Falling India passenger car sales dampens metals, rubber industry
September 28, 2011
NEW DELHI (Commodity Online): The deceleration in India passenger car sales may impact energy, metals and natural rubber demand in the country. According to CRISIL Research, the fall in growth in car sales can be attributed to soaring petrol prices and hike in the interest rates by the Reserve Bank of India (RBI).
CRISIL Research expects the car sales growth to decline to 2-4% against the earlier forecast of 8-10%.
The domestic market for steel, aluminum, natural rubber may be dampened with the fall in car sales.
Petrol price was raised by 3 rupees to 66.84 per litre (price in Delhi) has been one of the major reason for the sales to go down and also the hike in interest rates to 25 Base Points (bps) by RBI. RBI has raised the interest rates for the 12thtime in a year.
The cost of owning a car has increased significantly by 12-14% due to frequent increases in fuel price and interest rate.
Earlier in 2008, India car sales had touched the lowest 1.4% on global recession. The dealers and the car manufacturers are offering discounts and gift coupons to promote sales but results are not forthcoming.
The demand for diesel cars like Maruti Suzuki –Swift, Swift Dzire, Mahindra Logan and Ford Fiesta has risen. The market for the used diesel cars is also picking up.
Tyre prices seen stable next few months
September 28, 2011
MUMBAI, SEPT. 28:
As demand from the auto market slows down and the cost of natural rubber drops, tyre prices are now expected to remain steady over the next few months.
This is after nearly all major tyre makers, such as Apollo, JK Tyres and Ceat, have increased product prices by almost 8-10 per cent across 3-4 tranches in this year itself.
“If input prices are softening and the demand is also low, it is unlikely that the prices will be revised upwards. Performance of tyre companies in the first quarter saw a drop, so lower input costs should bring them back into the black,” a senior tyre-industry source told Business Line.
He added that apart from demand from carmakers being flat, aftermarket (tyre replacements) sales have also come down as customers are deferring purchases on a poor market sentiment. Demand for commercial vehicles is not as bad, though even their sales growth has moderated to single digits.
According to the Ministry of Commerce and Industry’s Rubber Board, prices of natural rubber (RSS 4) have now come down to Rs 214 a kg, from a peak of around Rs 245 a kg a few months ago. However, the industry would be more comfortable if prices were to come down to Rs 180-190 a kg.
“An increase in prices is unlikely over the next few months, especially as rubber prices have come down. The market is not in a condition to absorb higher prices. However, if the rupee devalues significantly and imports become expensive, then we may have to look at our product prices,” Mr Anant Goenka, Deputy Managing Director, Ceat Ltd, said.
Rubber prices have reduced because of improved supplies in recent times — Kerala saw a few days of tapping in September, which is not usually the case. Moreover, because of good rains this time, production is now expected to go up.
JK Tyre expects to take a call on product prices in the first week of October. It is waiting to review the demand situation and hoping that crude oil and rubber prices settle down for a longer period.
“Some softening has happened in natural rubber prices, but cost of other input materials, like carbon, fabric and synthetic rubber, have not come down as yet. Prices could go up to improve margins, but we have to judge the market response and decide,” said Mr A.S. Mehta, Marketing Director, JK Tyre & Industries.
Market on Sept 28: Global cues sap spot rubber
September 28, 2011
KOTTAYAM, SEPT 28:
Domestic rubber prices ruled weak on Wednesday. It remained under pressure following sharp declines in international markets.
On the spot, sentiments were further dampened by another weak closing on the National Multi Commodity Exchange (NMCE).
However, as climatic conditions improved favouring tapping and production, more supplies are expected from major rubber-growing areas that may limit sharp gains during the season. The trend was partially mixed.
Sheet rubber dropped to Rs 209.50 (210) a kg, according to traders.
The grade slipped to Rs 210.50 (211) a kg both at Kottayam and Kochi, according to the Rubber Board.
In futures, the October series weakened to Rs. 210.10 (212.78), November to Rs. 207.00 (209.83), December to Rs. 207.49 (209.77), January to Rs. 208.50 (210.92) and February to Rs.209.05 (211.04) per kg for RSS 4 on the NMCE.
RSS 3 (spot) moved down to Rs 210.80 (214.54) a kg at Bangkok.
The October futures for the grade declined to ¥ 298.3 (Rs. 190.31) from ¥ 310.6 a kg during the day session but then recovered marginally to ¥ 300.8 (Rs. 191.91) a kg in the night session on Tokyo Commodity Exchange.
Spot rubber rates (Rs/kg) were: RSS-4: 209.50 (210); RSS-5: 207 (207); ungraded: 198 (198); ISNR 20: 206 (207); and Latex 60%: 132.50 (133).
Tokyo futures fall 6 pct to break 300 yen (Sept 29)
September 29, 2011
TOKYO, Sept 29 (Reuters) – Tokyo rubber futures broke through the key support of 300 yen in early Asian trade on Thursday, tumbling 6.3 percent, tracking losses in oil and other commodities amid uncertainty over the U.S. economy and global financial markets.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for March delivery <0#2JRU:> was down 19.5 yen at 290.2 yen as of 0045 GMT. The contract fell as low as 289.5 yen, the lowest since August 2010.
* On Wednesday, investors were disappointed by less-than-expected speculative buying in China ahead of a week-long national holiday starting in early October, and the March contract dropped as much 6.2 percent before closing down 3.1 percent.
* Key Shanghai rubber futures fell by their daily limit at the open to 26,010 yuan per tonne on Thursday, tracking losses in Tokyo rubber futures, oil and other commodities. On Wednesday, the most active Shanghai rubber contract for January delivery fell 2.6 percent to close at 27,540 yuan per tonne. Volume stood at 1,349,048 lots.
* The dollar was steady against the yen on Thursday at 76.54 , with investors alert for Japanese intervention ahead of the end of their financial half-year. The yen has gained 5.7 percent so far this year.
* Brent crude oil futures slid more than $1 a barrel in early Asian trade, as investor concerns about Europe’s sovereign debt problems mounted, the U.S. dollar gained and U.S. crude inventory build weighed.
* For the top stories in rubber market and other news, click , or
MARKET NEWS
* The Nikkei average fell on Thursday, after a U.S. sell-off led by commodity-related shares as ongoing uncertainty about a resolution to Europe’s debt debacle raised growth fears.
* For the first time since the 1959 revolution, Cubans will have the right to buy and sell cars in a much-anticipated reform under President Raul Castro, another step toward greater economic freedom on the communist-led island.
* Car sales in India are heading for growth of less than 5 percent, to their slowest in a decade, as rising fuel prices and higher cost of loans continue to bite, indicating a further slump in demand.
Rubber Drops to 13-Month Low as Europe Crisis May Stall Recovery
September 29, 2011
Rubber tumbled to a 13-month low, heading for the worst quarterly loss since 2008, as concern grew that Europe’s debt crisis may deepen, sending global economies into a recession and damping raw-material demand.
March-delivery rubber plunged as much as 6.5 percent to 289.5 yen a kilogram ($3,783 a metric ton) before trading at 298.1 yen on the TokyoCommodity Exchange at 10:46 a.m. The most-active contract has lost 18 percent this quarter, set for the worst performance since the three months ended Dec. 31, 2008.
Asian stocks extended a global sell-off amid concern that divisions among European leaders will hamper efforts to solve the region’s debt crisis. Japan’s currency climbed against most of its peers as demand for a haven increased, cutting the appeal of yen-based futures.
“The market is vulnerable to selling amid concern the European crisis will drag global economies into recession,” Ken Kajisa, an analyst at broker ACE Koeki Co., said today by phone.
Fifty-nine percent of respondents to a quarterly Bloomberg Global Poll of investors, analysts and traders said China’s gross domestic product, which rose 9.5 percent last quarter, will gain less than 5 percent annually by 2016. Twelve percent see such a slowdown within a year, and 47 percent said it will occur in two to five years, the poll showed.
The European Commission is resisting a push to impose bigger writedowns on banks’ holdings of Greek government debt than those agreed at a July 21 summit, an official said on condition of anonymity because the deliberations are private.
“It’s all about Europe,” saidKenichi Hirano, general manager and strategist at Tachibana Securities Co. in Tokyo. “The focus is if they can establish a unity, and the market’s going through ups and downs according to developments.”
In Shanghai, January-delivery rubber lost as much as 5.6 percent to 26,010 yuan ($4,066) a ton before trading at 26,520 yuan.
The cash price of Thai rubber dropped 1.1 percent 132.60 baht ($4.25) a kilogram yesterday, the Rubber Research Institute of Thailand said on its website. Rains spread across 80 percent of the Thai south, disrupting tapping, according to the group.
Tokyo futures lose 2.7 pct, outlook glum (Sept 29)
September 29, 2011
TOKYO, Sept 29 (Reuters) – Key Tokyo rubber futures tumbled as much as 6.6 percent on Thursday but recovered to the key support level of 300 yen, settling down 2.7 percent, with market sentiment staying weak on growing worries over the global economy.
The key Tokyo Commodity Exchange rubber contract for March delivery <0#2JRU:> settled down 8.2 yen at 301.5 yen per kg after falling as low as 289.5 yen, the lowest since August 2010.
Key Shanghai rubber futures for January delivery fell by their daily limit at the open to 26,010 yuan per tonne.
The contract lost 905 yuan or 3.3 percent to close at 26,635 yuan per tonne, with volume falling slightly to 1,009,050 lots.
“The market will struggle to maintain the 300 yen mark,” said Naoki Asami, chief broker at trading house Kanetsu. “Downward pressure remains strong due to higher inventories and the ongoing problems of the global economy.”
The dollar was steady against the yen at 76.52 , not far from the record low of 75.94 hit in August. The yen has gained 5.7 percent so far this year.
Brent crude erased losses as the dollar weakened, while a bigger-than-expected increase in U.S. crude stockpiles heightened concern that demand may slow, and doubts over the euro-zone rescue fund continued to weigh on confidence.
India’s monsoon rains were 33 percent below average in the week to Sept. 28, the weather office said on Thursday, as the four-month rainy season begins to retreat after a normal spell this year, boosting output prospects for crops such as rice and cane.
Friday, September 30, 2011
Wednesday, September 28, 2011
IRCo Sets Minimum Price For Natural Rubber
IRCo Sets Minimum Price For Natural Rubber
Written by HMH | September 28, 2011 | 0 |
28 September 2011
The International Rubber Consortium has set a “threshold price” for natural rubber under which the organisation will intervene in the market, IRCo’s Chief Secretary said Tuesday.
The intervention may include slowing exports from IRCO’s member countries–Thailand, Indonesia and Malaysia–which account for 70% of global natural rubber production, Yium Tavarolit said by phone from Bangkok.
Yium said that he isn’t to disclose the floor price.
IRCo is also writing to the agriculture ministries of its member countries seeking their endorsements for the price.
The consortium Monday advised the board members of its constituent countries to slow exports, amid panic selling that sent futures prices on the bellwether Tokyo Commodity Exchange 12% lower.
In March, the Thai government mandated a minimum price of THB120 a kiogram for USS3 raw material, while the Rubber Association of Indonesia, or Gapkindo, proposed a $4-a-kilogram “defend price.”
The moves came after the massive earthquake and tsunami that struck Japan which sent Tocom futures prices plunging 13% in a single day.
Rubber prices rebound on 27 September
Written by HMH | September 27, 2011 | 0 |
London — Rubber prices rebounded overnight, though did not recover all the losses made in the last few days’ trading. On Tokyo’s Tocom Exchange, prices for the six-month contract increased by about 5 yen, trading at around yen 315 ($4.12) per kg on Tuesday 27 Sept. Shorter-dated prices also recovered, trading at yen 310.
In Singapore, SGX said RSS3 trading was thin with little movement in prices. TSR20 for delivery in February 2012 was up $0.13 at $4.21.
In India, the NMCE said prices fell by two rupees, with October deliveries priced at Rs 210 ($4.27).
In China, the Shanghai Futures Exchange saw prices recover by yuan1.2, with October deliveries trading at Yuan 29.5 ($4.61) per kilo.
Rubber producers urged to cut exports if necessary
Written by HMH | September 27, 2011 | 0 |
SINGAPORE, Sept 27 — The International Rubber Consortium (IRCo) has urged Thailand, Indonesia and Malaysia to curb exports if rubber prices fall further in the wake of a global economic slowdown, a senior Thai official said today.
Thailand, Indonesia and Malaysia, which together account for about 70 per cent of global rubber output, agreed in December 2008 to slash exports and refrain from selling at below $1.35 (RM4.25) a kg following a drop of 60 per cent in prices — the toughest action by members of the group to date.
“We’ve advised the three countries to slow exports if the rubber price falls to a certain level that we can’t accept and hurt rubber small holders,” said Yium Tavarolit, IRCo’s chief secretary and economist.
“We are waiting for responses from the three countries. We can’t disclose the price level. We call it our defence price. If the price reaches the threshold, we have to react,” he told Reuters from Bangkok.
Tokyo rubber futures, which set the tone for physical prices, rebounded today after tumbling 12 per cent to a one-year low around 303 yen a kg yesterday, hit by a global sell-off in risk assets.
The key Tokyo Commodity Exchange rubber contract for March delivery, which debuted today, was at 321.0 yen per kg by 0221 GMT (0921 Malaysian time). The previous benchmark February contract jumped 19.6 yen to 322.6 yen.
In December 2008, Thailand, Indonesia and Malaysia agreed to cut exports by a total of 915,000 tonnes in 2009 to prop up prices because the economic meltdown, which sent the price of Thai RSS3 grade to a near seven-year low of US$1.10 a kg.
The IRCo brings together rubber industry officials, exporters and government officials from the three Southeast Asian countries. RSS3, often seen as benchmark physical prices in Asia, currently hovers at around US$4.50 a kg, down from a lifetime high at US$6.40 in February.
Yesterday, IRCo’s chief executive, Darmansyah Basyaruddin, said in Jakarta that natural rubber prices could still rise to more than US$5 a kg in the fourth quarter of this year as growth in emerging economies is expected to offset a slowdown in Europe and the United States. — Reuters
TOCOM To Narrow Circuit-Breaker Band For Rubber
Written by HMH | September 27, 2011 | 0 |
The Tokyo Commodity Exchange, Japan’s largest commodity bourse, will halve the price width of its circuit-breaker for rubber futures from October to help limit market volatility, an exchange official said on Tuesday (Sept 27).
“After observing market trends such as volatility, prices hit and other factors over the past few months, the exchange decided to change the price width of the circuit-breaker for rubber futures from Oct. 3,” the official said.
When a circuit breaker is triggered, TOCOM suspends trading for five minutes before the trading band is widened, helping to moderate any sharp accelerations in price moves.
The circuit-breaker will be hit after price rises or falls of 5 yen from the night session of Friday Sept. 30, which is counted as part of the next trading day’s session.
Currently, the circuit-breaker is hit when prices move up or down by 10 yen.
The circuit-breaker would kick in three times up to a maximum price move of 20 yen, at which point trading would effectively halt, the official said. This applies to all contracts except those from the front-end, which may see further expansion in the circuit breaker.
TOCOM, which lists gold, platinum, rubber and other industrial commodity futures, does not plan to make similar changes to other products, the official said.
Global financial markets tumbled late last week on deepening investor wariness over European policymakers’ ability to resolve the region’s sovereign debt crisis, and the risk that it could hurt the world economy.
Key TOCOM rubber futures tumbled nearly 12 percent on Monday (Sept 26), while Shanghai rubber futures fell by their daily limit.
Synthetic rubber consumption up 11% in June
NEW DELHI, SEPT. 26:
The country’s synthetic rubber consumption rose 11 per cent to 36,945 tonnes in June, while domestic production rose marginally to 9,279 tonnes in the same period, according to the Rubber Board.
Synthetic rubber consumption and output stood at 33,235 tonnes and 9,254 tonnes respectively in June last year, the Rubber Board data shows.
In the April-June quarter of the current fiscal synthetic rubber consumption rose nearly 11 per cent to 1,09,575 tonnes as compared with 99,160 tonnes in the same period of the previous fiscal.
Production of natural rubber rose by four per cent to 28,009 tonnes against 26,956 tonnes in the period under review.
However, production of synthetic rubber on a month-on-month basis declined by two per cent to 9,279 tonnes in June, compared with 9,468 tonnes in May.
Spot rubber declines on global cues
KOTTAYAM, SEPT. 26:
Physical rubber prices lost heavily on Monday. The market opened weak and surrendered further as Key Tokyo rubber futures crashed to an 1-month low following a sharp drop in global equities late last week on concerns over global economic growth and Europe's debt crisis. The trend was also catalysed by another weak closing on the National Multi Commodity Exchange (NMCE). “There has been no panic selling from dealers or growers but we expect more of them to join the sellers' queue once RSS 4 moves bellow the Rs 200 level '', analysts observed.
Sheet rubber declined to Rs 210 (214) a kg, according to traders. The grade dropped to Rs 211 (214) a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
RSS 4 weakened at its October series to Rs 210.44 (212.07), November to Rs 208 (209.21), December to Rs 208.88 (210.63), January to Rs 209.40 (212.28) and February to Rs 210.20 (211.72) a kg on NMCE.
RSS 3 (spot) dropped to Rs 219.74 (224.17) a kg at Bangkok. The September futures for the grade nosedived to ¥315.4 (Rs 204.67) from ¥330 a kg during the day session and then to ¥302.7 (Rs 196.43) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 210 (214); RSS-5: 207 (208); ungraded: 198 (199); ISNR 20: 207 (209) and latex 60 per cent: 133 (134).
Written by HMH | September 28, 2011 | 0 |
28 September 2011
The International Rubber Consortium has set a “threshold price” for natural rubber under which the organisation will intervene in the market, IRCo’s Chief Secretary said Tuesday.
The intervention may include slowing exports from IRCO’s member countries–Thailand, Indonesia and Malaysia–which account for 70% of global natural rubber production, Yium Tavarolit said by phone from Bangkok.
Yium said that he isn’t to disclose the floor price.
IRCo is also writing to the agriculture ministries of its member countries seeking their endorsements for the price.
The consortium Monday advised the board members of its constituent countries to slow exports, amid panic selling that sent futures prices on the bellwether Tokyo Commodity Exchange 12% lower.
In March, the Thai government mandated a minimum price of THB120 a kiogram for USS3 raw material, while the Rubber Association of Indonesia, or Gapkindo, proposed a $4-a-kilogram “defend price.”
The moves came after the massive earthquake and tsunami that struck Japan which sent Tocom futures prices plunging 13% in a single day.
Rubber prices rebound on 27 September
Written by HMH | September 27, 2011 | 0 |
London — Rubber prices rebounded overnight, though did not recover all the losses made in the last few days’ trading. On Tokyo’s Tocom Exchange, prices for the six-month contract increased by about 5 yen, trading at around yen 315 ($4.12) per kg on Tuesday 27 Sept. Shorter-dated prices also recovered, trading at yen 310.
In Singapore, SGX said RSS3 trading was thin with little movement in prices. TSR20 for delivery in February 2012 was up $0.13 at $4.21.
In India, the NMCE said prices fell by two rupees, with October deliveries priced at Rs 210 ($4.27).
In China, the Shanghai Futures Exchange saw prices recover by yuan1.2, with October deliveries trading at Yuan 29.5 ($4.61) per kilo.
Rubber producers urged to cut exports if necessary
Written by HMH | September 27, 2011 | 0 |
SINGAPORE, Sept 27 — The International Rubber Consortium (IRCo) has urged Thailand, Indonesia and Malaysia to curb exports if rubber prices fall further in the wake of a global economic slowdown, a senior Thai official said today.
Thailand, Indonesia and Malaysia, which together account for about 70 per cent of global rubber output, agreed in December 2008 to slash exports and refrain from selling at below $1.35 (RM4.25) a kg following a drop of 60 per cent in prices — the toughest action by members of the group to date.
“We’ve advised the three countries to slow exports if the rubber price falls to a certain level that we can’t accept and hurt rubber small holders,” said Yium Tavarolit, IRCo’s chief secretary and economist.
“We are waiting for responses from the three countries. We can’t disclose the price level. We call it our defence price. If the price reaches the threshold, we have to react,” he told Reuters from Bangkok.
Tokyo rubber futures, which set the tone for physical prices, rebounded today after tumbling 12 per cent to a one-year low around 303 yen a kg yesterday, hit by a global sell-off in risk assets.
The key Tokyo Commodity Exchange rubber contract for March delivery, which debuted today, was at 321.0 yen per kg by 0221 GMT (0921 Malaysian time). The previous benchmark February contract jumped 19.6 yen to 322.6 yen.
In December 2008, Thailand, Indonesia and Malaysia agreed to cut exports by a total of 915,000 tonnes in 2009 to prop up prices because the economic meltdown, which sent the price of Thai RSS3 grade to a near seven-year low of US$1.10 a kg.
The IRCo brings together rubber industry officials, exporters and government officials from the three Southeast Asian countries. RSS3, often seen as benchmark physical prices in Asia, currently hovers at around US$4.50 a kg, down from a lifetime high at US$6.40 in February.
Yesterday, IRCo’s chief executive, Darmansyah Basyaruddin, said in Jakarta that natural rubber prices could still rise to more than US$5 a kg in the fourth quarter of this year as growth in emerging economies is expected to offset a slowdown in Europe and the United States. — Reuters
TOCOM To Narrow Circuit-Breaker Band For Rubber
Written by HMH | September 27, 2011 | 0 |
The Tokyo Commodity Exchange, Japan’s largest commodity bourse, will halve the price width of its circuit-breaker for rubber futures from October to help limit market volatility, an exchange official said on Tuesday (Sept 27).
“After observing market trends such as volatility, prices hit and other factors over the past few months, the exchange decided to change the price width of the circuit-breaker for rubber futures from Oct. 3,” the official said.
When a circuit breaker is triggered, TOCOM suspends trading for five minutes before the trading band is widened, helping to moderate any sharp accelerations in price moves.
The circuit-breaker will be hit after price rises or falls of 5 yen from the night session of Friday Sept. 30, which is counted as part of the next trading day’s session.
Currently, the circuit-breaker is hit when prices move up or down by 10 yen.
The circuit-breaker would kick in three times up to a maximum price move of 20 yen, at which point trading would effectively halt, the official said. This applies to all contracts except those from the front-end, which may see further expansion in the circuit breaker.
TOCOM, which lists gold, platinum, rubber and other industrial commodity futures, does not plan to make similar changes to other products, the official said.
Global financial markets tumbled late last week on deepening investor wariness over European policymakers’ ability to resolve the region’s sovereign debt crisis, and the risk that it could hurt the world economy.
Key TOCOM rubber futures tumbled nearly 12 percent on Monday (Sept 26), while Shanghai rubber futures fell by their daily limit.
Synthetic rubber consumption up 11% in June
NEW DELHI, SEPT. 26:
The country’s synthetic rubber consumption rose 11 per cent to 36,945 tonnes in June, while domestic production rose marginally to 9,279 tonnes in the same period, according to the Rubber Board.
Synthetic rubber consumption and output stood at 33,235 tonnes and 9,254 tonnes respectively in June last year, the Rubber Board data shows.
In the April-June quarter of the current fiscal synthetic rubber consumption rose nearly 11 per cent to 1,09,575 tonnes as compared with 99,160 tonnes in the same period of the previous fiscal.
Production of natural rubber rose by four per cent to 28,009 tonnes against 26,956 tonnes in the period under review.
However, production of synthetic rubber on a month-on-month basis declined by two per cent to 9,279 tonnes in June, compared with 9,468 tonnes in May.
Spot rubber declines on global cues
KOTTAYAM, SEPT. 26:
Physical rubber prices lost heavily on Monday. The market opened weak and surrendered further as Key Tokyo rubber futures crashed to an 1-month low following a sharp drop in global equities late last week on concerns over global economic growth and Europe's debt crisis. The trend was also catalysed by another weak closing on the National Multi Commodity Exchange (NMCE). “There has been no panic selling from dealers or growers but we expect more of them to join the sellers' queue once RSS 4 moves bellow the Rs 200 level '', analysts observed.
Sheet rubber declined to Rs 210 (214) a kg, according to traders. The grade dropped to Rs 211 (214) a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
RSS 4 weakened at its October series to Rs 210.44 (212.07), November to Rs 208 (209.21), December to Rs 208.88 (210.63), January to Rs 209.40 (212.28) and February to Rs 210.20 (211.72) a kg on NMCE.
RSS 3 (spot) dropped to Rs 219.74 (224.17) a kg at Bangkok. The September futures for the grade nosedived to ¥315.4 (Rs 204.67) from ¥330 a kg during the day session and then to ¥302.7 (Rs 196.43) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 210 (214); RSS-5: 207 (208); ungraded: 198 (199); ISNR 20: 207 (209) and latex 60 per cent: 133 (134).
Monday, September 26, 2011
Rubber Plunges to One-Year Low as Debt Crisis May Cut Demand
Rubber Plunges to One-Year Low as Debt Crisis May Cut Demand
September 26, 2011
Rubber slumped to a one-year low as the European debt crisis and a slowing global economy raised concern that demand for the commodity, used in tires and gloves, may weaken.
The February-delivery contract tumbled as much as 11.7 percent to 302.5 yen a kilogram ($3,966 a metric ton), before settling at 303 yen on the Tokyo Commodity Exchange, the lowest settlement level since Sept. 17, 2010. Rubber futures lost 6.2 percent last week, for a third weekly decline. The market was closed on Friday for a public holiday.
Asian stocks fell, driving the MSCI Asia Pacific Index toward the lowest since July 2009, while crude oil dropped for a fourth day on speculation that Europe’s failure to tame its sovereign-debt crisis may threaten global growth.
“Uncertainty about the macro economy is still haunting commodities markets,” Ker Chung Yang, an analyst at Phillip Futures Pte., said by phone from Singapore.
European policy makers are facing mounting pressure to step up efforts to prevent their sovereign debt crisis from further roiling the world’s financial markets and economy. Pacific Investment Management Co., which runs the world’s biggest bond fund, forecast advanced economies will stall over the next year with Europe sliding into recession.
U.S. Treasury Secretary Timothy F. Geithner warned at the annual meeting of the International Monetary Fund in Washington that a failure to combat the Greek-led turmoil threatened “cascading default, bank runs and catastrophic risk.” Billionaire investor George Soros said “something needs to be done” to safeguard Europe’s banks because Greece may be unable to avoid default.
“Worries over global economic slump sparked selloffs across commodities markets as investors prefer to hold cash, reducing risk,” Sureerat Kunthongjun, an analyst at Agrow Enterprise Ltd., said by phone from Bangkok.
Rising Inventories
Thailand, Indonesia and Malaysia, the biggest rubber producers representing about 70 percent of global supplies, may slow exports to counter a slump in prices, the International Rubber Consortium Ltd. said.
“The group is closely monitoring the situation and has prepared measures to respond to panic selloffs in the futures market,” Yium Tavarolit, chief secretary of the group said by phone from Bangkok today. “We may urge growers and exporters to hold back supplies and sell only necessary amount.”
Natural-rubber inventories rose 305 tons to 33,766 tons, the highest since March, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said Sept. 23 in a weekly report. That was 51 percent below this year’s high of 68,850 tons.
Vietnam may export 80,000 tons of rubber in September, according to a forecast from the Ministry of Agriculture and Rural Development. Exports for the first nine months of the year are seen at 530,000 tons, an increase of 3.3 percent compared with the same period a year earlier, the ministry said in a monthly report posted on its website.
In Shanghai, January-delivery rubber tumbled by a daily limit to close at 27,465 yuan ($4,297) a ton, the lowest level since Oct. 8.
The cash price of Thai rubber fell 3.2 percent 136.10 baht ($4.37) a kilogram today, the Rubber Research Institute of Thailand said on its website. Rains spreading across southern provinces will potentially disrupt production, it said.
Rubber prices fall over 10% on 26 September
Written by HMH | September 26, 2011 | 0 |
London — Rubber prices in arounhd the world fell further over the weekend, with the Shanghai prices down by over 10 percent since Thursday. On Tokyo’s Tocom Exchange, prices for the six-month fell around 10 percent, trading at around yen 310 ($4.05) per kg on Monday 26 Sept. Shorter-dated prices also fell sharply, trading at yen 303.
In Singapore, SGX said RSS3 prices also fell sharply, with March 2012 deliveries priced around $4.24, but October 2011 contracts closed down $0.10 at $4.33. TSR20 for delivery in February 2012 was down $0.23 at $4.08.
In India, the NMCE said prices fell by three rupees, with October deliveries priced at Rs 212 ($4.27).
In China, the Shanghai Futures Exchange saw prices drop by yuan1.5, with October deliveries trading at Yuan 28.3 ($4.42) per kilo.
India produced more rubber in June
Written by HMH | September 26, 2011 | 0 |
Kottayam, India — India’s production of rubber — both synthetic and natural in the three months to June 2011 was higher than in the same period of 2010.
Production of Natural Rubber (NR) in the country during June 2011 was 59,200 tonnes compared to the production of 56,850 tonnes during June 2010.
The cumulative production during the first quarter of the current fiscal year was 175,700 tonnes compared to 166,750 tonnes during the corresponding period of the previous year recording a growth of 5.4 percent.
The aggregate production of synthetic rubber (SR) during the first three months of 2011-12 increased to 28,009 tonnes compared to 26,956 tonnes during the same period of the previous year.
Consumption of SR during the first quarter of the current f i n a n c i a l y e a r i n c r e a s e d t o 109,575 tonnes compared to 99,160 tonnes during the corresponding period of the previous year, recording a growth of 10.5 percent.
The rate of growth in consumption in the auto tyre manufacturing sector during the first quarter of the current financial year was 10.2 percent as against 7.7 percent attained during the same period of the previous year, whereas, the non-tyre sector registered a negative growth of 5.3 percent compared to a positive growth of 4.1 percent in the same period of the previous year. The consumption provisionally estimated for July’11 is 82,000 tonnes.
The data was published in India’s Rubber Statistical news dated August 2011.
Tokyo futures plunge 12 pct on flight from risk (Sept 26)
Written by HMH | September 26, 2011 | 0 |
TOKYO, Sept 26 (Reuters) – Key Tokyo rubber futures plunged 11.6 percent to a year low and Shanghai futures fell by their daily limit on Monday as they took a hit from global sell-offs in risk assets.
The key Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> dived 39.5 yen to settle at 303 yen per kg, the lowest level since September 2010. Some saw the next support line at 300 yen.
The most active Shanghai rubber contract for January delivery fell by its daily limit and closed at 27,465 yuan per tonne, down 4.5 percent from Friday’s close. Volume stood at 1,009,508 lots.
“We see the next support line at 300 yen. The market will turn ugly if the benchmark breaks through that mark,” said Naoki Asami, chief broker at trading company Kanetsu.
“We won’t see a swift recovery of the market unless global financial markets stabilise.”
Brent crude fell below $102 to a near 7-week low on Monday, as fears of an impending global recession led investors to dump riskier commodities in favour of safe-haven assets.
Reports that European leaders were seeking new ways to solve the region’s debt woes lifted commodities in early trade, but the market reversed sharply on concerns that policy-makers were doing too little to stem a crisis that helped wipe as much as 9 percent off oil prices last week.
The euro fell to a fresh 10-year low versus the yen while the Australian dollar slipped to a 10-month low against the U.S. dollar, as doubts over a rescue plan to support the euro zone pushed investors away from riskier currencies.
Japan’s Nikkei share average slid to its lowest close since April 2009 as it caught up with Wall Street losses after a three-day weekend.
Tokyo futures plunge on global econ, debt worries (Sept 26)
Written by HMH | September 26, 2011 | 0 |
TOKYO, Sept 26 (Reuters) – Key Tokyo rubber futures plunged 5 percent to their lowest in nearly 11 months on Monday as a sharp drop in global stocks late last week on concerns over the world economy and Europe’s debt problems hurt investor sentiment.
FUNDAMENTALS
* The rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery opened at 324.0 yen per kg, down 5.4 percent from Thursday’s close of 342.5 yen and marking the lowest for any benchmark since Nov. 1, 2010.
* Japanese financial markets were closed on Friday for a national holiday.
* The front-month September contract will expire late on Monday and the new benchmark March contract will become the new benchmark when it starts trading on Tuesday.
* TOCOM briefly suspended trade as a circuit-breaker was triggered immediately after trading began.
* Effective this session, TOCOM will expand the circuit-breaker, with rubber futures allowed to rise or fall by 50 yen.
* The most active rubber contract on the Shanghai commodity exchange for January delivery fell 1,665 yuan to finish on Friday at 28,735 yuan ($4,497.644) per tonne.
* The euro got off to a wobbly and volatile start on Monday in early Asia as investors reacted cautiously to mixed news out of Europe to tackle its escalating debt crisis.
* U.S. crude futures climbed in early Asian trade on Monday as European policymakers began working on new ways to stem the euro zone debt crisis and International Monetary Fund inspectors are likely return to Greece this week.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Asian shares rose and the euro steadied on Monday on reports that European leaders, under pressure from tumbling markets, were working on new ways to stop the fallout from the euro zone sovereign debt crisis wreaking more damage on the world economy.
* Japan’s Nikkei share average slipped to a six-month intraday low on Monday as it caught up with Wall Street losses after a three-day weekend, but the decline was limited by bargain-hunting ahead of a deadline to receive dividends.
* The Dow Jones industrial average on Friday suffered its worst week since the depths of the financial crisis in 2008, stung by severe anxiety over Europe’s spiraling debt crisis and a warning from the Federal Reserved about the U.S. economy.
September 26, 2011
Rubber slumped to a one-year low as the European debt crisis and a slowing global economy raised concern that demand for the commodity, used in tires and gloves, may weaken.
The February-delivery contract tumbled as much as 11.7 percent to 302.5 yen a kilogram ($3,966 a metric ton), before settling at 303 yen on the Tokyo Commodity Exchange, the lowest settlement level since Sept. 17, 2010. Rubber futures lost 6.2 percent last week, for a third weekly decline. The market was closed on Friday for a public holiday.
Asian stocks fell, driving the MSCI Asia Pacific Index toward the lowest since July 2009, while crude oil dropped for a fourth day on speculation that Europe’s failure to tame its sovereign-debt crisis may threaten global growth.
“Uncertainty about the macro economy is still haunting commodities markets,” Ker Chung Yang, an analyst at Phillip Futures Pte., said by phone from Singapore.
European policy makers are facing mounting pressure to step up efforts to prevent their sovereign debt crisis from further roiling the world’s financial markets and economy. Pacific Investment Management Co., which runs the world’s biggest bond fund, forecast advanced economies will stall over the next year with Europe sliding into recession.
U.S. Treasury Secretary Timothy F. Geithner warned at the annual meeting of the International Monetary Fund in Washington that a failure to combat the Greek-led turmoil threatened “cascading default, bank runs and catastrophic risk.” Billionaire investor George Soros said “something needs to be done” to safeguard Europe’s banks because Greece may be unable to avoid default.
“Worries over global economic slump sparked selloffs across commodities markets as investors prefer to hold cash, reducing risk,” Sureerat Kunthongjun, an analyst at Agrow Enterprise Ltd., said by phone from Bangkok.
Rising Inventories
Thailand, Indonesia and Malaysia, the biggest rubber producers representing about 70 percent of global supplies, may slow exports to counter a slump in prices, the International Rubber Consortium Ltd. said.
“The group is closely monitoring the situation and has prepared measures to respond to panic selloffs in the futures market,” Yium Tavarolit, chief secretary of the group said by phone from Bangkok today. “We may urge growers and exporters to hold back supplies and sell only necessary amount.”
Natural-rubber inventories rose 305 tons to 33,766 tons, the highest since March, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said Sept. 23 in a weekly report. That was 51 percent below this year’s high of 68,850 tons.
Vietnam may export 80,000 tons of rubber in September, according to a forecast from the Ministry of Agriculture and Rural Development. Exports for the first nine months of the year are seen at 530,000 tons, an increase of 3.3 percent compared with the same period a year earlier, the ministry said in a monthly report posted on its website.
In Shanghai, January-delivery rubber tumbled by a daily limit to close at 27,465 yuan ($4,297) a ton, the lowest level since Oct. 8.
The cash price of Thai rubber fell 3.2 percent 136.10 baht ($4.37) a kilogram today, the Rubber Research Institute of Thailand said on its website. Rains spreading across southern provinces will potentially disrupt production, it said.
Rubber prices fall over 10% on 26 September
Written by HMH | September 26, 2011 | 0 |
London — Rubber prices in arounhd the world fell further over the weekend, with the Shanghai prices down by over 10 percent since Thursday. On Tokyo’s Tocom Exchange, prices for the six-month fell around 10 percent, trading at around yen 310 ($4.05) per kg on Monday 26 Sept. Shorter-dated prices also fell sharply, trading at yen 303.
In Singapore, SGX said RSS3 prices also fell sharply, with March 2012 deliveries priced around $4.24, but October 2011 contracts closed down $0.10 at $4.33. TSR20 for delivery in February 2012 was down $0.23 at $4.08.
In India, the NMCE said prices fell by three rupees, with October deliveries priced at Rs 212 ($4.27).
In China, the Shanghai Futures Exchange saw prices drop by yuan1.5, with October deliveries trading at Yuan 28.3 ($4.42) per kilo.
India produced more rubber in June
Written by HMH | September 26, 2011 | 0 |
Kottayam, India — India’s production of rubber — both synthetic and natural in the three months to June 2011 was higher than in the same period of 2010.
Production of Natural Rubber (NR) in the country during June 2011 was 59,200 tonnes compared to the production of 56,850 tonnes during June 2010.
The cumulative production during the first quarter of the current fiscal year was 175,700 tonnes compared to 166,750 tonnes during the corresponding period of the previous year recording a growth of 5.4 percent.
The aggregate production of synthetic rubber (SR) during the first three months of 2011-12 increased to 28,009 tonnes compared to 26,956 tonnes during the same period of the previous year.
Consumption of SR during the first quarter of the current f i n a n c i a l y e a r i n c r e a s e d t o 109,575 tonnes compared to 99,160 tonnes during the corresponding period of the previous year, recording a growth of 10.5 percent.
The rate of growth in consumption in the auto tyre manufacturing sector during the first quarter of the current financial year was 10.2 percent as against 7.7 percent attained during the same period of the previous year, whereas, the non-tyre sector registered a negative growth of 5.3 percent compared to a positive growth of 4.1 percent in the same period of the previous year. The consumption provisionally estimated for July’11 is 82,000 tonnes.
The data was published in India’s Rubber Statistical news dated August 2011.
Tokyo futures plunge 12 pct on flight from risk (Sept 26)
Written by HMH | September 26, 2011 | 0 |
TOKYO, Sept 26 (Reuters) – Key Tokyo rubber futures plunged 11.6 percent to a year low and Shanghai futures fell by their daily limit on Monday as they took a hit from global sell-offs in risk assets.
The key Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> dived 39.5 yen to settle at 303 yen per kg, the lowest level since September 2010. Some saw the next support line at 300 yen.
The most active Shanghai rubber contract for January delivery fell by its daily limit and closed at 27,465 yuan per tonne, down 4.5 percent from Friday’s close. Volume stood at 1,009,508 lots.
“We see the next support line at 300 yen. The market will turn ugly if the benchmark breaks through that mark,” said Naoki Asami, chief broker at trading company Kanetsu.
“We won’t see a swift recovery of the market unless global financial markets stabilise.”
Brent crude fell below $102 to a near 7-week low on Monday, as fears of an impending global recession led investors to dump riskier commodities in favour of safe-haven assets.
Reports that European leaders were seeking new ways to solve the region’s debt woes lifted commodities in early trade, but the market reversed sharply on concerns that policy-makers were doing too little to stem a crisis that helped wipe as much as 9 percent off oil prices last week.
The euro fell to a fresh 10-year low versus the yen while the Australian dollar slipped to a 10-month low against the U.S. dollar, as doubts over a rescue plan to support the euro zone pushed investors away from riskier currencies.
Japan’s Nikkei share average slid to its lowest close since April 2009 as it caught up with Wall Street losses after a three-day weekend.
Tokyo futures plunge on global econ, debt worries (Sept 26)
Written by HMH | September 26, 2011 | 0 |
TOKYO, Sept 26 (Reuters) – Key Tokyo rubber futures plunged 5 percent to their lowest in nearly 11 months on Monday as a sharp drop in global stocks late last week on concerns over the world economy and Europe’s debt problems hurt investor sentiment.
FUNDAMENTALS
* The rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery opened at 324.0 yen per kg, down 5.4 percent from Thursday’s close of 342.5 yen and marking the lowest for any benchmark since Nov. 1, 2010.
* Japanese financial markets were closed on Friday for a national holiday.
* The front-month September contract will expire late on Monday and the new benchmark March contract will become the new benchmark when it starts trading on Tuesday.
* TOCOM briefly suspended trade as a circuit-breaker was triggered immediately after trading began.
* Effective this session, TOCOM will expand the circuit-breaker, with rubber futures allowed to rise or fall by 50 yen.
* The most active rubber contract on the Shanghai commodity exchange for January delivery fell 1,665 yuan to finish on Friday at 28,735 yuan ($4,497.644) per tonne.
* The euro got off to a wobbly and volatile start on Monday in early Asia as investors reacted cautiously to mixed news out of Europe to tackle its escalating debt crisis.
* U.S. crude futures climbed in early Asian trade on Monday as European policymakers began working on new ways to stem the euro zone debt crisis and International Monetary Fund inspectors are likely return to Greece this week.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Asian shares rose and the euro steadied on Monday on reports that European leaders, under pressure from tumbling markets, were working on new ways to stop the fallout from the euro zone sovereign debt crisis wreaking more damage on the world economy.
* Japan’s Nikkei share average slipped to a six-month intraday low on Monday as it caught up with Wall Street losses after a three-day weekend, but the decline was limited by bargain-hunting ahead of a deadline to receive dividends.
* The Dow Jones industrial average on Friday suffered its worst week since the depths of the financial crisis in 2008, stung by severe anxiety over Europe’s spiraling debt crisis and a warning from the Federal Reserved about the U.S. economy.
Rubber exporters lose out to commerce ministry in court September 25, 2011
Rubber exporters lose out to commerce ministry in court
September 25, 2011
KOCHI: The Union ministry of commerce and industry had a spectacular win in a legal tussle with rubber exporters of Kerala this week, resulting in saving customs duty to the tune of Rs 20 crore.
As many as 25 business groups engaged in exporting rubber mats were defeated by the ministry at the Kerala High Court, when the court ruled in favour of the ministry, accepting the director general of foreign trade’s contention that the products being manufactured and exported by the groups are not entitled for duty exemption allowed for rubber compounded sheets.
The ruling in favour of the ministry was granted by Justice J Chelameswar and Justice P R Ramachandra Menon against 25 business groups, including Fibre World, Kanti Floor Furnishers, Popally Coir Mills, and K S Gangadhara Iyer and Co. as well as rubber product exporters N V Georgekutty, K S Shaji, and Sadath Lebba.
The exporters were availing of duty discount meant for neutralizing the incidence of basic Customs duty on the import content of export products through Duty Entitlement Pass Book(DEPB) tax refund scheme of the central government. Each of the exporters had claimed for duty benefit of around Rs 2 crore each.
In 2006, a single bench of the high court had allowed three petitions by exporters challenging the discontinuance of the tax benefit that was being availed of by them since the inception of DEPB in 1997.
The ministry moved an appeal before the Chief Justice against the earlier high court order stating that the products being claimed for tax credit are not rubber compounded sheets but value-added products made through vulcanization and moulding.
Ministry’s counsel John Varghese pointed out that extending tax credit meant for rubber compounded sheets to value-added products results in a burden on the exchequer. The total tax credit being availed of like this amounts to Rs 20 crore, Varghese said. The court accepted his argument and allowed all the appeals filed by the ministry, quashing the earlier single bench verdict in favour of the exporters.
Source: http://timesofindia.indiatimes.com/city/kochi/Rubber-exporters-lose-out-to-commerce-ministry-in-court/articleshow/10109469.cms
The risk of global recession spread to the rubber industry
Written by HMH | September 24, 2011 | 0 |
Sept 23, 2011, the period of the rubber a contract early January fell 3.88% . The Fed warned that downside risks facing the global economy, Europe, and China’s manufacturing industry continues to decline, the market will be a heavy blow to confidence. Meanwhile, the rubber into the procurement season and increased rainfall seasonality, have been ignored by the market.
Asian stock markets, the previous trading day, prices fell.An exporter in southern Thailand, said there are many sellers, if you buy more than 500 tons, it will not provide, or because the price will rise. 10 months / 11 months shipment of Thailand3 , No. Yan Pianjiao RSS3 per kg 458 cents. 23 days, the Malaysian standard plastic SMR20 10 months FOB official offer morning fell.
22 , the New York Mercantile Exchange 10 -month crude oil contract fell 5.41 cents, or 6.3 percent , to settle at a barrel80.51 U.S. dollars. Eurozone business activity contraction, ending two consecutive years of growth situation. 9 months eurozone composite purchasing managers index (PMI) from the initial 8 months of 50.7 down to 49.2 , may exacerbate concerns surrounding the eurozone economy. Italian government bonds risk premium on German government bonds rose to a high since the inception of the euro, the continued focus on the debt situation of Greece and the tension concerns the global economic slowdown against the risk asset composition. The U.S. Federal Reserve warned the already weak economy a huge downside risk, dampen market confidence. Crude oil fell, to cut the cost of synthetic rubber, the rubber market disadvantage.
Overall, commodity markets remain under considerable pressure. Data show that European manufacturing began to shrink, and stop nearly two years of recovery situation. Meanwhile, Italy’s debt situation is deteriorating, European Central Bank’s intervention may be because the convergence of Germany’s opposition. Assistance might be close to Greece, but it does not change its position close to bankruptcy. The Fed announced that the U.S. economy faces serious risks, China’s manufacturing data may suggest a drop in demand. Adverse external situation of the rubber market. Although the rubber market into the shopping season, but not large-scale traders admission, spot prices continue to decline, the hoarding of goods does not seem a wise choice. Chinese stocks are low, and rainfall in Thailand are not significantly boost the market, because the demand outlook has become increasingly bleak. Market concerns about a recession is inevitable. By then, a large number of surplus production will tire and rubber raw materials to the oversupply.
Rubber Board sees 75,000-tonne supply shortfall this year
Written by HMH | September 24, 2011 | 0 |
CHENNAI, SEPT. 24:
The Rubber Board is projecting a 75,000-tonne shortfall in availability of natural rubber this year.
Addressing media persons at the 59{+t}{+h} Annual General Meeting of the All-India Rubber Industries Association, Ms Sheela Thomas, the board’s Chairperson, said that rubber production is set to increase to 9.02 lakh tonnes (lt), representing a 4.6 per cent growth over last year. The rubber products industry will need over 9.77 lt that is well over the anticipated supplies.
Over the next decade and a half, the Rubber Board expects the shortfall to grow to over 1.80 lt with production in 2025 expected to touch 1.63 million tonnes against a demand of 1.81 million tonnes of natural rubber.
Expanding the plantation of natural rubber to new areas, particularly the North-East and other pockets in the South including parts of Tamil Nadu, is an option, she said. Between 2005 and 2011 the area under production has trebled to about 1.54 lakh hectares compared with 1998-2004 when it was around 53,730 ha.
The industry believes the estimates of shortfall by the board are conservative, and the board had launched a separate survey to assess the natural rubber stocks. The findings of the sample survey is expected to be out in October, she said.
Mr Vinod T. Simon, President, All-India Rubber Industries Association, said securing the natural rubber is the single largest concern for the industry. While long term initiatives could include expanding plantation areas, the Government needs to be supportive on short term measures like facilitating imports.
The prevailing import duties need to be brought down as costs are increasing and the shortfall cannot be bridged at current rates.
SPOT RUBBER RULES WEAK
Our Correspondent reports from Kottayam: Spot rubber finished weak on Saturday. The weekend session was comparatively dull while the market lost ground on buyer resistance.
In futures, the October series recovered marginally to Rs 211.85 (210.50), November to Rs 209.35 (208.01) and December to Rs 210.06 (208.66 a kg for RSS 4 on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 214 (214.50); RSS-5: 208 (208); ungraded: 199 (200); ISNR 20: 209 (209) and latex 60 per cent 134 (134).
Source: http://www.thehindubusinessline.com/markets/commodities/article2482392.ece
September 25, 2011
KOCHI: The Union ministry of commerce and industry had a spectacular win in a legal tussle with rubber exporters of Kerala this week, resulting in saving customs duty to the tune of Rs 20 crore.
As many as 25 business groups engaged in exporting rubber mats were defeated by the ministry at the Kerala High Court, when the court ruled in favour of the ministry, accepting the director general of foreign trade’s contention that the products being manufactured and exported by the groups are not entitled for duty exemption allowed for rubber compounded sheets.
The ruling in favour of the ministry was granted by Justice J Chelameswar and Justice P R Ramachandra Menon against 25 business groups, including Fibre World, Kanti Floor Furnishers, Popally Coir Mills, and K S Gangadhara Iyer and Co. as well as rubber product exporters N V Georgekutty, K S Shaji, and Sadath Lebba.
The exporters were availing of duty discount meant for neutralizing the incidence of basic Customs duty on the import content of export products through Duty Entitlement Pass Book(DEPB) tax refund scheme of the central government. Each of the exporters had claimed for duty benefit of around Rs 2 crore each.
In 2006, a single bench of the high court had allowed three petitions by exporters challenging the discontinuance of the tax benefit that was being availed of by them since the inception of DEPB in 1997.
The ministry moved an appeal before the Chief Justice against the earlier high court order stating that the products being claimed for tax credit are not rubber compounded sheets but value-added products made through vulcanization and moulding.
Ministry’s counsel John Varghese pointed out that extending tax credit meant for rubber compounded sheets to value-added products results in a burden on the exchequer. The total tax credit being availed of like this amounts to Rs 20 crore, Varghese said. The court accepted his argument and allowed all the appeals filed by the ministry, quashing the earlier single bench verdict in favour of the exporters.
Source: http://timesofindia.indiatimes.com/city/kochi/Rubber-exporters-lose-out-to-commerce-ministry-in-court/articleshow/10109469.cms
The risk of global recession spread to the rubber industry
Written by HMH | September 24, 2011 | 0 |
Sept 23, 2011, the period of the rubber a contract early January fell 3.88% . The Fed warned that downside risks facing the global economy, Europe, and China’s manufacturing industry continues to decline, the market will be a heavy blow to confidence. Meanwhile, the rubber into the procurement season and increased rainfall seasonality, have been ignored by the market.
Asian stock markets, the previous trading day, prices fell.An exporter in southern Thailand, said there are many sellers, if you buy more than 500 tons, it will not provide, or because the price will rise. 10 months / 11 months shipment of Thailand3 , No. Yan Pianjiao RSS3 per kg 458 cents. 23 days, the Malaysian standard plastic SMR20 10 months FOB official offer morning fell.
22 , the New York Mercantile Exchange 10 -month crude oil contract fell 5.41 cents, or 6.3 percent , to settle at a barrel80.51 U.S. dollars. Eurozone business activity contraction, ending two consecutive years of growth situation. 9 months eurozone composite purchasing managers index (PMI) from the initial 8 months of 50.7 down to 49.2 , may exacerbate concerns surrounding the eurozone economy. Italian government bonds risk premium on German government bonds rose to a high since the inception of the euro, the continued focus on the debt situation of Greece and the tension concerns the global economic slowdown against the risk asset composition. The U.S. Federal Reserve warned the already weak economy a huge downside risk, dampen market confidence. Crude oil fell, to cut the cost of synthetic rubber, the rubber market disadvantage.
Overall, commodity markets remain under considerable pressure. Data show that European manufacturing began to shrink, and stop nearly two years of recovery situation. Meanwhile, Italy’s debt situation is deteriorating, European Central Bank’s intervention may be because the convergence of Germany’s opposition. Assistance might be close to Greece, but it does not change its position close to bankruptcy. The Fed announced that the U.S. economy faces serious risks, China’s manufacturing data may suggest a drop in demand. Adverse external situation of the rubber market. Although the rubber market into the shopping season, but not large-scale traders admission, spot prices continue to decline, the hoarding of goods does not seem a wise choice. Chinese stocks are low, and rainfall in Thailand are not significantly boost the market, because the demand outlook has become increasingly bleak. Market concerns about a recession is inevitable. By then, a large number of surplus production will tire and rubber raw materials to the oversupply.
Rubber Board sees 75,000-tonne supply shortfall this year
Written by HMH | September 24, 2011 | 0 |
CHENNAI, SEPT. 24:
The Rubber Board is projecting a 75,000-tonne shortfall in availability of natural rubber this year.
Addressing media persons at the 59{+t}{+h} Annual General Meeting of the All-India Rubber Industries Association, Ms Sheela Thomas, the board’s Chairperson, said that rubber production is set to increase to 9.02 lakh tonnes (lt), representing a 4.6 per cent growth over last year. The rubber products industry will need over 9.77 lt that is well over the anticipated supplies.
Over the next decade and a half, the Rubber Board expects the shortfall to grow to over 1.80 lt with production in 2025 expected to touch 1.63 million tonnes against a demand of 1.81 million tonnes of natural rubber.
Expanding the plantation of natural rubber to new areas, particularly the North-East and other pockets in the South including parts of Tamil Nadu, is an option, she said. Between 2005 and 2011 the area under production has trebled to about 1.54 lakh hectares compared with 1998-2004 when it was around 53,730 ha.
The industry believes the estimates of shortfall by the board are conservative, and the board had launched a separate survey to assess the natural rubber stocks. The findings of the sample survey is expected to be out in October, she said.
Mr Vinod T. Simon, President, All-India Rubber Industries Association, said securing the natural rubber is the single largest concern for the industry. While long term initiatives could include expanding plantation areas, the Government needs to be supportive on short term measures like facilitating imports.
The prevailing import duties need to be brought down as costs are increasing and the shortfall cannot be bridged at current rates.
SPOT RUBBER RULES WEAK
Our Correspondent reports from Kottayam: Spot rubber finished weak on Saturday. The weekend session was comparatively dull while the market lost ground on buyer resistance.
In futures, the October series recovered marginally to Rs 211.85 (210.50), November to Rs 209.35 (208.01) and December to Rs 210.06 (208.66 a kg for RSS 4 on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 214 (214.50); RSS-5: 208 (208); ungraded: 199 (200); ISNR 20: 209 (209) and latex 60 per cent 134 (134).
Source: http://www.thehindubusinessline.com/markets/commodities/article2482392.ece
Friday, September 23, 2011
Tokyo futures at 3-month low on Fed’s warning (Sept 22)
Tokyo futures at 3-month low on Fed’s warning (Sept 22)
Written by HMH | September 22, 2011 | 0 |
BANGKOK, Sept 22 (Reuters) – Tokyo rubber futures tumbled 3.8 percent to the lowest in nearly three months on Thursday, tracking falls in stocks and other commodities after the U.S. Federal Reserve gave a gloomy assessment of the world’s biggest economy, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery fell 10.8 yen to settle at 342.5 yen ($4.48) per kg.
It fell as low as 3.8 percent to 340.0 yen, the lowest since June 28.
The most active rubber contract on the Shanghai commodity exchange for January delivery fell 1,660 yuan to finish at 30,400 yuan ($4,763) per tonne.
“Players sold contracts heavily due to fears of falling demand after the Fed warned of possible risks to the U.S. economy,” one dealer said.
The Federal Reserve warned on Wednesday of significant risks to the already weak U.S. economy and launched a new plan to lower long-term borrowing costs and bolster the housing market.
Oil prices fell by more than $2 a barrel on Thursday on concern that measures announced by the Fed would be insufficient to boost growth, with U.S. crude futures trading down at $83.88 a barrel.
Some dealers said TOCOM could rebound next week after prices found support at 340 yen per kg.
Tokyo rubber futures will not trade on Friday because of a public holiday. Trading will resume on Monday.
China: Tire busy pre-holiday preparation
Written by HMH | September 22, 2011 | 0 |
“This week, the domestic natural rubber prices is weak, we have also just bought some raw materials.” A tire purchasing department official told reporters that the falling price of natural rubber period, spot prices have also been relaxed, while close to 11 holiday, company’s recent purchase is produced in advance for holiday stocking plan.
The reporter found a similar idea with the tire apparently not unusual. A senior industry sources confirmed to the Futures Daily News reporter, on Tuesday ( 20 days) appeared after the collapse of the domestic rubber futures, spot market buying low active again, some tire companies began to market procurement of raw materials, market sentiment has weakened .
Clearly, the tire company’s replenishment period behavior of the spot price of natural rubber to form support. 21 days, the rubber on the main stage 1201 contract out of the V word inversion market. In the spot market, the tire 20 Symbol rubber prices edged up, watching mostly downstream, purchase intention is not strong.
“Stock up before the National Day holiday is a tire habit of action.” China International Futures analyst Chen column that usually entering the fourth quarter, the domestic auto sales will usher in the season, the tire manufacturer will expand the demand for natural rubber raw materials in advance stocking is also a matter of course.
Ningbo Shanshan property manager of the rubber trade to pay soldiers, said that eight months since, in terms of domestic sales or exports, the domestic tire industry, the situation is better than the previous 6 , 7 months. Downstream demand of raw materials also support the formation of natural rubber prices, which is relatively strong recent spot price reasons.
Tire industry, the National Day holiday seems to be “a hurdle.” On the one hand, entering the fourth quarter after the season exciting, but on the other hand, natural rubber prices ups and downs and make it difficult to let go.
“Right now many are fallen dares to buy, but will not chase the strong.” Chen told reporters that the columns of the daily futures, downstream firms became more cautious attitude is a major concern of macroeconomic uncertainty. Right now the debt crisis and bailout policies of the new trends, the Federal Reserve meeting on interest rates is still unknown resolution, downstream firms make inventory will be very cautious. In addition, bank credit is more difficult now, the downstream business is still relatively tight financial situation, which also restricted the tire size enterprises make up the library.
“Despite the current market trend is not clear, but the tire companies should consider buying auction.” The senior industry sources believe that this year, natural rubber prices remain high and volatile, the domestic tire industry generally lower raw material inventory levels, replenishment of the inner power is strong. At the same time, having gone through a rose, natural rubber prices have been significantly on the central shift, now the price range for the tire industry’s ability to accept increasing. In addition, 9 - 10 months to supply off-season, spending season, calendar year prices on the strong side, the proposed downstream producers bargain hunters.
Market on Sept 21: Mixed trend in spot rubber
Written by HMH | September 22, 2011 | 0 |
KOTTAYAM, SEPT. 21:
Spot rubber saw a mixed trend on Wednesday. While limited supplies and fall in production due to persistent rain provided firm support to prices, uncertainties in the economic outlook, slowdown in auto sales and rising interest rates and fuel costs exerted pressure on the demand. Apart from that, with rupee sliding into a two-year low against the dollar, import prospects might diminish further, analysts said.
Sheet rubber improved to Rs 217.50 (216.50) a kg, according to trades. The grade increased to Rs 217 (216) a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
The October series closed at Rs 218.10 (218.05), November at Rs 216.74 (216.84), December at Rs 217 (216.85), January at Rs 219.21 (219.89), February at Rs 219.25 (219.56) and March at Rs 222.10 (219.98) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) weakened to Rs 222.66 (223.51) a kg at Bangkok. The September futures for the grade slipped to ¥343 (Rs 216.60) from ¥344 a kg during the day session but then bounced back to ¥345 (Rs 217.86) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 217.50 (216.50); RSS-5: 210 (209); ungraded: 205 (203); ISNR 20: 210 (210) and latex 60 per cent: 134.50 (134.50).
Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article2473508.ece
China August Natural Rubber Imports Up 26% At 200,190 Tons
Written by HMH | September 22, 2011 | 0 |
SHANGHAI, Sep 21, 2011 (Dow Jones Commodities News Select via Comtex) –China’s natural rubber imports in August rose 26% compared with the same month last year, to 200,190 metric tons, the General Administration of Customs said Wednesday.
Imports were up 53% from July, when 130,451 tons were shipped in, the data showed.
In the January-August period, imports increased 5.5% on year to 1.21 million tons.
China is the world’s biggest importer of natural rubber and sources most of its supplies from Thailand, Indonesia and Malaysia, the world’s top producers.
Written by HMH | September 22, 2011 | 0 |
BANGKOK, Sept 22 (Reuters) – Tokyo rubber futures tumbled 3.8 percent to the lowest in nearly three months on Thursday, tracking falls in stocks and other commodities after the U.S. Federal Reserve gave a gloomy assessment of the world’s biggest economy, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery fell 10.8 yen to settle at 342.5 yen ($4.48) per kg.
It fell as low as 3.8 percent to 340.0 yen, the lowest since June 28.
The most active rubber contract on the Shanghai commodity exchange for January delivery fell 1,660 yuan to finish at 30,400 yuan ($4,763) per tonne.
“Players sold contracts heavily due to fears of falling demand after the Fed warned of possible risks to the U.S. economy,” one dealer said.
The Federal Reserve warned on Wednesday of significant risks to the already weak U.S. economy and launched a new plan to lower long-term borrowing costs and bolster the housing market.
Oil prices fell by more than $2 a barrel on Thursday on concern that measures announced by the Fed would be insufficient to boost growth, with U.S. crude futures trading down at $83.88 a barrel.
Some dealers said TOCOM could rebound next week after prices found support at 340 yen per kg.
Tokyo rubber futures will not trade on Friday because of a public holiday. Trading will resume on Monday.
China: Tire busy pre-holiday preparation
Written by HMH | September 22, 2011 | 0 |
“This week, the domestic natural rubber prices is weak, we have also just bought some raw materials.” A tire purchasing department official told reporters that the falling price of natural rubber period, spot prices have also been relaxed, while close to 11 holiday, company’s recent purchase is produced in advance for holiday stocking plan.
The reporter found a similar idea with the tire apparently not unusual. A senior industry sources confirmed to the Futures Daily News reporter, on Tuesday ( 20 days) appeared after the collapse of the domestic rubber futures, spot market buying low active again, some tire companies began to market procurement of raw materials, market sentiment has weakened .
Clearly, the tire company’s replenishment period behavior of the spot price of natural rubber to form support. 21 days, the rubber on the main stage 1201 contract out of the V word inversion market. In the spot market, the tire 20 Symbol rubber prices edged up, watching mostly downstream, purchase intention is not strong.
“Stock up before the National Day holiday is a tire habit of action.” China International Futures analyst Chen column that usually entering the fourth quarter, the domestic auto sales will usher in the season, the tire manufacturer will expand the demand for natural rubber raw materials in advance stocking is also a matter of course.
Ningbo Shanshan property manager of the rubber trade to pay soldiers, said that eight months since, in terms of domestic sales or exports, the domestic tire industry, the situation is better than the previous 6 , 7 months. Downstream demand of raw materials also support the formation of natural rubber prices, which is relatively strong recent spot price reasons.
Tire industry, the National Day holiday seems to be “a hurdle.” On the one hand, entering the fourth quarter after the season exciting, but on the other hand, natural rubber prices ups and downs and make it difficult to let go.
“Right now many are fallen dares to buy, but will not chase the strong.” Chen told reporters that the columns of the daily futures, downstream firms became more cautious attitude is a major concern of macroeconomic uncertainty. Right now the debt crisis and bailout policies of the new trends, the Federal Reserve meeting on interest rates is still unknown resolution, downstream firms make inventory will be very cautious. In addition, bank credit is more difficult now, the downstream business is still relatively tight financial situation, which also restricted the tire size enterprises make up the library.
“Despite the current market trend is not clear, but the tire companies should consider buying auction.” The senior industry sources believe that this year, natural rubber prices remain high and volatile, the domestic tire industry generally lower raw material inventory levels, replenishment of the inner power is strong. At the same time, having gone through a rose, natural rubber prices have been significantly on the central shift, now the price range for the tire industry’s ability to accept increasing. In addition, 9 - 10 months to supply off-season, spending season, calendar year prices on the strong side, the proposed downstream producers bargain hunters.
Market on Sept 21: Mixed trend in spot rubber
Written by HMH | September 22, 2011 | 0 |
KOTTAYAM, SEPT. 21:
Spot rubber saw a mixed trend on Wednesday. While limited supplies and fall in production due to persistent rain provided firm support to prices, uncertainties in the economic outlook, slowdown in auto sales and rising interest rates and fuel costs exerted pressure on the demand. Apart from that, with rupee sliding into a two-year low against the dollar, import prospects might diminish further, analysts said.
Sheet rubber improved to Rs 217.50 (216.50) a kg, according to trades. The grade increased to Rs 217 (216) a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
The October series closed at Rs 218.10 (218.05), November at Rs 216.74 (216.84), December at Rs 217 (216.85), January at Rs 219.21 (219.89), February at Rs 219.25 (219.56) and March at Rs 222.10 (219.98) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) weakened to Rs 222.66 (223.51) a kg at Bangkok. The September futures for the grade slipped to ¥343 (Rs 216.60) from ¥344 a kg during the day session but then bounced back to ¥345 (Rs 217.86) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 217.50 (216.50); RSS-5: 210 (209); ungraded: 205 (203); ISNR 20: 210 (210) and latex 60 per cent: 134.50 (134.50).
Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article2473508.ece
China August Natural Rubber Imports Up 26% At 200,190 Tons
Written by HMH | September 22, 2011 | 0 |
SHANGHAI, Sep 21, 2011 (Dow Jones Commodities News Select via Comtex) –China’s natural rubber imports in August rose 26% compared with the same month last year, to 200,190 metric tons, the General Administration of Customs said Wednesday.
Imports were up 53% from July, when 130,451 tons were shipped in, the data showed.
In the January-August period, imports increased 5.5% on year to 1.21 million tons.
China is the world’s biggest importer of natural rubber and sources most of its supplies from Thailand, Indonesia and Malaysia, the world’s top producers.
Wednesday, September 21, 2011
Spot rubber turns weak on global cues
Spot rubber turns weak
KOTTAYAM, SEPT. 20:
Physical rubber prices turned weak on Tuesday. The market opened weak after a day's gap following a State-wide hartal on Monday but recovered partially during closing hours on covering purchases at lower levels. Transactions were in a low.
According to traders, sheet rubber closed at Rs 216.50 (218) a kg after hitting an intra-day low of Rs 215 on early trades. The grade dropped to Rs 216 (218) a kg both at Kottayam and Kochi as reported by the Rubber Board.
In futures, the October series improved to Rs 218.39 (215.43), November to Rs 217.10 (214.09), December to Rs 216.85 (214.75), January to Rs 219.89 (216.10), February to Rs 219.68 (216.25) and March to Rs 219.98 (217.75) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) slipped to Rs 223.51 (225.04) a kg at Bangkok. The September futures for the grade dropped to ¥344 (Rs 215.86) from ¥353 a kg during the day session but then recovered partially to ¥348 (Rs 218.39) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 216.50 (218); RSS-5: 209 (210); ungraded: 203 (206); ISNR 20: 210 (211) and latex 60 per cent: 134.50 (134.50).
Tokyo futures at 1-month low, Europe worries weigh (Sept 20)
September 20, 2011
BANGKOK, Sept 20 (Reuters) – Tokyo rubber futures tumbled to a one-month low on Tuesday, weighed down by worries over Greece and a downgrade of Italy by Standard and Poor’s that encouraged players to sell heavily to avoid risks, dealers said .
Analysts said the downgrade was ominous for the global economy and needed an urgent response. It overshadowed reports that Greece, scrambling to avoid running out of money within weeks, was near a deal to continue receiving bailout funds and that Brazil was willing to pump in $10 billion through the IMF to aid Europe.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery fell 13.6 yen to settle at 351.6 yen ($4.6) per kg.
It fell as low as 3.9 percent to an intra-day low of 351.0 yen per kg, the lowest since August 22. The market was closed on Monday for a national holiday.
The most active Shanghai rubber contract for January delivery fell 120 yuan to finish at 31,805 yuan ($4,998) per tonne.
“Rubber futures fell in line with other commodities that were dragged down by Greece’s problem. Sentiment was weak after prices fell below major support level of 360 yen, encouraging players to liquidate contract to avoid risks,” one dealer said.
Greek Finance minister Evangelos Venizelos said the country’s conference call with its international lenders was satisfying and would continue late on Tuesday but he added some work still needed to be done.
Brent crude futures steadied above $109 on Tuesday, after two days of heavy losses on worries that a looming default by Greece will destabilise the global financial system, threaten global growth and pare oil consumption.
Dealers said they expected TOCOM prices to rebound on Wednesday after the benchmark finished above a major support level of 350 yen and steadier oil prices should lend support.
($1 = 76.405 Japanese Yen)
($1 = 6.387 Chinese Yuan)
Source: http://sg.news.yahoo.com/rubber-tokyo-futures-1-month-low-europe-worries-080328963.html
Rubber falls below $5 in Shanghai on 20 September
Written by HMH | September 20, 2011 | 0 |
London — Rubber prices around the world fell overnight. On Tokyo’s Tocom Exchange, prices for the six-month contract fell by about yen 12 overnight, trading at yen 356 ($4.65) per kg on Tuesday 20 Sept. Shorter-dated prices fell, but less sharply, trading at yen 348.
In Singapore, SGX saw little trading in RSS3, but October 2011 contracts were trading down $0.09 around $4.62. TSR20 for delivery in January 2012 was trading down $0.04 at $4.55.
In India, the NMCE said prices were down by about Rs 3, with October deliveries priced at Rs 215 ($4.47).
In China, the Shanghai Futures Exchange saw prices fall further, with October deliveries falling fractionally below $5 for the first time this year, at around Yuan 31.9 ($4.99.5) per kilo.
Source: european-rubber-journal.com
KOTTAYAM, SEPT. 20:
Physical rubber prices turned weak on Tuesday. The market opened weak after a day's gap following a State-wide hartal on Monday but recovered partially during closing hours on covering purchases at lower levels. Transactions were in a low.
According to traders, sheet rubber closed at Rs 216.50 (218) a kg after hitting an intra-day low of Rs 215 on early trades. The grade dropped to Rs 216 (218) a kg both at Kottayam and Kochi as reported by the Rubber Board.
In futures, the October series improved to Rs 218.39 (215.43), November to Rs 217.10 (214.09), December to Rs 216.85 (214.75), January to Rs 219.89 (216.10), February to Rs 219.68 (216.25) and March to Rs 219.98 (217.75) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) slipped to Rs 223.51 (225.04) a kg at Bangkok. The September futures for the grade dropped to ¥344 (Rs 215.86) from ¥353 a kg during the day session but then recovered partially to ¥348 (Rs 218.39) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 216.50 (218); RSS-5: 209 (210); ungraded: 203 (206); ISNR 20: 210 (211) and latex 60 per cent: 134.50 (134.50).
Tokyo futures at 1-month low, Europe worries weigh (Sept 20)
September 20, 2011
BANGKOK, Sept 20 (Reuters) – Tokyo rubber futures tumbled to a one-month low on Tuesday, weighed down by worries over Greece and a downgrade of Italy by Standard and Poor’s that encouraged players to sell heavily to avoid risks, dealers said .
Analysts said the downgrade was ominous for the global economy and needed an urgent response. It overshadowed reports that Greece, scrambling to avoid running out of money within weeks, was near a deal to continue receiving bailout funds and that Brazil was willing to pump in $10 billion through the IMF to aid Europe.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery fell 13.6 yen to settle at 351.6 yen ($4.6) per kg.
It fell as low as 3.9 percent to an intra-day low of 351.0 yen per kg, the lowest since August 22. The market was closed on Monday for a national holiday.
The most active Shanghai rubber contract for January delivery fell 120 yuan to finish at 31,805 yuan ($4,998) per tonne.
“Rubber futures fell in line with other commodities that were dragged down by Greece’s problem. Sentiment was weak after prices fell below major support level of 360 yen, encouraging players to liquidate contract to avoid risks,” one dealer said.
Greek Finance minister Evangelos Venizelos said the country’s conference call with its international lenders was satisfying and would continue late on Tuesday but he added some work still needed to be done.
Brent crude futures steadied above $109 on Tuesday, after two days of heavy losses on worries that a looming default by Greece will destabilise the global financial system, threaten global growth and pare oil consumption.
Dealers said they expected TOCOM prices to rebound on Wednesday after the benchmark finished above a major support level of 350 yen and steadier oil prices should lend support.
($1 = 76.405 Japanese Yen)
($1 = 6.387 Chinese Yuan)
Source: http://sg.news.yahoo.com/rubber-tokyo-futures-1-month-low-europe-worries-080328963.html
Rubber falls below $5 in Shanghai on 20 September
Written by HMH | September 20, 2011 | 0 |
London — Rubber prices around the world fell overnight. On Tokyo’s Tocom Exchange, prices for the six-month contract fell by about yen 12 overnight, trading at yen 356 ($4.65) per kg on Tuesday 20 Sept. Shorter-dated prices fell, but less sharply, trading at yen 348.
In Singapore, SGX saw little trading in RSS3, but October 2011 contracts were trading down $0.09 around $4.62. TSR20 for delivery in January 2012 was trading down $0.04 at $4.55.
In India, the NMCE said prices were down by about Rs 3, with October deliveries priced at Rs 215 ($4.47).
In China, the Shanghai Futures Exchange saw prices fall further, with October deliveries falling fractionally below $5 for the first time this year, at around Yuan 31.9 ($4.99.5) per kilo.
Source: european-rubber-journal.com
Monday, September 19, 2011
Market on Sept 17: Spot rubber rules steady (India)
Market on Sept 17: Spot rubber rules steady (India)
September 18, 2011
KOTTAYAM, SEPT. 17:
Spot rubber finished unchanged on Saturday. The market lost its direction following an almost similar closing in domestic futures on the National Multi Commodity Exchange. In futures, the October series slipped to Rs 218.02 (218.21), November to Rs 216.66 (217.10), December to Rs 217.35 (217.65), January to Rs 219.01 (219.47) and February to Rs 219.75 (220.50) a kg for RSS 4 on NMCE.
Spot rates were (Rs/kg): RSS-4: 218 (218); RSS-5: 210 (210); ungraded: 206 (206); ISNR 20: 211 (211) and latex 60 per cent: 134.50 (134.50).
Rubber market may extend gains next week
September 18, 2011
The Malaysian rubber market may extend gains next week due to tight supply of raw material.
“The market is concerned over the tight supply of raw material,” a dealer said.
Buyers are worried over low production in producing countries, namely Malaysia, Thailand and Indonesia. The rainy season in some parts of Malaysia is
also a factor for the anticipated better market.
The dealer also expected a quiet market next week with players taking a wait-and-see attitude.
Another dealer, however, was concerned over the eurozone worsening debt problem. “This factor could affect the local rubber market,” he said.
He added that the market would take cue from the movement on the Tokyo Commodity Exchange (TOCOM) and the Shanghai Futures Exchange next week.
For the week just ended, the market was weak on the first day of trading but was on the uptrend for the rest of the trading days due to tight supply of raw material and the steady performances of TOCOM and Shanghai Futures Exchange.
On a weekly basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 added 21 sen per kg to RM1,409 sen per kg from 1,388 sen per kg while latex-in-bulk increased 4 sen to 874 sen per kg from 870 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 rose 22.5 sen to RM1,409.5 sen per kg from 1,387 sen while latex-in-bulk gained six sen to 876.5 sen per kg from 870.50 sen per kg. — Bernama
Source: http://www.btimes.com.my/articles/20110917120220/Article/
September 18, 2011
KOTTAYAM, SEPT. 17:
Spot rubber finished unchanged on Saturday. The market lost its direction following an almost similar closing in domestic futures on the National Multi Commodity Exchange. In futures, the October series slipped to Rs 218.02 (218.21), November to Rs 216.66 (217.10), December to Rs 217.35 (217.65), January to Rs 219.01 (219.47) and February to Rs 219.75 (220.50) a kg for RSS 4 on NMCE.
Spot rates were (Rs/kg): RSS-4: 218 (218); RSS-5: 210 (210); ungraded: 206 (206); ISNR 20: 211 (211) and latex 60 per cent: 134.50 (134.50).
Rubber market may extend gains next week
September 18, 2011
The Malaysian rubber market may extend gains next week due to tight supply of raw material.
“The market is concerned over the tight supply of raw material,” a dealer said.
Buyers are worried over low production in producing countries, namely Malaysia, Thailand and Indonesia. The rainy season in some parts of Malaysia is
also a factor for the anticipated better market.
The dealer also expected a quiet market next week with players taking a wait-and-see attitude.
Another dealer, however, was concerned over the eurozone worsening debt problem. “This factor could affect the local rubber market,” he said.
He added that the market would take cue from the movement on the Tokyo Commodity Exchange (TOCOM) and the Shanghai Futures Exchange next week.
For the week just ended, the market was weak on the first day of trading but was on the uptrend for the rest of the trading days due to tight supply of raw material and the steady performances of TOCOM and Shanghai Futures Exchange.
On a weekly basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 added 21 sen per kg to RM1,409 sen per kg from 1,388 sen per kg while latex-in-bulk increased 4 sen to 874 sen per kg from 870 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 rose 22.5 sen to RM1,409.5 sen per kg from 1,387 sen while latex-in-bulk gained six sen to 876.5 sen per kg from 870.50 sen per kg. — Bernama
Source: http://www.btimes.com.my/articles/20110917120220/Article/
Monday, September 12, 2011
The Central Government has enhanced the duty of excise(cess)
News.... The Central Government has enhanced the duty of excise(cess) on rubber under the Rubber Act 1947 from Rs. 1.50 to Rs. 2.00 per kilogram with effect from 1st September 2011
Visit THE RUBBER BOARD website for the news at
http://www.rubberboard.org.in/
‘We are not averse to looking outside India, if an opportunity comes up’
September 12, 2011
Mr Koshy K. Varghese, Executive Vice-President (Marketing), MRF. -- Photo: Bijoy Ghosh
Removal of anti-dumping duty on Chinese tyres, which are 20 per cent cheaper than domestic tyres, will vitiate the competitive environment in the Indian tyre industry, says Mr Koshy Varghese, Executive Vice-President, MRF Ltd.
Unfair competition from China, coupled with slowdown in the auto sector, will put pressure on the tyre industry in the coming months, he says.
More from Mr Varghese…
Input costs have gone up in the last one year. How did MRF manage the cost push?
The cost push has been very significant over the last one year with rubber prices going up from Rs 140 a kg to Rs 235. Global prices have also been high. Today, after the recession, we don’t benchmark only against Indian prices.
Managing the cost push has not been easy as one cannot pass on the entire push to customers. This is why the last quarterly results have been dismal. Most tyre companies were in the red.
The industry had to increase prices or else, it would have been worse off. We hiked prices in regular doses, in a calibrated manner. We cannot take high doses as the market is highly competitive. The price hike was between 1.5 and 2.5 per cent. The situation may not change even this quarter because high cost continues.
What about availability of rubber?
Availability issue is probably the reason why prices went up. The pressure would not have been high had there been adequate availability of rubber. When the auto industry got out of recession, there was a lag. There is a 7-year lag between plantation and production. This lag effect will be there for a couple of more years.
Apollo Tyres has acquired land in Laos for rubber plantation… Will you look at such opportunities?
We are not averse to looking outside India if an opportunity comes up. We are always on the lookout in ASEAN and South-East Asian countries where we have a footprint. But it has to make business sense and fit into our overall strategy.
What other challenges do you foresee this year?
Removal of anti-dumping duty on Chinese tyres will vitiate the competitive environment. Chinese tyres are 20 per cent cheaper than domestic tyres. Hence, our ability to increase prices will become even more limited. We are worried about unfair competition. The tyre industry, which operates on very thin margins, will be under pressure in the coming months.
Our demand is also driven by the automobile industry. There is a sentiment drop across the industry. Six months ago, everybody gave figures that were gung-ho. But now everybody has revised growth rates. Who would have known interest rates would go up! We have to wait and watch. The next three months are crucial. One can’t commit even if one wants to. You can have wishful thinking, but the reality is different.
How is your aviation tyre business doing?
We are getting regular orders from HAL and Defence for helicopter tyres. We supply 400-500 units a month, from our Medak plant. This was as a result of a request from the Government of India, as strategically, it was dangerous not to have a domestic manufacturer for tyres. We are also in discussions with the Government for supply of military aircraft tyres.
When will this materialise?
Even our helicopter business took two years. The lead time in such a business is long as making tyres for aircraft is complex as the speed and pressure at which the tyres hit the tarmac is extremely high.
What is your investment and expansion plan for this year?
Investments will be in tune with market conditions. Last year, we made heavy investments at a unit in Medak for passenger car and two-wheeler tyres. It started production eight months ago and is ramping up. A plant in Trichy is coming up. These investments will start yielding results this year.
Most of the expansion this year will be in the truck radial and passenger car segments, which account for 60 per cent of our total revenues. There will be both new products and product substitution. Especially in the case of trucks, where nylon and bias tyres are getting substituted to radial. World over, it is more of radial. In India, radialisation is slowly happening.
Today, most of our sales today is skewed towards domestic market. We also want to focus on exports, which account for 10 per cent of business. That mix will not change overnight. But we would like exports to grow.
MRF witnessed labour unrest in 2010 and 2011… Are you concerned?
There have been labour issues across the country, North and South. Labour issue keeps coming up; it is not industry or region specific. Many times it comes up when labour agreements are due. Things have been amicably settled now and all our plants are running.
Source: http://www.thehindubusinessline.com/companies/article2444553.ece
Rubber Declines as Debt Crisis May Hurt Demand
September 12, 2011
Rubber dropped for a second day as the sovereign debt crisis inEurope raised concern that demand for the commodity used for tires may weaken.
The February-delivery contract fell as much as 1.8 percent to 362.1 yen a kilogram ($4,673 a metric ton) before trading at 363.5 yen on theTokyo Commodity Exchange at 11:29 a.m. local time. Futures dropped 0.2 percent last week.
Oil slid for a third day in New York and Asian stocks fell, extending the benchmark index’s drop last week, amid signs European policy makers are struggling to contain the region’s debt crisis.
“Concerns on European debt crisis dampened market sentiment,” Naoki Asami, head of international department at Kanetsu Shoji Co., said by phone from Tokyo. Volume is “very light” as most investors are on the sidelines, he added.
Officials in Chancellor Angela Merkel’s government are debating how to shore up German banks in the event that Greece fails to meet the budget-cutting terms of its aid package and is unable to get a bailout-loan payment, three coalition officials said Sept. 9. BNP Paribas SA, Societe Generale SA and Credit Agricole SA, France’s largest banks by market value, may have their credit ratings cut by Moody’s Investors Service as soon as this week because of Greek holdings, two people with knowledge of the matter said on Sept. 10.
“More Downside”
In Europe, “things are probably going to get worse before they get better,” Erwin Sanft, deputy head of Asian equities research at BNP Paribas SA in Hong Kong, said in an interview on Bloomberg Television today. “Here in Asia, we’re looking at much more downside for markets. Much larger economies are being drawn into this crisis.”
Rubber has lost 12 percent this year after climbing to a record 535.7 yen on Feb. 18. The European Union is the second- largest consumer of rubber and the U.S. is the fourth-largest, according to data from the Singapore-based International Rubber Study Group.
The market downside is likely to be limited as increasing imports from China showed the demand remains strong, Asami said.
Natural rubber imports by China in August were 200,000 tons, said a statement on the custom agency’s website on Sept. 10. That compares with 130,000 tons in July and 160,000 tons a year ago, according to Bloomberg data.
Natural-rubber inventories rose 3,558 tons to 33,376 tons, the highest since March, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange reported in its weekly report on Sept 9.
China’s passenger-car sales rose 3.3 percent in August from a year earlier to 1.04 million units, data from China’s Passenger Car Association showed last week.
In Shanghai, rubber for January delivery gained 1 percent to close at 34,095 yuan ($5,338) a ton on Sept. 9. The market is closed for a public holiday today.
Rains spread across southern Thailand, disrupting tapping, according to the Rubber Research Institute of Thailand. The cash price of Thai rubber declined 0.4 percent to 141.4 baht ($4.71) a kilogram on Sept. 9, according to the institute.
Source: http://www.bloomberg.com/news/2011-09-12/rubber-declines-for-second-day-as-debt-crisis-may-hurt-demand.html
Tokyo futures fall on global econ, debt worries (Sept 12)
September 12, 2011
TOKYO, Sept 12 (Reuters) – Key Tokyo rubber futures fell nearly two percent on Monday, as sentiment turned bearish on a drop in oil prices, concerns over the global economy and worries about Europe’s deepening debt crisis.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery dropped 6.5 yen, or 1.8 percent, to 362.1 yen per kg.
* The most active Shanghai rubber contract for January was up 330 yuan to finish at 34,095 yuan ($5,340) per tonne on Friday. Volume stood at 668,824 lots.
* Chinese financial markets are closed on Monday for a holiday, reopening on Tuesday.
* The euro got off to a rocky start in Asia on Monday, falling to fresh six-month lows against the greenback and a 10-year trough on the yen as downside momentum picked up pace after several key technical levels gave way recently.
* Oil declined by about $1 on Monday with a stronger dollar, as investors shunned commodity risk because of Europe’s deepening sovereign debt crisis, while economic gloom dampened the outlook for energy use.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Big Japanese manufacturers turned optimistic about business conditions in the three months to September compared with the previous quarter, a survey showed on Monday, as a rapid recovery in supply chains and output following the March 11 natural disaster lifted sentiment.
* China’s key commodity imports, including crude oil, copper and iron ore, all climbed in August from the previous month, adding to evidence that demand in the world’s second-largest economy was still going strong despite the economic turmoil in the West.
* Group of Seven finance chiefs pledged on Friday to make a coordinated response to a slowdown in the global economy but offered few specifics and differed in emphasis on Europe’s debt crisis.
* Juergen Stark, the European Central Bank’s executive board member and chief economist, resigned unexpectedly on Friday in conflict with the bank’s policy of buying government bonds to combat the euro zone’s debt crisis.
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 11.9 percent last week, the exchange said on Friday.
* The Nikkei stock average fell on Monday after Wall Street tumbled.
* U.S. stocks fell more than 2 percent on Friday after the top German official at the European Central Bank resigned in protest of the bank’s bond-buying programme, which has been a major tool in fighting the region’s debt crisis.
Visit THE RUBBER BOARD website for the news at
http://www.rubberboard.org.in/
‘We are not averse to looking outside India, if an opportunity comes up’
September 12, 2011
Mr Koshy K. Varghese, Executive Vice-President (Marketing), MRF. -- Photo: Bijoy Ghosh
Removal of anti-dumping duty on Chinese tyres, which are 20 per cent cheaper than domestic tyres, will vitiate the competitive environment in the Indian tyre industry, says Mr Koshy Varghese, Executive Vice-President, MRF Ltd.
Unfair competition from China, coupled with slowdown in the auto sector, will put pressure on the tyre industry in the coming months, he says.
More from Mr Varghese…
Input costs have gone up in the last one year. How did MRF manage the cost push?
The cost push has been very significant over the last one year with rubber prices going up from Rs 140 a kg to Rs 235. Global prices have also been high. Today, after the recession, we don’t benchmark only against Indian prices.
Managing the cost push has not been easy as one cannot pass on the entire push to customers. This is why the last quarterly results have been dismal. Most tyre companies were in the red.
The industry had to increase prices or else, it would have been worse off. We hiked prices in regular doses, in a calibrated manner. We cannot take high doses as the market is highly competitive. The price hike was between 1.5 and 2.5 per cent. The situation may not change even this quarter because high cost continues.
What about availability of rubber?
Availability issue is probably the reason why prices went up. The pressure would not have been high had there been adequate availability of rubber. When the auto industry got out of recession, there was a lag. There is a 7-year lag between plantation and production. This lag effect will be there for a couple of more years.
Apollo Tyres has acquired land in Laos for rubber plantation… Will you look at such opportunities?
We are not averse to looking outside India if an opportunity comes up. We are always on the lookout in ASEAN and South-East Asian countries where we have a footprint. But it has to make business sense and fit into our overall strategy.
What other challenges do you foresee this year?
Removal of anti-dumping duty on Chinese tyres will vitiate the competitive environment. Chinese tyres are 20 per cent cheaper than domestic tyres. Hence, our ability to increase prices will become even more limited. We are worried about unfair competition. The tyre industry, which operates on very thin margins, will be under pressure in the coming months.
Our demand is also driven by the automobile industry. There is a sentiment drop across the industry. Six months ago, everybody gave figures that were gung-ho. But now everybody has revised growth rates. Who would have known interest rates would go up! We have to wait and watch. The next three months are crucial. One can’t commit even if one wants to. You can have wishful thinking, but the reality is different.
How is your aviation tyre business doing?
We are getting regular orders from HAL and Defence for helicopter tyres. We supply 400-500 units a month, from our Medak plant. This was as a result of a request from the Government of India, as strategically, it was dangerous not to have a domestic manufacturer for tyres. We are also in discussions with the Government for supply of military aircraft tyres.
When will this materialise?
Even our helicopter business took two years. The lead time in such a business is long as making tyres for aircraft is complex as the speed and pressure at which the tyres hit the tarmac is extremely high.
What is your investment and expansion plan for this year?
Investments will be in tune with market conditions. Last year, we made heavy investments at a unit in Medak for passenger car and two-wheeler tyres. It started production eight months ago and is ramping up. A plant in Trichy is coming up. These investments will start yielding results this year.
Most of the expansion this year will be in the truck radial and passenger car segments, which account for 60 per cent of our total revenues. There will be both new products and product substitution. Especially in the case of trucks, where nylon and bias tyres are getting substituted to radial. World over, it is more of radial. In India, radialisation is slowly happening.
Today, most of our sales today is skewed towards domestic market. We also want to focus on exports, which account for 10 per cent of business. That mix will not change overnight. But we would like exports to grow.
MRF witnessed labour unrest in 2010 and 2011… Are you concerned?
There have been labour issues across the country, North and South. Labour issue keeps coming up; it is not industry or region specific. Many times it comes up when labour agreements are due. Things have been amicably settled now and all our plants are running.
Source: http://www.thehindubusinessline.com/companies/article2444553.ece
Rubber Declines as Debt Crisis May Hurt Demand
September 12, 2011
Rubber dropped for a second day as the sovereign debt crisis inEurope raised concern that demand for the commodity used for tires may weaken.
The February-delivery contract fell as much as 1.8 percent to 362.1 yen a kilogram ($4,673 a metric ton) before trading at 363.5 yen on theTokyo Commodity Exchange at 11:29 a.m. local time. Futures dropped 0.2 percent last week.
Oil slid for a third day in New York and Asian stocks fell, extending the benchmark index’s drop last week, amid signs European policy makers are struggling to contain the region’s debt crisis.
“Concerns on European debt crisis dampened market sentiment,” Naoki Asami, head of international department at Kanetsu Shoji Co., said by phone from Tokyo. Volume is “very light” as most investors are on the sidelines, he added.
Officials in Chancellor Angela Merkel’s government are debating how to shore up German banks in the event that Greece fails to meet the budget-cutting terms of its aid package and is unable to get a bailout-loan payment, three coalition officials said Sept. 9. BNP Paribas SA, Societe Generale SA and Credit Agricole SA, France’s largest banks by market value, may have their credit ratings cut by Moody’s Investors Service as soon as this week because of Greek holdings, two people with knowledge of the matter said on Sept. 10.
“More Downside”
In Europe, “things are probably going to get worse before they get better,” Erwin Sanft, deputy head of Asian equities research at BNP Paribas SA in Hong Kong, said in an interview on Bloomberg Television today. “Here in Asia, we’re looking at much more downside for markets. Much larger economies are being drawn into this crisis.”
Rubber has lost 12 percent this year after climbing to a record 535.7 yen on Feb. 18. The European Union is the second- largest consumer of rubber and the U.S. is the fourth-largest, according to data from the Singapore-based International Rubber Study Group.
The market downside is likely to be limited as increasing imports from China showed the demand remains strong, Asami said.
Natural rubber imports by China in August were 200,000 tons, said a statement on the custom agency’s website on Sept. 10. That compares with 130,000 tons in July and 160,000 tons a year ago, according to Bloomberg data.
Natural-rubber inventories rose 3,558 tons to 33,376 tons, the highest since March, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange reported in its weekly report on Sept 9.
China’s passenger-car sales rose 3.3 percent in August from a year earlier to 1.04 million units, data from China’s Passenger Car Association showed last week.
In Shanghai, rubber for January delivery gained 1 percent to close at 34,095 yuan ($5,338) a ton on Sept. 9. The market is closed for a public holiday today.
Rains spread across southern Thailand, disrupting tapping, according to the Rubber Research Institute of Thailand. The cash price of Thai rubber declined 0.4 percent to 141.4 baht ($4.71) a kilogram on Sept. 9, according to the institute.
Source: http://www.bloomberg.com/news/2011-09-12/rubber-declines-for-second-day-as-debt-crisis-may-hurt-demand.html
Tokyo futures fall on global econ, debt worries (Sept 12)
September 12, 2011
TOKYO, Sept 12 (Reuters) – Key Tokyo rubber futures fell nearly two percent on Monday, as sentiment turned bearish on a drop in oil prices, concerns over the global economy and worries about Europe’s deepening debt crisis.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery dropped 6.5 yen, or 1.8 percent, to 362.1 yen per kg.
* The most active Shanghai rubber contract for January was up 330 yuan to finish at 34,095 yuan ($5,340) per tonne on Friday. Volume stood at 668,824 lots.
* Chinese financial markets are closed on Monday for a holiday, reopening on Tuesday.
* The euro got off to a rocky start in Asia on Monday, falling to fresh six-month lows against the greenback and a 10-year trough on the yen as downside momentum picked up pace after several key technical levels gave way recently.
* Oil declined by about $1 on Monday with a stronger dollar, as investors shunned commodity risk because of Europe’s deepening sovereign debt crisis, while economic gloom dampened the outlook for energy use.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Big Japanese manufacturers turned optimistic about business conditions in the three months to September compared with the previous quarter, a survey showed on Monday, as a rapid recovery in supply chains and output following the March 11 natural disaster lifted sentiment.
* China’s key commodity imports, including crude oil, copper and iron ore, all climbed in August from the previous month, adding to evidence that demand in the world’s second-largest economy was still going strong despite the economic turmoil in the West.
* Group of Seven finance chiefs pledged on Friday to make a coordinated response to a slowdown in the global economy but offered few specifics and differed in emphasis on Europe’s debt crisis.
* Juergen Stark, the European Central Bank’s executive board member and chief economist, resigned unexpectedly on Friday in conflict with the bank’s policy of buying government bonds to combat the euro zone’s debt crisis.
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 11.9 percent last week, the exchange said on Friday.
* The Nikkei stock average fell on Monday after Wall Street tumbled.
* U.S. stocks fell more than 2 percent on Friday after the top German official at the European Central Bank resigned in protest of the bank’s bond-buying programme, which has been a major tool in fighting the region’s debt crisis.
News.... The Central Government has enhanced the duty of excise(cess) on rubber under the Rubber Act 1947 from Rs. 1.50 to Rs. 2.00 per kilogram with
News.... The Central Government has enhanced the duty of excise(cess) on rubber under the Rubber Act 1947 from Rs. 1.50 to Rs. 2.00 per kilogram with effect from 1st September 2011
Visit THE RUBBER BOARD website for the news at
http://www.rubberboard.org.in/
Are We Facing a Tire Shortage?
September 10, 2011
Increasing global car demand could lead to domestic Japanese synthetic rubber and tire shortage, but there are other implications, too.
Japanese vehicle makers are set to increase their production output between October 2011 and March 2012 and this is likely to lead to a shortage of synthetic rubber.
At roughly the same time Bridgestone Corp. notified OEMs that orders for passenger car tires are likely exceed its domestic production capacity, concerns were raised that the country could be in line for both a synthetic rubber and a domestic replacement tire shortage.
According to an official statement Bridgestone released to the Nikkei, the company is expected to face a shortage of an estimated 500,000 tires this year, roughly 5% of domestic OEM orders received.
The regulatory filing went on to explain that Bridgestone’s seven domestic plants making passenger car tires are “operating around the clock and have no room to raise output.” Bringing in tires is the obvious option, but “procuring tires from plants overseas appears to be difficult due to strong demand there,” the Nikkei report said.
And this is all set against an increase in global output from the Japanese-based global carmakers. Toyota and seven other major manufacturers of passenger cars projected a 2% year-on-year increase in global output in the six months to end-March 2012, with major hikes planned in Japan, platts.com reported.
Market analysts, including a response from Morgan Stanley, added further light to the comments, summarizing the Bridgestone announcement as hinging on two key issues: it might not be able to keep pace with increasing demand next year and is preparing to increase production by January; and it has no plans to increase prices further to counter higher raw material costs.
The latter point is perhaps the more surprising of the two as it comes after a long period of price increases from tire manufacturers across the board who have all responded to sky-high input costs by increasing prices.
Morgan Stanley’s concurred with this analysis and even put it a grade stronger. These comments “appear in sharp contradiction” the bankers said in an investor’s note published Sept. 5, adding: “high demand and low capacity are usually the perfect environment to raise tire prices – this is what the tire industry has consistently done in the last 12 months.”
Their view, based on comments from peers in the tire industry, is that it is becoming clear that volumes are softening in the developed markets. “Hence, one potential explanation for the slightly odd statement above may simply be that we have a combination of growing capacity, softening demand and lower raw material costs,” the analysts surmised, with a warning: “If companies shift towards market share gain rather than price discipline we could see considerable more pricing pressure in 2012.”
The theory is that the global market may witness what Morgan Stanley referred to as a “huge decoupling” in its midst with the U.S. being the region described as most at risk, followed by Europe. “We think tire replacement markets in Latin America and China will surprise the bears as the key structural leading indicators (car parc, number of cars on the road) have been increasing at a much higher pace than in develop market.” (Tyres & Accessories)
Source: http://www.tirereview.com/Article/91568/Are-We-Facing-a-Tire-Shortage.aspx
Tokyo futures fall on global econ, debt worries (Sept 12)
September 12, 2011
TOKYO, Sept 12 (Reuters) – Key Tokyo rubber futures fell nearly two percent on Monday, as sentiment turned bearish on a drop in oil prices, concerns over the global economy and worries about Europe’s deepening debt crisis.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery dropped 6.5 yen, or 1.8 percent, to 362.1 yen per kg.
* The most active Shanghai rubber contract for January was up 330 yuan to finish at 34,095 yuan ($5,340) per tonne on Friday. Volume stood at 668,824 lots.
* Chinese financial markets are closed on Monday for a holiday, reopening on Tuesday.
* The euro got off to a rocky start in Asia on Monday, falling to fresh six-month lows against the greenback and a 10-year trough on the yen as downside momentum picked up pace after several key technical levels gave way recently.
* Oil declined by about $1 on Monday with a stronger dollar, as investors shunned commodity risk because of Europe’s deepening sovereign debt crisis, while economic gloom dampened the outlook for energy use.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Big Japanese manufacturers turned optimistic about business conditions in the three months to September compared with the previous quarter, a survey showed on Monday, as a rapid recovery in supply chains and output following the March 11 natural disaster lifted sentiment.
* China’s key commodity imports, including crude oil, copper and iron ore, all climbed in August from the previous month, adding to evidence that demand in the world’s second-largest economy was still going strong despite the economic turmoil in the West.
* Group of Seven finance chiefs pledged on Friday to make a coordinated response to a slowdown in the global economy but offered few specifics and differed in emphasis on Europe’s debt crisis.
* Juergen Stark, the European Central Bank’s executive board member and chief economist, resigned unexpectedly on Friday in conflict with the bank’s policy of buying government bonds to combat the euro zone’s debt crisis.
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 11.9 percent last week, the exchange said on Friday.
* The Nikkei stock average fell on Monday after Wall Street tumbled.
* U.S. stocks fell more than 2 percent on Friday after the top German official at the European Central Bank resigned in protest of the bank’s bond-buying programme, which has been a major tool in fighting the region’s debt crisis.
Tokyo futures down as global economy (Sept 9)
September 10, 2011
BANGKOK, Sept 9 (Reuters) – Tokyo rubber futures ended slightly lower on Friday, with investors liquidating contracts to avoid risk amid lingering concerns about global economic uncertainty, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery fell 1.3 yen to settle at 368.6 yen ($4.7) per kg.
The most active Shanghai rubber contract for January was up 330 yuan to finish at 34,095 yuan ($5,340)per tonne.
“Players still worried about possible world economic contraction led by the U.S. and Europe problems. So they sold contract, made profit and stayed on sidelines ahead of the weekend,” one dealer said.
European debt concerns emerged again as Greece’s economy minister said on Thursday he expected the country’s budget deficit to be greater than the highly indebted country had agreed with international creditors.
On the U.S. side, many more Americans than expected filed new claims for jobless benefits, stoking worries about the economy.
Dealers said they expected TOCOM prices to stay firm next week as steadier oil prices should provide support.
However, upside was likely to be capped at a key psychological level of 375 yen by profit-taking, while 365 yen downside was seen as a strong support level, they said.
Brent crude edged up towards $115 a barrel on Friday, after falling more than a dollar in the previous session, supported by storm threats and uncertainty about U.S. President Barack Obama’s latest plan to revive the world’s largest economy.
($1 = 77.365 Japanese Yen)
($1 = 6.384 Chinese Yuan)
Source: http://sg.finance.yahoo.com/news/RUBBER-Tokyo-futures-global-rsg-3865316437.html
Malaysia: Rubber mart to continue uptrend
September 10, 2011
The Malaysian rubber market is expected to continue its uptrend next week amid the bad weather in major producing countries such as Thailand and Sumatera, Indonesia.
Dealers said the market was anticipated to follow movement on the Tokyo Commodity Exchange (TOCOM) and the Shanghai Futures Exchange. For the week just-ended, the market traded mixed with falling futures prices on TOCOM weighing on prices.
“Players are still worried about possible world economic contraction led by the US and Europe problems.
The Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 added 6.50 sen per kg to 1,388 sen while latex-in-bulk remained unchanged at 870 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 advanced 7.5 sen per kg to 1,387 sen while latex-in-bulk rose three sen to Friday at 870.50 sen per kg. — Bernama
Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20110910134626/Article/index_html
Visit THE RUBBER BOARD website for the news at
http://www.rubberboard.org.in/
Are We Facing a Tire Shortage?
September 10, 2011
Increasing global car demand could lead to domestic Japanese synthetic rubber and tire shortage, but there are other implications, too.
Japanese vehicle makers are set to increase their production output between October 2011 and March 2012 and this is likely to lead to a shortage of synthetic rubber.
At roughly the same time Bridgestone Corp. notified OEMs that orders for passenger car tires are likely exceed its domestic production capacity, concerns were raised that the country could be in line for both a synthetic rubber and a domestic replacement tire shortage.
According to an official statement Bridgestone released to the Nikkei, the company is expected to face a shortage of an estimated 500,000 tires this year, roughly 5% of domestic OEM orders received.
The regulatory filing went on to explain that Bridgestone’s seven domestic plants making passenger car tires are “operating around the clock and have no room to raise output.” Bringing in tires is the obvious option, but “procuring tires from plants overseas appears to be difficult due to strong demand there,” the Nikkei report said.
And this is all set against an increase in global output from the Japanese-based global carmakers. Toyota and seven other major manufacturers of passenger cars projected a 2% year-on-year increase in global output in the six months to end-March 2012, with major hikes planned in Japan, platts.com reported.
Market analysts, including a response from Morgan Stanley, added further light to the comments, summarizing the Bridgestone announcement as hinging on two key issues: it might not be able to keep pace with increasing demand next year and is preparing to increase production by January; and it has no plans to increase prices further to counter higher raw material costs.
The latter point is perhaps the more surprising of the two as it comes after a long period of price increases from tire manufacturers across the board who have all responded to sky-high input costs by increasing prices.
Morgan Stanley’s concurred with this analysis and even put it a grade stronger. These comments “appear in sharp contradiction” the bankers said in an investor’s note published Sept. 5, adding: “high demand and low capacity are usually the perfect environment to raise tire prices – this is what the tire industry has consistently done in the last 12 months.”
Their view, based on comments from peers in the tire industry, is that it is becoming clear that volumes are softening in the developed markets. “Hence, one potential explanation for the slightly odd statement above may simply be that we have a combination of growing capacity, softening demand and lower raw material costs,” the analysts surmised, with a warning: “If companies shift towards market share gain rather than price discipline we could see considerable more pricing pressure in 2012.”
The theory is that the global market may witness what Morgan Stanley referred to as a “huge decoupling” in its midst with the U.S. being the region described as most at risk, followed by Europe. “We think tire replacement markets in Latin America and China will surprise the bears as the key structural leading indicators (car parc, number of cars on the road) have been increasing at a much higher pace than in develop market.” (Tyres & Accessories)
Source: http://www.tirereview.com/Article/91568/Are-We-Facing-a-Tire-Shortage.aspx
Tokyo futures fall on global econ, debt worries (Sept 12)
September 12, 2011
TOKYO, Sept 12 (Reuters) – Key Tokyo rubber futures fell nearly two percent on Monday, as sentiment turned bearish on a drop in oil prices, concerns over the global economy and worries about Europe’s deepening debt crisis.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery dropped 6.5 yen, or 1.8 percent, to 362.1 yen per kg.
* The most active Shanghai rubber contract for January was up 330 yuan to finish at 34,095 yuan ($5,340) per tonne on Friday. Volume stood at 668,824 lots.
* Chinese financial markets are closed on Monday for a holiday, reopening on Tuesday.
* The euro got off to a rocky start in Asia on Monday, falling to fresh six-month lows against the greenback and a 10-year trough on the yen as downside momentum picked up pace after several key technical levels gave way recently.
* Oil declined by about $1 on Monday with a stronger dollar, as investors shunned commodity risk because of Europe’s deepening sovereign debt crisis, while economic gloom dampened the outlook for energy use.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Big Japanese manufacturers turned optimistic about business conditions in the three months to September compared with the previous quarter, a survey showed on Monday, as a rapid recovery in supply chains and output following the March 11 natural disaster lifted sentiment.
* China’s key commodity imports, including crude oil, copper and iron ore, all climbed in August from the previous month, adding to evidence that demand in the world’s second-largest economy was still going strong despite the economic turmoil in the West.
* Group of Seven finance chiefs pledged on Friday to make a coordinated response to a slowdown in the global economy but offered few specifics and differed in emphasis on Europe’s debt crisis.
* Juergen Stark, the European Central Bank’s executive board member and chief economist, resigned unexpectedly on Friday in conflict with the bank’s policy of buying government bonds to combat the euro zone’s debt crisis.
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 11.9 percent last week, the exchange said on Friday.
* The Nikkei stock average fell on Monday after Wall Street tumbled.
* U.S. stocks fell more than 2 percent on Friday after the top German official at the European Central Bank resigned in protest of the bank’s bond-buying programme, which has been a major tool in fighting the region’s debt crisis.
Tokyo futures down as global economy (Sept 9)
September 10, 2011
BANGKOK, Sept 9 (Reuters) – Tokyo rubber futures ended slightly lower on Friday, with investors liquidating contracts to avoid risk amid lingering concerns about global economic uncertainty, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery fell 1.3 yen to settle at 368.6 yen ($4.7) per kg.
The most active Shanghai rubber contract for January was up 330 yuan to finish at 34,095 yuan ($5,340)per tonne.
“Players still worried about possible world economic contraction led by the U.S. and Europe problems. So they sold contract, made profit and stayed on sidelines ahead of the weekend,” one dealer said.
European debt concerns emerged again as Greece’s economy minister said on Thursday he expected the country’s budget deficit to be greater than the highly indebted country had agreed with international creditors.
On the U.S. side, many more Americans than expected filed new claims for jobless benefits, stoking worries about the economy.
Dealers said they expected TOCOM prices to stay firm next week as steadier oil prices should provide support.
However, upside was likely to be capped at a key psychological level of 375 yen by profit-taking, while 365 yen downside was seen as a strong support level, they said.
Brent crude edged up towards $115 a barrel on Friday, after falling more than a dollar in the previous session, supported by storm threats and uncertainty about U.S. President Barack Obama’s latest plan to revive the world’s largest economy.
($1 = 77.365 Japanese Yen)
($1 = 6.384 Chinese Yuan)
Source: http://sg.finance.yahoo.com/news/RUBBER-Tokyo-futures-global-rsg-3865316437.html
Malaysia: Rubber mart to continue uptrend
September 10, 2011
The Malaysian rubber market is expected to continue its uptrend next week amid the bad weather in major producing countries such as Thailand and Sumatera, Indonesia.
Dealers said the market was anticipated to follow movement on the Tokyo Commodity Exchange (TOCOM) and the Shanghai Futures Exchange. For the week just-ended, the market traded mixed with falling futures prices on TOCOM weighing on prices.
“Players are still worried about possible world economic contraction led by the US and Europe problems.
The Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 added 6.50 sen per kg to 1,388 sen while latex-in-bulk remained unchanged at 870 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 advanced 7.5 sen per kg to 1,387 sen while latex-in-bulk rose three sen to Friday at 870.50 sen per kg. — Bernama
Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20110910134626/Article/index_html
Saturday, September 10, 2011
Spiky rates, output cuts hit car sales in August
Spiky rates, output cuts hit car sales in August
NEW DELHI, SEPT 9:
Domestic passenger car sales fell 10.08 per cent for the second consecutive month in August, on account of high interest rates and production cuts by market leader, Maruti Suzuki India.
In August 2011, domestic passenger car sales stood at 144,516 units, against 160,713 units in the same month last year, according to figures released by the Society of Indian Automobile Manufacturers (SIAM).
“We are hopeful of a turnaround in sales with the onset of the festive season. Good monsoons should bring much needed relief.
However, any further rate hike would be fatal for the industry,” SIAM Director General, Mr Vishnu Mathur, told reporters here.
Mr Mathur said that sales in September and October would be crucial in determining industry performance this fiscal.
Entry-level cars being most sensitive to price hikes and high interest rates have taken the biggest hit, he added.
Bullish Two-wheels
Two-wheelers continued their bullish run with motorcycle sales registering a 15.43 per cent growth from 727,542 units in the year ago period to 839,772 units this August.
The scooter segment grew by 24.84 per cent from a base of 170,414 in August 2010 to 212,750 units in August this year.
“The two-wheeler market in India has a huge base, particularly in tier-2 and tier-3 cities. It has, in fact, surpassed our growth projection of 12 per cent for the segment,” said Mr Mathur.
Owing to good monsoons and driven by growth in the light commercial vehicle segment, sales of commercial vehicles grew by 22.62 per cent to 64,248 units in August 2011, from 52,394 units in the year-ago period.
Sales of light commercial vehicles grew by 34.46 per cent to 36,847 in August this year from 27,402 units in the same period last year.
Growth in this segment was largely driven by goods carriers.
Total sales of vehicles across categories registered a growth of 11.85 per cent to 1,412,945 units in August from 1,263,239 units in the same month last year.
Meanwhile, exports were robust, recording a growth of 36.13 per cent from 189,578 units in August 2010 to 258,071 units this month.
Passenger car exports recorded a 35.24 per cent growth with 49,341 cars sold this month from 36,483 units in the year-ago period.
Spot rubber stays steady
KOTTAYAM, SEPT. 8:
Physical rubber prices finished unchanged on Thursday. The market was totally in a holiday mood with only a day left for Onam. Prices failed to react in tandem with the domestic or international futures lacking active market participants to set a definite trend. Sheet rubber closed steady at Rs 215 a kg both at Kottayam and Kochi, according to traders and the Rubber Board. Volumes were dull.
In the futures market, the September series closed at Rs 218.50 (218.52), October at Rs 214.60 (214.49), November at Rs 214.51 (214.11), December at Rs 216 (214.25), January at Rs 217.95 (216.40) and February at Rs 220 (218.62) a kg on the National Multi Commodity Exchange.
RSS 3 (spot) improved to Rs 218.34 (216.82) a kg at Bangkok. The September futures for the grade firmed up to ¥357.5 (Rs 213.89) from ¥353.5 a kg during the day session but then dropped to ¥355 (Rs 212.37) in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 215 (215); RSS-5: 206 (206); ungraded: 200 (200); ISNR 20: 210 (210) and latex 60 per cent 133 (133).
Holiday mood grips rubber market
KOTTAYAM, SEPT. 6:
Spot rubber ruled steady on Tuesday. According to observers, the market was totally in a holiday mood prior to ‘Onam'. Almost a similar trend in the domestic futures market and the absence of quantity buyers on either side kept the sentiments neutral. Sheet rubber finished unchanged at Rs 214 a kg both at Kottayam and Kochi, according to traders and the Rubber Board. The transactions were low.
The September series closed at Rs 217.80 (217.29), October at Rs 213.20 (212.86), November at Rs 213.11 (213.40), December at Rs 213.25 (212.75), January at Rs 215.88 (217) and February at Rs 218.10 (217.40) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) declined to Rs 215.25 (217.20) a kg at Bangkok. The September futures weakened further to ¥347.2 (Rs 206.99) from ¥352 a kg during the day session but then bounced back to ¥354 (Rs 211.05) in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 214 (214); RSS-5: 205 (205); ungraded: 199 (199); ISNR 20: 208.50 (208.50) and latex 60 per cent: 133 (133).
Wednesday, September 7, 2011
Tokyo futures fall on worries over global economy (Sept 6)
Tokyo futures fall on worries over global economy (Sept 6)
September 6, 2011
TOKYO, Sept 6 (Reuters) – Key Tokyo rubber futures fell on Tuesday as ongoing financial trouble in Europe and recent weak U.S. data raised concerns about a deteriorating global economy.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February fell 1.9 yen or 0.5 percent to 359 yen per kg as of 0031 GMT.
* The contract fell as low as 360.0 yen on Monday, the lowest since Aug. 26.
* The most active Shanghai rubber contract for January delivery fell 955 yuan to finish at 32,795 yuan ($5,138) per tonne on Monday. Volume picked up at 600,012 lots from Friday’s 457,812 lots.
* The euro wallowed at one-month lows against the dollar in Asia on Tuesday, while commodity currencies nursed heavy losses as concerns about the health of the global economy prompted investors to dump riskier assets.
* U.S. crude futures declined in early Asian trade on Monday after a U.S. jobs report raised recession worries, outweighing supply concerns over a major shutdown of offshore oil production as Tropical Storm Lee reached the coast of Louisiana on Sunday.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Carmakers in Brazil are throttling back production due to high inventories and signs of cooling demand in Latin America’s largest economy after a red-hot first half of the year.
* The European Union is working on adopting a convincing, longer-term approach to tackling problems relating to national budgets and euro-zone governance, European Commission President Jose Manuel Barroso said on Tuesday.
* China could enter the sugar market to replenish stocks this week, discounts for Vietnamese robusta beans may widen further on ample supply, while rain in top rubber producer Thailand will offer support to Tokyo futures, which set the tone for physical prices.
* The United States was entitled to impose extra safeguard duties on imports of Chinese tyres, the World Trade Organization’s top court said on Monday, upholding a ruling made in December 2010.
* Japan’s Nikkei stock average opened down more than 1 percent on Tuesday, as U.S. stock futures fell in line with a sell-off in Europe on concerns about banks and global recession fears.
New York crude below $85 in Asia
September 6, 2011
AFP – New York crude prices plunged below $85 in Asian trade Tuesday as eurozone debt worries and weak Chinese service sector growth reignited recession fears, analysts said.
New York’s main contract, light sweet crude for delivery in October, dived $2.53 to $83.92 per barrel.
Brent North Sea crude edged up 49 cents to $110.57.
Crude markets were hit after the European Central Bank (ECB) called for the enactment of a second debt rescue for Greece, said Ker Chung Yang, a Singapore-based commodity analyst at Phillip Futures.
“The eurozone debt crisis is a hot topic for 2011, and is one of the factors that will lower the demand for growth,” he told AFP.
“In the commodities market, even the equities market, there are fears of another recession,” Ker added.
ECB head Jean-Claude Trichet warned Monday of an immediate and imperative need for enactment of a second debt rescue for Greece, and for tightened discipline in the management of eurozone economies.
He also spoke of an eventual “confederal” disciplined management of eurozone national finances.
The head of the International Monetary Fund Christine Lagarde repeated her warning that banks in Europe need extra capital to withstand any contagion from the eurozone debt crisis.
In Asia, indications that China’s service sector growth was stuttering also impacted crude prices, Ker said.
“China’s service sector’s growth in August is at the lowest pace in record, as shown by a HSBC PMI (Purchasing Managers’ Index) data,” he added.
Data released by HSBC on Monday showed China’s PMI in August dropping to 50.6 from 53.6 in July.
The figures indicate a slowdown in the world’s largest energy consumer, which has dire ramifications for crude as well as the global economy.
China’s rubber industry stabilised in July
September 6, 2011
Beijing — China’s rubber industry stabilised in the month of July, after a downward trend in the early part of the year, according to the monthly economic report on the industry from the China Rubber Industry Association (CRIA)
CRIA said export growth has remained high, but profitability has been affected by increasing prices of synthetic rubber.
The Association tracks 402 companies in the rubber sectorin China and their combined output in the first seven months was 169.734 billion yuan. Total sales revenue was up by nearly 20 percent on last year, while exports were up by 34 percent on the same period in 2010. Profits, however, were lower.
In the tyre segment, sales were also up by around 20 percent, though volume increases were much lower at between 2 percent and three percent depending on segment. Export values were up by over 30 percent.
Indian tyre makers saw healthy profit growth in quarter – ICRA
September 6, 2011
New Delhi — The Indian tyre industry reported a healthy revenue growth of over 25 percent during fiscal 2010-11, according to a quarterly report by Indian finacial analysts, ICRA. On the downside, said the analysts, a surge in input costs especially that of natural rubber (NR) negated any scale benefits, and resulted in a contraction of industry-wide operating margins by over 500 basis points.
ICRA said, “For fiscal 2011-12, while ICRA expects moderation in automotive OEM tyre demand, the strong growth in OEM sales in the last two fiscals is expected to translate into higher replacement demand. Growth in M&HCV replacement demand however could be affected by a slower economic growth. Besides grappling with high input costs and weak demand, domestic players are expected to face additional pressure with the lifting of anti dumping duty (ADD) (with effect from August 2011) on Truck and Bus radials (TBRs) imported from China and Thailand. “
It continued, “The PV segment is the second largest contributor of revenues for the tyre industry, after the M&HCV segment, accounting for around 15 percent of the total revenues. Domestic demand for passenger vehicles has also muted to around 4.0 percent during the first four months of the current fiscal (April-July 2012) after reporting strong growth upwards of 25 percent during the last two fiscals. ICRA expects sapping consumer sentiments owing to high inflation and spiralling interest rates to cap demand over the next quarter also. However, with a number of new product launches lined up for the festive season, demand is likely to improve marginally from Q3, 2011-12. “
Tokyo futures at 2-week low on economy concerns (Sept 6)
September 6, 2011
BANGKOK, Sept 6 (Reuters) – Tokyo rubber futures slumped to a two-week low on Tuesday, weighed down by persistent fears of a weaker global economy but given some support from firm oil prices, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery fell 4.6 yen to settle at 356.3 yen ($4.6) per kg. It fell more than one percent to 355.9 yen, the lowest since Aug. 23.
The most active Shanghai rubber contract for January delivery was up 115 yuan to finish at 32,910 yuan ($5,153) per tonne.
“An unfinished problem in Europe still weighed on TOCOM prices as it ignited fears of falling demand,” one dealer said.
The European Union is still working on adopting a convincing, longer-term approach to tackling problems relating to national budgets and euro-zone governance, European Commission President Jose Manuel Barroso said on Tuesday.
Dealers said they expected TOCOM prices to move in a narrow range of 350-360 yen per kg this week as concerns on weak economy could still weigh.
However, demand on the physical market and firmness in oil prices should lend some support.
Brent crude was steady at above $110 a barrel on Tuesday, as the market weighed expectations for further economic stimulus in the U.S. against a worsening euro zone debt crisis.
September 6, 2011
TOKYO, Sept 6 (Reuters) – Key Tokyo rubber futures fell on Tuesday as ongoing financial trouble in Europe and recent weak U.S. data raised concerns about a deteriorating global economy.
FUNDAMENTALS
* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February fell 1.9 yen or 0.5 percent to 359 yen per kg as of 0031 GMT.
* The contract fell as low as 360.0 yen on Monday, the lowest since Aug. 26.
* The most active Shanghai rubber contract for January delivery fell 955 yuan to finish at 32,795 yuan ($5,138) per tonne on Monday. Volume picked up at 600,012 lots from Friday’s 457,812 lots.
* The euro wallowed at one-month lows against the dollar in Asia on Tuesday, while commodity currencies nursed heavy losses as concerns about the health of the global economy prompted investors to dump riskier assets.
* U.S. crude futures declined in early Asian trade on Monday after a U.S. jobs report raised recession worries, outweighing supply concerns over a major shutdown of offshore oil production as Tropical Storm Lee reached the coast of Louisiana on Sunday.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* Carmakers in Brazil are throttling back production due to high inventories and signs of cooling demand in Latin America’s largest economy after a red-hot first half of the year.
* The European Union is working on adopting a convincing, longer-term approach to tackling problems relating to national budgets and euro-zone governance, European Commission President Jose Manuel Barroso said on Tuesday.
* China could enter the sugar market to replenish stocks this week, discounts for Vietnamese robusta beans may widen further on ample supply, while rain in top rubber producer Thailand will offer support to Tokyo futures, which set the tone for physical prices.
* The United States was entitled to impose extra safeguard duties on imports of Chinese tyres, the World Trade Organization’s top court said on Monday, upholding a ruling made in December 2010.
* Japan’s Nikkei stock average opened down more than 1 percent on Tuesday, as U.S. stock futures fell in line with a sell-off in Europe on concerns about banks and global recession fears.
New York crude below $85 in Asia
September 6, 2011
AFP – New York crude prices plunged below $85 in Asian trade Tuesday as eurozone debt worries and weak Chinese service sector growth reignited recession fears, analysts said.
New York’s main contract, light sweet crude for delivery in October, dived $2.53 to $83.92 per barrel.
Brent North Sea crude edged up 49 cents to $110.57.
Crude markets were hit after the European Central Bank (ECB) called for the enactment of a second debt rescue for Greece, said Ker Chung Yang, a Singapore-based commodity analyst at Phillip Futures.
“The eurozone debt crisis is a hot topic for 2011, and is one of the factors that will lower the demand for growth,” he told AFP.
“In the commodities market, even the equities market, there are fears of another recession,” Ker added.
ECB head Jean-Claude Trichet warned Monday of an immediate and imperative need for enactment of a second debt rescue for Greece, and for tightened discipline in the management of eurozone economies.
He also spoke of an eventual “confederal” disciplined management of eurozone national finances.
The head of the International Monetary Fund Christine Lagarde repeated her warning that banks in Europe need extra capital to withstand any contagion from the eurozone debt crisis.
In Asia, indications that China’s service sector growth was stuttering also impacted crude prices, Ker said.
“China’s service sector’s growth in August is at the lowest pace in record, as shown by a HSBC PMI (Purchasing Managers’ Index) data,” he added.
Data released by HSBC on Monday showed China’s PMI in August dropping to 50.6 from 53.6 in July.
The figures indicate a slowdown in the world’s largest energy consumer, which has dire ramifications for crude as well as the global economy.
China’s rubber industry stabilised in July
September 6, 2011
Beijing — China’s rubber industry stabilised in the month of July, after a downward trend in the early part of the year, according to the monthly economic report on the industry from the China Rubber Industry Association (CRIA)
CRIA said export growth has remained high, but profitability has been affected by increasing prices of synthetic rubber.
The Association tracks 402 companies in the rubber sectorin China and their combined output in the first seven months was 169.734 billion yuan. Total sales revenue was up by nearly 20 percent on last year, while exports were up by 34 percent on the same period in 2010. Profits, however, were lower.
In the tyre segment, sales were also up by around 20 percent, though volume increases were much lower at between 2 percent and three percent depending on segment. Export values were up by over 30 percent.
Indian tyre makers saw healthy profit growth in quarter – ICRA
September 6, 2011
New Delhi — The Indian tyre industry reported a healthy revenue growth of over 25 percent during fiscal 2010-11, according to a quarterly report by Indian finacial analysts, ICRA. On the downside, said the analysts, a surge in input costs especially that of natural rubber (NR) negated any scale benefits, and resulted in a contraction of industry-wide operating margins by over 500 basis points.
ICRA said, “For fiscal 2011-12, while ICRA expects moderation in automotive OEM tyre demand, the strong growth in OEM sales in the last two fiscals is expected to translate into higher replacement demand. Growth in M&HCV replacement demand however could be affected by a slower economic growth. Besides grappling with high input costs and weak demand, domestic players are expected to face additional pressure with the lifting of anti dumping duty (ADD) (with effect from August 2011) on Truck and Bus radials (TBRs) imported from China and Thailand. “
It continued, “The PV segment is the second largest contributor of revenues for the tyre industry, after the M&HCV segment, accounting for around 15 percent of the total revenues. Domestic demand for passenger vehicles has also muted to around 4.0 percent during the first four months of the current fiscal (April-July 2012) after reporting strong growth upwards of 25 percent during the last two fiscals. ICRA expects sapping consumer sentiments owing to high inflation and spiralling interest rates to cap demand over the next quarter also. However, with a number of new product launches lined up for the festive season, demand is likely to improve marginally from Q3, 2011-12. “
Tokyo futures at 2-week low on economy concerns (Sept 6)
September 6, 2011
BANGKOK, Sept 6 (Reuters) – Tokyo rubber futures slumped to a two-week low on Tuesday, weighed down by persistent fears of a weaker global economy but given some support from firm oil prices, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for February delivery fell 4.6 yen to settle at 356.3 yen ($4.6) per kg. It fell more than one percent to 355.9 yen, the lowest since Aug. 23.
The most active Shanghai rubber contract for January delivery was up 115 yuan to finish at 32,910 yuan ($5,153) per tonne.
“An unfinished problem in Europe still weighed on TOCOM prices as it ignited fears of falling demand,” one dealer said.
The European Union is still working on adopting a convincing, longer-term approach to tackling problems relating to national budgets and euro-zone governance, European Commission President Jose Manuel Barroso said on Tuesday.
Dealers said they expected TOCOM prices to move in a narrow range of 350-360 yen per kg this week as concerns on weak economy could still weigh.
However, demand on the physical market and firmness in oil prices should lend some support.
Brent crude was steady at above $110 a barrel on Tuesday, as the market weighed expectations for further economic stimulus in the U.S. against a worsening euro zone debt crisis.
Tuesday, September 6, 2011
Tokyo futures fall on weaker oil, econ worry (Sept 5)
Tokyo futures fall on weaker oil, econ worry (Sept 5)
September 5, 2011
TOKYO, Sept 5 (Reuters) – Key Tokyo rubber futures fell on Monday after weak U.S. jobs data raised concerns about the economy while a drop in oil prices weighed on investor sentiment.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> was down 1.7 yen or 0.5 percent at 367.8 yen per kg as of 0015 GMT.
* The market ended last week up 1.9 percent for its second straight weekly gain and the biggest weekly increase in seven weeks.
* The most active Shanghai rubber contract for January delivery inched down 0.6 percent to close at 33,750 yuan ($5,288.891) per tonne on Friday. Volume slipped to 457,812 lots from Thursday’s 515,462 lots.
* Oil prices extended losses in early Asia on Monday, after ending lower ahead of the Labor Day holiday weekend on Friday when a bleak jobs report stoked recession worries, outweighing production shut-ins in the Gulf of Mexico as Tropical Storm Lee formed near the Louisiana coast.
* The euro fell to fresh three-week lows against the dollar in Asia on Monday, while commodity currencies also came under pressure as worries about the euro zone debt problems and weak U.S. payrolls data hit appetite for riskier assets.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* U.S. employment growth ground to a halt in August, reviving recession fears and piling pressure on President Barack Obama and the Federal Reserve to provide more stimulus to aid the economy.
* Ford Motor plans to more than double its offers across vehicle segments in China, the world’s top market, as it speeds up the launch of new models, a senior executive said on Saturday.
* Tokyo rubber futures could slip to 368.8 yen ($4.80) a kg at the end of September as concerns about the global economy spurred speculators to switch to safe haven assets such as gold, and the lower prices would attract purchases from tyre makers.
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 13.5 percent last week, the exchange said on Friday.
* German automotive association VDA raised its 2011 outlook for the car market in Europe’s biggest economy on Friday, saying it now sees more than 3.1 million new car registrations.
* Japan’s benchmark Nikkei stock average opened down 1.4 percent at 8,828.46 on Monday after Friday’s U.S. employment report heightened fears that another recession might be unavoidable.
* U.S. stocks tumbled 2 percent on Friday after the jobs report.
Rubber prices on 05 Sept
September 5, 2011
London — On Tokyo’s Tocom Exchange, prices for the six-month contract eased by 10 yen over the weekend, trading at around yen 360 ($4.68) per kg on Monday 5 Sept. Shorter-dated prices were trading around at yen 352.
In Singapore, SGX said prices for RSS3 for delivery in March 2012 were down slightly, at $4.74, while short-dated contracts were trading around $4.67. TSR20 for delivery in January 2012 was trading around $4.61.
In India, the NMCE said prices were down on last week’s prices, with September deliveries priced at Rs 216 ($4.70).
In China, the Shanghai Futures Exchange also saw prices ease by a faction of a yuan, with September deliveries trading at around Yuan 33.0 ($5.16) per kilo.
September 5, 2011
TOKYO, Sept 5 (Reuters) – Key Tokyo rubber futures fell on Monday after weak U.S. jobs data raised concerns about the economy while a drop in oil prices weighed on investor sentiment.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> was down 1.7 yen or 0.5 percent at 367.8 yen per kg as of 0015 GMT.
* The market ended last week up 1.9 percent for its second straight weekly gain and the biggest weekly increase in seven weeks.
* The most active Shanghai rubber contract for January delivery inched down 0.6 percent to close at 33,750 yuan ($5,288.891) per tonne on Friday. Volume slipped to 457,812 lots from Thursday’s 515,462 lots.
* Oil prices extended losses in early Asia on Monday, after ending lower ahead of the Labor Day holiday weekend on Friday when a bleak jobs report stoked recession worries, outweighing production shut-ins in the Gulf of Mexico as Tropical Storm Lee formed near the Louisiana coast.
* The euro fell to fresh three-week lows against the dollar in Asia on Monday, while commodity currencies also came under pressure as worries about the euro zone debt problems and weak U.S. payrolls data hit appetite for riskier assets.
* For top stories on the rubber market and other news click , or
MARKET NEWS
* U.S. employment growth ground to a halt in August, reviving recession fears and piling pressure on President Barack Obama and the Federal Reserve to provide more stimulus to aid the economy.
* Ford Motor plans to more than double its offers across vehicle segments in China, the world’s top market, as it speeds up the launch of new models, a senior executive said on Saturday.
* Tokyo rubber futures could slip to 368.8 yen ($4.80) a kg at the end of September as concerns about the global economy spurred speculators to switch to safe haven assets such as gold, and the lower prices would attract purchases from tyre makers.
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 13.5 percent last week, the exchange said on Friday.
* German automotive association VDA raised its 2011 outlook for the car market in Europe’s biggest economy on Friday, saying it now sees more than 3.1 million new car registrations.
* Japan’s benchmark Nikkei stock average opened down 1.4 percent at 8,828.46 on Monday after Friday’s U.S. employment report heightened fears that another recession might be unavoidable.
* U.S. stocks tumbled 2 percent on Friday after the jobs report.
Rubber prices on 05 Sept
September 5, 2011
London — On Tokyo’s Tocom Exchange, prices for the six-month contract eased by 10 yen over the weekend, trading at around yen 360 ($4.68) per kg on Monday 5 Sept. Shorter-dated prices were trading around at yen 352.
In Singapore, SGX said prices for RSS3 for delivery in March 2012 were down slightly, at $4.74, while short-dated contracts were trading around $4.67. TSR20 for delivery in January 2012 was trading around $4.61.
In India, the NMCE said prices were down on last week’s prices, with September deliveries priced at Rs 216 ($4.70).
In China, the Shanghai Futures Exchange also saw prices ease by a faction of a yuan, with September deliveries trading at around Yuan 33.0 ($5.16) per kilo.
Monday, September 5, 2011
Market on Sept 3: Spot rubber prices decline
Market on Sept 3: Spot rubber prices decline
September 4, 2011
KOTTAYAM, SEPT. 3:
Domestic rubber prices declined on Saturday.
In spot, the market lost ground following the weak closing on the National Multi Commodity Exchange (NMCE).
The September series weakened to Rs 216.36 (219.06), October to Rs 212.72 (216.75), November to Rs 212.35 (216.01), December to Rs 213.75 (216.38), January to Rs 216.50 (218.07) and February to Rs 216.90 (218.80) a kg for RSS 4 on the NMCE.
Spot rates were (Rs/kg): RSS-4: 214.50 (217); RSS-5: 206 (209); ungraded: 200 (202); ISNR 20: 210 (210) and latex 60 per cent: 133 (133.50).
NYMEX-Crude dips as jobs data fuels recession fears
September 3, 2011
* US August nonfarm payrolls flat, stokes demand worry
* Gulf Coast weather watch shifts to potential flooding
* CFTC: US crude specs raise net longs in week to Aug 30
* Coming up: US August ISM non-manufacturing data, Tuesday
NEW YORK, Sept 2 (Reuters) – U.S. crude futures ended lower on Friday ahead of the Labor Day holiday weekend as a bleak jobs report stoked recession worries, outweighing production shut-ins in the Gulf of Mexico as Tropical Storm Lee formed near the Louisiana coast.
Crude oil futures moved lower with Wall Street, and bellwether commodities such as copper, though gold rose on safe-haven buying due to the disappointing jobs report.
Tropical Storm Lee threatened offshore energy platforms and refineries along the Louisiana coast with heavy rains and flooding. [ID:nN1E7810KA]
Major oil and natural gas producers and pipeline operators have already evacuated personnel and shut in production at platforms in the Gulf.
As of midday Friday, 666,321 barrels per day, or 47.6 percent of U.S. Gulf oil production had been shut. In addition, 1.743 billion cubic feet per day of natural gas output, or 33 percent of Gulf gas production had also been shut.
For a FACTBOX on storm-related developments in the U.S. Gulf, see [ID:nN1E781OTM]
Trading was choppy for most of the week, with prices gaining $3.56, or 4.2 percent, in four previous sessions. Support came from storm fears, a sharp decline in U.S. gasoline inventories and hopes that the U.S. Federal Reserve would provide new stimulus to help sustain economic recovery.
U.S. President Barack Obama will address a joint session of Congress next Thursday on ways to increase job creation and speed up economic growth. For details, see [ID:nWNA7806]
FUNDAMENTALS
* On the New York Mercantile Exchange, crude for October delivery CLV1 settled at $86.45 a barrel, falling $2.48, or 2.79 percent, after trading from $85.42 to $88.99.
* For the week, front-month crude rose $1.08, or 1.27 percent, from the $85.37 close on Aug. 26 and extended gains to a second straight week.
* In London, ICE Brent for October delivery LCOV1 settled at $112.33 a barrel, falling $1.96, or 1.71 percent, after trading between $111.36 to $114.58.
* For the week front-month Brent gained 97 cents, or 0.87 percent, from the $111.36 settlement on Aug. 26, gaining for the third straight week.
* Brent crude’s premium against U.S. crude widened to a record $26.98, erasing the previous high of $26.69 hit on Aug. 19. At the close, the premium stood at $25.88. CL=LCO1=R>
* NYMEX October heating oil HOV1 ended lower and for the week dropped 1.27 cents, or 0.42 percent, after gaining two previous weeks.
* NYMEX October RBOB RBV1 settled lower and for the week fell 9.5 cents, or 3.24 percent, snapping three weeks of gains.
* Speculators raised their net long futures and options positions in U.S. crude by 18,422 positions, or 12 percent, to 161,617, the biggest percentage rise since June, the U.S. Commodity Futures Trading Commission said. [ID:nEMS0D41HN]
* U.S. nonfarm payrolls were unchanged last month and employers created a combined 58,000 fewer jobs than earlier reported in June and July, the Labor Department said. The unemployment rate remained at 9.1 percent.[ID:nOAT004865]
* Russia is likely to increase its crude oil exports via the Baltic Sea ports in 2012 by 40 percent to around 100 million tonnes. [ID:nL5E7K22AE]
* Libya is counting on quickly restoring production to revive its economy, and five international oil firms are already back and working to resume operations.
September 4, 2011
KOTTAYAM, SEPT. 3:
Domestic rubber prices declined on Saturday.
In spot, the market lost ground following the weak closing on the National Multi Commodity Exchange (NMCE).
The September series weakened to Rs 216.36 (219.06), October to Rs 212.72 (216.75), November to Rs 212.35 (216.01), December to Rs 213.75 (216.38), January to Rs 216.50 (218.07) and February to Rs 216.90 (218.80) a kg for RSS 4 on the NMCE.
Spot rates were (Rs/kg): RSS-4: 214.50 (217); RSS-5: 206 (209); ungraded: 200 (202); ISNR 20: 210 (210) and latex 60 per cent: 133 (133.50).
NYMEX-Crude dips as jobs data fuels recession fears
September 3, 2011
* US August nonfarm payrolls flat, stokes demand worry
* Gulf Coast weather watch shifts to potential flooding
* CFTC: US crude specs raise net longs in week to Aug 30
* Coming up: US August ISM non-manufacturing data, Tuesday
NEW YORK, Sept 2 (Reuters) – U.S. crude futures ended lower on Friday ahead of the Labor Day holiday weekend as a bleak jobs report stoked recession worries, outweighing production shut-ins in the Gulf of Mexico as Tropical Storm Lee formed near the Louisiana coast.
Crude oil futures moved lower with Wall Street, and bellwether commodities such as copper, though gold rose on safe-haven buying due to the disappointing jobs report.
Tropical Storm Lee threatened offshore energy platforms and refineries along the Louisiana coast with heavy rains and flooding. [ID:nN1E7810KA]
Major oil and natural gas producers and pipeline operators have already evacuated personnel and shut in production at platforms in the Gulf.
As of midday Friday, 666,321 barrels per day, or 47.6 percent of U.S. Gulf oil production had been shut. In addition, 1.743 billion cubic feet per day of natural gas output, or 33 percent of Gulf gas production had also been shut.
For a FACTBOX on storm-related developments in the U.S. Gulf, see [ID:nN1E781OTM]
Trading was choppy for most of the week, with prices gaining $3.56, or 4.2 percent, in four previous sessions. Support came from storm fears, a sharp decline in U.S. gasoline inventories and hopes that the U.S. Federal Reserve would provide new stimulus to help sustain economic recovery.
U.S. President Barack Obama will address a joint session of Congress next Thursday on ways to increase job creation and speed up economic growth. For details, see [ID:nWNA7806]
FUNDAMENTALS
* On the New York Mercantile Exchange, crude for October delivery CLV1 settled at $86.45 a barrel, falling $2.48, or 2.79 percent, after trading from $85.42 to $88.99.
* For the week, front-month crude rose $1.08, or 1.27 percent, from the $85.37 close on Aug. 26 and extended gains to a second straight week.
* In London, ICE Brent for October delivery LCOV1 settled at $112.33 a barrel, falling $1.96, or 1.71 percent, after trading between $111.36 to $114.58.
* For the week front-month Brent gained 97 cents, or 0.87 percent, from the $111.36 settlement on Aug. 26, gaining for the third straight week.
* Brent crude’s premium against U.S. crude widened to a record $26.98, erasing the previous high of $26.69 hit on Aug. 19. At the close, the premium stood at $25.88. CL=LCO1=R>
* NYMEX October heating oil HOV1 ended lower and for the week dropped 1.27 cents, or 0.42 percent, after gaining two previous weeks.
* NYMEX October RBOB RBV1 settled lower and for the week fell 9.5 cents, or 3.24 percent, snapping three weeks of gains.
* Speculators raised their net long futures and options positions in U.S. crude by 18,422 positions, or 12 percent, to 161,617, the biggest percentage rise since June, the U.S. Commodity Futures Trading Commission said. [ID:nEMS0D41HN]
* U.S. nonfarm payrolls were unchanged last month and employers created a combined 58,000 fewer jobs than earlier reported in June and July, the Labor Department said. The unemployment rate remained at 9.1 percent.[ID:nOAT004865]
* Russia is likely to increase its crude oil exports via the Baltic Sea ports in 2012 by 40 percent to around 100 million tonnes. [ID:nL5E7K22AE]
* Libya is counting on quickly restoring production to revive its economy, and five international oil firms are already back and working to resume operations.
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