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.