‘Green’ tyres to make up 50% of Chinese market – Lanxess

‘Green’ tyres to make up 50% of Chinese market – Lanxess
December 1, 2011




Beijing, China — Lanxess AG expects sales of low-rolling resistance car tyres in China to increase from practically zero today to 50 percent of the market by the year 2020. China is the world’s largest car market and demand for car tyres (whether ‘green’ or not) is expected to rise by nine percent per year in the coming years. Around 400 million car tyres are produced in China each year – one-third of global tyre production.

The announcement was made at an event on the eve of the Lanxess Rubber day in Beijing tomorrow (2 December). At the same time, Lanxess CEO, Axel Heitmann said Lanxess expects group sales in China to exceed euro 1000 million in 2012.

The China Petroleum and Chemical Industry Federation (CPCIF) is the partner for Rubber Day China. The conference is also supported by the two Chinese industrial associations for rubber and synthetic rubbers, the German Institute of Rubber Technology (DIK), Beijing University of Chemical Technology and Qingdao University of Science and Technology (QUST). Around 350 representatives from business, academia, the media and local authorities will take part in the event, along with the German Ambassador to China, Dr. Michael Schaefer.

On the sidelines of the Rubber Day, Lanxess and the University of Qingdao are set to sign an agreement to extend their partnership, which has been in place since 2008. The primary aim of the individual agreements concluded by the Lanxess business units Technical Rubber Products and Butyl Rubber is to extend partnerships, with a view to supporting particularly talented students. Qingdao University is the center of rubber research in China.






Tokyo futures at 3-week high, may rise further
December 1, 2011





BANGKOK, Dec 1 (Reuters) – Tokyo rubber futures jumped 6.8 percent to a three-week high on Thursday on the back of surging share markets and oil prices and may rise further as sentiment improved after prices finished above a key resistance of 280 yen, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for May delivery rose 13.4 yen to settle at 280.8 yen ($3.62) per kg.

It rose as high as 18.3 yen, or 6.8 percent, to an intra-day high of 285.7 yen, the highest since Nov. 8.

The most-active rubber contract on the Shanghai commodity exchange for May delivery ended 1,135 yuan higher to finish at 25,925 yuan ($4,100) per tonne after jumping to its daily limit of 26,475 yan per tonne.

“TOCOM jumped in line with shares prices and may rise further on Friday if oil prices continue to rise,” one dealer said.

The Nikkei average surged to a two-week high on Thursday after the world’s central banks took coordinated action to ease funding strains among banks caused by the debt crisis in Europe.

Brent crude traded above $110 for the third session on Thursday after the move by the world’s major central banks and worry about sanctions against Iran.

Dealers said TOCOM prices could rise further on Friday with a 280 yen level was seen as strong support, while 290 yen could be the next resistance.







Market on Nov 30: Spot rubber improves on covering buys
November 30, 2011





KOTTAYAM, NOV. 30:

Spot rubber turned better on Wednesday. According to observers, the prices firmed up on covering purchases as sellers stayed back though there were no positive factors to revitalise the sentiments. Sheet rubber improved to Rs195.00 both at Kottayam and Kochi from Rs 194.00 and Rs193.00 a kg respectively according to traders and the Rubber Board. The trend was mixed.

In futures, the December series weakened to Rs 196.90 (197.10), January to Rs 197.80 (197.92), February to Rs199.61 (200.4), March to Rs200.50 (201.49) and April to Rs 203.00 (204.49) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).

RSS 3 (spot) slipped to Rs 171.68 (171.90) a kg at Bangkok. The December futures weakened to ¥ 251.0 (Rs 168.32) from ¥ 253.5 during the day session but then remained inactive in the night session on Tokyo Commodity Exchange (TOCOM).

The spot rubber rates/kg follow RSS-4: 195.00 (194.00); RSS-5: 191.00 (191.00); Ungraded: 185.00 (183.00); ISNR 20: 176.00 (174.00) and Latex 60 per cent: 109.00 (109.00).





Growth in rubber output seen slowing next year
November 30, 2011





CHENNAI, NOV. 30:

Growth in the country’s rubber production next year is likely to be lower at 4.8 per cent compared with this year’s projected 5.8 per cent, according to the Association of Natural Rubber Producing Countries (ANPRC).

Rubber production next year is pegged at 9.44 lakh tonnes (lt), going by what the Government anticipates. This is against 9.01 lt this year when growth in production is estimated at 5.8 per cent. In fact, production growth increased by two percentage points this year, going by actual production figures up to August.

NATURAL RUBBER

Natural rubber trends put out by the ANPRC point out to an emerging bearish trend for growers, especially with consumption growth being lower this year.

In its short-term outlook, the ANPRC said: “Given the depth of the euro-zone crisis and its increasingly worsening situation, (the) possibility is remote for a marked reversal of the trend in NR-market in the short-term.”

The production growth globally, too, is seen lower at 3.6 per cent next year (at 10.38 million tonnes) compared with this year’s 5.6 per cent (at 10.02 million tonnes).

Growth in consumption next year is, however, seen higher at 3.1 per cent against this year’s 1.1 per cent. The ANPRC anticipates consumption in the country increased to 9.85 lt against 9.55 lt this year.

Globally, consumption could increase to 6.28 million tonnes (mt) from 6.09 mt, an increase of 3.1 per cent compared with this year’s 0.8 per cent.

EXPORTS

Exports this year are estimated higher at over 57,000 tonnes against 21,700 tonnes last year. Next year, shipments could drop to 40,000 tonnes. Global exports this year are seen at 7.57 mt against 7.47 mt last year. In 2012, they could increase to 7.81 mt.

Fortunately for Indian growers, over 90 per cent of who are small growers, imports are likely to be lower this year and next year. The ANPRC sees imports slipping to 1.33 lt from 1.97 lt last year. Next year, they could be down further to one lt.

Global imports, too, are seen dropping one per cent this year to 3.76 mt from 3.80 mt last year. However, they are likely to increase 1.5 per cent next year to 3.82 mt.

All this could see closing or carryover stocks in the country increase to 3.55 lt next year from 3.36 lt this year. Last year, the carryover stocks were 314.9 lt.

Given the average consumption of 80,000 tonnes a month, this year’s carryover stocks can meet demand for over four months and the next year, around four and a half months without a single tonne of natural rubber being tapped. The carryover stock with the nine ANPRC members is likely to be 1.27 million tonnes this year.

GLOBAL SCENARIO

The ANPRC said rubber prices are likely to be sluggish due to the global economic worries continuing. A higher stock level with China will also prove a dampener since producer countries are unlikely to see any demand from Chinese buyers.

Speculative interest is also likely to be lower in rubber until the Euro zone crisis is overcome and the weak currencies of Malaysia, Thailand and Indonesia will see poor interest from investors abroad, the ANPRC said.

A further rise in the yen against the dollar on the heels of the Japanese economy could also see rubber prices under pressure.

On the positive side, the lower prices could see growers uprooting older trees for replanting. Weather disruptions to tapping could see some movement but developments in the Euro zone are crucial to rubber economies, the association said.







Japanese car production up 20% on October 2010
November 30, 2011





Tokyo — Japan’s production of cars in October 2011 was substantially ahead of the same month in 2010, showing a significant recovery since the earthquake and tsunami which devastated the industry in March of this year. Motorcycle production was slightly down on the same period last year.

Automobile production in October 2011 was recorded as 904,247 units. Compared with the 751,420 units total recorded for the same month of the previous year, this is an increase of 152,827 units or 20.3 percent, and production increase on the same month of the previous year after last month’s downturn.

Automobile export in October 2011 was recorded as 472,022 units. Compared with the 417,030 units total recorded for the same month of the previous year, this is an increase of 54,992 units or 13.2 percent, and export increase on the same month of the previous year for three consecutive months.

Passenger car production was up across the board, with small cars up 37 percent and standard carts up 16 percent. Truck productin was up by over 30 percent compared with a year ago and large bus production was up by over 40 percent.

Motorcycle production in October 2011 was recorded as 56,220 units. Compared with the 58,205 units total recorded for the same month of the previous year, this is a decrease of 1,985 units or 3.4 percent, and production decrease on the same month of the previous year for two consecutive months.

Motorcycle export in October 2011 was recorded as 41,879 units. Compared with the 41,679 units total recorded for the same month of the previous year, this is an increase of 200 units or 0.5 percent, and export increase on the same month of the previous year for two consecutive months.