Tyre makers, rubber industry want futures suspended
November 18, 2011
Kochi, Nov. 17:
Mr Vinod Simon, President of AIRIA, said in a statement that speculation in domestic futures seems to give least consideration to demand-supply fundamentals. It is quite puzzling why domestic rubber should rule significantly higher than international prices when “we are in midst of peak production months and carrying more than 2.5 lakh tonnes as suggested by the Rubber Board”.
In a letter to the Forward Market Commission, the ATMA has pointed to speculation in futures impacting the spot market. According to the communication, the recently-expired November contract had open position of 1,491 tonnes as on November 1 and stocks in warehouses were just 110 tonnes. This held the contract under pressure till expiry.
Resultant trends were just not in sync with fundamentals. The November contract shot up to cross even Rs 19,900 on November 12, while international prices of RSS-3 (equivalent to India’s RSS4), according to the Rubber Board were just Rs 16,182.
Fallouts
According to NR consumers, there are several direct fall-outs of this phenomenon. Farmers and traders get misguided by temporary and illogical trends and tend to hold stocks, while on the other hand, consumers have no option but to contract imports, as not only availability is grossly inadequate, but landed price difference too is very large in range of Rs 25-30 a kg. However growers and traders both stand at risk as situation could get worse when heavy imports land up in peak production months.
The concern expressed by NR consumers comes in the wake of a related communication by Mr N. Radhakrishnan of Cochin Merchants Association to Prof K V Thomas, Union Minister of State for Food and Consumer Affairs, saying that though delivery effected by futures is only 16,000 tonnes in a year, the speculators transact 24 lakh tonnes in the exchanges creating heavy volatility in the prices.
Such speculative character of futures trade adversely affects the regular NR traders who physically buy rubber from farmers and sell the same to consumers. The dealers have to invest the entire amount in buying rubber from growers, whereas the speculators in futures need only the margin money to trade unlimited quantities. Neither the speculators nor the exchanges have any direct contact with the growers, he said.
The traders are not against the concept of futures trading but are concerned at the manner in which the speculators conduct futures trade through exchanges. The speculators in NR futures only try to push up or pull down the market every day to take advantage of the volatility, he said.
Tuesday, November 29, 2011
Rain could slow rubber production
Rain could slow rubber production
November 28, 2011
Bangkok: Growth in natural rubber production in key growing countries may slow next year as heavy rains disrupt tapping and declining prices prompt growers to cut supply, according to the Association of Natural Rubber Producing Countries.
“Weather impacts and prices influence the trends of natural rubber supply,” Kamarul Bahrain Bashir, secretary-general of the Kuala Lumpur-based association said in an interview yesterday. Prices move down following economic trends, driving producers to cut supply in response to declining demand, he said.
Demand set to rise
Production from its member countries, representing 92 per cent of global supply, may expand 3.7 per cent to 10.4 million tons next year. That compared with a revised growth of 5.6 per cent to 10 million tons this year, Kamarul said on a sideline of the Global Rubber Conference in Phnom Penh.
Demand from member countries, which accounts for 57 per cent of global consumption, is estimated to rise 2.9 per cent next year to 6.3 million tons, he added.
Declining supply will help support rubber futures which have tumbled 37 per cent this year.
Rubber output growth may slow next year
November 28, 2011
GROWTH in natural rubber production in key growing countries may slow next year as heavy rains disrupt tapping and declining prices prompt growers to cut supply, according to the Association of Natural Rubber Producing Countries.
“Weather impacts and prices influence the trends of natural rubber supply,” Kamarul Baharain Basir, secretary-general of the Kuala Lumpur-based association said in an interview yesterday. Prices move down following economic trends, driving producers to cut supply in response to declining demand, he added.
Production from its member countries, representing 92 per cent of global supply, may expand 3.7 per cent to 10.4 million tonnes next year. That compared with a revised growth of 5.6 per cent to 10 million tonnes this year, Kamarul said on a sideline of the Global Rubber Conference in Phnom Penh.
Demand from member countries, which accounts for 57 per cent of global consumption, is estimated to rise 2.9 per cent next year to 6.3 million tonnes, he added.
Declining supply will help support rubber futures which have tumbled 37 per cent this year as Europe’s deepening sovereign-debt crisis and the worst floods in almost 70 years in Thailand, which disrupted car production in Asia and North America, raised demand concerns.
“The natural rubber market is likely to continue lacking momentum due to the possibility of sluggish demand in the short term,” said Kamarul.
Lower prices will encourage growers, especially in Thailand, Indonesia and Malaysia, to increase cutting down aged trees, Kamarul said. The replanting rate is estimated to be around 3 per cent to 4 per cent during 2013 to 2018, which will result in annual production growth of 2 per cent to 6 per cent during the period, he added. Bloomberg
Rubber production may fall in 2012 on adverse weather
November 28, 2011
BANGKOK (Commodity Online): The natural Rubber production in the key growing countries for next year is likely to go down on adverse weather conditions and lower global prices, according to Association of Natural Rubber Producing Countries.
The decline in production would badly affect the automobile industries, glove industry etc .
The worst floods in Thailand affecting the tapping of rubber and the lower prices due to global economic slowdown has been the reason for the lower production for 2012.
Lowering the output is expected to help the prices to pick pace, which had dropped 37% in the current year.
Meanwhile, In India, the demand from the car manufacturers, has widened the deficit over the supply of natural rubber.
According to a Bloomberg report, Sheela Thomas, Rubber Board of India’s chairman, during the Global Rubber Conference in Phnom Penh, the current deficit stands around 75,000 metric tons and the country is expected to produce around 865,000 tons by the end of march 2012. The annual production growth for the next five years is estimated at 2.5 to 3%, while consumption is projected at 2.5 to 3.5%
On Tokyo Commodity Exchange, the rubber for December contract traded at 248 Yen as of 28th November at 14:25 JST.
Thai southern monsoon supports rubber prices
November 28, 2011
By Apornrath Phoonphongphiphat
BANGKOK, Nov 28 (Reuters) – Heavy monsoon rains and flash floods in the southern region of Thailand have disrupted tapping in the country’s major rubber areas, which could push up prices over the coming weeks, a senior official said on Monday.
Physical rubber prices more than halved to about $3.00 per kg in early November, from their February highs of $6.40 per kg, weighed by fears of diminishing demand caused by the debt crisis in Europe.
The price of benchmark Thai smoked rubber sheet (RSS3) was $3.35 per kilogram on Monday, up from $3.30 per kg on Friday. Thailand is the world’s largest rubber producer.
Heavy rains caused flash flooding and landslides in several provinces along the Gulf of Thailand, uprooting trees and destroying some plantations completely. The floods have also played havoc with rubber tapping.
Farmers will have to replant and wait at least 7 years for the new crop to mature and start producing latex, said Pongsak Kerdwongbundit, head of the Thai Rubber Association.
“No matter how much rubber factories offer to buy, there is no rubber to be sold as farmers can’t go tapping,” Pongsak told Reuters.
“If things go on like this for a couple of weeks, rubber prices will definitely shoot up,” Pongsak said, declining to forecast how high prices could reach.
The Meteorological Department has warned that the heavy rains would continue along the southeastern regions for the next few weeks.
Thailand, Indonesia and Malaysia, which account for 70 percent of global output, said on Nov. 19 they did not see any immediate need for price intervention because moonsoon rains were likely to curb supply, pushing up prices.
Thailand has been ravaged by floods in the north and central regions since July. It is due to submit its own measures to support rubber prices for cabinet approval on Tuesday.
According to the proposal, the Thai government will offer a 10 billion baht ($318 million) soft loan to agriculture cooperatives to buy rubber from farmers at 95 baht per kg.
The prices of unsmoked rubber sheet (USS3), which farmers sell to rubber factories, was 93 baht per kg. ($1 = 31.3700 Thai baht) (Editing by Roshni Menon)
Tokyo futures at 1-week high, but gains capped
November 28, 2011
BANGKOK, Nov 28 (Reuters) – Tokyo rubber futures jumped more than 3 percent to a one-week high on Monday on the back of rising oil prices and limited supply in producing countries, but gains were still capped by profit-taking, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for May delivery rose 6.0 yen to settle at 269.0 yen ($3.46) per kg.
It rose as high as 3.3 percent to an intra-day high of 271.4 yen per kg, the highest since Nov 21.
The most-active Shanghai rubber contract for May delivery rose 630 yuan to finish at 25,085 yuan ($3,900) per tonne.
“Sentiment improved as the rubber market was supported by limited supply and stronger oil prices, but prices settled below 270 yen eventually, due to profit-taking,” said a Bangkok-based dealer.
Brent crude rose more than $1 toward $108 a barrel on Monday, supported by renewed euro zone efforts to end the debt crisis and optimism that Italy could get financial help from the International Monetary Fund (IMF).
Physical rubber prices have rebounded and were expected to rise higher in coming weeks as supply in Thailand, the world’s biggest rubber producer, was cut significantly by heavy monsoon rains that caused flash floods, killing 5 people and disrupting tapping. ($1=77.6800 Japanese yen) ($1=6.3750 Chinese yuan)
November 28, 2011
Bangkok: Growth in natural rubber production in key growing countries may slow next year as heavy rains disrupt tapping and declining prices prompt growers to cut supply, according to the Association of Natural Rubber Producing Countries.
“Weather impacts and prices influence the trends of natural rubber supply,” Kamarul Bahrain Bashir, secretary-general of the Kuala Lumpur-based association said in an interview yesterday. Prices move down following economic trends, driving producers to cut supply in response to declining demand, he said.
Demand set to rise
Production from its member countries, representing 92 per cent of global supply, may expand 3.7 per cent to 10.4 million tons next year. That compared with a revised growth of 5.6 per cent to 10 million tons this year, Kamarul said on a sideline of the Global Rubber Conference in Phnom Penh.
Demand from member countries, which accounts for 57 per cent of global consumption, is estimated to rise 2.9 per cent next year to 6.3 million tons, he added.
Declining supply will help support rubber futures which have tumbled 37 per cent this year.
Rubber output growth may slow next year
November 28, 2011
GROWTH in natural rubber production in key growing countries may slow next year as heavy rains disrupt tapping and declining prices prompt growers to cut supply, according to the Association of Natural Rubber Producing Countries.
“Weather impacts and prices influence the trends of natural rubber supply,” Kamarul Baharain Basir, secretary-general of the Kuala Lumpur-based association said in an interview yesterday. Prices move down following economic trends, driving producers to cut supply in response to declining demand, he added.
Production from its member countries, representing 92 per cent of global supply, may expand 3.7 per cent to 10.4 million tonnes next year. That compared with a revised growth of 5.6 per cent to 10 million tonnes this year, Kamarul said on a sideline of the Global Rubber Conference in Phnom Penh.
Demand from member countries, which accounts for 57 per cent of global consumption, is estimated to rise 2.9 per cent next year to 6.3 million tonnes, he added.
Declining supply will help support rubber futures which have tumbled 37 per cent this year as Europe’s deepening sovereign-debt crisis and the worst floods in almost 70 years in Thailand, which disrupted car production in Asia and North America, raised demand concerns.
“The natural rubber market is likely to continue lacking momentum due to the possibility of sluggish demand in the short term,” said Kamarul.
Lower prices will encourage growers, especially in Thailand, Indonesia and Malaysia, to increase cutting down aged trees, Kamarul said. The replanting rate is estimated to be around 3 per cent to 4 per cent during 2013 to 2018, which will result in annual production growth of 2 per cent to 6 per cent during the period, he added. Bloomberg
Rubber production may fall in 2012 on adverse weather
November 28, 2011
BANGKOK (Commodity Online): The natural Rubber production in the key growing countries for next year is likely to go down on adverse weather conditions and lower global prices, according to Association of Natural Rubber Producing Countries.
The decline in production would badly affect the automobile industries, glove industry etc .
The worst floods in Thailand affecting the tapping of rubber and the lower prices due to global economic slowdown has been the reason for the lower production for 2012.
Lowering the output is expected to help the prices to pick pace, which had dropped 37% in the current year.
Meanwhile, In India, the demand from the car manufacturers, has widened the deficit over the supply of natural rubber.
According to a Bloomberg report, Sheela Thomas, Rubber Board of India’s chairman, during the Global Rubber Conference in Phnom Penh, the current deficit stands around 75,000 metric tons and the country is expected to produce around 865,000 tons by the end of march 2012. The annual production growth for the next five years is estimated at 2.5 to 3%, while consumption is projected at 2.5 to 3.5%
On Tokyo Commodity Exchange, the rubber for December contract traded at 248 Yen as of 28th November at 14:25 JST.
Thai southern monsoon supports rubber prices
November 28, 2011
By Apornrath Phoonphongphiphat
BANGKOK, Nov 28 (Reuters) – Heavy monsoon rains and flash floods in the southern region of Thailand have disrupted tapping in the country’s major rubber areas, which could push up prices over the coming weeks, a senior official said on Monday.
Physical rubber prices more than halved to about $3.00 per kg in early November, from their February highs of $6.40 per kg, weighed by fears of diminishing demand caused by the debt crisis in Europe.
The price of benchmark Thai smoked rubber sheet (RSS3) was $3.35 per kilogram on Monday, up from $3.30 per kg on Friday. Thailand is the world’s largest rubber producer.
Heavy rains caused flash flooding and landslides in several provinces along the Gulf of Thailand, uprooting trees and destroying some plantations completely. The floods have also played havoc with rubber tapping.
Farmers will have to replant and wait at least 7 years for the new crop to mature and start producing latex, said Pongsak Kerdwongbundit, head of the Thai Rubber Association.
“No matter how much rubber factories offer to buy, there is no rubber to be sold as farmers can’t go tapping,” Pongsak told Reuters.
“If things go on like this for a couple of weeks, rubber prices will definitely shoot up,” Pongsak said, declining to forecast how high prices could reach.
The Meteorological Department has warned that the heavy rains would continue along the southeastern regions for the next few weeks.
Thailand, Indonesia and Malaysia, which account for 70 percent of global output, said on Nov. 19 they did not see any immediate need for price intervention because moonsoon rains were likely to curb supply, pushing up prices.
Thailand has been ravaged by floods in the north and central regions since July. It is due to submit its own measures to support rubber prices for cabinet approval on Tuesday.
According to the proposal, the Thai government will offer a 10 billion baht ($318 million) soft loan to agriculture cooperatives to buy rubber from farmers at 95 baht per kg.
The prices of unsmoked rubber sheet (USS3), which farmers sell to rubber factories, was 93 baht per kg. ($1 = 31.3700 Thai baht) (Editing by Roshni Menon)
Tokyo futures at 1-week high, but gains capped
November 28, 2011
BANGKOK, Nov 28 (Reuters) – Tokyo rubber futures jumped more than 3 percent to a one-week high on Monday on the back of rising oil prices and limited supply in producing countries, but gains were still capped by profit-taking, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for May delivery rose 6.0 yen to settle at 269.0 yen ($3.46) per kg.
It rose as high as 3.3 percent to an intra-day high of 271.4 yen per kg, the highest since Nov 21.
The most-active Shanghai rubber contract for May delivery rose 630 yuan to finish at 25,085 yuan ($3,900) per tonne.
“Sentiment improved as the rubber market was supported by limited supply and stronger oil prices, but prices settled below 270 yen eventually, due to profit-taking,” said a Bangkok-based dealer.
Brent crude rose more than $1 toward $108 a barrel on Monday, supported by renewed euro zone efforts to end the debt crisis and optimism that Italy could get financial help from the International Monetary Fund (IMF).
Physical rubber prices have rebounded and were expected to rise higher in coming weeks as supply in Thailand, the world’s biggest rubber producer, was cut significantly by heavy monsoon rains that caused flash floods, killing 5 people and disrupting tapping. ($1=77.6800 Japanese yen) ($1=6.3750 Chinese yuan)
Thursday, November 10, 2011
India spot rubber price falls to 8-month low
Tokyo futures fall 7%, Shanghai limit-down (Nov. 10)
November 10, 2011
TOKYO, Nov 10 (Reuters) – Key Tokyo rubber futures tumbled 7.3 percent to a two-year low on Thursday while the Shanghai market closed down by its daily limit as fears over Europe’s debt crisis intensified and worries of a decline in demand prompted investors to close positions.
The Tokyo Commodity Exchange rubber contract for April delivery <0#2JRU:> settled down 19.8 yen or 7.3 percent at 252.7 yen, the lowest level since December 2009.
The most active Shanghai rubber contract for January delivery closed down by its daily limit at 24,490 yuan per tonne, down 4.6 percent. Volume decreased to 66,006 lots from Wednesday’s 1.88 million lots.
“After the Shanghai market hit limit down after the open, Chinese investors turned to TOCOM to sell,” said Naoki Asami, chief broker at trading house Kanetsu.
“With no imminent signs of the Thai government taking action to prop up prices, there is no reason for investors to turn bullish.”
Europe’s debt crisis, a slowdown in the Chinese economy and devastating floods in Thailand that have caused many Japanese carmakers to reduce output due to a shortage of parts have all hit the demand prospects for rubber.
Brent crude was steady above $112 a barrel on Thursday, after sharp falls a day earlier, as hopes of resilient oil demand from China partly offset growing concerns over Europe’s debt crisis.
The greenback held steady against the yen at 77.77 yen , off 79.55 yen hit after intervention by Japan on Oct. 31 to stem the yen’s rise.
NR prices plunge toward $3 on 10 Nov
November 10, 2011
London — Rubber prices fell further overnight, testing yen 250 in Tokyo. On Tokyo’s Tocom Exchange, prices for the six-month contract closed at yen 258.8 ($3.33) per kg on Thursday 10 Nov. Shorter-dated prices fell below yen 250 to close at yen 248.
In Singapore, SGX said RSS3 for delivery in April 2012 closed at $3.35, while short-dated prices closed at $3.14. TSR20 for March delivery also fell, to close at $3.20.
In India, NMCE said November deliveries fell.
In China the Shanghai Futures Exchange saw November deliveries fell by over a yuan to close at Yuan 25.7 ($4.05) per kilo.
Thailand, Indonesia, Malaysia in Talk to Slow Rubber Price Fall
November 10, 2011
Thailand, Indonesia and Malaysia, the largest rubber producers, are closely monitoring prices and will impose measures to stem a decline to an 18-month low, according to a producer group.
Futures in Tokyo have plunged 18 percent this month amid Europe’s sovereign-debt crisis and as the worst floods in almost 70 years in Thailand continue to cut automobile output.
“The group is having an internal discussion to limit the price slump as demand-supply fundamentals remain unchanged,” Yium Tavarolit, chief secretary of the International Rubber Consortium Ltd., said by phone from Bangkok today (Nov 10). Measures being discussed include delaying shipments, he said.
Global demand remains strong as natural-rubber imports by China, the biggest user, surged 38 percent to 220,000 metric tons in October. Production from the three major producers, which account for about 70 percent of global output, will decline during the low-production season starting in late January, Yium said.
The benchmark Thai rubber price declined for an eighth day today, falling 6 percent to 101.9 baht ($3.30) a kilogram, the Rubber Research Institute of Thailand said on its website. That’s below the minimum price of 120 baht per kilogram set by the Southeast Asian producer.
The April-delivery contract on the Tokyo Commodity Exchange plunged 7.3 percent to close at 252.7 yen ($3,253) a kilogram.
India spot rubber price falls to 8-month low
November 9, 2011
Nov 9 (Reuters) – Natural rubber price in India dropped below 20,000 rupees ($401.6) per 100 kg on Wednesday, for the first time since March 15, as softness in the world market and a rise in local supplies hammered the market, dealers said.
Tyre makers on Wednesday bought RSS-4 rubber (ribbed smoked sheet) at around 19,800 rupees per 100 kg at Kottayam, a key spot market in southern state of Kerala, below the 20,000 rupees they paid on Tuesday.
The benchmark December rubber on India’s National Multi-Commodity Exchange (NMCE) was trading 2.7 percent down at 19,440 rupees per 100 kg at 0650 GMT.
Natural rubber production up 8.4% in Oct
November 9, 2011
NEW DELHI, NOV. 9:
Natural rubber production rose 8.4 per cent to 89,300 tonnes in October 2011 vis-a-vis the corresponding year-ago period, according to the latest government data.
The country had produced 82,400 tonnes in October 2010.
Consumption, however, declined to 76,000 tonnes in October this year from 81,100 tonnes in the corresponding month of the previous year, according to data released by the Rubber Board.
Natural rubber exports rose to 2,262 tonnes last month from 180 tonnes in the corresponding period last year, while imports fell to 6,862 tonnes from 19,710 tonnes.
During the first seven months of this fiscal, output rose 5 per cent to 4.8 lakh tonnes and the consumption grew marginally to 5.51 lakh tonnes.
Exports jumped more than four-fold to 19,995 tonnes during April-October 2011-12 financial year from 4,738 tonnes in the corresponding period of the previous fiscal, while imports declined to 95,919 tonnes from 1.38 lakh tonnes.
India’s Oct natural rubber consumption plunges
November 9, 2011
* Imports in Oct drop 65 pct on year to 6,862 tonnes
* Oct production rises 8.4 pct to 89,300 tonnes
* Local natural rubber price drops to 8-month low (Adds quotes, details)
By Rajendra Jadhav
Nov 9 (Reuters) – India’s natural rubber consumption slid for a third straight month in October, the state-run Rubber Board said on Wednesday, as tyre producers who are major buyers cut purchases on falling car sales, with the decline expected to continue.
Consumption during the month slipped to 76,000 tonnes from 81,180 tonnes a year ago, the Board said in a statement.
“Overall mood is very bearish. Tyre makers are buying cautiously as auto sales are falling. They are expecting tyre demand to go down further,” said a member of the Indian Rubber Dealers’ Federation (IRDF).
“Going by how they are currently buying, I can say consumption in November will be lower than last year. The trend may even continue for the next few months.”
Car sales in India fell 23.8 percent in October, the biggest monthly percentage decline since December 2000, an industry body said on Wednesday, as high interest rates and vehicle costs drove down sales for a fourth consecutive month.
India’s tyre output growth is likely to almost halve in the fiscal year ending March 2012 to 12 percent, as vehicle sales slow, hitting demand from automakers, a senior industry official said on Sept. 9.
Natural rubber imports to India tumbled 65 percent on the year to 6,862 tonnes in October after tyre makers stocked up in September from the local market, where prices were lower than global levels.
But in the past month prices on the international market have fallen below domestic levels, prompting tyre makers to beef up imports.
“Tyre makers are signing fresh imports contracts. At current prices, imports are very attractive for them,” said George Valy, president of IRDF.
India, the world’s fourth biggest producer, imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam.
The country’s production rose 8.4 percent in October to 89,300 tonnes, while output in first seven months of the current financial year ending in March stood at 480,700 tonnes, up 5 percent.
Rubber production in India is rising as October to January is peak tapping season. However, the fall in demand from tyre makers and a slump in the world market have dragged down local prices to 8 month low.
Tyre makers on Wednesday afternoon bought RSS-4 rubber (ribbed smoked sheet) at around 19,800 rupees ($397.2) per 100 kg at Kottayam, a key spot market in southern state of Kerala, below the 20,000 rupees for the first time since March 15.
India’s natural rubber production up in Oct, consumption dips
November 9, 2011
NEW DELHI (Commodity Online): India’s natural Rubber production grew to 89,300 tons in October 2011 from 82,400 tons last year meanwhile in the same period, the consumption declined to 76,000 tons from 81,100 tons acording to data’s from Rubber Board.
The weak demand from the automobile industry has been the major reason for the consumption rates to go down. The car sale dropped 1.05% in October 2011.
The Natural Rubber exports grew to 2,262 tons last month from 180 tons in the corresponding period last year,meanwhile the imports fell to 6,862 tons from 19,710 tons.
The export of the commodity rose to 19,995 tons during April-October 2011-12 from 1,738 tons last year, while imports dipped 95,919 tons from 1.38 lakh tons.
During the April-October 2011-12, the output rose 5% to 4.8 lakh tons while consumption rose to 5.51 lakh tons.
Malaysia aims to be world’s largest rubber producer
November 9, 2011
KUALA LUMPUR, Nov 9 (Bernama) — Malaysia is aiming to make a comeback as the world’s largest rubber producer, with the opening of more plantations in Sabah and Sarawak.
The Deputy Minister of International Trade and Industry, Datuk Jacob Dungau Sagan said the country used to be the number one producer globally in the mid-80s but was now in third spot.
Currently, Thailand is the world’s number one in terms of production, followed by Indonesia.
“The government is placing emphasis on producing more rubber in Malaysia by not only concentrating on Peninsular Malaysia but also Sabah and Sarawak,” he told reporters after opening the Fifth International Plastics and Rubber Trade Fair Malaysia (M-PLAS) 2011, here today.
During the tabling of the 2012 Budget last month, Prime Minister Datuk Seri Najib Tun Razak had announced an allocation for planting new areas with rubber trees as well as the rubber replanting scheme.
“This allocation will provide opportunities for smallholders to plant more rubber trees in the future,” Jacob said.
He said looking at the price at the moment, the future for rubber is bright.
“The price will continue to rise, translating into more revenue for the country, while having a positive impact on smallholders,” he added.
Meanwhile, the Malaysian Rubber Products Manufacturers’ Association Executive Director Kong Ping Yee said the reason behind Malaysia’s fall from the top spot in respect of rubber production, was the shift in interest towards downstream activities and higher returns from palm oil.
“We see the target to be number one again as something realistic, especially with more new rubber plantations coming up. Although at third spot in terms of production, we are quite strong in downstream activities,” he added.
Earlier in his speech, Jacob said the rubber industry had contributed RM12.8 billion to the country’s export earnings in 2010, and rubber products accounted for two per cent of Malaysia’s total exports.
He said the Malaysian rubber products industry is made up of more than 500 manufacturers producing latex products, from tyres and tyre-related products, to industrial and general rubber products.
November 10, 2011
TOKYO, Nov 10 (Reuters) – Key Tokyo rubber futures tumbled 7.3 percent to a two-year low on Thursday while the Shanghai market closed down by its daily limit as fears over Europe’s debt crisis intensified and worries of a decline in demand prompted investors to close positions.
The Tokyo Commodity Exchange rubber contract for April delivery <0#2JRU:> settled down 19.8 yen or 7.3 percent at 252.7 yen, the lowest level since December 2009.
The most active Shanghai rubber contract for January delivery closed down by its daily limit at 24,490 yuan per tonne, down 4.6 percent. Volume decreased to 66,006 lots from Wednesday’s 1.88 million lots.
“After the Shanghai market hit limit down after the open, Chinese investors turned to TOCOM to sell,” said Naoki Asami, chief broker at trading house Kanetsu.
“With no imminent signs of the Thai government taking action to prop up prices, there is no reason for investors to turn bullish.”
Europe’s debt crisis, a slowdown in the Chinese economy and devastating floods in Thailand that have caused many Japanese carmakers to reduce output due to a shortage of parts have all hit the demand prospects for rubber.
Brent crude was steady above $112 a barrel on Thursday, after sharp falls a day earlier, as hopes of resilient oil demand from China partly offset growing concerns over Europe’s debt crisis.
The greenback held steady against the yen at 77.77 yen , off 79.55 yen hit after intervention by Japan on Oct. 31 to stem the yen’s rise.
NR prices plunge toward $3 on 10 Nov
November 10, 2011
London — Rubber prices fell further overnight, testing yen 250 in Tokyo. On Tokyo’s Tocom Exchange, prices for the six-month contract closed at yen 258.8 ($3.33) per kg on Thursday 10 Nov. Shorter-dated prices fell below yen 250 to close at yen 248.
In Singapore, SGX said RSS3 for delivery in April 2012 closed at $3.35, while short-dated prices closed at $3.14. TSR20 for March delivery also fell, to close at $3.20.
In India, NMCE said November deliveries fell.
In China the Shanghai Futures Exchange saw November deliveries fell by over a yuan to close at Yuan 25.7 ($4.05) per kilo.
Thailand, Indonesia, Malaysia in Talk to Slow Rubber Price Fall
November 10, 2011
Thailand, Indonesia and Malaysia, the largest rubber producers, are closely monitoring prices and will impose measures to stem a decline to an 18-month low, according to a producer group.
Futures in Tokyo have plunged 18 percent this month amid Europe’s sovereign-debt crisis and as the worst floods in almost 70 years in Thailand continue to cut automobile output.
“The group is having an internal discussion to limit the price slump as demand-supply fundamentals remain unchanged,” Yium Tavarolit, chief secretary of the International Rubber Consortium Ltd., said by phone from Bangkok today (Nov 10). Measures being discussed include delaying shipments, he said.
Global demand remains strong as natural-rubber imports by China, the biggest user, surged 38 percent to 220,000 metric tons in October. Production from the three major producers, which account for about 70 percent of global output, will decline during the low-production season starting in late January, Yium said.
The benchmark Thai rubber price declined for an eighth day today, falling 6 percent to 101.9 baht ($3.30) a kilogram, the Rubber Research Institute of Thailand said on its website. That’s below the minimum price of 120 baht per kilogram set by the Southeast Asian producer.
The April-delivery contract on the Tokyo Commodity Exchange plunged 7.3 percent to close at 252.7 yen ($3,253) a kilogram.
India spot rubber price falls to 8-month low
November 9, 2011
Nov 9 (Reuters) – Natural rubber price in India dropped below 20,000 rupees ($401.6) per 100 kg on Wednesday, for the first time since March 15, as softness in the world market and a rise in local supplies hammered the market, dealers said.
Tyre makers on Wednesday bought RSS-4 rubber (ribbed smoked sheet) at around 19,800 rupees per 100 kg at Kottayam, a key spot market in southern state of Kerala, below the 20,000 rupees they paid on Tuesday.
The benchmark December rubber on India’s National Multi-Commodity Exchange (NMCE) was trading 2.7 percent down at 19,440 rupees per 100 kg at 0650 GMT.
Natural rubber production up 8.4% in Oct
November 9, 2011
NEW DELHI, NOV. 9:
Natural rubber production rose 8.4 per cent to 89,300 tonnes in October 2011 vis-a-vis the corresponding year-ago period, according to the latest government data.
The country had produced 82,400 tonnes in October 2010.
Consumption, however, declined to 76,000 tonnes in October this year from 81,100 tonnes in the corresponding month of the previous year, according to data released by the Rubber Board.
Natural rubber exports rose to 2,262 tonnes last month from 180 tonnes in the corresponding period last year, while imports fell to 6,862 tonnes from 19,710 tonnes.
During the first seven months of this fiscal, output rose 5 per cent to 4.8 lakh tonnes and the consumption grew marginally to 5.51 lakh tonnes.
Exports jumped more than four-fold to 19,995 tonnes during April-October 2011-12 financial year from 4,738 tonnes in the corresponding period of the previous fiscal, while imports declined to 95,919 tonnes from 1.38 lakh tonnes.
India’s Oct natural rubber consumption plunges
November 9, 2011
* Imports in Oct drop 65 pct on year to 6,862 tonnes
* Oct production rises 8.4 pct to 89,300 tonnes
* Local natural rubber price drops to 8-month low (Adds quotes, details)
By Rajendra Jadhav
Nov 9 (Reuters) – India’s natural rubber consumption slid for a third straight month in October, the state-run Rubber Board said on Wednesday, as tyre producers who are major buyers cut purchases on falling car sales, with the decline expected to continue.
Consumption during the month slipped to 76,000 tonnes from 81,180 tonnes a year ago, the Board said in a statement.
“Overall mood is very bearish. Tyre makers are buying cautiously as auto sales are falling. They are expecting tyre demand to go down further,” said a member of the Indian Rubber Dealers’ Federation (IRDF).
“Going by how they are currently buying, I can say consumption in November will be lower than last year. The trend may even continue for the next few months.”
Car sales in India fell 23.8 percent in October, the biggest monthly percentage decline since December 2000, an industry body said on Wednesday, as high interest rates and vehicle costs drove down sales for a fourth consecutive month.
India’s tyre output growth is likely to almost halve in the fiscal year ending March 2012 to 12 percent, as vehicle sales slow, hitting demand from automakers, a senior industry official said on Sept. 9.
Natural rubber imports to India tumbled 65 percent on the year to 6,862 tonnes in October after tyre makers stocked up in September from the local market, where prices were lower than global levels.
But in the past month prices on the international market have fallen below domestic levels, prompting tyre makers to beef up imports.
“Tyre makers are signing fresh imports contracts. At current prices, imports are very attractive for them,” said George Valy, president of IRDF.
India, the world’s fourth biggest producer, imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam.
The country’s production rose 8.4 percent in October to 89,300 tonnes, while output in first seven months of the current financial year ending in March stood at 480,700 tonnes, up 5 percent.
Rubber production in India is rising as October to January is peak tapping season. However, the fall in demand from tyre makers and a slump in the world market have dragged down local prices to 8 month low.
Tyre makers on Wednesday afternoon bought RSS-4 rubber (ribbed smoked sheet) at around 19,800 rupees ($397.2) per 100 kg at Kottayam, a key spot market in southern state of Kerala, below the 20,000 rupees for the first time since March 15.
India’s natural rubber production up in Oct, consumption dips
November 9, 2011
NEW DELHI (Commodity Online): India’s natural Rubber production grew to 89,300 tons in October 2011 from 82,400 tons last year meanwhile in the same period, the consumption declined to 76,000 tons from 81,100 tons acording to data’s from Rubber Board.
The weak demand from the automobile industry has been the major reason for the consumption rates to go down. The car sale dropped 1.05% in October 2011.
The Natural Rubber exports grew to 2,262 tons last month from 180 tons in the corresponding period last year,meanwhile the imports fell to 6,862 tons from 19,710 tons.
The export of the commodity rose to 19,995 tons during April-October 2011-12 from 1,738 tons last year, while imports dipped 95,919 tons from 1.38 lakh tons.
During the April-October 2011-12, the output rose 5% to 4.8 lakh tons while consumption rose to 5.51 lakh tons.
Malaysia aims to be world’s largest rubber producer
November 9, 2011
KUALA LUMPUR, Nov 9 (Bernama) — Malaysia is aiming to make a comeback as the world’s largest rubber producer, with the opening of more plantations in Sabah and Sarawak.
The Deputy Minister of International Trade and Industry, Datuk Jacob Dungau Sagan said the country used to be the number one producer globally in the mid-80s but was now in third spot.
Currently, Thailand is the world’s number one in terms of production, followed by Indonesia.
“The government is placing emphasis on producing more rubber in Malaysia by not only concentrating on Peninsular Malaysia but also Sabah and Sarawak,” he told reporters after opening the Fifth International Plastics and Rubber Trade Fair Malaysia (M-PLAS) 2011, here today.
During the tabling of the 2012 Budget last month, Prime Minister Datuk Seri Najib Tun Razak had announced an allocation for planting new areas with rubber trees as well as the rubber replanting scheme.
“This allocation will provide opportunities for smallholders to plant more rubber trees in the future,” Jacob said.
He said looking at the price at the moment, the future for rubber is bright.
“The price will continue to rise, translating into more revenue for the country, while having a positive impact on smallholders,” he added.
Meanwhile, the Malaysian Rubber Products Manufacturers’ Association Executive Director Kong Ping Yee said the reason behind Malaysia’s fall from the top spot in respect of rubber production, was the shift in interest towards downstream activities and higher returns from palm oil.
“We see the target to be number one again as something realistic, especially with more new rubber plantations coming up. Although at third spot in terms of production, we are quite strong in downstream activities,” he added.
Earlier in his speech, Jacob said the rubber industry had contributed RM12.8 billion to the country’s export earnings in 2010, and rubber products accounted for two per cent of Malaysia’s total exports.
He said the Malaysian rubber products industry is made up of more than 500 manufacturers producing latex products, from tyres and tyre-related products, to industrial and general rubber products.
Monday, November 7, 2011
Natural Rubber Could Fall Further Despite Plans For A Floor Price
Natural Rubber Could Fall Further Despite Plans For A Floor Price
November 4, 2011
3 November 2011
With market sentiment remaining weak amid uncertainties in the global macro-economic environment, the general view emerging among natural rubber producers and consumers is that prices could fall further despite top producers seeking to support a floor price.
The International Rubber Consortium, representing Thailand, Indonesia and Malaysia, has called for a floor price of $4 a kilogram to be supported, but with little action to back it up, prices have already fallen below that level, with tire grade rubber currently being offered around $3.70/kg.
“The problem is that they have to find some way to instill confidence into the market, so that farmers and producers are convinced they can stick with that price [of $4/kg],” said Luckchai Kittipol, chief executive of Thai Hua Rubber Public Company Ltd., a leading exporter of Thai rubber.
With demand and supply more or less balanced and some suggesting even a small deficit, producers complain current prices are below what is justified by fundamentals.
The Association of Natural Rubber Producing Countries has estimated natural rubber supply to be about 10 million metric tons this year, leaving a 1-million ton deficit as global demand is expected to reach 11 million tons according to estimates by the International Rubber Study Group.
But signs of slowing demand growth and high stockpile of some 180,000 metric tons at the Qingdao port in China remained top concerns for delegates at a just-concluded industry conference here.
“There is a short-term concern that there is an oversupply of natural rubber with high stockpile in (the major rubber port of) Qingdao,” said Yeo Ek Meng, vice president and director of Singapore Exchange Ltd.
This has resulted in some defaults, with buyers not turning up for shipments, he said. Even consumers who need the commodity are on the sidelines, anticipating further weakness in prices.
Although delegates called for stronger action by ANRPC to support prices, there were no decisive measures announced at the conference.
Officials from ANRPC said the agency will advise re-planting if prices fell below a certain level. They didn’t, however, specify the level.
“We will encourage governments to go for intensive re-planting through an increase in re-planting subsidies, and reduce tapping intensity without sacrificing production, so as to reduce overheads,” said ANRPC’s senior economist, Jom Jacob.
In a presentation made at the conference, Jacob said a further decline in prices will in itself encourage farmers to replant, as maintaining older trees will prove uneconomical.
According to SGX’s Yeo, future price direction will largely depend on growth in China, the largest consumer and importer of the commodity.
Thai Hua’s Luckchai, who is also the honorary president of the Thai Rubber Association, said prices aren’t likely to fall below $3,500 a metric ton, as the market has already fallen nearly 40% from its peak in February.
“When prices were surging earlier this year, we called for a reduction in import taxes, but that was not successful. Now that prices are low, it’s a respite for all of us,” said China Rubber Industry Association’s deputy secretary-general, Mary Xu.
Xu, however, agreed that there is a need to stabilise prices in the long run.
Rubber Drops as Thai Floods Disrupt Car Output, Curbing Demand
November 4, 2011
Rubber declined on speculation the halt of vehicle production inThailand because of floods will reduce demand for the material used for tires.
April-delivery rubber lost as much as 2.5 percent to 288.5 yen a kilogram ($3,685 a metric ton) before trading at 291.8 yen on the Tokyo Commodity Exchange at 12:45 p.m. local time. The market was closed yesterday.
The Thai floods are resulting in the biggest supply disruptions in the automobile industry since the March 11 earthquake and tsunami in Japan. Floods spread across 64 of Thailand’s 77 provinces and swamped seven industrial estates where Honda Motor Co. and auto-parts makers have factories. Twenty five provinces remain inundated, the government said.
“Demand in the country and overseas has slowed after Japanese carmakers cut production,” said Chaiwat Muenmee, analyst at Bangkok-based commodity broker DS Futures Co. “We don’t know how long the floods will last. This is negative factor to the rubber markets.”
Toyota Motor Corp., Asia’s biggest carmaker, will scale back production in Japan for a third week and suspend overtime in North America for a second week as disruptions from the flooding spread worldwide. Japanese factories’ reduced hours, which began Oct. 24, will be extended until at least Nov. 12, the Toyota City, Japan-based carmaker said on its website.
Worldwide Disruption
Plants in the U.S. and Canada will continue to suspend overtime and Saturday output while facilities in South Africa, Indonesia, the Philippines, Vietnam, Pakistan and Malaysia will also reduce production next week, it said.
Honda Motor plans to reduce production in Brazil, England and the Philippines because of parts shortages, said Keitaro Yamamoto, a spokesman for the company.
In Shanghai, January-delivery rubber jumped 4.9 percent to 27,075 yuan ($4,243) a ton after falling 4.3 percent yesterday. In a cash market, the benchmark Thai price dropped 0.4 percent to 116.65 baht ($3.80) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Toyota, Nissan extend Thai flood production halts
November 4, 2011
Japanese automakers Toyota and Nissan on Friday said they had extended production suspensions at their factories in Thailand due to the impact of severe flooding on parts supply.
Japan’s biggest automaker Toyota said in a statement that its three sites in Thailand, which have been suspended since October 10, would remain closed until at least November 12.
Nissan said it would halt production until at least November 14.
The impact of the deadly flooding in Thailand has come as Japan’s automakers worked to recover from the March earthquake and tsunami disaster, which also crippled supply chains and hit global production.
Toyota said the Thai floods will mean continued production adjustments at plants in the United States, Canada, South Africa, Indonesia, the Philippines, Vietnam as well as Pakistan and Malaysia from November 7.
“A decision on production from November 14 onward will be made based on an assessment of the situation as it develops,” Toyota said.
A company spokesman told AFP that the production halt would mean the loss of around 69,000 units, or just over 10 percent of Toyota’s Thailand output, since the company suspended production at its three plants on October 10.
Toyota manufactured 630,000 vehicles in Thailand in 2010. The impact of the production adjustments in Japan is expected to affect around 22,000 units between October 24 and Friday, spokesman Dion Corbett added.
“The main issue is that the effect on suppliers is actually changing all the time so it’s making it difficult for us to actually understand exactly which parts and from where have been affected at which times,” Corbett told AFP.
“The first measure is actually getting a better understanding of exactly what is happening.”
Toyota stopped production at its Samrong, Gateway and Ban Pho plants from October 10 as some suppliers were hit by Thailand’s worst flooding in decades, causing delays in supplying parts.
The flooding has had no direct impact on the three Toyota plants, it said.
Rival automaker Nissan said production at its Thailand factory would remain halted until November 14. The plant has not been directly hit by the flooding either, but Nissan is also facing parts supply shortages.
Nissan said its production loss in Thailand was estimated at 40,000 units.
“Due to shortages in parts supply, production at the plant remains suspended, but Nissan is working to resume production of most models starting on November 14,” it said in a statement.
It added that the flood-related supply problems had not affected production at Nissan facilities outside of Thailand, but added that it saw a risk of a 20,000 unit production loss in Japan.
Automaker Honda has also been hit, with one of its plants inundated and its production in Japan, the US, Canada and in several Asian countries affected.
Rubber Futures Pare Weekly Loss on Greek Bailout Optimism, Oil
November 4, 2011
Nov. 4 (Bloomberg) — Rubber gained for the first time in four days, paring a weekly loss, as oil climbed and after Greece reduced the risk of a disorderly default by abandoning a referendum on a bailout plan.
April-delivery rubber gained as much as 1.7 percent to 298 yen a kilogram ($3,818 a metric ton) before settling at 293.5 yen on the Tokyo Commodity Exchange. The market was closed yesterday. The most-active contract fell 5.1 percent this week after surging 9.6 percent the previous week.
Oil rose a third day to trade near the highest in three months in New York after Greece decided not to hold a public vote on a bailout package, Finance Minister Evangelos Venizelos told lawmakers in Athens yesterday.
“Signs that European problems may be contained helped spur buying of riskier assets, erasing earlier losses of rubber futures,” Sureerat Kunthongjun, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok. Any upside is limited due to concerns over the impact of flooding in Thailand, the world’s largest rubber producer, she said.
The floods are resulting in the biggest supply disruptions in the automobile industry since the March 11 earthquake and tsunami in Japan. Floods spread across 64 of Thailand’s 77 provinces and swamped seven industrial estates where Honda Motor Co. and auto-parts makers have factories. Twenty five provinces remain inundated, the government said.
“Demand in the country and overseas has slowed after Japanese carmakers cut production,” said Chaiwat Muenmee, analyst at Bangkok-based commodity broker DS Futures Co. “We don’t know how long the floods will last. This is negative factor to the rubber markets.”
Worldwide Disruption
Toyota Motor Corp., Asia’s biggest carmaker, will scale back production in Japan for a third week and suspend overtime in North America for a second week as disruptions from the flooding spread worldwide. Japanese factories’ reduced hours, which began Oct. 24, will be extended until at least Nov. 12, the Toyota City, Japan-based carmaker said on its website.
Honda Motor plans to reduce production in Brazil, England and the Philippines because of parts shortages, said Keitaro Yamamoto, a spokesman for the company.
In Shanghai, January-delivery rubber jumped 6.2 percent to close at 27,410 yuan ($4,319) a ton after falling 4.3 percent yesterday. In a cash market, the benchmark Thai price declined for a fourth day, falling 0.4 percent to 116.15 baht ($3.79) a kilogram today, according to the Rubber Research Institute of Thailand.
Market on Nov 4: Spot rubber under pressure on global cues
November 5, 2011
Kottayam, Nov. 4:
Spot rubber continued to remain under pressure on Friday. Declines in domestic futures and unhealthy reports from the international markets were putting immense pressure on the physical market and it lacked follow-up buying from traders or major consuming industries. Despite reports that arrivals and stocks in warehouses were low amidst peak production season, the commodity was already under the shadow of a gloomy and uncertain macro economic outlook.
Sheet rubber closed at Rs 205.50 (207) a kg, said traders. The grade weakened to Rs 206 (207.50) a kg both at Kottayam and Kochi, according to the Rubber Board.
The November series dropped to Rs 206 (206.81), December to Rs 203.50 (204.20), January to Rs 203.65 (204.78), February to Rs 205 (205.98) , March to Rs 207.10 (209) and April to Rs 209.99 (209.10) a kg on the National Multi Commodity Exchange.
RSS 3 (spot) slipped further to Rs 186.27 (186.69) a kg at Bangkok. The November futures improved to ¥287.5 (Rs 181.30) from ¥285.4 a kg during the day session but then dropped to ¥284 (Rs 179.10) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 205.50 (207); RSS-5: 203 (205); ungraded: 193 (197); ISNR 20: 192 (196) and latex 60 per cent: 125.50 (126.50).
Market on Nov 5: Mixed trend in rubber
November 6, 2011
Kottayam, Nov. 5:
Physical rubber prices showed a mixed mood on Saturday. The weekend session was almost inactive owing to a vehicle strike to protest against the recent petrol price hike.
The November series closed at Rs 205.79 (205.99), December at Rs 204 (203.48), January at Rs 204.01 (203.94), February at Rs 205.50 (205.00), March at Rs 206.50 (207.43) and April at Rs 210.84 (209.99) a kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 205 (205.50); RSS-5: 203 (203); ungraded: 193 (193); ISNR 20: 190 (192) and latex 60 per cent: 125.50 (125.50).
Malaysia: Rubber mart expected to fall further next week
November 6, 2011
The Malaysian rubber market is expected to fall further next week due to sluggish demand and uncertainties in the global economy.
A dealer said demand was expected to be slower on news that Japanese carmakers would keep its Thai factories suspended due to shortage of parts.
Floods have spread across 64 of Thailand’s 77 provinces and swamped seven industrial estates where Honda and auto-parts makers have factories.
Meanwhile, dealers said the rainy season in most rubber producing countries would not disrupt supply as China’s Qingdao port had a high stockpile of some 180,000 metric tonnes.
Buyers were expected to remain on the sidelines, anticipating further weakness in prices, they said.
This week, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 declined 94.0 sen to 1,137.0 sen per kg while latex in bulk fell 35.0 sen to 758.5 sen per kg.
The unofficial closing price for SMR 20 slipped 89.5 sen to 1,136.5 sen per kg while latex in bulk dropped 37.0 sen to 757.5 sen per kg. — Bernama
Tocom rubber likely to be weaken in November
November 6, 2011
Tokyo rubber futures are expected to weaken in November as the debt crisis in Europe continues to rattle financial markets and cloud the outlook for the world economy, but a seasonal fall in physical supply may provide support, a Reuters poll showed.
The benchmark sixth-month rubber contract on the Tokyo Commodity Exchange (TOCOM), currently April 2012, was forecast to be at 290 yen per kg at the end of November, according to the poll conducted late last week. That was 5.8 percent lower than the actual closing price at the end of October of 307.9 yen and well below the previous forecast in a similar poll early last month of 320 yen.
The landscape has changed dramatically since the latest forecasts came in, with the Greek government, out of the blue, calling a referendum on a bail-out deal agreed with the European Union. “The European debt crisis will definitely weigh on the global financial markets as well as rubber futures,” said a trader in Hat Yai, the centre of Thailand’s rubber centre.
TOCOM futures fell more than 3 percent on Wednesday morning in response to the developments in Europe. At 0540 GMT, April 2012 futures stood at 290.6 yen. “Another negative factor this week that could add to the downward pressure on prices is the MF bankruptcy,” said a Bangkok-based dealer, referring to futures broker MF Global Holdings Ltd. The bankruptcy, and especially news that the broker had failed to keep its customer accounts separate from its own funds, could make investors nervous about putting money into futures.
SEASONAL SUPPLY FALL The benchmark TOCOM contract was forecast to rise slightly to 300 yen per kg by the end of December. “Prices should be higher at the end of the year due to falling supply in Thailand,” said a Tokyo-based trader. Thailand is the world’s biggest rubber producer. The bulk of its rubber is produced in the south, which has not been affected by the devastating floods elsewhere in the country.
However, the rainy season in the south is due to start in November and run until the end of December, disrupting tapping and therefore reducing supply. Thailand’s benchmark smoked rubber sheet (RSS3) was forecast to be at $3.95 per kg at the end of November and $4.00 at the end of the year. It was at $4.00 at the end of October but had fallen to $3.80 by Wednesday, November 2.
November 4, 2011
3 November 2011
With market sentiment remaining weak amid uncertainties in the global macro-economic environment, the general view emerging among natural rubber producers and consumers is that prices could fall further despite top producers seeking to support a floor price.
The International Rubber Consortium, representing Thailand, Indonesia and Malaysia, has called for a floor price of $4 a kilogram to be supported, but with little action to back it up, prices have already fallen below that level, with tire grade rubber currently being offered around $3.70/kg.
“The problem is that they have to find some way to instill confidence into the market, so that farmers and producers are convinced they can stick with that price [of $4/kg],” said Luckchai Kittipol, chief executive of Thai Hua Rubber Public Company Ltd., a leading exporter of Thai rubber.
With demand and supply more or less balanced and some suggesting even a small deficit, producers complain current prices are below what is justified by fundamentals.
The Association of Natural Rubber Producing Countries has estimated natural rubber supply to be about 10 million metric tons this year, leaving a 1-million ton deficit as global demand is expected to reach 11 million tons according to estimates by the International Rubber Study Group.
But signs of slowing demand growth and high stockpile of some 180,000 metric tons at the Qingdao port in China remained top concerns for delegates at a just-concluded industry conference here.
“There is a short-term concern that there is an oversupply of natural rubber with high stockpile in (the major rubber port of) Qingdao,” said Yeo Ek Meng, vice president and director of Singapore Exchange Ltd.
This has resulted in some defaults, with buyers not turning up for shipments, he said. Even consumers who need the commodity are on the sidelines, anticipating further weakness in prices.
Although delegates called for stronger action by ANRPC to support prices, there were no decisive measures announced at the conference.
Officials from ANRPC said the agency will advise re-planting if prices fell below a certain level. They didn’t, however, specify the level.
“We will encourage governments to go for intensive re-planting through an increase in re-planting subsidies, and reduce tapping intensity without sacrificing production, so as to reduce overheads,” said ANRPC’s senior economist, Jom Jacob.
In a presentation made at the conference, Jacob said a further decline in prices will in itself encourage farmers to replant, as maintaining older trees will prove uneconomical.
According to SGX’s Yeo, future price direction will largely depend on growth in China, the largest consumer and importer of the commodity.
Thai Hua’s Luckchai, who is also the honorary president of the Thai Rubber Association, said prices aren’t likely to fall below $3,500 a metric ton, as the market has already fallen nearly 40% from its peak in February.
“When prices were surging earlier this year, we called for a reduction in import taxes, but that was not successful. Now that prices are low, it’s a respite for all of us,” said China Rubber Industry Association’s deputy secretary-general, Mary Xu.
Xu, however, agreed that there is a need to stabilise prices in the long run.
Rubber Drops as Thai Floods Disrupt Car Output, Curbing Demand
November 4, 2011
Rubber declined on speculation the halt of vehicle production inThailand because of floods will reduce demand for the material used for tires.
April-delivery rubber lost as much as 2.5 percent to 288.5 yen a kilogram ($3,685 a metric ton) before trading at 291.8 yen on the Tokyo Commodity Exchange at 12:45 p.m. local time. The market was closed yesterday.
The Thai floods are resulting in the biggest supply disruptions in the automobile industry since the March 11 earthquake and tsunami in Japan. Floods spread across 64 of Thailand’s 77 provinces and swamped seven industrial estates where Honda Motor Co. and auto-parts makers have factories. Twenty five provinces remain inundated, the government said.
“Demand in the country and overseas has slowed after Japanese carmakers cut production,” said Chaiwat Muenmee, analyst at Bangkok-based commodity broker DS Futures Co. “We don’t know how long the floods will last. This is negative factor to the rubber markets.”
Toyota Motor Corp., Asia’s biggest carmaker, will scale back production in Japan for a third week and suspend overtime in North America for a second week as disruptions from the flooding spread worldwide. Japanese factories’ reduced hours, which began Oct. 24, will be extended until at least Nov. 12, the Toyota City, Japan-based carmaker said on its website.
Worldwide Disruption
Plants in the U.S. and Canada will continue to suspend overtime and Saturday output while facilities in South Africa, Indonesia, the Philippines, Vietnam, Pakistan and Malaysia will also reduce production next week, it said.
Honda Motor plans to reduce production in Brazil, England and the Philippines because of parts shortages, said Keitaro Yamamoto, a spokesman for the company.
In Shanghai, January-delivery rubber jumped 4.9 percent to 27,075 yuan ($4,243) a ton after falling 4.3 percent yesterday. In a cash market, the benchmark Thai price dropped 0.4 percent to 116.65 baht ($3.80) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Toyota, Nissan extend Thai flood production halts
November 4, 2011
Japanese automakers Toyota and Nissan on Friday said they had extended production suspensions at their factories in Thailand due to the impact of severe flooding on parts supply.
Japan’s biggest automaker Toyota said in a statement that its three sites in Thailand, which have been suspended since October 10, would remain closed until at least November 12.
Nissan said it would halt production until at least November 14.
The impact of the deadly flooding in Thailand has come as Japan’s automakers worked to recover from the March earthquake and tsunami disaster, which also crippled supply chains and hit global production.
Toyota said the Thai floods will mean continued production adjustments at plants in the United States, Canada, South Africa, Indonesia, the Philippines, Vietnam as well as Pakistan and Malaysia from November 7.
“A decision on production from November 14 onward will be made based on an assessment of the situation as it develops,” Toyota said.
A company spokesman told AFP that the production halt would mean the loss of around 69,000 units, or just over 10 percent of Toyota’s Thailand output, since the company suspended production at its three plants on October 10.
Toyota manufactured 630,000 vehicles in Thailand in 2010. The impact of the production adjustments in Japan is expected to affect around 22,000 units between October 24 and Friday, spokesman Dion Corbett added.
“The main issue is that the effect on suppliers is actually changing all the time so it’s making it difficult for us to actually understand exactly which parts and from where have been affected at which times,” Corbett told AFP.
“The first measure is actually getting a better understanding of exactly what is happening.”
Toyota stopped production at its Samrong, Gateway and Ban Pho plants from October 10 as some suppliers were hit by Thailand’s worst flooding in decades, causing delays in supplying parts.
The flooding has had no direct impact on the three Toyota plants, it said.
Rival automaker Nissan said production at its Thailand factory would remain halted until November 14. The plant has not been directly hit by the flooding either, but Nissan is also facing parts supply shortages.
Nissan said its production loss in Thailand was estimated at 40,000 units.
“Due to shortages in parts supply, production at the plant remains suspended, but Nissan is working to resume production of most models starting on November 14,” it said in a statement.
It added that the flood-related supply problems had not affected production at Nissan facilities outside of Thailand, but added that it saw a risk of a 20,000 unit production loss in Japan.
Automaker Honda has also been hit, with one of its plants inundated and its production in Japan, the US, Canada and in several Asian countries affected.
Rubber Futures Pare Weekly Loss on Greek Bailout Optimism, Oil
November 4, 2011
Nov. 4 (Bloomberg) — Rubber gained for the first time in four days, paring a weekly loss, as oil climbed and after Greece reduced the risk of a disorderly default by abandoning a referendum on a bailout plan.
April-delivery rubber gained as much as 1.7 percent to 298 yen a kilogram ($3,818 a metric ton) before settling at 293.5 yen on the Tokyo Commodity Exchange. The market was closed yesterday. The most-active contract fell 5.1 percent this week after surging 9.6 percent the previous week.
Oil rose a third day to trade near the highest in three months in New York after Greece decided not to hold a public vote on a bailout package, Finance Minister Evangelos Venizelos told lawmakers in Athens yesterday.
“Signs that European problems may be contained helped spur buying of riskier assets, erasing earlier losses of rubber futures,” Sureerat Kunthongjun, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok. Any upside is limited due to concerns over the impact of flooding in Thailand, the world’s largest rubber producer, she said.
The floods are resulting in the biggest supply disruptions in the automobile industry since the March 11 earthquake and tsunami in Japan. Floods spread across 64 of Thailand’s 77 provinces and swamped seven industrial estates where Honda Motor Co. and auto-parts makers have factories. Twenty five provinces remain inundated, the government said.
“Demand in the country and overseas has slowed after Japanese carmakers cut production,” said Chaiwat Muenmee, analyst at Bangkok-based commodity broker DS Futures Co. “We don’t know how long the floods will last. This is negative factor to the rubber markets.”
Worldwide Disruption
Toyota Motor Corp., Asia’s biggest carmaker, will scale back production in Japan for a third week and suspend overtime in North America for a second week as disruptions from the flooding spread worldwide. Japanese factories’ reduced hours, which began Oct. 24, will be extended until at least Nov. 12, the Toyota City, Japan-based carmaker said on its website.
Honda Motor plans to reduce production in Brazil, England and the Philippines because of parts shortages, said Keitaro Yamamoto, a spokesman for the company.
In Shanghai, January-delivery rubber jumped 6.2 percent to close at 27,410 yuan ($4,319) a ton after falling 4.3 percent yesterday. In a cash market, the benchmark Thai price declined for a fourth day, falling 0.4 percent to 116.15 baht ($3.79) a kilogram today, according to the Rubber Research Institute of Thailand.
Market on Nov 4: Spot rubber under pressure on global cues
November 5, 2011
Kottayam, Nov. 4:
Spot rubber continued to remain under pressure on Friday. Declines in domestic futures and unhealthy reports from the international markets were putting immense pressure on the physical market and it lacked follow-up buying from traders or major consuming industries. Despite reports that arrivals and stocks in warehouses were low amidst peak production season, the commodity was already under the shadow of a gloomy and uncertain macro economic outlook.
Sheet rubber closed at Rs 205.50 (207) a kg, said traders. The grade weakened to Rs 206 (207.50) a kg both at Kottayam and Kochi, according to the Rubber Board.
The November series dropped to Rs 206 (206.81), December to Rs 203.50 (204.20), January to Rs 203.65 (204.78), February to Rs 205 (205.98) , March to Rs 207.10 (209) and April to Rs 209.99 (209.10) a kg on the National Multi Commodity Exchange.
RSS 3 (spot) slipped further to Rs 186.27 (186.69) a kg at Bangkok. The November futures improved to ¥287.5 (Rs 181.30) from ¥285.4 a kg during the day session but then dropped to ¥284 (Rs 179.10) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 205.50 (207); RSS-5: 203 (205); ungraded: 193 (197); ISNR 20: 192 (196) and latex 60 per cent: 125.50 (126.50).
Market on Nov 5: Mixed trend in rubber
November 6, 2011
Kottayam, Nov. 5:
Physical rubber prices showed a mixed mood on Saturday. The weekend session was almost inactive owing to a vehicle strike to protest against the recent petrol price hike.
The November series closed at Rs 205.79 (205.99), December at Rs 204 (203.48), January at Rs 204.01 (203.94), February at Rs 205.50 (205.00), March at Rs 206.50 (207.43) and April at Rs 210.84 (209.99) a kg on the National Multi Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 205 (205.50); RSS-5: 203 (203); ungraded: 193 (193); ISNR 20: 190 (192) and latex 60 per cent: 125.50 (125.50).
Malaysia: Rubber mart expected to fall further next week
November 6, 2011
The Malaysian rubber market is expected to fall further next week due to sluggish demand and uncertainties in the global economy.
A dealer said demand was expected to be slower on news that Japanese carmakers would keep its Thai factories suspended due to shortage of parts.
Floods have spread across 64 of Thailand’s 77 provinces and swamped seven industrial estates where Honda and auto-parts makers have factories.
Meanwhile, dealers said the rainy season in most rubber producing countries would not disrupt supply as China’s Qingdao port had a high stockpile of some 180,000 metric tonnes.
Buyers were expected to remain on the sidelines, anticipating further weakness in prices, they said.
This week, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 declined 94.0 sen to 1,137.0 sen per kg while latex in bulk fell 35.0 sen to 758.5 sen per kg.
The unofficial closing price for SMR 20 slipped 89.5 sen to 1,136.5 sen per kg while latex in bulk dropped 37.0 sen to 757.5 sen per kg. — Bernama
Tocom rubber likely to be weaken in November
November 6, 2011
Tokyo rubber futures are expected to weaken in November as the debt crisis in Europe continues to rattle financial markets and cloud the outlook for the world economy, but a seasonal fall in physical supply may provide support, a Reuters poll showed.
The benchmark sixth-month rubber contract on the Tokyo Commodity Exchange (TOCOM), currently April 2012, was forecast to be at 290 yen per kg at the end of November, according to the poll conducted late last week. That was 5.8 percent lower than the actual closing price at the end of October of 307.9 yen and well below the previous forecast in a similar poll early last month of 320 yen.
The landscape has changed dramatically since the latest forecasts came in, with the Greek government, out of the blue, calling a referendum on a bail-out deal agreed with the European Union. “The European debt crisis will definitely weigh on the global financial markets as well as rubber futures,” said a trader in Hat Yai, the centre of Thailand’s rubber centre.
TOCOM futures fell more than 3 percent on Wednesday morning in response to the developments in Europe. At 0540 GMT, April 2012 futures stood at 290.6 yen. “Another negative factor this week that could add to the downward pressure on prices is the MF bankruptcy,” said a Bangkok-based dealer, referring to futures broker MF Global Holdings Ltd. The bankruptcy, and especially news that the broker had failed to keep its customer accounts separate from its own funds, could make investors nervous about putting money into futures.
SEASONAL SUPPLY FALL The benchmark TOCOM contract was forecast to rise slightly to 300 yen per kg by the end of December. “Prices should be higher at the end of the year due to falling supply in Thailand,” said a Tokyo-based trader. Thailand is the world’s biggest rubber producer. The bulk of its rubber is produced in the south, which has not been affected by the devastating floods elsewhere in the country.
However, the rainy season in the south is due to start in November and run until the end of December, disrupting tapping and therefore reducing supply. Thailand’s benchmark smoked rubber sheet (RSS3) was forecast to be at $3.95 per kg at the end of November and $4.00 at the end of the year. It was at $4.00 at the end of October but had fallen to $3.80 by Wednesday, November 2.
Friday, November 4, 2011
Market on Nov 3: Spot rubber prices drop with futures
Market on Nov 3: Spot rubber prices drop with futures
November 3, 2011
KOTTAYAM, NOV. 3:
Domestic rubber prices declined further on Thursday. In the spot market, prices dropped tracking sharp losses on the National Multi Commodity Exchange (NMCE). Sentiments were also affected by the fall in stocks and commodities around the globe, though the local markets still experienced short supplies.
Sheet rubber weakened to Rs 207 (210) a kg, as quoted by the traders. The grade surrendered to Rs 207.50 (209.50) a kg both at Kottayam and Kochi, according to the Rubber Board.
Natural rubber prices falling below $4 a kg in the international market have raised fears over to a default by China. Chinese buyers wanted to renegotiate contracts with Thai sellers following the price fall. It was earlier reported that China had asked to delay as much as 10,000 tonnes of rubber shipments from South-East Asia.
In futures, the November series declined to Rs 206.50 (211.28), December to Rs 204.25 (209.49), January to Rs 204.99 (210.36), February to Rs 206 (210.90), March to Rs 209 (212.89) and April to Rs 209.10 (215.30) a kg on the NMCE. RSS 3 (spot) slipped to Rs 186.69 (186.92) a kg at Bangkok. The Tokyo Commodity Exchange remained closed on account of ‘National Culture Day’.
Spot rates were: RSS-4: 207 (210); RSS-5: 205 (208); ungraded: 197 (200); ISNR 20: 196 (198) and latex 60 per cent: 126.50 (128).
Market on Nov 02: Spot rubber turns weak on global cues
November 2, 2011
KOTTAYAM, NOV. 2:
Physical rubber prices turned weak on Wednesday. There has been no visible selling pressure from dealers or growers and the market lost ground on buyer resistance. Even though the fall in the prices were limited on supply concerns due to widespread north east monsoon rains, sentiments remained under pressure owing to declining international markets, slowing auto sales and rising interest rates. The transactions were dull. Meanwhile the recent dip in natural rubber prices is expected to be a major issue in the ANRPC’s annual conference in China.
Sheet rubber moved down to Rs 210 (212) a kg according to traders. The grade dropped to Rs 209.50 (211.50) a kg both at Kottayam and Kochi as per Rubber Board.
The November series closed at Rs 211.50 (210.05), December at Rs 209.85 (209.84), January at Rs 210.70 (210.77), February at Rs 210.90 (211.15) , March at Rs 212.89 (212.50) and April at Rs 215.30 (215.50) a kg on the National Multi Commodity Exchange.
RSS 3 (spot) declined sharply to Rs 186.92 (194.82) a kg at Bangkok. The November futures weakened to ¥285.4 (Rs 180.15) from ¥291.4 a kg during the day session but then recovered partially to ¥287 (Rs 181.17) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 210 (212); RSS-5: 208 (210); ungraded: 200 (202); ISNR 20: 198 (200) and latex 60 per cent: 128 (128.50).
NR Prices unchanged on Thursday
November 3, 2011
London — Rubber pricesremained unchanged overnight, remaining below yen 300 in Tokyo. On Tokyo’s Tocom Exchange, prices for the six-month contract closed yen 296 ($3.79) per kg on Thursday 3 Nov. Shorter-dated prices were also unchanged overnight at yen 287.
In Singapore, SGX said RSS3 for April delivery was trading around $3.78 in light trading. TSR20 for delivery in March 2012 was down around $0.12, seeing trades around $3.60.
In India, NMCE said November deliveries recovered half the Rs3 lost yesterday, to close at Rs 211 ($4.27) per kilo.
In China the Shanghai Futures Exchange saw November deliveries fell by half a yuan to close at Yuan 27.1 ($4.26) per kilo.
Natural rubber badly hit by weaker Oil, auto sales and Europe crisis
November 2, 2011
TOKYO/KOCHI (Commodity Online): Rubber futures at Tokyo Commodity Exchange continued the downward trend on Wednesday extending the fall seen on Tuesday trade as Eurozone debt crisis, weak manufacturing data from China and USA hurt market sentiments.
At TOCOM, Rubber April-delivery contract tumbled 4.8% to 293 Yen on Wednesday while near month November contract fell 6% to 285.4 yen. Reflecting the trend, rubber futures at India’s National Multi-Commodity Exchange (NMCE), November conctract fell 1.29% to Rs 21005 per 100 kg while it further fell to Rs 21,000 in Wednesday forenoon trade after opening higher at Rs 21, 280 per 100 kg.
A combination of factors have led to the pull-back in natural rubber prices: falling Crude Oil prices, Eurozone debt crisis that may impact economic growth and demand for commodities, fall in Asian equities and weak automobile sales in India.
Spot rubber prices monitored by Rubber Board have further weakened to Rs 21150 per 1oo kg for RSS 4 grade from Rs 21192 levels at the end of last week. Disruption in supplies due to widespread North East monsoon is providing some support for rubber prices but falling global prices are offsetting such advantage, analysts said.
India’s automobile sales is also falling on higher interest costs and hike in petroleum, diesel prices in recent months. Car sales in country had a poor show even during the current festival season. Maruti’s deliveries to dealers dropped 52 per cent in October while that of Hyundai’s was around 5 per cent. Other major producers like Tata and M&M wholesales could manage some positive figures. Production loss due to strike in Maruti’s two units also resulted in drop in sales.
U.S. auto sales in October are expected to have hit the highest rate in at least eight months, helped by pent-up demand from consumers trading in ageing vehicles and a wider selection of Honda and Toyota brand cars and trucks.
Geojit Comtrade expects NMCE November contract to further fall towards Rs 20,700 and then bounce back. Consistent trade below Rs 20,700 will signal bearishness and fall to Rs 20550/20100.
China Buyers Cancel Some Rubber Cargoes on Prices, Okachi Says
Written by HMH | November 2, 2011 | 0 |
Chinese buyers have canceled or delayed some natural rubber shipments after prices slumped and demand weakened, according to traders at Okachi & Co. and Tower Commodities Co.
Prices tumbled 20 percent in the past three months on concern the Europe debt crisis may derail the global recovery. Tightened Chinaliquidity and weak conditions might cause prices to drop further, leading to more cancellations, said Lizhi Tang, president of the Okachi & Co.’s greater China region.
The amount “isn’t large” now, he said without elaborating. Okachi has the largest open interest in natural rubber futures on the Tokyo Commodity Exchange, according to Tang.
China is the largest rubber consumer, accounting for about 34 percent of global demand last year. China’s auto manufacturing association cut its 2011 sales forecast for the second time in three months on Oct. 11, saying that deliveries are expected to grow less than 5 percent.
“Most of the shipments were bought at the average $4,600-$4,700 a ton at the height of the market, and spot rubber prices have fallen quickly to below $3800 a ton now,” Tang said. The “situation might get worse if prices keep declining.”
April-delivery rubber lost as much as 3.4 percent to 287.8 yen a kilogram ($3,680 a metric ton), the lowest level since Oct. 26, before trading at 293 yen on the Tokyo Commodity Exchange. The price fell for a third day.
Buyers normally pay about 10 percent of the order value as a down payment, so when a price slump more than erases this amount, some buyers have no incentive to stick to the contract, said Forrest Hu, founder of Tower Commodities Co. and a former trader at Louis Dreyfus Commodity Co. Tower commodities trades rubber.
November 3, 2011
KOTTAYAM, NOV. 3:
Domestic rubber prices declined further on Thursday. In the spot market, prices dropped tracking sharp losses on the National Multi Commodity Exchange (NMCE). Sentiments were also affected by the fall in stocks and commodities around the globe, though the local markets still experienced short supplies.
Sheet rubber weakened to Rs 207 (210) a kg, as quoted by the traders. The grade surrendered to Rs 207.50 (209.50) a kg both at Kottayam and Kochi, according to the Rubber Board.
Natural rubber prices falling below $4 a kg in the international market have raised fears over to a default by China. Chinese buyers wanted to renegotiate contracts with Thai sellers following the price fall. It was earlier reported that China had asked to delay as much as 10,000 tonnes of rubber shipments from South-East Asia.
In futures, the November series declined to Rs 206.50 (211.28), December to Rs 204.25 (209.49), January to Rs 204.99 (210.36), February to Rs 206 (210.90), March to Rs 209 (212.89) and April to Rs 209.10 (215.30) a kg on the NMCE. RSS 3 (spot) slipped to Rs 186.69 (186.92) a kg at Bangkok. The Tokyo Commodity Exchange remained closed on account of ‘National Culture Day’.
Spot rates were: RSS-4: 207 (210); RSS-5: 205 (208); ungraded: 197 (200); ISNR 20: 196 (198) and latex 60 per cent: 126.50 (128).
Market on Nov 02: Spot rubber turns weak on global cues
November 2, 2011
KOTTAYAM, NOV. 2:
Physical rubber prices turned weak on Wednesday. There has been no visible selling pressure from dealers or growers and the market lost ground on buyer resistance. Even though the fall in the prices were limited on supply concerns due to widespread north east monsoon rains, sentiments remained under pressure owing to declining international markets, slowing auto sales and rising interest rates. The transactions were dull. Meanwhile the recent dip in natural rubber prices is expected to be a major issue in the ANRPC’s annual conference in China.
Sheet rubber moved down to Rs 210 (212) a kg according to traders. The grade dropped to Rs 209.50 (211.50) a kg both at Kottayam and Kochi as per Rubber Board.
The November series closed at Rs 211.50 (210.05), December at Rs 209.85 (209.84), January at Rs 210.70 (210.77), February at Rs 210.90 (211.15) , March at Rs 212.89 (212.50) and April at Rs 215.30 (215.50) a kg on the National Multi Commodity Exchange.
RSS 3 (spot) declined sharply to Rs 186.92 (194.82) a kg at Bangkok. The November futures weakened to ¥285.4 (Rs 180.15) from ¥291.4 a kg during the day session but then recovered partially to ¥287 (Rs 181.17) a kg in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 210 (212); RSS-5: 208 (210); ungraded: 200 (202); ISNR 20: 198 (200) and latex 60 per cent: 128 (128.50).
NR Prices unchanged on Thursday
November 3, 2011
London — Rubber pricesremained unchanged overnight, remaining below yen 300 in Tokyo. On Tokyo’s Tocom Exchange, prices for the six-month contract closed yen 296 ($3.79) per kg on Thursday 3 Nov. Shorter-dated prices were also unchanged overnight at yen 287.
In Singapore, SGX said RSS3 for April delivery was trading around $3.78 in light trading. TSR20 for delivery in March 2012 was down around $0.12, seeing trades around $3.60.
In India, NMCE said November deliveries recovered half the Rs3 lost yesterday, to close at Rs 211 ($4.27) per kilo.
In China the Shanghai Futures Exchange saw November deliveries fell by half a yuan to close at Yuan 27.1 ($4.26) per kilo.
Natural rubber badly hit by weaker Oil, auto sales and Europe crisis
November 2, 2011
TOKYO/KOCHI (Commodity Online): Rubber futures at Tokyo Commodity Exchange continued the downward trend on Wednesday extending the fall seen on Tuesday trade as Eurozone debt crisis, weak manufacturing data from China and USA hurt market sentiments.
At TOCOM, Rubber April-delivery contract tumbled 4.8% to 293 Yen on Wednesday while near month November contract fell 6% to 285.4 yen. Reflecting the trend, rubber futures at India’s National Multi-Commodity Exchange (NMCE), November conctract fell 1.29% to Rs 21005 per 100 kg while it further fell to Rs 21,000 in Wednesday forenoon trade after opening higher at Rs 21, 280 per 100 kg.
A combination of factors have led to the pull-back in natural rubber prices: falling Crude Oil prices, Eurozone debt crisis that may impact economic growth and demand for commodities, fall in Asian equities and weak automobile sales in India.
Spot rubber prices monitored by Rubber Board have further weakened to Rs 21150 per 1oo kg for RSS 4 grade from Rs 21192 levels at the end of last week. Disruption in supplies due to widespread North East monsoon is providing some support for rubber prices but falling global prices are offsetting such advantage, analysts said.
India’s automobile sales is also falling on higher interest costs and hike in petroleum, diesel prices in recent months. Car sales in country had a poor show even during the current festival season. Maruti’s deliveries to dealers dropped 52 per cent in October while that of Hyundai’s was around 5 per cent. Other major producers like Tata and M&M wholesales could manage some positive figures. Production loss due to strike in Maruti’s two units also resulted in drop in sales.
U.S. auto sales in October are expected to have hit the highest rate in at least eight months, helped by pent-up demand from consumers trading in ageing vehicles and a wider selection of Honda and Toyota brand cars and trucks.
Geojit Comtrade expects NMCE November contract to further fall towards Rs 20,700 and then bounce back. Consistent trade below Rs 20,700 will signal bearishness and fall to Rs 20550/20100.
China Buyers Cancel Some Rubber Cargoes on Prices, Okachi Says
Written by HMH | November 2, 2011 | 0 |
Chinese buyers have canceled or delayed some natural rubber shipments after prices slumped and demand weakened, according to traders at Okachi & Co. and Tower Commodities Co.
Prices tumbled 20 percent in the past three months on concern the Europe debt crisis may derail the global recovery. Tightened Chinaliquidity and weak conditions might cause prices to drop further, leading to more cancellations, said Lizhi Tang, president of the Okachi & Co.’s greater China region.
The amount “isn’t large” now, he said without elaborating. Okachi has the largest open interest in natural rubber futures on the Tokyo Commodity Exchange, according to Tang.
China is the largest rubber consumer, accounting for about 34 percent of global demand last year. China’s auto manufacturing association cut its 2011 sales forecast for the second time in three months on Oct. 11, saying that deliveries are expected to grow less than 5 percent.
“Most of the shipments were bought at the average $4,600-$4,700 a ton at the height of the market, and spot rubber prices have fallen quickly to below $3800 a ton now,” Tang said. The “situation might get worse if prices keep declining.”
April-delivery rubber lost as much as 3.4 percent to 287.8 yen a kilogram ($3,680 a metric ton), the lowest level since Oct. 26, before trading at 293 yen on the Tokyo Commodity Exchange. The price fell for a third day.
Buyers normally pay about 10 percent of the order value as a down payment, so when a price slump more than erases this amount, some buyers have no incentive to stick to the contract, said Forrest Hu, founder of Tower Commodities Co. and a former trader at Louis Dreyfus Commodity Co. Tower commodities trades rubber.
Tuesday, November 1, 2011
Tokyo futures lower, demand concerns weigh
Tokyo futures lower, demand concerns weigh
November 1, 2011
TOKYO, Nov 1 (Reuters) – Key Tokyo rubber futures fell 2.4 percent early on Tuesday, pulled lower by declines in oil and share prices, while worries that the floods in Thailand will cut demand also weighed on the market.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for April delivery was down 7.2 yen at 300.7 yen as of 0045 GMT.
* On Monday, the most-active rubber contract on the Shanghai futures exchange for January delivery was down 710 yuan to finish at 27,105 yuan ($4,262) per tonne.
* Oil prices slipped in low-volume trading on Monday, but posted big monthly gains, as the dollar rose against the yen after Japan intervened in the market to stem the rise of its currency.
* The dollar stood at 78.46 yen , having risen as far as 79.55 on Monday in the wake of a record one-day intervention estimated by some market players to be anything from $90 billion to $130 billion.
* For the top stories in rubber market and other news, click , or
MARKET NEWS
* U.S. auto sales in October are expected to have hit the highest rate in at least eight months, helped by pent-up demand from consumers trading in ageing vehicles and a wider selection of Honda and Toyota brand cars and trucks.
* Honda Motor Co on Monday withdrew its forecast for its annual global car sales amid an indefinite suspension of work at its flooded Thai factory.
* Thailand hopes industrial estates swamped in its worst floods in half a century can be up and running within three months, the prime minister said on Monday, as the centre of the capital finally appeared to have escaped a similar fate.
* Japan’s Nikkei share average fell on Tuesday after Wall Street stocks tumbled on the failure of trading firm MF Global Holdings and fresh worries about Europe after the Greek Prime Minister called an unexpected referendum on aid to his country.
Spot rubber rules steady
Written by HMH | October 31, 2011 | 0 |
KOTTAYAM, OCT. 31:
Physical rubber prices finished unchanged on Monday. Market activities were low and it lost direction lacking active market participants on either side. Meanwhile, widespread rain disrupted tapping in major plantation areas.
Sheet rubber closed steady at Rs 212 a kg, according to traders. The grade slipped to Rs 212 (212.50) a kg both at Kottayam and Kochi, as reported by the Rubber Board.
The November series improved marginally to Rs 213.70 (212.81) December to Rs 213.34 (212.51), January to Rs 214.03 (213.43) and February to Rs 214.28 (213.81) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) weakened to Rs 196.37 (198.37) a kg at Bangkok. The November futures for the grade dropped to ¥301.2 (Rs 188.48) from ¥306.2 a kg on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 212 (212); RSS-5: 210 (210); ungraded: 202 (202); ISNR 20: 200 (200) and latex 60 per cent: 128.50 (128.50).
India: Rubber dealers to seek limit on futures price volatility
Written by HMH | October 30, 2011 | 0 |
MUMBAI/KOCHI: Kerala’s rubber dealers will urge food minister KV Thomas to impose strict limits on price swings of rubber futures contracts traded on Ahmedabadbased National Multi Commodity Exchange (NMCE), the benchmark bourse for the product, on grounds that sharp price moves were threatening their existence.
The Rubber Dealers Association will air its concerns about how “high volatility” in rubber futures has hit them at a meeting with Thomas, Kerala CM Oommen Chandy, secretary to the consumer affairs ministry Rajeev Agarwal, FMC chairman Ramesh Abhishek and NMCE CEO Anil Mishra in Thiruvananthapuram on November 9.
FMC regulates the commodity futures market and reports to the ministry of consumer affairs, food and public distribution, which Thomas heads. “There have been complaints of high volatility in rubber contracts traded on the futures exchange…..we will shortly be taking stock of the situation at a meeting to be held shortly. This will be attended by the consumer affairs secretary and FMC chairman,” Thomas told ET.
The association’s demand is to limit volatility (price swings either way) to 1% daily in rubber futures trade from the current 3%+1%, to allow transactions only against delivery in the current month contracts and if possible let out the names of sellers and buyers of the contracts. Rubber futures traded here take cues from Tokyo Commodity Exchange. But Rubber Dealers Association president George Valy says the nation’s futures market is not as mature as that of Japan’s.
November 1, 2011
TOKYO, Nov 1 (Reuters) – Key Tokyo rubber futures fell 2.4 percent early on Tuesday, pulled lower by declines in oil and share prices, while worries that the floods in Thailand will cut demand also weighed on the market.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for April delivery was down 7.2 yen at 300.7 yen as of 0045 GMT.
* On Monday, the most-active rubber contract on the Shanghai futures exchange for January delivery was down 710 yuan to finish at 27,105 yuan ($4,262) per tonne.
* Oil prices slipped in low-volume trading on Monday, but posted big monthly gains, as the dollar rose against the yen after Japan intervened in the market to stem the rise of its currency.
* The dollar stood at 78.46 yen , having risen as far as 79.55 on Monday in the wake of a record one-day intervention estimated by some market players to be anything from $90 billion to $130 billion.
* For the top stories in rubber market and other news, click , or
MARKET NEWS
* U.S. auto sales in October are expected to have hit the highest rate in at least eight months, helped by pent-up demand from consumers trading in ageing vehicles and a wider selection of Honda and Toyota brand cars and trucks.
* Honda Motor Co on Monday withdrew its forecast for its annual global car sales amid an indefinite suspension of work at its flooded Thai factory.
* Thailand hopes industrial estates swamped in its worst floods in half a century can be up and running within three months, the prime minister said on Monday, as the centre of the capital finally appeared to have escaped a similar fate.
* Japan’s Nikkei share average fell on Tuesday after Wall Street stocks tumbled on the failure of trading firm MF Global Holdings and fresh worries about Europe after the Greek Prime Minister called an unexpected referendum on aid to his country.
Spot rubber rules steady
Written by HMH | October 31, 2011 | 0 |
KOTTAYAM, OCT. 31:
Physical rubber prices finished unchanged on Monday. Market activities were low and it lost direction lacking active market participants on either side. Meanwhile, widespread rain disrupted tapping in major plantation areas.
Sheet rubber closed steady at Rs 212 a kg, according to traders. The grade slipped to Rs 212 (212.50) a kg both at Kottayam and Kochi, as reported by the Rubber Board.
The November series improved marginally to Rs 213.70 (212.81) December to Rs 213.34 (212.51), January to Rs 214.03 (213.43) and February to Rs 214.28 (213.81) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) weakened to Rs 196.37 (198.37) a kg at Bangkok. The November futures for the grade dropped to ¥301.2 (Rs 188.48) from ¥306.2 a kg on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 212 (212); RSS-5: 210 (210); ungraded: 202 (202); ISNR 20: 200 (200) and latex 60 per cent: 128.50 (128.50).
India: Rubber dealers to seek limit on futures price volatility
Written by HMH | October 30, 2011 | 0 |
MUMBAI/KOCHI: Kerala’s rubber dealers will urge food minister KV Thomas to impose strict limits on price swings of rubber futures contracts traded on Ahmedabadbased National Multi Commodity Exchange (NMCE), the benchmark bourse for the product, on grounds that sharp price moves were threatening their existence.
The Rubber Dealers Association will air its concerns about how “high volatility” in rubber futures has hit them at a meeting with Thomas, Kerala CM Oommen Chandy, secretary to the consumer affairs ministry Rajeev Agarwal, FMC chairman Ramesh Abhishek and NMCE CEO Anil Mishra in Thiruvananthapuram on November 9.
FMC regulates the commodity futures market and reports to the ministry of consumer affairs, food and public distribution, which Thomas heads. “There have been complaints of high volatility in rubber contracts traded on the futures exchange…..we will shortly be taking stock of the situation at a meeting to be held shortly. This will be attended by the consumer affairs secretary and FMC chairman,” Thomas told ET.
The association’s demand is to limit volatility (price swings either way) to 1% daily in rubber futures trade from the current 3%+1%, to allow transactions only against delivery in the current month contracts and if possible let out the names of sellers and buyers of the contracts. Rubber futures traded here take cues from Tokyo Commodity Exchange. But Rubber Dealers Association president George Valy says the nation’s futures market is not as mature as that of Japan’s.
Subscribe to:
Posts (Atom)
