks dipped further below the 9,000 line on Friday, extending hefty losses sustained during the most volatile week since the March 11 quake as the strong yen prompted foreigners to sell carmakers, dragging Toyota Motor to its lowest level this year.
A ban on short-selling of financial stocks in four European countries including France takes effect on Friday, a coordinated attempt to restore confidence in markets hit by rumours and higher borrowing costs.
But European stocks fell in early trade on market talk that core euro zone economy France faces a credit rating downgrade, pushing the dollar down 1 percent versus the Swiss franc while the euro also extended its losses.
The weakness of the dollar pinned the yen near its record high versus the U.S. currency, deflating yen-based TOCOM rubber futures prices and dampening investors’ appetite.
Brent slipped $1 to below $108 a barrel on Friday, reversing direction after two straight days of gains, as the dollar strengthened and concerns about demand in industrial nations weighed on prices.
Glove, tyre industries largest consumer of natural rubber
August 13, 2011
KUALA LUMPUR: The local rubber gloves, tyres and tubes and rubber thread industries remained the largest consumer of domestic natural rubber (NR), taking up 26,439 tonnes in June, said the Statistics Department.
Of the total domestic consumption at 30,874 tonnes for the month under review, rubber gloves accounted for 67.8%, rubber thread 9.3%, tyres and tubes 8.5% and others 14.4%.
The department, in its June rubber report released yesterday, said NR production in June was up 17.5% at 84,208 tonnes compared with the previous month.
The smallholding sector also continued to be the largest contributor to NR production at 94.6%, while the balance 5.4% was from the estate sector.
The department also said NR stocks were 5% higher at 122,972 tonnes in June, with 87% still held by the rubber processors.
As for NR exports, there was a 15.5% decline in total exports at 68,591 tonnes in June from a month ago.
Standard Malaysian Rubber (SMR) was still the highest type of rubber exported at 94.6% or 64,876 tonnes, of which 39.4% was from the SMR 20 grade.
A majority of NR exports goes to China (26.4%), followed by Germany (14.5%), Iran (5.6%), the United States (5.3%), South Korea (3.3%), Finland (3.2%), Turkey (3%), Britain (2.9%), Brazil (2.8%) and France (2.8%).
The NR imports in June, meanwhile, increased marginally by 0.3% to 45,954 tonnes. Almost half of the total NR imports consists of latex concentrate at 22,875 tonnes.
Thailand is the top major NR supplier to Malaysia at 66.3% or 30,448 tonnes for the month under review.
On NR prices, the Statistics Department said the average monthly price was mixed in June.
The average price of latex concentrate eased 2.1% to RM9.23 per kg and SMR 20 was up 1.4% to RM13.54 sen per kg.
For the month under review, the Statistics Department said NR productivity in the estates was recorded at 117.5 kg, up 41.4% from a month ago and 7.8% year-on-year.
The average number of tapping days recorded was 23 days with Negri Sembilan and Pahang among the states with the highest number of tapping days at 25 days.
Friday, August 12, 2011
Rubber market on Aug 10: Spot rubber stays steady
Rubber market on Aug 10: Spot rubber stays steady
August 10, 2011
KOTTAYAM, AUG. 10:
Spot rubber closed unchanged on Wednesday. The market lost its direction as sellers stayed back following the marginal improvement in the domestic and international futures. There were signs of recovery across the board as the US Federal Reserve assured that it would maintain the benchmark interest rate at record low level of 0.25 per cent at least till mid-2013. The transactions were dull.
According to traders, sheet rubber closed flat at Rs 204 a kg amidst scattered transactions. The grade finished unchanged at Rs 203.50 a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
RSS 4 improved with the August series rising to Rs 206 (204.37), September to Rs 204.10 (201.36), October to Rs 204.30 (201.26), November to Rs 204.50 (201.60), December to Rs 204.70 (202.85) and January to Rs 207.50 (203.87) a kg on the National Multi Commodity Exchange.
RSS 3 (spot) weakened to Rs 209.93 (212.10) a kg at Bangkok. The August futures recovered partially to ¥352 (Rs 207.81) from ¥349.8 a kg during the day session and then to ¥356.2 (Rs 210.35) in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 204 (204); RSS-5: 200 (200); ungraded: 192 (192); ISNR 20: 203 (203) and latex 60 per cent: 132 (132).
Tokyo futures fall on renewed econ worries (Aug 11)
August 11, 2011
TOKYO, Aug 11 (Reuters) – Key Tokyo rubber futures fell 1.1 per cent in early Asian trade on Thursday with the yen strengthening and oil falling on renewed worries about the economic outlook in Europe and the United States.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for January delivery <0#2JRU:> was down 3.9 yen at 355.1 yen per kg as of 0035 GMT.
* The most active rubber contract on the Shanghai commodity exchange rose 245 yuan to finish at 33,030 yuan ($5,136) per tonne on Wednesday.
* The yen traded at 76.77 yen , not far from an all-time high around 76.25 as the Japanese unit and Swiss franc remained buoyed on worries about the euro zone sovereign debt crisis spreading to the European and U.S. banking sectors.
* Oil fell more than $1 in early trade on Thursday, reversing the previous session’s gains.
* For the top stories in rubber markets and other news, click , or
MARKET NEWS
* The Nikkei average resumed falling on Thursday following a rebound the day before, after rumours about the health of French banks re-ignited concerns over the euro zone’s debt crisis and sent U.S. stocks down more than 4 percent.
* Car sales in China climbed 6.7 percent in July from a year earlier, extending a pattern of subdued growth in the world’s largest auto market as the weak auto selling season kicks in.
* Car sales in India fell 15.8 percent in July, the first drop in two-and-half years, and higher interest rates and rising vehicle costs are expected to keep demand subdued for the next few months.
Tokyo futures higher; econ worries limit gains (Aug 11)
August 11, 2011
BANGKOK, Aug 11 (Reuters) – Tokyo rubber future ended higher on Thursday as players took speculative buying positions after recent sharp falls, but gains were limited by falling oil prices and worries about the global economic outlook, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery rose 5.0 yen to settle at 364.0 yen ($4.75) per kg.
It rose to an intra-day high of 368.0 yen before profit-taking set in.
The most active rubber contract on the Shanghai commodity exchange for January delivery rose 1,140 yuan to finish at 34,140 yuan ($5,319) per tonne.
“TOCOM prices had fallen to levels that were quite cheap, encouraging players to take speculative buying positions, but there are several negative factors that prevent prices from rising further, including weaker oil prices,” one dealer said.
Brent slipped on Thursday, reversing the previous session’s gain of 4 percent, due to worries over demand as the European debt crisis spilled over to France.
On Tuesday, TOCOM rubber fell as much as 6 percent to a one-month low on a broad sell-off due to fears of a global economic recession. Prices rebounded slightly on Wednesday.
“With speculative buying, the prospect of rising supply and volatile oil prices, I expected TOCOM prices to be trapped in a narrow range for a few days,” said another trader at Thailand’s Hat Yai rubber centre.
Dealers expected TOCOM to find strong support at 360 yen per kg, while resistance was seen at 370 yen.
August 10, 2011
KOTTAYAM, AUG. 10:
Spot rubber closed unchanged on Wednesday. The market lost its direction as sellers stayed back following the marginal improvement in the domestic and international futures. There were signs of recovery across the board as the US Federal Reserve assured that it would maintain the benchmark interest rate at record low level of 0.25 per cent at least till mid-2013. The transactions were dull.
According to traders, sheet rubber closed flat at Rs 204 a kg amidst scattered transactions. The grade finished unchanged at Rs 203.50 a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
RSS 4 improved with the August series rising to Rs 206 (204.37), September to Rs 204.10 (201.36), October to Rs 204.30 (201.26), November to Rs 204.50 (201.60), December to Rs 204.70 (202.85) and January to Rs 207.50 (203.87) a kg on the National Multi Commodity Exchange.
RSS 3 (spot) weakened to Rs 209.93 (212.10) a kg at Bangkok. The August futures recovered partially to ¥352 (Rs 207.81) from ¥349.8 a kg during the day session and then to ¥356.2 (Rs 210.35) in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 204 (204); RSS-5: 200 (200); ungraded: 192 (192); ISNR 20: 203 (203) and latex 60 per cent: 132 (132).
Tokyo futures fall on renewed econ worries (Aug 11)
August 11, 2011
TOKYO, Aug 11 (Reuters) – Key Tokyo rubber futures fell 1.1 per cent in early Asian trade on Thursday with the yen strengthening and oil falling on renewed worries about the economic outlook in Europe and the United States.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for January delivery <0#2JRU:> was down 3.9 yen at 355.1 yen per kg as of 0035 GMT.
* The most active rubber contract on the Shanghai commodity exchange rose 245 yuan to finish at 33,030 yuan ($5,136) per tonne on Wednesday.
* The yen traded at 76.77 yen , not far from an all-time high around 76.25 as the Japanese unit and Swiss franc remained buoyed on worries about the euro zone sovereign debt crisis spreading to the European and U.S. banking sectors.
* Oil fell more than $1 in early trade on Thursday, reversing the previous session’s gains.
* For the top stories in rubber markets and other news, click , or
MARKET NEWS
* The Nikkei average resumed falling on Thursday following a rebound the day before, after rumours about the health of French banks re-ignited concerns over the euro zone’s debt crisis and sent U.S. stocks down more than 4 percent.
* Car sales in China climbed 6.7 percent in July from a year earlier, extending a pattern of subdued growth in the world’s largest auto market as the weak auto selling season kicks in.
* Car sales in India fell 15.8 percent in July, the first drop in two-and-half years, and higher interest rates and rising vehicle costs are expected to keep demand subdued for the next few months.
Tokyo futures higher; econ worries limit gains (Aug 11)
August 11, 2011
BANGKOK, Aug 11 (Reuters) – Tokyo rubber future ended higher on Thursday as players took speculative buying positions after recent sharp falls, but gains were limited by falling oil prices and worries about the global economic outlook, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery rose 5.0 yen to settle at 364.0 yen ($4.75) per kg.
It rose to an intra-day high of 368.0 yen before profit-taking set in.
The most active rubber contract on the Shanghai commodity exchange for January delivery rose 1,140 yuan to finish at 34,140 yuan ($5,319) per tonne.
“TOCOM prices had fallen to levels that were quite cheap, encouraging players to take speculative buying positions, but there are several negative factors that prevent prices from rising further, including weaker oil prices,” one dealer said.
Brent slipped on Thursday, reversing the previous session’s gain of 4 percent, due to worries over demand as the European debt crisis spilled over to France.
On Tuesday, TOCOM rubber fell as much as 6 percent to a one-month low on a broad sell-off due to fears of a global economic recession. Prices rebounded slightly on Wednesday.
“With speculative buying, the prospect of rising supply and volatile oil prices, I expected TOCOM prices to be trapped in a narrow range for a few days,” said another trader at Thailand’s Hat Yai rubber centre.
Dealers expected TOCOM to find strong support at 360 yen per kg, while resistance was seen at 370 yen.
Thursday, August 11, 2011
Dumping duty goes on tyres from China, Thailand 11 Aug 2011
Dumping duty goes on tyres from China, Thailand 11 Aug 2011
New Delhi, Aug. 10: Truck and bus tyres imported from China and Thailand have been rid of additional Customs levies.
In a major relief to user industries, a three-member Bench of the Customs, Excise and Service Tax Appellate Tribunal has set aside the levy of definitive anti-dumping duty on truck/bus radial tyres and tubes imported from China and Thailand.
The appeal against the anti-dumping duty, clamped in January 2010, was filed by Bridgestone Tyre India, Tata Motors Ltd and a few others while the respondents included the Designated Authority in the Commerce Ministry and the Department of Revenue.
The All India Tyre Dealers' Federation (AITDF) and others were listed as interested parties. The original petition seeking the anti-dumping duty was filed by the Automotive Tyre Manufacturers (ATMA) with the Customs notification issued on February 19, 2010 based on the Designated Authority's earlier recommendations were set aside by the Appellate Tribunal early this month.
The AITDF hailed the Tribunal decision. In a statement issued here, it said that ever since the anti-dumping duty of $32 to $90 per tyre was clamped, import of truck/bus radials had crashed in the replacement market that relies heavily on Chinese and Thai products.
Domestic tyre prices had soared in the last 18 months, rising a hefty 21 per cent since January, though natural rubber prices had come down significantly from the peak of Rs 240 a kg to Rs 207 now.
The Federation hoped that in the coming weeks the import of truck/bus radials would gain traction to revert to the pre-anti-dumping duty levels. ATMA expects a pair of truck/bus radial tyres and tubes to be cheaper by Rs 4,000-6,000 depending on the brand.
However, sources, associated with the original petitioner that sought the levy of an anti-dumping duty on such imports were of the view that the Appellate Tribunal's order can be challenged in the Supreme Court. If they succeeded in securing a stay then the Revenue Department may not be able to revoke the anti-dumping duty until the stay is vacated.
Equally, importers of radial tyres can file a caveat in the apex court not to quash the Appellate Tribunal order in the interest of user industries and customers who would see tyre prices coming down by 15-20 per cent, once the anti-dumping duty is abolished.
‘Prestige issue'
The AITDF Convenor, Mr S. P. Singh, told Business Line that he has already written to the Ministers for Finance, and Commerce and Industry as also to the Designated Authority in the Commerce Ministry imploring them not to take the setting aside of the anti-dumping duty as ‘a prestige issue' because this would help break the oligopolistic and market-cornering move of the domestic tyre manufacturers and provide them an easy opportunity to jack up domestic prices frequently and unjustifiably.
Road transport industry
He said the domestic road transport industry would benefit immensely if the Tribunal order were implemented by reducing its operating costs and thereby help lowering the truck freight.
He said that already both the Competition Commission of India and the Tariff Commission have been seized of the complaints by the AITDF of concentration of market among the five top tyre companies resulting in anti-competitive behaviour and how this had led to market distortions.
Their verdict would hopefully provide the much-needed relief to radial tyre users in the country, he said.
New Delhi, Aug. 10: Truck and bus tyres imported from China and Thailand have been rid of additional Customs levies.
In a major relief to user industries, a three-member Bench of the Customs, Excise and Service Tax Appellate Tribunal has set aside the levy of definitive anti-dumping duty on truck/bus radial tyres and tubes imported from China and Thailand.
The appeal against the anti-dumping duty, clamped in January 2010, was filed by Bridgestone Tyre India, Tata Motors Ltd and a few others while the respondents included the Designated Authority in the Commerce Ministry and the Department of Revenue.
The All India Tyre Dealers' Federation (AITDF) and others were listed as interested parties. The original petition seeking the anti-dumping duty was filed by the Automotive Tyre Manufacturers (ATMA) with the Customs notification issued on February 19, 2010 based on the Designated Authority's earlier recommendations were set aside by the Appellate Tribunal early this month.
The AITDF hailed the Tribunal decision. In a statement issued here, it said that ever since the anti-dumping duty of $32 to $90 per tyre was clamped, import of truck/bus radials had crashed in the replacement market that relies heavily on Chinese and Thai products.
Domestic tyre prices had soared in the last 18 months, rising a hefty 21 per cent since January, though natural rubber prices had come down significantly from the peak of Rs 240 a kg to Rs 207 now.
The Federation hoped that in the coming weeks the import of truck/bus radials would gain traction to revert to the pre-anti-dumping duty levels. ATMA expects a pair of truck/bus radial tyres and tubes to be cheaper by Rs 4,000-6,000 depending on the brand.
However, sources, associated with the original petitioner that sought the levy of an anti-dumping duty on such imports were of the view that the Appellate Tribunal's order can be challenged in the Supreme Court. If they succeeded in securing a stay then the Revenue Department may not be able to revoke the anti-dumping duty until the stay is vacated.
Equally, importers of radial tyres can file a caveat in the apex court not to quash the Appellate Tribunal order in the interest of user industries and customers who would see tyre prices coming down by 15-20 per cent, once the anti-dumping duty is abolished.
‘Prestige issue'
The AITDF Convenor, Mr S. P. Singh, told Business Line that he has already written to the Ministers for Finance, and Commerce and Industry as also to the Designated Authority in the Commerce Ministry imploring them not to take the setting aside of the anti-dumping duty as ‘a prestige issue' because this would help break the oligopolistic and market-cornering move of the domestic tyre manufacturers and provide them an easy opportunity to jack up domestic prices frequently and unjustifiably.
Road transport industry
He said the domestic road transport industry would benefit immensely if the Tribunal order were implemented by reducing its operating costs and thereby help lowering the truck freight.
He said that already both the Competition Commission of India and the Tariff Commission have been seized of the complaints by the AITDF of concentration of market among the five top tyre companies resulting in anti-competitive behaviour and how this had led to market distortions.
Their verdict would hopefully provide the much-needed relief to radial tyre users in the country, he said.
Wednesday, August 10, 2011
Tokyo futures rise 2 pct as oil recovers (Aug 10)
Tokyo futures rise 2 pct as oil recovers (Aug 10)
August 10, 2011
TOKYO, Aug 10 (Reuters) – Key Tokyo rubber futures rose more than 2 percent on Wednesday, as sentiment improved with a recovery in oil prices and stock markets, but worries about the global economic outlook kept investors cautious about chasing up prices.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery jumped as much as 8.6 yen or 2.5 percent to 364.1 yen per kg in early trade.
* The previous day, it had fallen as much as 6 percent to an intraday low of 348.0 yen per kg, the lowest since June 29 on Tuesday.
* The most active Shanghai rubber contract for January fell 9.5 yuan to settle at 32,785 yuan ($5,094) per tonne on Tuesday.
* Brent crude rose more than $2 in early Asian trade on Wednesday, extending the previous session’s gains, as the U.S. Federal Reserve promised to extend near-zero interest rates for two more years.
* The U.S. dollar stayed under pressure in Asia on Wednesday, having slumped after the Federal Reserve’s extraordinary vow to keep rates near zero for two years, reaffirming the greenback’s status as a funding currency of choice for carry trades.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Global oil demand will grow less than previously projected this year, according to forecasts on Tuesday from the U.S. and OPEC, as a worsening economic outlook will curb consumption in developed countries.
* The Nikkei share average rose more than 2 percent Wednesday after the Federal Reserve’s pledge to keep rates near zero for another two years sparked a rally in U.S. stocks.
* U.S. stocks rallied on Tuesday in a volatile session as investors struggled to decipher the Fed’s signals on the economy after a dizzying two-week slide.
Japan Rubber Stocks at 10-Month Low by July 20
August 8, 2011
Japan’s crude rubber inventories fell 3 percent in the period to July 20 from 10 days earlier to their lowest in about 10 months, industry data showed on Friday, reflecting tighter supply.
Rubber Trade Association of Japan numbers showed that crude rubber inventories as of July 20 stood at 6,160 tonnes, the lowest since Sept. 10, 2010, when inventories were at 5,776 tonnes.
But the July 20 level was more than double the amount in the same period a year ago, when inventories hit a record low of 2,628 tonnes.
Rubber stocks have been falling steadily as persistently high prices in producing countries put rubber futures prices on the Tokyo Commodity Exchange at a discount to physical prices, making shippers reluctant to deliver cargoes to Japan.
TOCOM Rubber Seen At 390 Yen/Kg by End-August
August 8, 2011
The prospect of strong demand in the second half of the year from Asian car-producing countries is likely to push Tokyo rubber futures higher in August but concern about the state of the world economy could limit the gains, traders said.
The benchmark sixth-month rubber contract on the Tokyo Commodity Exchange, currently January 2012, was forecast to be at 390.0 yen per kg by the end of August, according to the median forecast of 10 analysts polled by Reuters.
That was slightly higher than the actual closing price at the end of July of 386.5 yen, but well above a forecast of 350 yen in a previous poll at the end of June.
The latest poll was conducted this week. Stock and commodity markets have slumped in the past few days because of growing concern about the U.S. economy and the spreading euro zone debt crisis.
The TOCOM benchmark was at 380.8 yen at 0506 GMT on Friday (Aug 5), down around 2.5 percent on the day.
“Car industries in Japan are likely to accelerate in the second half to offset falls in output caused by the earthquake, while demand elsewhere in Asia, especially India, should rise further,” said a trader in Thailand’s Hat Yai rubber centre.
The Indian unit of Japanese car maker Nissan Motor, for example, is aiming to triple sales to 40,000 vehicles by the end of this fiscal year, helped by the launch of its new mid-sized sedan.
India, the world’s second-biggest rubber consumer, is likely to import a record 200,000 tonnes of natural rubber in the year ending March 31, 2012 as tyre makers cash in on lower customs duties.
“Rubber stocks in Japan are still low and that could reflect strong demand there,” said a Tokyo-based trader.
Japan’s crude rubber inventories fell 3 percent in the 10 days to July 20 to their lowest in about 10 months, according to the Rubber Trade Association of Japan’s data.
As for supply, traders do not expect a significant rise even though major rubber-producing countries are in their tapping season. Weather in Thailand, the biggest exporter, is hard to predict in August and September when seasonal storms can bring heavy rain liable to disrupt tapping and transport.
Tropical storm Nock-Ten hit the north of Thailand this week and earlier than usual rain has hit the south, the main rubber area.
With limited supply in prospect, the poll forecast that TOCOM prices would rise further to 400 yen per kg by the end of September, although uncertainty about the global economy may put that level in doubt in coming weeks.
The spread of forecasts was wide, running from 350 to 420 yen per kg.
On the physical front, rubber prices were expected to stay at a relatively firm level, at a time when supply may be limited, dealers said.
The benchmark Thai smoked rubber sheet was forecast to be at $4.65 per kg at the end of August, little changed from $4.80 at the end of July, according to the poll. It was still at $4.80 on Friday (Aug 5).
Indonesia: Rubber Industry Worried US Woes May Hit Exports
August 9, 2011
Indonesian shipments of rubber to the United States may decline as demand slows following a possible slowdown in economic growth, an industry representative has said.
“I haven’t figured out the impact on our rubber exports, but surely it will cause the price of rubber to decline,” said Suharto Honggokusumo, executive director of the Indonesian Rubber Association (Gapkindo), told reporters on Tuesday. “I just found out that the rubber price in Japan has fallen.”
The United States and China, the two largest economies in the world, are the biggest consumers of Indonesian rubber. Last year, Indonesia sold 546,500 tons of rubber to the United States, accounting for 23.2 percent of total overseas sales. Indonesia sold a total 2.35 million tons of rubber last year. This year, Gapkindo forecasts exports reaching 2.5 million tons, an increase of 6.4 percent.
Worries about the US economic slowdown have been building since it was reported growth had been far weaker in the first half of 2011 than economists expected. Intensifying concerns were reports showing that the manufacturing and services industries barely grew in July, offsetting news that jobs growth had been better than expected.
Standard & Poor’s on Friday downgraded its rating for US sovereign debt by one notch from AAA to AA+, and that heightened concerns that the economy would slip back into recession.
According to data from Indonesia’s Trade Ministry, the price of rubber has fallen 2 percent this week to 468 Singapore dollars per kilogram for September delivery. It said the decline was prompted by lower crude oil prices, which dropped more than 6 percent on Monday in New York.
Deddy Saleh, the ministry’s director general of foreign trade, confirmed the price drop.
“The rupiah’s appreciation against the dollar also triggered the rubber price to fall,” he said. “The rupiah is getting strong, so it has been bad for exporters.”
The rupiah has gained 5.3 percent this year and traded at 8,540 against the dollar on Tuesday.
Deddy said the US slowdown might also hamper other exports. “We need extra efforts to sell coffee and rubber to America, and we have to find alternative markets,” he said without elaborating.
August 10, 2011
TOKYO, Aug 10 (Reuters) – Key Tokyo rubber futures rose more than 2 percent on Wednesday, as sentiment improved with a recovery in oil prices and stock markets, but worries about the global economic outlook kept investors cautious about chasing up prices.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for January delivery jumped as much as 8.6 yen or 2.5 percent to 364.1 yen per kg in early trade.
* The previous day, it had fallen as much as 6 percent to an intraday low of 348.0 yen per kg, the lowest since June 29 on Tuesday.
* The most active Shanghai rubber contract for January fell 9.5 yuan to settle at 32,785 yuan ($5,094) per tonne on Tuesday.
* Brent crude rose more than $2 in early Asian trade on Wednesday, extending the previous session’s gains, as the U.S. Federal Reserve promised to extend near-zero interest rates for two more years.
* The U.S. dollar stayed under pressure in Asia on Wednesday, having slumped after the Federal Reserve’s extraordinary vow to keep rates near zero for two years, reaffirming the greenback’s status as a funding currency of choice for carry trades.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Global oil demand will grow less than previously projected this year, according to forecasts on Tuesday from the U.S. and OPEC, as a worsening economic outlook will curb consumption in developed countries.
* The Nikkei share average rose more than 2 percent Wednesday after the Federal Reserve’s pledge to keep rates near zero for another two years sparked a rally in U.S. stocks.
* U.S. stocks rallied on Tuesday in a volatile session as investors struggled to decipher the Fed’s signals on the economy after a dizzying two-week slide.
Japan Rubber Stocks at 10-Month Low by July 20
August 8, 2011
Japan’s crude rubber inventories fell 3 percent in the period to July 20 from 10 days earlier to their lowest in about 10 months, industry data showed on Friday, reflecting tighter supply.
Rubber Trade Association of Japan numbers showed that crude rubber inventories as of July 20 stood at 6,160 tonnes, the lowest since Sept. 10, 2010, when inventories were at 5,776 tonnes.
But the July 20 level was more than double the amount in the same period a year ago, when inventories hit a record low of 2,628 tonnes.
Rubber stocks have been falling steadily as persistently high prices in producing countries put rubber futures prices on the Tokyo Commodity Exchange at a discount to physical prices, making shippers reluctant to deliver cargoes to Japan.
TOCOM Rubber Seen At 390 Yen/Kg by End-August
August 8, 2011
The prospect of strong demand in the second half of the year from Asian car-producing countries is likely to push Tokyo rubber futures higher in August but concern about the state of the world economy could limit the gains, traders said.
The benchmark sixth-month rubber contract on the Tokyo Commodity Exchange, currently January 2012, was forecast to be at 390.0 yen per kg by the end of August, according to the median forecast of 10 analysts polled by Reuters.
That was slightly higher than the actual closing price at the end of July of 386.5 yen, but well above a forecast of 350 yen in a previous poll at the end of June.
The latest poll was conducted this week. Stock and commodity markets have slumped in the past few days because of growing concern about the U.S. economy and the spreading euro zone debt crisis.
The TOCOM benchmark was at 380.8 yen at 0506 GMT on Friday (Aug 5), down around 2.5 percent on the day.
“Car industries in Japan are likely to accelerate in the second half to offset falls in output caused by the earthquake, while demand elsewhere in Asia, especially India, should rise further,” said a trader in Thailand’s Hat Yai rubber centre.
The Indian unit of Japanese car maker Nissan Motor, for example, is aiming to triple sales to 40,000 vehicles by the end of this fiscal year, helped by the launch of its new mid-sized sedan.
India, the world’s second-biggest rubber consumer, is likely to import a record 200,000 tonnes of natural rubber in the year ending March 31, 2012 as tyre makers cash in on lower customs duties.
“Rubber stocks in Japan are still low and that could reflect strong demand there,” said a Tokyo-based trader.
Japan’s crude rubber inventories fell 3 percent in the 10 days to July 20 to their lowest in about 10 months, according to the Rubber Trade Association of Japan’s data.
As for supply, traders do not expect a significant rise even though major rubber-producing countries are in their tapping season. Weather in Thailand, the biggest exporter, is hard to predict in August and September when seasonal storms can bring heavy rain liable to disrupt tapping and transport.
Tropical storm Nock-Ten hit the north of Thailand this week and earlier than usual rain has hit the south, the main rubber area.
With limited supply in prospect, the poll forecast that TOCOM prices would rise further to 400 yen per kg by the end of September, although uncertainty about the global economy may put that level in doubt in coming weeks.
The spread of forecasts was wide, running from 350 to 420 yen per kg.
On the physical front, rubber prices were expected to stay at a relatively firm level, at a time when supply may be limited, dealers said.
The benchmark Thai smoked rubber sheet was forecast to be at $4.65 per kg at the end of August, little changed from $4.80 at the end of July, according to the poll. It was still at $4.80 on Friday (Aug 5).
Indonesia: Rubber Industry Worried US Woes May Hit Exports
August 9, 2011
Indonesian shipments of rubber to the United States may decline as demand slows following a possible slowdown in economic growth, an industry representative has said.
“I haven’t figured out the impact on our rubber exports, but surely it will cause the price of rubber to decline,” said Suharto Honggokusumo, executive director of the Indonesian Rubber Association (Gapkindo), told reporters on Tuesday. “I just found out that the rubber price in Japan has fallen.”
The United States and China, the two largest economies in the world, are the biggest consumers of Indonesian rubber. Last year, Indonesia sold 546,500 tons of rubber to the United States, accounting for 23.2 percent of total overseas sales. Indonesia sold a total 2.35 million tons of rubber last year. This year, Gapkindo forecasts exports reaching 2.5 million tons, an increase of 6.4 percent.
Worries about the US economic slowdown have been building since it was reported growth had been far weaker in the first half of 2011 than economists expected. Intensifying concerns were reports showing that the manufacturing and services industries barely grew in July, offsetting news that jobs growth had been better than expected.
Standard & Poor’s on Friday downgraded its rating for US sovereign debt by one notch from AAA to AA+, and that heightened concerns that the economy would slip back into recession.
According to data from Indonesia’s Trade Ministry, the price of rubber has fallen 2 percent this week to 468 Singapore dollars per kilogram for September delivery. It said the decline was prompted by lower crude oil prices, which dropped more than 6 percent on Monday in New York.
Deddy Saleh, the ministry’s director general of foreign trade, confirmed the price drop.
“The rupiah’s appreciation against the dollar also triggered the rubber price to fall,” he said. “The rupiah is getting strong, so it has been bad for exporters.”
The rupiah has gained 5.3 percent this year and traded at 8,540 against the dollar on Tuesday.
Deddy said the US slowdown might also hamper other exports. “We need extra efforts to sell coffee and rubber to America, and we have to find alternative markets,” he said without elaborating.
Monday, August 8, 2011
India: Rubber farmers to enter futures trading
India: Rubber farmers to enter futures trading
August 4, 2011
KOZHIKODE: The rubber farmers in and around Chakkittapara in the district will soon get benefits of the commodity futures trading under a Nabard project to be carried out through Viswamitra Farmers Club. The commodity futures trading is an agreement to buy or sell a commodity at a predetermined price and date.
“Rubber from about 300 farmers of Chakkittapara will be collected with the help of Viswamitra Farmers Club and stored in the godown of the Centre Warehouse Cooperation for future trading. The rubber stored will be made available at commodities exchange and through the exchange, the rubber will be sold at a predetermined price,” Nabard AGM Nagesh Kumar told Express.
Of the 2,000 farmers clubs in the state, Viswamitra Farmers Club will be the first one to use commodity futures trading for rubber, he said. “With the introduction of commodity futures trading, the profit of the farmer in futures trading could be assured. At present, the farmers are able to sell their goods at spot price only or have to preserve the goods hoping the price will improve in the future. By introducing futures trading, the farmers will be able to sell rubber for a higher amount, which varies based on several factors. Nabard is trying to introduce the farmers to the initiative, thus giving an option for the farmers to select whichever mode profitable,” he pointed out.
Nabard is expecting to roll out the project by November. “We are aiming to collect 10 tonnes of rubber a week from the farmers and sell it through commodity futures trading. The farmers will be given assistance through Chakittapara Service Cooperative Bank,” the AGM said. “The farmers club will need temporary storage godown, commodity trading centre with online facility, an office manager and transportation facilities to sell the product in commodity exchanges. The farmers’ club already has a commodity trading centre with online facility,” he said.
With the project, the farmers will get the benefits of the futures trading and can opt between spot trading and future trading estimating the profit gain, he pointed out. “About 300 small-scale farmers will get the benefit of the initiative. The farmers, who are not members of the farmers’ club, will also be included in the project,” he added.
China rubber industry to pick up in second half
Written by HMH | August 4, 2011 | 0 |
Beijing — China’s rubber industry is on a downward trend, but the momentum has slowed, according to a report from the China Rubber Industry Association on the first six months of 2011. However, with higher selling prices, the value of the business is sharply up on last year.
According to CRIA, the total output of its 400 member companies involved in all aspects of the rubber industry increased sales by 20 percent, to Yuan 144.2 billion (euro 15 743 million) in the first six months, compared to the same period last year. Exports were up by 33 percent, to yuan 40 billion. Aggregate pre-tax profit increased slightly, while aggregate after-tax profit fell
While total industrial output increased by 21 percent, output of tyres increased by only 2.4 percent. Sales revenue, however, increased by 20.3 percent, reflecting higher sellingprices. Export revenues increased by 33 percent. Radial tyre production increased by 5.9 percent
In general industrial rubber goods, the value of industrial output grew by 40 percent, while exports almost doubled, . Within this growth, O-ring production grew by 45 percent and automotive AVS products increased 40 percent.
In the carbon black segment, exports more than doubled
Overall, the CRIA saidd growth was slower than this time last year, largely due to the increased cost of raw materials, but also due to the downturn in the automotive sector. However, the signs are that automotive sales may be recovering, as June figures showed a slight rebound. The CRIA said it expects growth to [ick up in the second half due to improved raw material prices and increased automotive sales.
Natural rubber prices show little change despite stock market meltdown (Aug 5)
August 6, 2011
LONDON (Aug. 5, 2011) — On Tokyo’s Tocom Exchange, prices for the six-month contract for natural rubber (NR) remained unchanged overnight, trading at yen 390.5 ($4.97) per kg on Aug. 5. Shorter-dated prices were also unchanged at yen 382.
In Singapore, the Singapore Exchange Limited (SGX) said trading was quiet, with November 2011 deliveries trading around $4.80, some $0.04 down yesterday when a number of stock exchanges worldwide tumbled. TSR 20 for delivery in December 2011 was trading down around $0.10 at $4.63.
In India, the National Multi Commodity Exchange of India Ltd. (NMCE) saw September deliveries unchanged at around Rs 211 ($4.71) per kilo.
In China, the Shanghai Futures Exchange saw prices down by nearly a yuan, with August deliveries trading at around Yuan 33.5 ($5.20) per kilo.
Malaysia: Rubber prices to stay at current level
August 7, 2011
The Malaysian rubber market is likely to stay at current levels next week with regional markets in a state of volatility amid uncertainties over the global economic situation, dealers said.
Another dealer said if the ringgit were to weaken, rubber prices might be further adjusted to stay parallel with other regional markets.
Throughout the week, local rubber prices underwent range bound trading, with prices of the SMR 20 hovering between 1,383 sen per kg to 1,398 sen per kg while latex-in-bulk was traded around 884.5 sen per kg to 888.5 sen per kg.
On a week-to-week basis, the Malaysian Rubber Board official physical noon price for tyre-grade SMR 20 increased 0.5 sen to 1,383 sen per kg from last Friday’s 1,382.5 sen per kg,while latex-in-bulk was flat at 886 sen per kg.
The unofficial closing price for tyre-grade SMR 20 dropped three sen to 1,378 sen per kg against 1,381 sen per kg from last week while latex-in-bulk declined 2.5 sen to 882.5 sen per kg against the 884.5 sen per kg previously. — Bernama
August 4, 2011
KOZHIKODE: The rubber farmers in and around Chakkittapara in the district will soon get benefits of the commodity futures trading under a Nabard project to be carried out through Viswamitra Farmers Club. The commodity futures trading is an agreement to buy or sell a commodity at a predetermined price and date.
“Rubber from about 300 farmers of Chakkittapara will be collected with the help of Viswamitra Farmers Club and stored in the godown of the Centre Warehouse Cooperation for future trading. The rubber stored will be made available at commodities exchange and through the exchange, the rubber will be sold at a predetermined price,” Nabard AGM Nagesh Kumar told Express.
Of the 2,000 farmers clubs in the state, Viswamitra Farmers Club will be the first one to use commodity futures trading for rubber, he said. “With the introduction of commodity futures trading, the profit of the farmer in futures trading could be assured. At present, the farmers are able to sell their goods at spot price only or have to preserve the goods hoping the price will improve in the future. By introducing futures trading, the farmers will be able to sell rubber for a higher amount, which varies based on several factors. Nabard is trying to introduce the farmers to the initiative, thus giving an option for the farmers to select whichever mode profitable,” he pointed out.
Nabard is expecting to roll out the project by November. “We are aiming to collect 10 tonnes of rubber a week from the farmers and sell it through commodity futures trading. The farmers will be given assistance through Chakittapara Service Cooperative Bank,” the AGM said. “The farmers club will need temporary storage godown, commodity trading centre with online facility, an office manager and transportation facilities to sell the product in commodity exchanges. The farmers’ club already has a commodity trading centre with online facility,” he said.
With the project, the farmers will get the benefits of the futures trading and can opt between spot trading and future trading estimating the profit gain, he pointed out. “About 300 small-scale farmers will get the benefit of the initiative. The farmers, who are not members of the farmers’ club, will also be included in the project,” he added.
China rubber industry to pick up in second half
Written by HMH | August 4, 2011 | 0 |
Beijing — China’s rubber industry is on a downward trend, but the momentum has slowed, according to a report from the China Rubber Industry Association on the first six months of 2011. However, with higher selling prices, the value of the business is sharply up on last year.
According to CRIA, the total output of its 400 member companies involved in all aspects of the rubber industry increased sales by 20 percent, to Yuan 144.2 billion (euro 15 743 million) in the first six months, compared to the same period last year. Exports were up by 33 percent, to yuan 40 billion. Aggregate pre-tax profit increased slightly, while aggregate after-tax profit fell
While total industrial output increased by 21 percent, output of tyres increased by only 2.4 percent. Sales revenue, however, increased by 20.3 percent, reflecting higher sellingprices. Export revenues increased by 33 percent. Radial tyre production increased by 5.9 percent
In general industrial rubber goods, the value of industrial output grew by 40 percent, while exports almost doubled, . Within this growth, O-ring production grew by 45 percent and automotive AVS products increased 40 percent.
In the carbon black segment, exports more than doubled
Overall, the CRIA saidd growth was slower than this time last year, largely due to the increased cost of raw materials, but also due to the downturn in the automotive sector. However, the signs are that automotive sales may be recovering, as June figures showed a slight rebound. The CRIA said it expects growth to [ick up in the second half due to improved raw material prices and increased automotive sales.
Natural rubber prices show little change despite stock market meltdown (Aug 5)
August 6, 2011
LONDON (Aug. 5, 2011) — On Tokyo’s Tocom Exchange, prices for the six-month contract for natural rubber (NR) remained unchanged overnight, trading at yen 390.5 ($4.97) per kg on Aug. 5. Shorter-dated prices were also unchanged at yen 382.
In Singapore, the Singapore Exchange Limited (SGX) said trading was quiet, with November 2011 deliveries trading around $4.80, some $0.04 down yesterday when a number of stock exchanges worldwide tumbled. TSR 20 for delivery in December 2011 was trading down around $0.10 at $4.63.
In India, the National Multi Commodity Exchange of India Ltd. (NMCE) saw September deliveries unchanged at around Rs 211 ($4.71) per kilo.
In China, the Shanghai Futures Exchange saw prices down by nearly a yuan, with August deliveries trading at around Yuan 33.5 ($5.20) per kilo.
Malaysia: Rubber prices to stay at current level
August 7, 2011
The Malaysian rubber market is likely to stay at current levels next week with regional markets in a state of volatility amid uncertainties over the global economic situation, dealers said.
Another dealer said if the ringgit were to weaken, rubber prices might be further adjusted to stay parallel with other regional markets.
Throughout the week, local rubber prices underwent range bound trading, with prices of the SMR 20 hovering between 1,383 sen per kg to 1,398 sen per kg while latex-in-bulk was traded around 884.5 sen per kg to 888.5 sen per kg.
On a week-to-week basis, the Malaysian Rubber Board official physical noon price for tyre-grade SMR 20 increased 0.5 sen to 1,383 sen per kg from last Friday’s 1,382.5 sen per kg,while latex-in-bulk was flat at 886 sen per kg.
The unofficial closing price for tyre-grade SMR 20 dropped three sen to 1,378 sen per kg against 1,381 sen per kg from last week while latex-in-bulk declined 2.5 sen to 882.5 sen per kg against the 884.5 sen per kg previously. — Bernama
Thursday, August 4, 2011
Natural Rubber Prices to Stay above $4.50/Kg on Low Stocks
Natural Rubber Prices to Stay above $4.50/Kg on Low Stocks
August 3, 2011
Natural rubber prices will likely stay above $4.50 a kilogram in the third quarter, Yium Tavarolit, Chief Secretary of the International Rubber Consortium, said Tuesday, upgrading his June forecast of $4/kg.
Bangkok-based Yium said the global macroeconomic outlook will take a turn for the better asU.S. lawmakers have agreed to raise the country’s debt ceiling to avert a potential default.
Fundamentals are already supportive, he said. “Despite the strong yen, Tocom rubber is still supported by firm spot prices. The weather is also erratic in Thailand”, which may affect supply.
Thailand is facing rain in the major producing region in the south, while the north is experiencing floods. IRCo member countries Thailand, Indonesia and Malaysia account for about 70% of global natural rubber output.
Prices of regional tire grade rubber are all well above $4.50/kg.
Yium said global rubber inventories are running low, which will also fuel restocking.
A drop in inventory levels in China prompted buyers to purchase aggressively from the international market in the last month, traders said. China is the world’s largest consumer and importer of the commodity.
“China is bidding actively every day. They are hungry for rubber,” a trading executive for a major exporter in Thailand said.
Stock levels at bonded warehouses in Qingdao are around 80,000-90,000 metric tons–down some 40% from 150,000 tons in April, as tire makers in China draw down inventories, traders said.
“Tire makers haven’t stored a lot of rubber since the start of the year, and improving signs in the auto sector prompted them to restock in anticipation of rising demand in the coming weeks,” a Shanghai-based trader said.
The China Association of Automobile Manufacturers said in July that it expects China’s auto sales to grow 5% this year. China’s June tire production rose 5.4% from a year earlier to 73.2 million units, the National Bureau of Statistics said in July. Output rose 3.4% from May.
The rising pace of Chinese buying recently is also due to a slowdown in purchases earlier this year when natural rubber prices surged to record levels.
The benchmark contract on the bellwether Tokyo Commodity Exchange hit a historic high of Y535.7/kg in February. Tocom rubber has since fallen about 27% to around Y390/kg.
The Association of Natural Rubber Producing Countries said in its latest monthly report in July that China will import 2.8 million tons of natural rubber this year, up 0.6% from last year.
Asian Rubber Ends Down; Support Level Likely At $4.50/Kg
Written by HMH | August 3, 2011 | 0 |
Asian rubber settled lower Tuesday, with softer crude-oil prices and Chinese rate hike fears dragging prices down.
A Xinhua news agnecy analysis suggested that China will likely announce a rate hike around Aug. 10.
Benchmark January natural rubber futures on the Tokyo Commodity Exchange settled Y2.5 lower at Y387.2 a kilogram, with a strong yen still weighing on prices.
However, firm spot prices due to strong fundamentals are supporting Tocom rubber, International Rubber Consortium Chief Secretary Yium Tavarolit said.
A Singapore-based dealer said Tocom is locked in directionless trade and prices will likely remain rangebound until strong leads emerge.
January Tocom rubber extended losses to close Y2.2 lower at Y385/kg in the night session, which is considered part of the next trading day.
Natural rubber on the Shanghai Futures Exchange settled 1.1% lower, taking cues from SHFE metals amid caution over the outcome of a pact to raise the U.S. borrowing limit.
Physical rubber prices were mostly lower but trade was cautious, the Singapore-based dealer said.
”Tocom has been directionless and pretty rangebound recently. People are risk averse due to all the bad news [on the macroeconomic front], so they are all on the sidelines, especially as prices are still on the high side.”
IRCo’s Yium is optimistic on natural rubber prices as he upgraded his forecast for prices to stay above $4.50/kg in the third quarter. His previous forecast was $4/kg.
He said the global macroeconomic outlook will take a turn for the better as U.S. lawmakers have agreed to raise the country’s debt ceiling to avert a potential default.
Tokyo futures fall on weak oil, stocks (Aug 3)
August 3, 2011
TOKYO, Aug 3 (Reuters) – Key Tokyo rubber futures fell on Wednesday as sentiment was hurt by weakness in oil and stock markets on concerns over the U.S. economy and a strong yen hitting Japanese exporters including automakers.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for January delivery <0#2JRU:> fell 4.3 yen or 1 percent to 382.9 yen per kg as of 0020 GMT.
* The most active Shanghai rubber contract for January delivery delivery fell 1.3 percent to close at 35,725 yuan per tonne on Tuesday. Volume stood at 447,532 lots.
* Oil prices extended their declines in early Asia on Wednesday after falling the day before when U.S. economic data fuelled concern about the economy even as Congress passed a U.S. debt-cutting measure in time to avoid a default for the world’s top oil consumer.
* The Swiss franc held hefty gains in Asia on Wednesday, having rocketed to record highs as investors scrambled for a safe haven on renewed tensions in the euro zone debt market and worries about a global slowdown.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* The United States stepped back from the brink of default on Tuesday but congressional approval of a last-gasp deficit-cutting plan failed to dispel fears of a credit downgrade and future tax and spending feuds.
* U.S. consumer spending fell in June for the first time in nearly two years and incomes barely rose, signs the economy lacked momentum as the second quarter drew to a close.
* U.S. auto sales ticked higher in July, but the industry cautioned that prospects for a second-half recovery remained clouded with consumers hurting in a weak economy.
* Toyota Motor Corp is looking to boost global production by 24 percent to a record 8.90 million vehicles in 2012 as it rushes to make up for output lost in the months after the March earthquake, a source with knowledge of the plan said.
* Toyota slumped to its first quarterly loss in two years after the March 11 disaster virtually halted production, and the Japanese auto giant warned the stronger yen was hobbling it in the battle against South Korean rivals.
* The Nikkei average fell for a second day on Wednesday, hit by concerns about the weakening U.S. economy, while the heightened chance of Japanese authorities intervening in currency markets to curb the yen may lend support.
* The S&P 500 turned negative for the year on Tuesday as the wrangling over the U.S. debt ceiling faded and investors turned their attention to the stalling economy.
August 3, 2011
Natural rubber prices will likely stay above $4.50 a kilogram in the third quarter, Yium Tavarolit, Chief Secretary of the International Rubber Consortium, said Tuesday, upgrading his June forecast of $4/kg.
Bangkok-based Yium said the global macroeconomic outlook will take a turn for the better asU.S. lawmakers have agreed to raise the country’s debt ceiling to avert a potential default.
Fundamentals are already supportive, he said. “Despite the strong yen, Tocom rubber is still supported by firm spot prices. The weather is also erratic in Thailand”, which may affect supply.
Thailand is facing rain in the major producing region in the south, while the north is experiencing floods. IRCo member countries Thailand, Indonesia and Malaysia account for about 70% of global natural rubber output.
Prices of regional tire grade rubber are all well above $4.50/kg.
Yium said global rubber inventories are running low, which will also fuel restocking.
A drop in inventory levels in China prompted buyers to purchase aggressively from the international market in the last month, traders said. China is the world’s largest consumer and importer of the commodity.
“China is bidding actively every day. They are hungry for rubber,” a trading executive for a major exporter in Thailand said.
Stock levels at bonded warehouses in Qingdao are around 80,000-90,000 metric tons–down some 40% from 150,000 tons in April, as tire makers in China draw down inventories, traders said.
“Tire makers haven’t stored a lot of rubber since the start of the year, and improving signs in the auto sector prompted them to restock in anticipation of rising demand in the coming weeks,” a Shanghai-based trader said.
The China Association of Automobile Manufacturers said in July that it expects China’s auto sales to grow 5% this year. China’s June tire production rose 5.4% from a year earlier to 73.2 million units, the National Bureau of Statistics said in July. Output rose 3.4% from May.
The rising pace of Chinese buying recently is also due to a slowdown in purchases earlier this year when natural rubber prices surged to record levels.
The benchmark contract on the bellwether Tokyo Commodity Exchange hit a historic high of Y535.7/kg in February. Tocom rubber has since fallen about 27% to around Y390/kg.
The Association of Natural Rubber Producing Countries said in its latest monthly report in July that China will import 2.8 million tons of natural rubber this year, up 0.6% from last year.
Asian Rubber Ends Down; Support Level Likely At $4.50/Kg
Written by HMH | August 3, 2011 | 0 |
Asian rubber settled lower Tuesday, with softer crude-oil prices and Chinese rate hike fears dragging prices down.
A Xinhua news agnecy analysis suggested that China will likely announce a rate hike around Aug. 10.
Benchmark January natural rubber futures on the Tokyo Commodity Exchange settled Y2.5 lower at Y387.2 a kilogram, with a strong yen still weighing on prices.
However, firm spot prices due to strong fundamentals are supporting Tocom rubber, International Rubber Consortium Chief Secretary Yium Tavarolit said.
A Singapore-based dealer said Tocom is locked in directionless trade and prices will likely remain rangebound until strong leads emerge.
January Tocom rubber extended losses to close Y2.2 lower at Y385/kg in the night session, which is considered part of the next trading day.
Natural rubber on the Shanghai Futures Exchange settled 1.1% lower, taking cues from SHFE metals amid caution over the outcome of a pact to raise the U.S. borrowing limit.
Physical rubber prices were mostly lower but trade was cautious, the Singapore-based dealer said.
”Tocom has been directionless and pretty rangebound recently. People are risk averse due to all the bad news [on the macroeconomic front], so they are all on the sidelines, especially as prices are still on the high side.”
IRCo’s Yium is optimistic on natural rubber prices as he upgraded his forecast for prices to stay above $4.50/kg in the third quarter. His previous forecast was $4/kg.
He said the global macroeconomic outlook will take a turn for the better as U.S. lawmakers have agreed to raise the country’s debt ceiling to avert a potential default.
Tokyo futures fall on weak oil, stocks (Aug 3)
August 3, 2011
TOKYO, Aug 3 (Reuters) – Key Tokyo rubber futures fell on Wednesday as sentiment was hurt by weakness in oil and stock markets on concerns over the U.S. economy and a strong yen hitting Japanese exporters including automakers.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for January delivery <0#2JRU:> fell 4.3 yen or 1 percent to 382.9 yen per kg as of 0020 GMT.
* The most active Shanghai rubber contract for January delivery delivery fell 1.3 percent to close at 35,725 yuan per tonne on Tuesday. Volume stood at 447,532 lots.
* Oil prices extended their declines in early Asia on Wednesday after falling the day before when U.S. economic data fuelled concern about the economy even as Congress passed a U.S. debt-cutting measure in time to avoid a default for the world’s top oil consumer.
* The Swiss franc held hefty gains in Asia on Wednesday, having rocketed to record highs as investors scrambled for a safe haven on renewed tensions in the euro zone debt market and worries about a global slowdown.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* The United States stepped back from the brink of default on Tuesday but congressional approval of a last-gasp deficit-cutting plan failed to dispel fears of a credit downgrade and future tax and spending feuds.
* U.S. consumer spending fell in June for the first time in nearly two years and incomes barely rose, signs the economy lacked momentum as the second quarter drew to a close.
* U.S. auto sales ticked higher in July, but the industry cautioned that prospects for a second-half recovery remained clouded with consumers hurting in a weak economy.
* Toyota Motor Corp is looking to boost global production by 24 percent to a record 8.90 million vehicles in 2012 as it rushes to make up for output lost in the months after the March earthquake, a source with knowledge of the plan said.
* Toyota slumped to its first quarterly loss in two years after the March 11 disaster virtually halted production, and the Japanese auto giant warned the stronger yen was hobbling it in the battle against South Korean rivals.
* The Nikkei average fell for a second day on Wednesday, hit by concerns about the weakening U.S. economy, while the heightened chance of Japanese authorities intervening in currency markets to curb the yen may lend support.
* The S&P 500 turned negative for the year on Tuesday as the wrangling over the U.S. debt ceiling faded and investors turned their attention to the stalling economy.
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