Tokyo futures edge up, Thai intervention eyed (Jan 24)
January 24, 2012
TOKYO, Jan 24 (Reuters) – Key Tokyo rubber futures rose 0.7 percent early on Tuesday as investors remained hopeful that a deal can be reached on Greek debt restructuring even after European finance ministers rejected an offer by Greece’s private creditors.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for June delivery was changing hands at 308.2 yen per kg as of 0039 GMT, up 2.2 yen.
The benchmark hit a three-month high of 315.8 yen per kg on Friday, helped by a Thai government plan to prop up the physical market.
* Thailand, the world’s biggest rubber producer, is drawing up plans to set aside 15 billion baht ($475 million) to buy rubber after USS3, the rubber sheet sold to factories by farmers, fell by half from last February.
The cabinet is due to make a decision on Tuesday.
* Commodities rallied broadly on Monday on the strong euro and signs a deal may be reached on Greek debt restructuring, with gold prices rising to six-week highs and oil and food prices posting gains.
MARKET NEWS
* Oil prices rose on Monday after the European Union agreed to ban imports of Iranian crude from July, Tehran threatened again to close the Strait of Hormuz shipping channel, and on additional support from the weak dollar.
Rubber May Drop ‘Sharply’ Through March, Goldman Sachs Says
January 23, 2012
Rubber may decline “sharply” through March as the end of the low-production season in Southeast Asia approaches and demand stays weak in China, the biggest consumer, said Goldman Sachs Group Inc. (GS)
Prices have been “artificially inflated” after Thailand, the top producer, announced a program to buy the material above market rates to support farmers and as users boosted stockpiles before the Lunar New Year, it said.
Futures retreated from the highest level in almost three months today, snapping a five-day rally. The most active contract advanced 13.3 percent last week, the biggest such gain since 2008. Goldman said this month it was maintaining its forecast for commodities to gain 15 percent this year with rallies in copper, oil and gold as economic growth in the U.S. and Asia offset the impact of a European recession.
“With current prices soaring in an environment where actual demand is not particularly strong, we think prices could drop sharply,” said analysts led by Yuichiro Isayama.
The market will switch to a 413,000-metric-ton surplus in 2012 from an 87,000-ton shortage last year, the bank said, keeping to its prediction last month. The glut may increase to 551,000 tons in 2013, it said. Futures will drop as low as 240 yen ($3.12) a kilogram (2.2 pounds) this year, the lowest since November 2009, according to the median estimate in a Bloomberg survey of 14 analysts and traders.
China Demand
The June-delivery contract fell 2.7 percent to settle at 306 yen on the Tokyo Commodity Exchange today. The most-active month climbed to 315.8 yen on Jan. 20, the highest since Oct. 28.
Demand in China fell last year to 3.59 million tons from 3.63 million tons in 2010, the bank said.
China’s gross domestic product increased 8.9 percent in the last three months of 2011 from a year earlier, the fourth straight quarterly slowdown and the weakest pace in 10 quarters. Growth may drop to below 8 percent this quarter, according to estimates from UBS AG, Nomura Holdings Inc. and Societe Generale SA, as export demand cools further and the government maintains its campaign to rein in housing costs.
The Thai government plans to spend 17 billion baht ($541 million) to buy rubber at above-market rates to boost prices, Deputy Prime Minister Kittiratt Na-Ranong said Jan. 17.
Market on Jan 23: Buyer resistance saps spot rubber
January 23, 2012
KOTTAYAM, JAN. 23:
Rubber markets declined on Monday. In the spot, prices fell following weakness in the domestic and international futures. According to sources, leading counters lost mainly on buyer resistance amidst scattered transactions. The trend was partially mixed.
Sheet rubber closed weak at Rs 190.50 (192) a kg, according to traders. The grade declined to Rs 191 (192.50) a kg both at Kottayam and Kochi, as quoted by the Rubber Board.
In futures, the February series dropped to Rs 192.75 (194.98), March to Rs 196.45 (198.98), April to Rs 202.21 (205.02), May to Rs 205.10 (207.76) and June to Rs 206.15 (207.50), while the July series improved to Rs 206.50 (204.60) a kg on the National Multi Commodity Exchange).
RSS 3 (spot) slipped to Rs 190.27 (190.30) a kg at Bangkok. The January futures for the grade declined to ¥289.5 (Rs 188.40) from ¥297.9 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 190.50 (192); RSS-5: 186 (187); ungraded: 181 (182); ISNR 20: 189 (190) and latex 60 per cent: 108.50 (108.50).
Thailand: Rubber Price Likely to Rise After Chinese New Year
January 24, 2012
The Kasikorn Research Center expects volatile rubber prices in 2012, pointing out that the price could rise to more than 110.29 baht per kilogram after the Chinese New Year due to an anticipated decline in China’s rubber stocks.
In its latest article about the rubber price situation in 2012, the Kasikorn Research Center said the rubber price is likely to fluctuate as various factors could affect rubber production and global demand.
These factors include concerns about the eurozone economic crisis, a slowing global economy, which would be detrimental to the automotive industry, and purchases by China, the world’s top rubber consumer.
Oil price movements, speculation of commodity funds on rubber futures market, and the government’s price intervention are other factors that could affect rubber prices.
However, the price of latex sheets issued by the Central Rubber Market is expected to increase.
It currently stands at 110.29 baht per kilogram after the Chinese New Year due to an anticipated decline in China’s rubber reserve, which will prompt the country to resume purchases.
Providing that China’s economy does not shrink from the previous quarter, it will continue to be a key positive factor for rubber prices.
Meanwhile, the fact that the government may soon apply measures to bolster rubber prices for growers is another contributing factor.
Tuesday, January 24, 2012
Tuesday, January 17, 2012
Japan crude rubber stocks hit 2-month high
Japan crude rubber stocks hit 2-month high
January 16, 2012
TOKYO, Jan 13 (Reuters) – Japan’s crude rubber inventories rose 1,141 tonnes in 10 days to a two-month high of 13,439 tonnes as of Dec. 31, the Rubber Trade Association of Japan said on Friday. The stock had been steadily declining for about two months up to Dec. 20. The bellwhether TOCOM rubber futures contract for June delivery rose about 4 percent this week in part on views that the Thai government may intervene to lift prices, but trading remained thin amid concerns about the European debt crisis.
Malaysia: Rubber mart likely to continue uptrend next week
January 15, 2012
The Malaysian rubber market is likely to remain on an uptrend next week due to the rainy season in Thailand and the Chinese New Year holiday, dealers said.
A dealer said, the wet weather issue in Southern Thailand would cause a shortage in the supply of raw materials.
“The shortage and buying activities ahead of the Lunar New Year, will push up the price of rubber,” said the dealer.
The dealer said, the move by Thailand’s Agriculture Ministry to purchase 200,000 tonnes of unsmoked rubber, would also contribute towards an increase in the price.
In the week just ended, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 gained 24.5 sen to 1,038.50 sen per kg from 1,014.0 sen previously, while latex in bulk rose 16.5 sen to 653.50 sen per kg from 637.0 sen per kg.
The unofficial closing price for SMR 20 went up 15.50 sen to 1,033.0 sen per kg from 1,014.50 sen previously, while latex in bulk advanced 20.5 sen to 657.50 from 637.0 sen per kg. — Bernama
Tyre production spurts up in Nov, rubber consumption up in tandem
January 15, 2012
KOCHI, JAN. 13:
India’s tyre production has grown by 10 per cent in November, with rubber consumption growing in tandem. Truck and bus tyre production, which account for the most significant portion of rubber consumed in the country, grew by six per cent. Reflecting the low base of November 2010, production of passenger car tyres grew by 14 per cent.
STEADY GROWTH
According to the figure available from the Automotive Tyre Manufacturers’ Association, jeep tyre production was up by 33 per cent even though their total numbers are not very significant. Light Commercial Vehicle tyre was another important sector which witnessed steady growth of 10 per cent. Scooter tyre production witnessed a significant growth of 22 per cent and their total numbers are quite significant. But, given the small size of the scooter tyres, the sector still accounts for a very small portion of the country’s total rubber consumption.
Rubber consumption for November last year grew by 5.1 per cent while production grew a notch lower at 4.3 per cent. But the country was surplus in rubber production for the month. However, with the lean production season setting in over rubber plantations in the country, consumption is poised to overtake production in the coming months. This was already in evidence for December when rubber production fell behind the total consumption recorded in the country.
PRODUCTIVITY
Much more remains to be done as far as the small rubber holders in the country are concerned, Mr N Radhakrishnan, Advisor to the Cochin Rubber Merchants Association said. Pointing to large plantation companies like Harrisons Malayalam and Aspinwal, he said that while their productivity had gone beyond 2000 kg/hectare while the small growers’ productivity was still around 1500 kg/hectare.
The plantation companies were able to achieve this feat through scientific cultivation and planting greater number of trees per hectare while the small grower was still to bring in these changes, Mr Radhakrishnan said. And the small grower accounts for close to 85 per cent of the country’s total rubber production.
Given the high price of rubber, the small grower is still averse to slaughter tapping of rubber and replanting the aged trees with high yielding clones to increase the farm’s productivity. Hence, the practice of tapping the aged trees with decreasing productivity continues, Mr Radhakrishnan said.
The growth in natural rubber production during the current financial year has been satisfactory. However, the gap between domestic production and consumption of natural rubber is expected to widen in the times to come, Mr Rajiv Budhraja, Director General, ATMA said. Tyre industry has lined up large scale investments towards additional capacities, especially in the truck and bus radial tyres and rubber demand will get a further fillip.
While reiterating duty free imports in the short term, he said that more area has to be brought under rubber cultivation in the medium term to resolve the crisis. There was also the need for Government support to the industry for taking up rubber plantations abroad as the long-term measure to improve .
Malaysia likely to be world’s top condom producer in 2012
January 15, 2012
A leading rubber industry agency has predicted Malaysia will emerge as the world’s top condom producer this year, dethroning Thailand as the market leader.
The Malaysian Rubber Export Promotion Council said Malaysia has captured at least one-third of the world’s production, surpassing the one billion mark.
“We can be the world’s No. 1 this year due to flood woes in Thailand. Our last year’s production figures would have easily crossed a billion condoms,” said Low Yoke Kiew, the council’s marketing and development director.
In 2010, Malaysia, the world’s fourth largest natural rubber producer, shipped out latex-made sheath contraceptives worth nearly RM300mil, almost tripling the export value in 2005, The Star reports.
Malaysia, backed by the strong latex products industry, largely small and medium size, joins the billion-piece condom makers’ club, coincidentally dominated by Asian giants.
Top Asian manufacturers such as Thailand, China, India, Japan and Malaysia continue to flood global markets with over 10 billion condoms.
“Malaysian condoms are in good demand and competitive. We’re now supplying a lot to UN programmes. We expect very good growth for all our latex products this year, including condoms,” Low added.
Condom makers rely on natural rubber, as over 90 percent of the sheath contraceptives are made using latex, while lamb intestines is another material used in the industry. (ANI)
January 16, 2012
TOKYO, Jan 13 (Reuters) – Japan’s crude rubber inventories rose 1,141 tonnes in 10 days to a two-month high of 13,439 tonnes as of Dec. 31, the Rubber Trade Association of Japan said on Friday. The stock had been steadily declining for about two months up to Dec. 20. The bellwhether TOCOM rubber futures contract for June delivery rose about 4 percent this week in part on views that the Thai government may intervene to lift prices, but trading remained thin amid concerns about the European debt crisis.
Malaysia: Rubber mart likely to continue uptrend next week
January 15, 2012
The Malaysian rubber market is likely to remain on an uptrend next week due to the rainy season in Thailand and the Chinese New Year holiday, dealers said.
A dealer said, the wet weather issue in Southern Thailand would cause a shortage in the supply of raw materials.
“The shortage and buying activities ahead of the Lunar New Year, will push up the price of rubber,” said the dealer.
The dealer said, the move by Thailand’s Agriculture Ministry to purchase 200,000 tonnes of unsmoked rubber, would also contribute towards an increase in the price.
In the week just ended, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 gained 24.5 sen to 1,038.50 sen per kg from 1,014.0 sen previously, while latex in bulk rose 16.5 sen to 653.50 sen per kg from 637.0 sen per kg.
The unofficial closing price for SMR 20 went up 15.50 sen to 1,033.0 sen per kg from 1,014.50 sen previously, while latex in bulk advanced 20.5 sen to 657.50 from 637.0 sen per kg. — Bernama
Tyre production spurts up in Nov, rubber consumption up in tandem
January 15, 2012
KOCHI, JAN. 13:
India’s tyre production has grown by 10 per cent in November, with rubber consumption growing in tandem. Truck and bus tyre production, which account for the most significant portion of rubber consumed in the country, grew by six per cent. Reflecting the low base of November 2010, production of passenger car tyres grew by 14 per cent.
STEADY GROWTH
According to the figure available from the Automotive Tyre Manufacturers’ Association, jeep tyre production was up by 33 per cent even though their total numbers are not very significant. Light Commercial Vehicle tyre was another important sector which witnessed steady growth of 10 per cent. Scooter tyre production witnessed a significant growth of 22 per cent and their total numbers are quite significant. But, given the small size of the scooter tyres, the sector still accounts for a very small portion of the country’s total rubber consumption.
Rubber consumption for November last year grew by 5.1 per cent while production grew a notch lower at 4.3 per cent. But the country was surplus in rubber production for the month. However, with the lean production season setting in over rubber plantations in the country, consumption is poised to overtake production in the coming months. This was already in evidence for December when rubber production fell behind the total consumption recorded in the country.
PRODUCTIVITY
Much more remains to be done as far as the small rubber holders in the country are concerned, Mr N Radhakrishnan, Advisor to the Cochin Rubber Merchants Association said. Pointing to large plantation companies like Harrisons Malayalam and Aspinwal, he said that while their productivity had gone beyond 2000 kg/hectare while the small growers’ productivity was still around 1500 kg/hectare.
The plantation companies were able to achieve this feat through scientific cultivation and planting greater number of trees per hectare while the small grower was still to bring in these changes, Mr Radhakrishnan said. And the small grower accounts for close to 85 per cent of the country’s total rubber production.
Given the high price of rubber, the small grower is still averse to slaughter tapping of rubber and replanting the aged trees with high yielding clones to increase the farm’s productivity. Hence, the practice of tapping the aged trees with decreasing productivity continues, Mr Radhakrishnan said.
The growth in natural rubber production during the current financial year has been satisfactory. However, the gap between domestic production and consumption of natural rubber is expected to widen in the times to come, Mr Rajiv Budhraja, Director General, ATMA said. Tyre industry has lined up large scale investments towards additional capacities, especially in the truck and bus radial tyres and rubber demand will get a further fillip.
While reiterating duty free imports in the short term, he said that more area has to be brought under rubber cultivation in the medium term to resolve the crisis. There was also the need for Government support to the industry for taking up rubber plantations abroad as the long-term measure to improve .
Malaysia likely to be world’s top condom producer in 2012
January 15, 2012
A leading rubber industry agency has predicted Malaysia will emerge as the world’s top condom producer this year, dethroning Thailand as the market leader.
The Malaysian Rubber Export Promotion Council said Malaysia has captured at least one-third of the world’s production, surpassing the one billion mark.
“We can be the world’s No. 1 this year due to flood woes in Thailand. Our last year’s production figures would have easily crossed a billion condoms,” said Low Yoke Kiew, the council’s marketing and development director.
In 2010, Malaysia, the world’s fourth largest natural rubber producer, shipped out latex-made sheath contraceptives worth nearly RM300mil, almost tripling the export value in 2005, The Star reports.
Malaysia, backed by the strong latex products industry, largely small and medium size, joins the billion-piece condom makers’ club, coincidentally dominated by Asian giants.
Top Asian manufacturers such as Thailand, China, India, Japan and Malaysia continue to flood global markets with over 10 billion condoms.
“Malaysian condoms are in good demand and competitive. We’re now supplying a lot to UN programmes. We expect very good growth for all our latex products this year, including condoms,” Low added.
Condom makers rely on natural rubber, as over 90 percent of the sheath contraceptives are made using latex, while lamb intestines is another material used in the industry. (ANI)
Wednesday, January 11, 2012
Rubber may slide on low China demand
Rubber may slide on low China demand
January 11, 2012
Rubber prices, little changed, may decline amid concern that demand from China, the world’s largest consumer, may be slowing after stockpiles increased to a 10- month high.
June-delivery rubber dropped by as much as 0.5% to 266.60 (110 baht) per kilogramme or US$3,471 a tonne before trading at 268 on the Tokyo Commodity Exchange late yesterday morning.
Natural-rubber inventories monitored by the Shanghai Futures Exchange rose by 900 tonnes to 33,874 tonnes, the highest level since March, the bourse said last Friday.
Rising supply will turn the global market into a 413,000-tonne surplus this year from an 87,000-tonne shortage last year, said the Goldman Sachs Group.
Demand from China is not strong enough to push up rubber prices, said Takaki Shigemoto, an analyst at research company JSC Corporation in Tokyo. There is no tightness in supply as a slowdown in the global recovery curbs consumption.
The market was also capped as oil traded near the lowest price in more than a week in New York, weakening the appeal of natural rubber as an alternative to synthetic products made from petroleum, said Mr Shigemoto.
Oil extended losses for a third day yesterday as signs of weakening growth in Europe indicate fuel demand may falter. The situation regarding Iran is bearish for the price of crude, said Jeffrey Currie, head of commodities research at Goldman Sachs.
May-delivery rubber on the Shanghai Futures Exchange lost 0.6% to 24,455 yuan (123,000 baht) per tonne. The Thai cash price rose to 105.75 baht/kg yesterday from 105.25 baht last Friday, said the Rubber Research Institute of Thailand.
Its statistics show rubber prices were bullish last year except in the fourth quarter due largely to concern over the crisis in Europe and abundant supplies in China.
Export prices of RSS3 products dropped to 119-121 baht/kg in October and November, far lower than the average of 150 baht in the first three quarters.
In the first nine months, strong demand from auto industries in China, the US and Japan pushed up rubber prices and resulted in a historic high of Thailand’s RSS3 products, which sold at an average of 180.53 baht last February, with 155 baht/kg for latex.
But the Thai Rubber Trade Association (TRA) said the situation is quite different this year, as the product depends largely on the economy.
It expects a stagnant rubber trade this year amid the global economic woes.
The TRA reported rubber prices have been continually volatile since last October and are inclined to decrease further due to the crisis that has also made a great impact on stock markets and oil prices and eventually affected rubber prices.
The delay in shipments of big Chinese buyers is one negative factor that had a considerable psychological impact on market price.
But the TRA is positive high rainfall in the South resulting in a lower supply entering the market will push up prices. It also said moves by International Rubber Consortium Ltd, a venture formed by Thailand, Indonesia and Malaysia, aimed at tackling falling rubber prices will be another positive factor.
Rubber growers issue ultimatum
January 11, 2012
Rubber growers have given the government five days to make clear its policy to address declining rubber prices, or they will protest in front of the prime minister’s house.
“If the government remains unclear about how it will handle prices of rubber by Jan 15, a group of rubber growers will stage a protest in front of the prime minister’s house,” Para Rubber Council of Thailand honorary chairman Uthai Sonlaksup said on Tuesday.
Mr Uthai said rubber growers had been seeking government assistance for three months, but the government had yet to come up with any concrete measures.
The drop in prices was attributed to the export of 180,000 tonnes of para rubber to China at only 105 baht a kilogramme, he said.
The current price of smoked rubber stood at 93 baht per kilogramme and latex at 80 baht per kilogramme, he said.
“There are also people in the cabinet who don’t have any knowledge about the rubber business but gain benefits from ubber sales,” Mr Uthai said.
He said the association had sent two letters to the government, but no progress was made.
Rubber growers wanted the retail price of rubber set at 120 baht a kilogramme, he added.
Rubber prices could rise from Feb on lower supply
January 11, 2012
CHENNAI, JAN. 10:
The sentiment in the natural rubber market could improve from February on lower supply but the gain could be limited by sluggish demand and lack of support from speculators, according to the Association of Natural Rubber Producing Countries (ANPRC).
The association’s Natural Rubber Trends & Statistics for December said that the current state of the global economy and an unfavourable demand outlook are likely to keep speculative investors away from the commodities market. It would result in the rubber market not receiving any speculator support to perk up the price.
The ANPRC’s senior economist, Mr Jom Jacob, said that the gravity of the current global economic situation, particularly the situation in many advanced economies, points to the fact that putting the economy back to the recovery path may take a much longer time than what was anticipated a year ago. “To be more specific, there is little possibility for the global economy to return to a recovery path by first quarter of 2012. Under such an unfavourable global economic condition, rubber demand is likely to stay sluggish during the first quarter of 2012,” he said.
HUGE STOCKS
With China holding huge inventories, the possibility is remote for Chinese buyers to go for large volume purchases before the country enters a week-long lunar new-year holidays starting next week.
In India, rubber demand dropped 1.2 per cent against a 4.3 per cent growth in 2010.
Growth in truck and bus tyres, that consumer most of the rubber produced in the country, registered 0.01 per cent growth while passenger car tyres demand was up three per cent. In October, truck and bus tyre production dropped 13 per cent, while passenger car tyres output slipped 18 per cent, the association pointed out.
‘Wintering’ or the leaf-falling lower supply season will begin during February-March with slight variation across countries. In Thailand, the top producer, wintering is scheduled to begin in March and therefore, supplies are likely to be normal in January and February. In Malaysia, wintering begins in mid-February and in India, it will later this month. This could lead to some positive sentiment since production could drop from 9.45 lakh tonnes in January to 7.67 lakh tonnes in February.
WEAK DEMAND
“Weak demand will continue to keep the market dormant,” the association said.
On supply dynamics, it said production this year could increase to 10.42 million tonnes from 10.1 million tonnes last year, a growth of 3.1 per cent. But it will lower than the 6.4 per cent growth seen last year.
Indian production is expected to rise four per cent to 9.30 lakh tonnes against 8.94 lakh tonnes last year. Production growth last year was, however, higher at 5.1 per cent.
Exports by ANRPC members are expected to grow 2.3 per cent at 7.83 million tonnes against 7.66 million tonnes (2.4 per cent growth) last year. Exports from India are projected to drop nearly 10 per cent to 40 lakh tonnes against 44 lakh tonnes shipped out last year when shipments doubled.
Rubber imports in the country could drop to 75,000 tonnes from 1.45 lakh tonnes last year. In 2009, imports totalled 1.97 lakh tonnes.
Closing stocks as of December 31 were 3.55 lakh tonnes against 3.34 lakh tonnes at the start of the year. The stocks will meet production requirements for nearly five months.
The ANRPC said that 24,000 hectares could be brought under rubber cultivation this year against 25,000 hectares last year. Replanting, on the other hand, is likely to be done on 15,000 hectares against 10,000 hectares.
Natural rubber output up 1 pc in Dec; consumption up by 4.4 pc
January 11, 2012
New Delhi, Jan 10 (PTI) Natural rubber production rose by nearly one per cent during December at 1.04 lakh tonnes, while consumption increased by over four per cent in the last month at 84,000 tonnes.
During December 2010, the natural rubber production stood at 1.03 lakh tonnes and consumption at 80,465 tonnes.
Imports of natural rubber increased to 21,734 tonnes in December 2011 from 13,805 tonnes in the year-ago period, the Rubber Board said today. However, exports declined to 922 tonnes from 2,495 tonnes during the period under review.
In the first nine months of this fiscal, NR production rose by 4.3 per cent at 6.79 lakh tonnes against 6.51 lakh tonnes in the year-ago period.
The consumption grew marginally to 7.17 lakh tonnes during April-December 2011 from 7.08 lakh tonnes in the corresponding period of last fiscal.
Imports of natural rubber fell by nearly 20 per cent at 1.33 lakh tonnes during the first nine months of this fiscal, while exports jumped three-fold to 22,472 tonnes during April- December 2011 compared with the year-ago period.
January 11, 2012
Rubber prices, little changed, may decline amid concern that demand from China, the world’s largest consumer, may be slowing after stockpiles increased to a 10- month high.
June-delivery rubber dropped by as much as 0.5% to 266.60 (110 baht) per kilogramme or US$3,471 a tonne before trading at 268 on the Tokyo Commodity Exchange late yesterday morning.
Natural-rubber inventories monitored by the Shanghai Futures Exchange rose by 900 tonnes to 33,874 tonnes, the highest level since March, the bourse said last Friday.
Rising supply will turn the global market into a 413,000-tonne surplus this year from an 87,000-tonne shortage last year, said the Goldman Sachs Group.
Demand from China is not strong enough to push up rubber prices, said Takaki Shigemoto, an analyst at research company JSC Corporation in Tokyo. There is no tightness in supply as a slowdown in the global recovery curbs consumption.
The market was also capped as oil traded near the lowest price in more than a week in New York, weakening the appeal of natural rubber as an alternative to synthetic products made from petroleum, said Mr Shigemoto.
Oil extended losses for a third day yesterday as signs of weakening growth in Europe indicate fuel demand may falter. The situation regarding Iran is bearish for the price of crude, said Jeffrey Currie, head of commodities research at Goldman Sachs.
May-delivery rubber on the Shanghai Futures Exchange lost 0.6% to 24,455 yuan (123,000 baht) per tonne. The Thai cash price rose to 105.75 baht/kg yesterday from 105.25 baht last Friday, said the Rubber Research Institute of Thailand.
Its statistics show rubber prices were bullish last year except in the fourth quarter due largely to concern over the crisis in Europe and abundant supplies in China.
Export prices of RSS3 products dropped to 119-121 baht/kg in October and November, far lower than the average of 150 baht in the first three quarters.
In the first nine months, strong demand from auto industries in China, the US and Japan pushed up rubber prices and resulted in a historic high of Thailand’s RSS3 products, which sold at an average of 180.53 baht last February, with 155 baht/kg for latex.
But the Thai Rubber Trade Association (TRA) said the situation is quite different this year, as the product depends largely on the economy.
It expects a stagnant rubber trade this year amid the global economic woes.
The TRA reported rubber prices have been continually volatile since last October and are inclined to decrease further due to the crisis that has also made a great impact on stock markets and oil prices and eventually affected rubber prices.
The delay in shipments of big Chinese buyers is one negative factor that had a considerable psychological impact on market price.
But the TRA is positive high rainfall in the South resulting in a lower supply entering the market will push up prices. It also said moves by International Rubber Consortium Ltd, a venture formed by Thailand, Indonesia and Malaysia, aimed at tackling falling rubber prices will be another positive factor.
Rubber growers issue ultimatum
January 11, 2012
Rubber growers have given the government five days to make clear its policy to address declining rubber prices, or they will protest in front of the prime minister’s house.
“If the government remains unclear about how it will handle prices of rubber by Jan 15, a group of rubber growers will stage a protest in front of the prime minister’s house,” Para Rubber Council of Thailand honorary chairman Uthai Sonlaksup said on Tuesday.
Mr Uthai said rubber growers had been seeking government assistance for three months, but the government had yet to come up with any concrete measures.
The drop in prices was attributed to the export of 180,000 tonnes of para rubber to China at only 105 baht a kilogramme, he said.
The current price of smoked rubber stood at 93 baht per kilogramme and latex at 80 baht per kilogramme, he said.
“There are also people in the cabinet who don’t have any knowledge about the rubber business but gain benefits from ubber sales,” Mr Uthai said.
He said the association had sent two letters to the government, but no progress was made.
Rubber growers wanted the retail price of rubber set at 120 baht a kilogramme, he added.
Rubber prices could rise from Feb on lower supply
January 11, 2012
CHENNAI, JAN. 10:
The sentiment in the natural rubber market could improve from February on lower supply but the gain could be limited by sluggish demand and lack of support from speculators, according to the Association of Natural Rubber Producing Countries (ANPRC).
The association’s Natural Rubber Trends & Statistics for December said that the current state of the global economy and an unfavourable demand outlook are likely to keep speculative investors away from the commodities market. It would result in the rubber market not receiving any speculator support to perk up the price.
The ANPRC’s senior economist, Mr Jom Jacob, said that the gravity of the current global economic situation, particularly the situation in many advanced economies, points to the fact that putting the economy back to the recovery path may take a much longer time than what was anticipated a year ago. “To be more specific, there is little possibility for the global economy to return to a recovery path by first quarter of 2012. Under such an unfavourable global economic condition, rubber demand is likely to stay sluggish during the first quarter of 2012,” he said.
HUGE STOCKS
With China holding huge inventories, the possibility is remote for Chinese buyers to go for large volume purchases before the country enters a week-long lunar new-year holidays starting next week.
In India, rubber demand dropped 1.2 per cent against a 4.3 per cent growth in 2010.
Growth in truck and bus tyres, that consumer most of the rubber produced in the country, registered 0.01 per cent growth while passenger car tyres demand was up three per cent. In October, truck and bus tyre production dropped 13 per cent, while passenger car tyres output slipped 18 per cent, the association pointed out.
‘Wintering’ or the leaf-falling lower supply season will begin during February-March with slight variation across countries. In Thailand, the top producer, wintering is scheduled to begin in March and therefore, supplies are likely to be normal in January and February. In Malaysia, wintering begins in mid-February and in India, it will later this month. This could lead to some positive sentiment since production could drop from 9.45 lakh tonnes in January to 7.67 lakh tonnes in February.
WEAK DEMAND
“Weak demand will continue to keep the market dormant,” the association said.
On supply dynamics, it said production this year could increase to 10.42 million tonnes from 10.1 million tonnes last year, a growth of 3.1 per cent. But it will lower than the 6.4 per cent growth seen last year.
Indian production is expected to rise four per cent to 9.30 lakh tonnes against 8.94 lakh tonnes last year. Production growth last year was, however, higher at 5.1 per cent.
Exports by ANRPC members are expected to grow 2.3 per cent at 7.83 million tonnes against 7.66 million tonnes (2.4 per cent growth) last year. Exports from India are projected to drop nearly 10 per cent to 40 lakh tonnes against 44 lakh tonnes shipped out last year when shipments doubled.
Rubber imports in the country could drop to 75,000 tonnes from 1.45 lakh tonnes last year. In 2009, imports totalled 1.97 lakh tonnes.
Closing stocks as of December 31 were 3.55 lakh tonnes against 3.34 lakh tonnes at the start of the year. The stocks will meet production requirements for nearly five months.
The ANRPC said that 24,000 hectares could be brought under rubber cultivation this year against 25,000 hectares last year. Replanting, on the other hand, is likely to be done on 15,000 hectares against 10,000 hectares.
Natural rubber output up 1 pc in Dec; consumption up by 4.4 pc
January 11, 2012
New Delhi, Jan 10 (PTI) Natural rubber production rose by nearly one per cent during December at 1.04 lakh tonnes, while consumption increased by over four per cent in the last month at 84,000 tonnes.
During December 2010, the natural rubber production stood at 1.03 lakh tonnes and consumption at 80,465 tonnes.
Imports of natural rubber increased to 21,734 tonnes in December 2011 from 13,805 tonnes in the year-ago period, the Rubber Board said today. However, exports declined to 922 tonnes from 2,495 tonnes during the period under review.
In the first nine months of this fiscal, NR production rose by 4.3 per cent at 6.79 lakh tonnes against 6.51 lakh tonnes in the year-ago period.
The consumption grew marginally to 7.17 lakh tonnes during April-December 2011 from 7.08 lakh tonnes in the corresponding period of last fiscal.
Imports of natural rubber fell by nearly 20 per cent at 1.33 lakh tonnes during the first nine months of this fiscal, while exports jumped three-fold to 22,472 tonnes during April- December 2011 compared with the year-ago period.
Market on Jan 9: Rubber weakens on absence of bulk buying
Market on Jan 9: Rubber weakens on absence of bulk buying
January 10, 2012
KOTTAYAM, JAN. 9:
The physical rubber prices turned weak on Monday. The absence of quantity buyers kept the market under pressure during the session. Though certain dealers were selling on RSS 4 fearing a further dip in prices, there was no visible improvement in arrivals from the producing sector, sources said.
Subdued demand from the major rubber consuming industries continued to weigh on market although the peak production season is very near to its closing days now. However, with the current declines, the gap between the domestic and international markets has narrowed considerably.
Sheet rubber dropped to Rs 186.50 (188.00) a kg according to traders. The grade declined to Rs 187.00 (190.00) a kg both at Kottayam and Kochi according to Rubber Board.
In futures, the January series closed at Rs 190.90 (190.67), February at Rs 194.00 (193.73), March at Rs 197.95 (197.58), April at Rs 204.50 (204.67), May at Rs 208.90 (208.00) and June at Rs 204.50 (206.60) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).
RSS 3 (spot) increased marginally to Rs 176.85 (176.45) a kg at Bangkok. The Tokyo Commodity Exchange (TOCOM) remained closed owing to the ‘Coming of Age Day ‘
The spot rubber rates/kg were RSS-4: 186.50 (188.00); RSS-5: 181.00 (182.00); Ungraded: 174.00 (178.00); ISNR 20: 181.00 (184.00) and Latex 60 per cent: 106.00 (106.00)
January 10, 2012
KOTTAYAM, JAN. 9:
The physical rubber prices turned weak on Monday. The absence of quantity buyers kept the market under pressure during the session. Though certain dealers were selling on RSS 4 fearing a further dip in prices, there was no visible improvement in arrivals from the producing sector, sources said.
Subdued demand from the major rubber consuming industries continued to weigh on market although the peak production season is very near to its closing days now. However, with the current declines, the gap between the domestic and international markets has narrowed considerably.
Sheet rubber dropped to Rs 186.50 (188.00) a kg according to traders. The grade declined to Rs 187.00 (190.00) a kg both at Kottayam and Kochi according to Rubber Board.
In futures, the January series closed at Rs 190.90 (190.67), February at Rs 194.00 (193.73), March at Rs 197.95 (197.58), April at Rs 204.50 (204.67), May at Rs 208.90 (208.00) and June at Rs 204.50 (206.60) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).
RSS 3 (spot) increased marginally to Rs 176.85 (176.45) a kg at Bangkok. The Tokyo Commodity Exchange (TOCOM) remained closed owing to the ‘Coming of Age Day ‘
The spot rubber rates/kg were RSS-4: 186.50 (188.00); RSS-5: 181.00 (182.00); Ungraded: 174.00 (178.00); ISNR 20: 181.00 (184.00) and Latex 60 per cent: 106.00 (106.00)
Sunday, January 8, 2012
Rubber Market Expected To See Better Prices Next Week
Rubber Market Expected To See Better Prices Next Week
January 7, 2012
KUALA LUMPUR, Jan 7 (Bernama) — The Malaysian rubber market is expected to see a better performance next week in anticipation of limited supply in the commodity, dealers said.
A dealer said the wet weather in rubber producing countries, particularly in Southern Thailand, would cause a shortage in the raw material and this would boost prices.
He expects to see some buying activities in the local market before the Chinese New Year.
Another dealer said higher oil prices might see the return of traders in the market soon.
On a week-to-week basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 fell 9.5 sen to 1,014 sen per kg on Friday from 1,023.50 sen per kg registered the previous Friday.
Latex-in-bulk meanwhile lost eight sen to 637 sen per kg from 645 sen per kg the previous Friday.
The unofficial closing price for SMR 20 slipped 1.5 sen to 1,014.50 sen a kg on Friday from 1,016 sen a kg a week before while latex-in-bulk decreased four sen to 637 sen a kg from 641 sen a kg previously.
– BERNAMA
Market on Jan 6: Buyer resistance saps spot rubber
January 7, 2012
KOTTAYAM, JAN. 6:
Physical rubber prices declined further on Friday. The market fell on buyer resistance though there has been no visible selling pressure on any grade from major dealers or growers. The transactions were on a low key, while the trend was partially mixed.
Sheet rubber closed weak at Rs 190 (192.50) a kg, according to traders. The grade declined to Rs 191.50 (194.50) a kg both at Kottayam and Kochi, according to the Rubber Board.
The January series slipped to Rs 192.61 (193.63), February to Rs 195.77 (196.43), March to Rs 199.90 (201.22), April to Rs 205.40 (206.00), May to Rs 209.40 (210.11) and June to Rs 207.55 (208.10) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) dropped to Rs 176.45 (177.68) a kg at Bangkok. The January futures for the grade increased to ¥252 (Rs 172.51) from ¥250 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 190 (192.50); RSS-5: 185 (187); ungraded: 180 (180); ISNR 20: 185 (186) and latex 60 per cent: 107 (108).
Tyre units seek duty-free import of rubber
January 7, 2012
Growers and traders expect natural rubber prices to hold firm in the first-half of 2012. Automotive tyre-manufacturers and other rubber-based industries fear that the gap between production and consumption would widen further in the New Year.
There is also growing concern about the near-stagnation in production in recent years.
“We expect prices to hold firm in the initial months of 2012,” said K. K. Abraham, President of Pala Rubber Marketing Cooperative.
For the tyre industry, however, the New Year “has begun on a challenging note,” said Neeraj Kanwar, Chairman of Automotive Tyre Manufacturers’ Association. He told The Hindu that the gap between domestic production and consumption was likely to widen as efforts to import natural rubber proved expensive on account of the depreciation in rupee value.
The President of All India Rubber Industries Association (AIRIA), Vinod Simon, said that the economic slowdown and a flood of imported rubber products hit the domestic rubber industry while short supplies and high prices of natural rubber (NR) affected the rubber-based units, especially those in the small and tiny sectors.
Import duty
He hoped that the government would bring down the import duty on latex (now 70 per cent) to the level of natural rubber and raise import duty on finished rubber products.
N. Radhakrishnan, President of Cochin Rubber Merchants’ Association, felt that a correction in NR price was possible after July because of the continuing recession.
Rubber Production Commissioner J. Thomas said that production had been affected by lack of drive among growers to replant owing to prevailing high prices. At least 10 per cent of the trees should be in the juvenile stage normally. It was not the case now, he said. The anticipated production during the current financial year is just over 9 lakh tonnes and consumption is expected to be 9.77 lakh tonnes, leaving a supply gap of over 70,000 tonnes.
The tyre industry, which has lined up large-scale investments in the truck and bus radial segments, expects NR demand to go up. It has reiterated its demand for duty-free imports as a short-term measure.
Source: http://www.thehindu.com/business/Industry/article2781015.ece
January 7, 2012
KUALA LUMPUR, Jan 7 (Bernama) — The Malaysian rubber market is expected to see a better performance next week in anticipation of limited supply in the commodity, dealers said.
A dealer said the wet weather in rubber producing countries, particularly in Southern Thailand, would cause a shortage in the raw material and this would boost prices.
He expects to see some buying activities in the local market before the Chinese New Year.
Another dealer said higher oil prices might see the return of traders in the market soon.
On a week-to-week basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 fell 9.5 sen to 1,014 sen per kg on Friday from 1,023.50 sen per kg registered the previous Friday.
Latex-in-bulk meanwhile lost eight sen to 637 sen per kg from 645 sen per kg the previous Friday.
The unofficial closing price for SMR 20 slipped 1.5 sen to 1,014.50 sen a kg on Friday from 1,016 sen a kg a week before while latex-in-bulk decreased four sen to 637 sen a kg from 641 sen a kg previously.
– BERNAMA
Market on Jan 6: Buyer resistance saps spot rubber
January 7, 2012
KOTTAYAM, JAN. 6:
Physical rubber prices declined further on Friday. The market fell on buyer resistance though there has been no visible selling pressure on any grade from major dealers or growers. The transactions were on a low key, while the trend was partially mixed.
Sheet rubber closed weak at Rs 190 (192.50) a kg, according to traders. The grade declined to Rs 191.50 (194.50) a kg both at Kottayam and Kochi, according to the Rubber Board.
The January series slipped to Rs 192.61 (193.63), February to Rs 195.77 (196.43), March to Rs 199.90 (201.22), April to Rs 205.40 (206.00), May to Rs 209.40 (210.11) and June to Rs 207.55 (208.10) a kg for RSS 4 on the National Multi Commodity Exchange.
RSS 3 (spot) dropped to Rs 176.45 (177.68) a kg at Bangkok. The January futures for the grade increased to ¥252 (Rs 172.51) from ¥250 a kg during the day session but then remained inactive in the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 190 (192.50); RSS-5: 185 (187); ungraded: 180 (180); ISNR 20: 185 (186) and latex 60 per cent: 107 (108).
Tyre units seek duty-free import of rubber
January 7, 2012
Growers and traders expect natural rubber prices to hold firm in the first-half of 2012. Automotive tyre-manufacturers and other rubber-based industries fear that the gap between production and consumption would widen further in the New Year.
There is also growing concern about the near-stagnation in production in recent years.
“We expect prices to hold firm in the initial months of 2012,” said K. K. Abraham, President of Pala Rubber Marketing Cooperative.
For the tyre industry, however, the New Year “has begun on a challenging note,” said Neeraj Kanwar, Chairman of Automotive Tyre Manufacturers’ Association. He told The Hindu that the gap between domestic production and consumption was likely to widen as efforts to import natural rubber proved expensive on account of the depreciation in rupee value.
The President of All India Rubber Industries Association (AIRIA), Vinod Simon, said that the economic slowdown and a flood of imported rubber products hit the domestic rubber industry while short supplies and high prices of natural rubber (NR) affected the rubber-based units, especially those in the small and tiny sectors.
Import duty
He hoped that the government would bring down the import duty on latex (now 70 per cent) to the level of natural rubber and raise import duty on finished rubber products.
N. Radhakrishnan, President of Cochin Rubber Merchants’ Association, felt that a correction in NR price was possible after July because of the continuing recession.
Rubber Production Commissioner J. Thomas said that production had been affected by lack of drive among growers to replant owing to prevailing high prices. At least 10 per cent of the trees should be in the juvenile stage normally. It was not the case now, he said. The anticipated production during the current financial year is just over 9 lakh tonnes and consumption is expected to be 9.77 lakh tonnes, leaving a supply gap of over 70,000 tonnes.
The tyre industry, which has lined up large-scale investments in the truck and bus radial segments, expects NR demand to go up. It has reiterated its demand for duty-free imports as a short-term measure.
Source: http://www.thehindu.com/business/Industry/article2781015.ece
Saturday, January 7, 2012
Market on Jan 5: Spot rubber drops on buyer resistance
Market on Jan 5: Spot rubber drops on buyer resistance
January 5, 2012
KOTTAYAM, JAN. 5:
Spot rubber declined on Thursday. According to observers, the prices fell sharply on buyer resistance following the weak trend on NMCE. There was visible selling from dealers and certain growers and the sentiments were still bearish. The gap between the domestic and international markets was wide enough to trigger another selling spree, an analyst toldBusiness Line. The trend was mixed.
Sheet rubber moved down to Rs 192.50 (195.00) a kg according to traders. The grade fell to Rs 194.50 (195.50) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The January series dropped to Rs 193.50 (195.60), February to Rs 196.50 (198.04), March to Rs 200.99 (202.10), April to Rs 206.00 (207.50) and May to Rs 209.85 (211.52) while the June series improved to Rs 208.10 (207.50) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).
RSS 3 (spot) weakened to Rs 177.68 (178.31) a kg at Bangkok. The January futures increased to ¥ 250.0 (Rs. 172.33) from ¥ 247.5 a kg during the day session and then slipped to ¥ 248.0 (Rs. 170.95) in the night session on Tokyo Commodity Exchange (TOCOM).
The physical rubber rates/kg were RSS-4: 192.50 (195.00); RSS-5: 187.00 (190.00); Ungraded: 180.00 (182.00); ISNR 20: 186.00 (186.00) and Latex 60 per cent: 108.00 (108.00).
Rubber Rebounds as Slump Spurs Buying Amid Thai Supply Concern
January 6, 2012
Rubber gained as a drop to near a six-week low lured buyers amid speculation that supply from Thailand, the largest exporter, may be disrupted because of heavy rains and flooding.
June-delivery rubber added as much as 0.6 percent to 269.6 yen a kilogram ($3,492 a metric ton) before trading at 269 yen on the Tokyo Commodity Exchange by 12:39 p.m. local time. The price yesterday dropped to 258.7 yen, the lowest since Nov. 24. It has gained 2.1 percent this week on signs of improvement in the U.S. economy, rebounding from a 4.7 percent drop last week.
Rain will increase in southern Thailand between Jan. 6-8 and may cause flash floods and landslides, the Department of Disaster Prevention and Mitigation said in a statement yesterday. Ten provinces in the southern region are flooded, it said. The south accounts for 80 percent of output.
“If floods cause disruption in rubber supply, that will boost prices as production is set for a seasonal decrease in coming months,” said Ken Kajisa, an analyst at broker ACE Koeki Co. inTokyo, said today by phone.
Production declines in Thailand during the so-called wintering season starting around February, when trees shed leaves and latex output slows. Users usually replenish rubber stockpiles before the low-production season begins, Kajisa said.
Gains were limited as investor appetite for riskier assets waned after higher borrowing costs in a French bond auction stoked concern Europe’s debt crisis is worsening. France sold 7.96 billion euros ($10.2 billion) of debt, with borrowing costs rising in its first bond auction of the year, as credit companies threaten to cut the nation’s AAA rating.
May-delivery rubber on the Shanghai Futures Exchange was little changed at 24,425 yuan ($3,873) a ton at 11:02 a.m. local time. The Thai cash price (THAISR3A) dropped 0.9 percent to 104.95 baht ($3.32) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Japan crude rubber stocks inch down
January 6, 2012
TOKYO, Jan 6 (Reuters) – Japan’s crude rubber inventories continued to decline by Dec. 20 after hitting a four-year high on Oct. 20, but still stayed at the highest level in nearly three months, the Rubber Trade Association of Japan said on Friday.
The stocks fell to 12,304 tonnes, down 3 percent from a month earlier and from 13,574 tonnes on Oct. 20, which was a four-year high.
The key TOCOM rubber futures market plunged to a two-year low of 248.6 yen per kg on Nov. 11 amid growing worries about the global economy. The contract slightly recovered but lingering concerns about the European debt crisis capped gains. The contract settled at 267.9 yen on Friday.
Tokyo futures flat, Euro crisis weighs
January 6, 2012
TOKYO, Jan 6 (Reuters) – Key Tokyo rubber futures were little changed on Friday in thin trade with investors nervous over the euro zone debt crisis and steering clear of risk assets.
The key Tokyo Commodity Exchange rubber contract for June delivery <0#2JRU:> settled down 0.2 yen at 267.9 yen per kg.
The most active Shanghai rubber contract for May delivery closed at 24,610 yuan ($3,900) per tonne, down from 24,420 yuan on Thursday.
“The market is dull, with investors staying away from risk assets,” said Takashi Ono, an analyst at trading house Dai-Ichi Shohin. But higher oil prices and a seasonal decline in supply may prompt investors to return to the market toward March, he said.
Brent crude was flat at about $113 a barrel on Friday as unabated euro zone debt woes and a surprise build in U.S. oil stockpiles tempered gains from supply disruption fears on mounting tensions between Iran and the West.
The yen was steady at 77.15 yen to the dollar.
January 5, 2012
KOTTAYAM, JAN. 5:
Spot rubber declined on Thursday. According to observers, the prices fell sharply on buyer resistance following the weak trend on NMCE. There was visible selling from dealers and certain growers and the sentiments were still bearish. The gap between the domestic and international markets was wide enough to trigger another selling spree, an analyst toldBusiness Line. The trend was mixed.
Sheet rubber moved down to Rs 192.50 (195.00) a kg according to traders. The grade fell to Rs 194.50 (195.50) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The January series dropped to Rs 193.50 (195.60), February to Rs 196.50 (198.04), March to Rs 200.99 (202.10), April to Rs 206.00 (207.50) and May to Rs 209.85 (211.52) while the June series improved to Rs 208.10 (207.50) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).
RSS 3 (spot) weakened to Rs 177.68 (178.31) a kg at Bangkok. The January futures increased to ¥ 250.0 (Rs. 172.33) from ¥ 247.5 a kg during the day session and then slipped to ¥ 248.0 (Rs. 170.95) in the night session on Tokyo Commodity Exchange (TOCOM).
The physical rubber rates/kg were RSS-4: 192.50 (195.00); RSS-5: 187.00 (190.00); Ungraded: 180.00 (182.00); ISNR 20: 186.00 (186.00) and Latex 60 per cent: 108.00 (108.00).
Rubber Rebounds as Slump Spurs Buying Amid Thai Supply Concern
January 6, 2012
Rubber gained as a drop to near a six-week low lured buyers amid speculation that supply from Thailand, the largest exporter, may be disrupted because of heavy rains and flooding.
June-delivery rubber added as much as 0.6 percent to 269.6 yen a kilogram ($3,492 a metric ton) before trading at 269 yen on the Tokyo Commodity Exchange by 12:39 p.m. local time. The price yesterday dropped to 258.7 yen, the lowest since Nov. 24. It has gained 2.1 percent this week on signs of improvement in the U.S. economy, rebounding from a 4.7 percent drop last week.
Rain will increase in southern Thailand between Jan. 6-8 and may cause flash floods and landslides, the Department of Disaster Prevention and Mitigation said in a statement yesterday. Ten provinces in the southern region are flooded, it said. The south accounts for 80 percent of output.
“If floods cause disruption in rubber supply, that will boost prices as production is set for a seasonal decrease in coming months,” said Ken Kajisa, an analyst at broker ACE Koeki Co. inTokyo, said today by phone.
Production declines in Thailand during the so-called wintering season starting around February, when trees shed leaves and latex output slows. Users usually replenish rubber stockpiles before the low-production season begins, Kajisa said.
Gains were limited as investor appetite for riskier assets waned after higher borrowing costs in a French bond auction stoked concern Europe’s debt crisis is worsening. France sold 7.96 billion euros ($10.2 billion) of debt, with borrowing costs rising in its first bond auction of the year, as credit companies threaten to cut the nation’s AAA rating.
May-delivery rubber on the Shanghai Futures Exchange was little changed at 24,425 yuan ($3,873) a ton at 11:02 a.m. local time. The Thai cash price (THAISR3A) dropped 0.9 percent to 104.95 baht ($3.32) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Japan crude rubber stocks inch down
January 6, 2012
TOKYO, Jan 6 (Reuters) – Japan’s crude rubber inventories continued to decline by Dec. 20 after hitting a four-year high on Oct. 20, but still stayed at the highest level in nearly three months, the Rubber Trade Association of Japan said on Friday.
The stocks fell to 12,304 tonnes, down 3 percent from a month earlier and from 13,574 tonnes on Oct. 20, which was a four-year high.
The key TOCOM rubber futures market plunged to a two-year low of 248.6 yen per kg on Nov. 11 amid growing worries about the global economy. The contract slightly recovered but lingering concerns about the European debt crisis capped gains. The contract settled at 267.9 yen on Friday.
Tokyo futures flat, Euro crisis weighs
January 6, 2012
TOKYO, Jan 6 (Reuters) – Key Tokyo rubber futures were little changed on Friday in thin trade with investors nervous over the euro zone debt crisis and steering clear of risk assets.
The key Tokyo Commodity Exchange rubber contract for June delivery <0#2JRU:> settled down 0.2 yen at 267.9 yen per kg.
The most active Shanghai rubber contract for May delivery closed at 24,610 yuan ($3,900) per tonne, down from 24,420 yuan on Thursday.
“The market is dull, with investors staying away from risk assets,” said Takashi Ono, an analyst at trading house Dai-Ichi Shohin. But higher oil prices and a seasonal decline in supply may prompt investors to return to the market toward March, he said.
Brent crude was flat at about $113 a barrel on Friday as unabated euro zone debt woes and a surprise build in U.S. oil stockpiles tempered gains from supply disruption fears on mounting tensions between Iran and the West.
The yen was steady at 77.15 yen to the dollar.
Tuesday, January 3, 2012
India’s Rubber consumption fell in September
India’s Rubber consumption fell in September
Written by HMH | January 3, 2012 | 0 |
Kottayam, India — India’s consumption of rubber declined in September 2011, compared with August.
Consumption of NR by the rubber goods manufacturing industry in the country during September 2011 was 74,870 tonnes compared to 76,190 tonnes during August 2011. The cumulative consumption during the first half of 2011-12 was 475,485 tonnes as against 469,050 tonnes during the same period last year, registering a growth of 1.4 percent.
Natural Rubber (NR) production in the country during September 2011 was 80,200 tonnes compared to the production of 77,500 tonnes during September 2010. The aggregate production during April 2011 to September 2011 was 391,400 tonnes compared to 375,250 tonnes during the corresponding period of the previous year, recording a growth of 4.3 percent. The provisional estimate of NR production for October’11 is 89,300 tonnes.
November edition of Rubber Statistical News from India Rubber Board
Written by HMH | January 3, 2012 | 0 |
Kottayam, India — India’s consumption of rubber declined in September 2011, compared with August.
Consumption of NR by the rubber goods manufacturing industry in the country during September 2011 was 74,870 tonnes compared to 76,190 tonnes during August 2011. The cumulative consumption during the first half of 2011-12 was 475,485 tonnes as against 469,050 tonnes during the same period last year, registering a growth of 1.4 percent.
Natural Rubber (NR) production in the country during September 2011 was 80,200 tonnes compared to the production of 77,500 tonnes during September 2010. The aggregate production during April 2011 to September 2011 was 391,400 tonnes compared to 375,250 tonnes during the corresponding period of the previous year, recording a growth of 4.3 percent. The provisional estimate of NR production for October’11 is 89,300 tonnes.
November edition of Rubber Statistical News from India Rubber Board
Ten News of China rubber industry on 2011
Written by HMH | January 3, 2012 | 0 |
First, the rubber raw material price fluctuations, difficult to control business costs
In 2011, rubber and other raw material prices fluctuated wildly, natural rubber in the first quarter reached 43,500 yuan / ton, the historical record, synthetic rubber, the second and third quarters of upside force, or 10,000 yuan / ton, after both fell sharply. Affected by volatility in rubber prices, rubber tires and other major companies bear the brunt of difficult to control operating costs of production, inventory and increased risk of profit margins compressed to 2% to 5%, the industry faces serious challenges.
Second, the quality of Tianjin Kumho Tire industry to strengthen self-discipline event alert
“3.15″ Tianjin Kumho quality incident exposed the problem of improper use of back mixing, caused great repercussions in the industry, the tire company sounded the alarm. China Rubber Industry Association held its first tire industry forum to enhance quality and strengthen self-discipline, initiative and self-discipline issue. AQSIQ, the Ministry of Industry, Business Administration and three departments started a car tire for the special rectification activities.
Tianjin Kumho quality incident came to light, the tire companies in shock, in a timely manner meeting the quality of the tire business and on-site management of a self-examination. That the incident is not a technical issue, but management is a problem, reflecting the business in recent years, quality management, production site management paid insufficient attention.Business leaders must raise awareness, always put quality first, first, to ensure safe and reliable tire products, and should adopt modern management methods, the introduction of information technology, visual management, tire quality can choose to pursue, to minimize the human factors on quality tires the impact. And strongly urged countries to strengthen the tire market supervision, strict implementation of the tire industry policy, regulate the tire market, the formation of fair competition and healthy competition.
Third, the industry growth rate of rational fall into the track of healthy development
As the rubber raw material price fluctuations, domestic and international market downturn, slowdown in domestic demand, China’s major rubber products output growth down, exports fall, but no ups and downs of the situation, maintaining a stable economic operation. At the same time, the quality has been optimized to run: progress in product structure adjustment, rate of radial tires 86.5%, an increase of 2.5%, and other product structure has greatly improved; change the rubber industry growth achieved initial success, the tire’s dependence on external demand was reduced; significant effect of low-carbon economy, industry, energy consumption, there a number of energy-saving equipment, tires and other green products and green materials continue to emerge. These changes indicate that when economic growth moderately reduced, but reversed structure, help to promote the reform. China’s economy began to enter the rubber industry healthy development track.
Fourth, the world rubber industry kicked off this strategy
China’s rubber industry after the reform and opening up 30 years of development, especially the “Eleventh Five “ of rapid development, in order to continue to ensure stable and rapid development has laid a solid foundation, “five-second” period will be China’s rubber industry by the world’s rubber power critical period of transition to power.
China Rubber Industry Association, put forward 10 looking to build a world power in the rubber industry strategic initiatives are: new materials development strategy, market diversification strategy, low-carbon economic strategy, economic strategy cycle, rubber products, brand strategy, strategic marketing model of modern , mergers and acquisitions strategy, the modern enterprise management strategy, technology innovation strategy, human resources strategy. November 8 – 10, “Twelfth National Conference and the World Rubber Industry Rubber Industry information on this strategy Development Forum” was held in Nanchang, officially opened the rubber off the power development strategy.
China’s rubber industry through a major adjustment, major transformation, major restructuring has been to enhance the quality, to grow stronger in the process of significantly shorten the gap between the developed world rubber industry, rubber power to a power to speed up the development process. I believe choosing the direction and goals, to take practical measures in the strategy, it is possible to “Thirteen Five-Year” period, the basic power into the world rubber industry.
Fifth, the rubber industry set off a tide of green
With the implementation of the EU REACH legislation, and will be formally implemented in November 2012 the EU tire labeling, tire companies domestic security environment facing increasing pressure, the use of green raw materials, production safety and environmental protection product is already a trend. In response to global green manufacturing trends, this year, the domestic tire and set off upstream and downstream wave of green manufacturing.
April 26, the National Development and Reform Commission officially announced the “Guiding Catalogue of Industrial Structure Adjustment (2011 version),” clearly out of the rubber vulcanization accelerator NOBS Rubber antioxidant D and production facilities, while the rubber peptizer pentachlorothiophenol , rubber accelerator TMTD as a restricted product, from a policy to further ensure that the green tire manufacturing industry.
Double the money, the second choice, the green triangle and other tire companies have received U.S. EPA SMARTWAY product certification. Aeolus Tyre Co., Ltd. announced that from May onwards, the all-steel radial tire product uses green non-toxic raw materials, manufacturing, global marketing of steel tires are to meet EU REACH regulations.
Rubber Factory of Qilu Petrochemical, Lanzhou Petrochemical synthetic rubber plant, Dushanzi converting and has successfully developed other environment-friendly synthetic rubber. December 2, LANXESS Group together with China Petroleum and Chemical Industry Association held in Beijing on the green rubber, the Chinese Rubber Industry Association, while giving strong support to jointly promote green rubber tires and high performance applications.
Sixth, China’s rubber Valley established as the industry an engine for development
2011 January, drawing the United States ‘Silicon Valley’ concept proposed by the “Chinese rubber Valley” set up in Qingdao. The total planning area of the valley about 3,000 acres, is a set of industry associations, universities, research institutions, renowned rubber enterprises and related intermediary services to support high-end industrial clustering, with research and education, business incubation and information platform, convention and exhibition business, culture Expo, and other six intermediate intermediation function. Currently, the total construction area of 350,000 square meters of a project had been completed .
The “World Rubber City,” said Akron City and Qingdao City, the United States signed a friendly town Sifang strategic cooperation agreement; China Rubber Industry Association, Qingdao Municipal People’s Government of Sifang, Qingdao University of Science and Technology, Inc. entered into a software-controlled strategic cooperation agreement, the association office Valley in rubber, rubber tape branch, shoes Branch of the China Academy of gutta percha rubber Valley has been settled.
Currently, the layout of domestic rubber industry is more dispersed, uncoordinated regional development. Rubber Valley is the history of China’s rubber industry is an important event, will effectively aggregate a variety of resources to the industry in the fierce international competition bigger and stronger , bound to the development of China’s rubber industry play an important leading role.
Seven, gutta percha into the development of large industry leading Eucommia
Eucommia is a cross-industry, cross-regional, inter-departmental, cross-cutting industrial and agricultural complex industrial system, involving industry, agriculture, forestry and medical care and other multi-sectoral.Only the whole industry chain are interdependent and coordinated development will produce the greatest benefits will achieve sustainable development.Whether it is agriculture, forestry, industry, or the rubber sector, as well as government departments, the development of the gutta percha have reached a consensus that to promote the development of the industry chain, gutta percha and its application will be leading.
March 2011, led by the China Rubber Industry Association formed a strategic alliance Eucommia industrial technology innovation to help Eucommia industry alliance committed to member and associated universities and research institutions to establish a research partnership. October 16, the Chinese Academy of gutta percha was established in Qingdao. This is the first gutta percha scientific and technological research institutions, will develop into the entire Chinese industry information platform Eucommia, research and development platform, application platform, testing platforms, personnel training platform, and the development of gutta percha important base of production standards.
Eight, the United States court is not legitimate to China OTR countervailing positive impact on the industry
U.S. time December 19, 2011, the U.S. Federal Circuit Court of Appeals for non-road tires to make the case of judicial proceedings, ruled the U.S. Department of Commerce, as the Chinese can not be the case of non-market economy under the countervailing duty investigations. Department of Commerce Office of Fair Trading has issued a statement that the person in charge of the U.S. for many years to China’s anti-subsidy investigation is in contravention of WTO rules, there is no legal basis for the United States, hopes to correct as soon as possible in the United States does not recognize China’s market economy status cases against Chinese products the erroneous practice of anti-subsidy investigation.
In the “double reverse” investigation, anti-dumping and countervailing investigations for different types of unfair trade. Exporters to foreign anti-dumping investigation is in the United States at unfairly low-priced sales of products involved; countervailing duty to investigate whether foreign exporters to obtain the host Government to give the illegal subsidies.
This will benefit not only Hebei Xing Mao, and tire exports to the project involved more than 10 companies. Over the past five years, the United States to the Chinese by a number of anti-subsidy investigations initiated 30 cases, we need to correct. The decision to subvert the judicial lawsuit the U.S. “double reverse” investigation of the foundation, the rubber tire industry in the future of our country respond to trade friction will have a positive significance.
Nine, the rubber industry, remarkable achievements in energy saving
Save energy, reduce pollution emissions, the rubber industry has been important work. In 2011, industries and enterprises to science and technology, energy saving effect is remarkable.
Triangle Group Co., Ltd. of soft control, Yiyang Rubber Machinery Group Co., Ltd., special extension (Qingdao) Tire Co., Ltd., Guangzhou laborers rivers Technology Co., Ltd. and other companies developed a method of low-temperature mixing process to achieve tonnes of plastic consumption power reduced by 20%, increase productivity more than 200% energy saving for the tire industry in China has brought a revolutionary technological breakthrough. The technology has been widespread concern in the majority of the tire business.
Comprehensive utilization of waste rubber in recent years, technological innovations within the industry has made substantial progress. In 2011, energy-saving innovations emerging enterprises: Zhejiang Machinery Co., Ltd. is being developed by Mitsubishi “BP steel scrap tire rubber powder wire outfit,” Rubber Machinery Co., Ltd. Changzhou City, three developed “a new, energy-efficient recycled rubber molding automated production line “, Netzsch Machinery Technology Co., Ltd. Jiangyin using 42 independent innovation patented technology developed” NEZ program-controlled automated production line processing used tires, “Rubber Technology Co., Ltd. Henan winning R & D” tires integrated automatic safety cut cutting broken plastic production line “, Suzhou Dongjun Rubber Machinery Factory developed a” general-purpose non-alloy cast composite roll, “a new era of Dujiangyan City, Industry and Trade Co., Ltd. developed a single spiral desulfurization patented product” recycled rubber desulphurization technology and continuous pressure equipment “. In addition, the crushing of waste tire steel structural design and use of carbide tool applications, high pressure continuous regeneration of machine design and process technology, design and manufacture of carbide steel drum, continuous automatic production of recycled materials, intermediate frequency full-bridge rectifier heating technology and new activator, penetrant and seven research and development areas have a greater breakthrough innovation.
Ten, hundred enterprises introduced to promote the industry to grow stronger
To promote the development of the industry, great loss, from 2011, China Rubber Industry Association launched the “China Rubber Industry hundred enterprises”, by experts, industry publicity, the list of hundred companies in mid-March at the “2011 China China Rubber Industry Rubber Industry Annual Conference and Exhibition “officially released. Hundred enterprises are in the vanguard of the industry, with advanced strategic thinking, continuous innovation, loud brand name, outstanding talent, a unique corporate culture and a strong sense of social responsibility, to promote the development of China’s rubber industry has made an important contribution. Also released the same period recommended by the Institute brand products, rubber traders honesty, integrity tire dealers, to further promote China’s rubber industry, the implementation of brand strategy to help good businesses to increase awareness and support the business bigger, stronger, and excellent.
Daily report on Natural Rubber: Jan 3, 2012
Written by HMH | January 3, 2012 | 0 |
HIGHLIGHTS
>RSS4 in local markets hits 2month low
>Tocom, SHFE & AFET to reopen tomorrow.
Commentary
The first trading session of the year 2012 started off on a weak note with prices plunging to two month low in the Indian markets. RSS4 in the local market slipped to Rs.194 a kg to its lowest since December 2011 while in the futures market prices shed nearly two per cent on Monday. According to sources, subdued demand continues to keep natural rubber prices under pressure. Latex (drc60%) was also quoted lower. However, car sales in the country seems slowly picking up. According to the report appeared on Business Line, except for Maruti Suzuki, most of the major manufacturers showed a unexpected rise in sales during December when usually a drop is seen as carmakers reduce stocks. In the international market, Tocom, SHFE and AFET will be reopening tomorrow, 04 January, after the New Year holidays. However, activities may probably slow down towards the end on January as the top consumer China will go on a week long Lunar New Year holiday from 22 January to 28 January.
Written by HMH | January 3, 2012 | 0 |
Kottayam, India — India’s consumption of rubber declined in September 2011, compared with August.
Consumption of NR by the rubber goods manufacturing industry in the country during September 2011 was 74,870 tonnes compared to 76,190 tonnes during August 2011. The cumulative consumption during the first half of 2011-12 was 475,485 tonnes as against 469,050 tonnes during the same period last year, registering a growth of 1.4 percent.
Natural Rubber (NR) production in the country during September 2011 was 80,200 tonnes compared to the production of 77,500 tonnes during September 2010. The aggregate production during April 2011 to September 2011 was 391,400 tonnes compared to 375,250 tonnes during the corresponding period of the previous year, recording a growth of 4.3 percent. The provisional estimate of NR production for October’11 is 89,300 tonnes.
November edition of Rubber Statistical News from India Rubber Board
Written by HMH | January 3, 2012 | 0 |
Kottayam, India — India’s consumption of rubber declined in September 2011, compared with August.
Consumption of NR by the rubber goods manufacturing industry in the country during September 2011 was 74,870 tonnes compared to 76,190 tonnes during August 2011. The cumulative consumption during the first half of 2011-12 was 475,485 tonnes as against 469,050 tonnes during the same period last year, registering a growth of 1.4 percent.
Natural Rubber (NR) production in the country during September 2011 was 80,200 tonnes compared to the production of 77,500 tonnes during September 2010. The aggregate production during April 2011 to September 2011 was 391,400 tonnes compared to 375,250 tonnes during the corresponding period of the previous year, recording a growth of 4.3 percent. The provisional estimate of NR production for October’11 is 89,300 tonnes.
November edition of Rubber Statistical News from India Rubber Board
Ten News of China rubber industry on 2011
Written by HMH | January 3, 2012 | 0 |
First, the rubber raw material price fluctuations, difficult to control business costs
In 2011, rubber and other raw material prices fluctuated wildly, natural rubber in the first quarter reached 43,500 yuan / ton, the historical record, synthetic rubber, the second and third quarters of upside force, or 10,000 yuan / ton, after both fell sharply. Affected by volatility in rubber prices, rubber tires and other major companies bear the brunt of difficult to control operating costs of production, inventory and increased risk of profit margins compressed to 2% to 5%, the industry faces serious challenges.
Second, the quality of Tianjin Kumho Tire industry to strengthen self-discipline event alert
“3.15″ Tianjin Kumho quality incident exposed the problem of improper use of back mixing, caused great repercussions in the industry, the tire company sounded the alarm. China Rubber Industry Association held its first tire industry forum to enhance quality and strengthen self-discipline, initiative and self-discipline issue. AQSIQ, the Ministry of Industry, Business Administration and three departments started a car tire for the special rectification activities.
Tianjin Kumho quality incident came to light, the tire companies in shock, in a timely manner meeting the quality of the tire business and on-site management of a self-examination. That the incident is not a technical issue, but management is a problem, reflecting the business in recent years, quality management, production site management paid insufficient attention.Business leaders must raise awareness, always put quality first, first, to ensure safe and reliable tire products, and should adopt modern management methods, the introduction of information technology, visual management, tire quality can choose to pursue, to minimize the human factors on quality tires the impact. And strongly urged countries to strengthen the tire market supervision, strict implementation of the tire industry policy, regulate the tire market, the formation of fair competition and healthy competition.
Third, the industry growth rate of rational fall into the track of healthy development
As the rubber raw material price fluctuations, domestic and international market downturn, slowdown in domestic demand, China’s major rubber products output growth down, exports fall, but no ups and downs of the situation, maintaining a stable economic operation. At the same time, the quality has been optimized to run: progress in product structure adjustment, rate of radial tires 86.5%, an increase of 2.5%, and other product structure has greatly improved; change the rubber industry growth achieved initial success, the tire’s dependence on external demand was reduced; significant effect of low-carbon economy, industry, energy consumption, there a number of energy-saving equipment, tires and other green products and green materials continue to emerge. These changes indicate that when economic growth moderately reduced, but reversed structure, help to promote the reform. China’s economy began to enter the rubber industry healthy development track.
Fourth, the world rubber industry kicked off this strategy
China’s rubber industry after the reform and opening up 30 years of development, especially the “Eleventh Five “ of rapid development, in order to continue to ensure stable and rapid development has laid a solid foundation, “five-second” period will be China’s rubber industry by the world’s rubber power critical period of transition to power.
China Rubber Industry Association, put forward 10 looking to build a world power in the rubber industry strategic initiatives are: new materials development strategy, market diversification strategy, low-carbon economic strategy, economic strategy cycle, rubber products, brand strategy, strategic marketing model of modern , mergers and acquisitions strategy, the modern enterprise management strategy, technology innovation strategy, human resources strategy. November 8 – 10, “Twelfth National Conference and the World Rubber Industry Rubber Industry information on this strategy Development Forum” was held in Nanchang, officially opened the rubber off the power development strategy.
China’s rubber industry through a major adjustment, major transformation, major restructuring has been to enhance the quality, to grow stronger in the process of significantly shorten the gap between the developed world rubber industry, rubber power to a power to speed up the development process. I believe choosing the direction and goals, to take practical measures in the strategy, it is possible to “Thirteen Five-Year” period, the basic power into the world rubber industry.
Fifth, the rubber industry set off a tide of green
With the implementation of the EU REACH legislation, and will be formally implemented in November 2012 the EU tire labeling, tire companies domestic security environment facing increasing pressure, the use of green raw materials, production safety and environmental protection product is already a trend. In response to global green manufacturing trends, this year, the domestic tire and set off upstream and downstream wave of green manufacturing.
April 26, the National Development and Reform Commission officially announced the “Guiding Catalogue of Industrial Structure Adjustment (2011 version),” clearly out of the rubber vulcanization accelerator NOBS Rubber antioxidant D and production facilities, while the rubber peptizer pentachlorothiophenol , rubber accelerator TMTD as a restricted product, from a policy to further ensure that the green tire manufacturing industry.
Double the money, the second choice, the green triangle and other tire companies have received U.S. EPA SMARTWAY product certification. Aeolus Tyre Co., Ltd. announced that from May onwards, the all-steel radial tire product uses green non-toxic raw materials, manufacturing, global marketing of steel tires are to meet EU REACH regulations.
Rubber Factory of Qilu Petrochemical, Lanzhou Petrochemical synthetic rubber plant, Dushanzi converting and has successfully developed other environment-friendly synthetic rubber. December 2, LANXESS Group together with China Petroleum and Chemical Industry Association held in Beijing on the green rubber, the Chinese Rubber Industry Association, while giving strong support to jointly promote green rubber tires and high performance applications.
Sixth, China’s rubber Valley established as the industry an engine for development
2011 January, drawing the United States ‘Silicon Valley’ concept proposed by the “Chinese rubber Valley” set up in Qingdao. The total planning area of the valley about 3,000 acres, is a set of industry associations, universities, research institutions, renowned rubber enterprises and related intermediary services to support high-end industrial clustering, with research and education, business incubation and information platform, convention and exhibition business, culture Expo, and other six intermediate intermediation function. Currently, the total construction area of 350,000 square meters of a project had been completed .
The “World Rubber City,” said Akron City and Qingdao City, the United States signed a friendly town Sifang strategic cooperation agreement; China Rubber Industry Association, Qingdao Municipal People’s Government of Sifang, Qingdao University of Science and Technology, Inc. entered into a software-controlled strategic cooperation agreement, the association office Valley in rubber, rubber tape branch, shoes Branch of the China Academy of gutta percha rubber Valley has been settled.
Currently, the layout of domestic rubber industry is more dispersed, uncoordinated regional development. Rubber Valley is the history of China’s rubber industry is an important event, will effectively aggregate a variety of resources to the industry in the fierce international competition bigger and stronger , bound to the development of China’s rubber industry play an important leading role.
Seven, gutta percha into the development of large industry leading Eucommia
Eucommia is a cross-industry, cross-regional, inter-departmental, cross-cutting industrial and agricultural complex industrial system, involving industry, agriculture, forestry and medical care and other multi-sectoral.Only the whole industry chain are interdependent and coordinated development will produce the greatest benefits will achieve sustainable development.Whether it is agriculture, forestry, industry, or the rubber sector, as well as government departments, the development of the gutta percha have reached a consensus that to promote the development of the industry chain, gutta percha and its application will be leading.
March 2011, led by the China Rubber Industry Association formed a strategic alliance Eucommia industrial technology innovation to help Eucommia industry alliance committed to member and associated universities and research institutions to establish a research partnership. October 16, the Chinese Academy of gutta percha was established in Qingdao. This is the first gutta percha scientific and technological research institutions, will develop into the entire Chinese industry information platform Eucommia, research and development platform, application platform, testing platforms, personnel training platform, and the development of gutta percha important base of production standards.
Eight, the United States court is not legitimate to China OTR countervailing positive impact on the industry
U.S. time December 19, 2011, the U.S. Federal Circuit Court of Appeals for non-road tires to make the case of judicial proceedings, ruled the U.S. Department of Commerce, as the Chinese can not be the case of non-market economy under the countervailing duty investigations. Department of Commerce Office of Fair Trading has issued a statement that the person in charge of the U.S. for many years to China’s anti-subsidy investigation is in contravention of WTO rules, there is no legal basis for the United States, hopes to correct as soon as possible in the United States does not recognize China’s market economy status cases against Chinese products the erroneous practice of anti-subsidy investigation.
In the “double reverse” investigation, anti-dumping and countervailing investigations for different types of unfair trade. Exporters to foreign anti-dumping investigation is in the United States at unfairly low-priced sales of products involved; countervailing duty to investigate whether foreign exporters to obtain the host Government to give the illegal subsidies.
This will benefit not only Hebei Xing Mao, and tire exports to the project involved more than 10 companies. Over the past five years, the United States to the Chinese by a number of anti-subsidy investigations initiated 30 cases, we need to correct. The decision to subvert the judicial lawsuit the U.S. “double reverse” investigation of the foundation, the rubber tire industry in the future of our country respond to trade friction will have a positive significance.
Nine, the rubber industry, remarkable achievements in energy saving
Save energy, reduce pollution emissions, the rubber industry has been important work. In 2011, industries and enterprises to science and technology, energy saving effect is remarkable.
Triangle Group Co., Ltd. of soft control, Yiyang Rubber Machinery Group Co., Ltd., special extension (Qingdao) Tire Co., Ltd., Guangzhou laborers rivers Technology Co., Ltd. and other companies developed a method of low-temperature mixing process to achieve tonnes of plastic consumption power reduced by 20%, increase productivity more than 200% energy saving for the tire industry in China has brought a revolutionary technological breakthrough. The technology has been widespread concern in the majority of the tire business.
Comprehensive utilization of waste rubber in recent years, technological innovations within the industry has made substantial progress. In 2011, energy-saving innovations emerging enterprises: Zhejiang Machinery Co., Ltd. is being developed by Mitsubishi “BP steel scrap tire rubber powder wire outfit,” Rubber Machinery Co., Ltd. Changzhou City, three developed “a new, energy-efficient recycled rubber molding automated production line “, Netzsch Machinery Technology Co., Ltd. Jiangyin using 42 independent innovation patented technology developed” NEZ program-controlled automated production line processing used tires, “Rubber Technology Co., Ltd. Henan winning R & D” tires integrated automatic safety cut cutting broken plastic production line “, Suzhou Dongjun Rubber Machinery Factory developed a” general-purpose non-alloy cast composite roll, “a new era of Dujiangyan City, Industry and Trade Co., Ltd. developed a single spiral desulfurization patented product” recycled rubber desulphurization technology and continuous pressure equipment “. In addition, the crushing of waste tire steel structural design and use of carbide tool applications, high pressure continuous regeneration of machine design and process technology, design and manufacture of carbide steel drum, continuous automatic production of recycled materials, intermediate frequency full-bridge rectifier heating technology and new activator, penetrant and seven research and development areas have a greater breakthrough innovation.
Ten, hundred enterprises introduced to promote the industry to grow stronger
To promote the development of the industry, great loss, from 2011, China Rubber Industry Association launched the “China Rubber Industry hundred enterprises”, by experts, industry publicity, the list of hundred companies in mid-March at the “2011 China China Rubber Industry Rubber Industry Annual Conference and Exhibition “officially released. Hundred enterprises are in the vanguard of the industry, with advanced strategic thinking, continuous innovation, loud brand name, outstanding talent, a unique corporate culture and a strong sense of social responsibility, to promote the development of China’s rubber industry has made an important contribution. Also released the same period recommended by the Institute brand products, rubber traders honesty, integrity tire dealers, to further promote China’s rubber industry, the implementation of brand strategy to help good businesses to increase awareness and support the business bigger, stronger, and excellent.
Daily report on Natural Rubber: Jan 3, 2012
Written by HMH | January 3, 2012 | 0 |
HIGHLIGHTS
>RSS4 in local markets hits 2month low
>Tocom, SHFE & AFET to reopen tomorrow.
Commentary
The first trading session of the year 2012 started off on a weak note with prices plunging to two month low in the Indian markets. RSS4 in the local market slipped to Rs.194 a kg to its lowest since December 2011 while in the futures market prices shed nearly two per cent on Monday. According to sources, subdued demand continues to keep natural rubber prices under pressure. Latex (drc60%) was also quoted lower. However, car sales in the country seems slowly picking up. According to the report appeared on Business Line, except for Maruti Suzuki, most of the major manufacturers showed a unexpected rise in sales during December when usually a drop is seen as carmakers reduce stocks. In the international market, Tocom, SHFE and AFET will be reopening tomorrow, 04 January, after the New Year holidays. However, activities may probably slow down towards the end on January as the top consumer China will go on a week long Lunar New Year holiday from 22 January to 28 January.
Tire market is not optimistic about next year
Tire market is not optimistic about next year
Written by HMH | December 30, 2011 | 0 |
Strength of domestic demand to promote the export market is limited bewildering
Talking about the situation in the tire industry in 2011, CEOs of companies with the largest word is “entangled”, if coupled with a word, it is “disturbed”, the price of natural rubber and tire up off the fluctuations, so that many When people lament the end of the year “finally get through to the.” How will the market next year? Reporters operate tire industry in the country during the working meeting interview, we hear more of in next year’s industry concerns about the situation.
“Next year may be more difficult than this year, the situation is more complex, companies either to reduce the operating rate, or pressure stocks. Turned out to be pain, pain now may be a long, 2 to 3 years may have more difficult.” Double Coin Holdings Limited, Vice General Manager Zhang Wanyou think so.
“2011 is a very tangled one year, 2012 will be a very challenging year for the growth rate of domestic car production and sales are dropping, little growth in tire demand, but production has increased dramatically, because by the 4 trillion million investment boost, tire industry in 2009 earned a lot of money to stimulate the investment enthusiasm, many projects were launched in 2012. Now that we have felt the pressure of excess steel tire, and did not let the industry cut production The overall inventory down. semi-steel tire, the Dawangzhuang new items on the side, an annual output of 5 million are considered small and large known to reach 20 million annual production capacity of these projects if the total production, the whole world to excess. “Hangzhou Zhongce Rubber Co., Ni Jie, general manager of tire sales company said.
Guangzhou South China Rubber Tire Co., Ltd. Fu Xiangdong deputy general manager told reporters that came into effect in November next year although the EU labeling law does not specify what level are not allowed to enter, but the EU has been more rational consumers, labeling consumer market after the implementation of its How things have changed, focusing on consumption patterns will not change, should be given attention. Moreover, in 2011 no bad weather in Europe can be the European distributor in the second and third quarters of hoarding a lot of winter tires, taking up much money, how much of the impact of future sales, it also remains unclear. Coupled with growth in emerging economies slowing, Brazil, South Africa, currency devaluation, export market is not optimistic is an indisputable fact.
“Natural rubber prices are not very optimistic.” Aeolus Tyre Co., Ltd. Deputy General Manager of Pingyao Ling said. He was found to Thailand in October, before the processing base of natural rubber in Thailand, mainly in southern, northern Thailand, there are now several large-scale plant under construction, these plants processing technology is good, large-scale, on the future price of natural rubber will be generated impact. Jiaojia fluctuations, unstable economic performance of enterprises.
Fan Rende, president of China Rubber Industry Association, said the international situation in 2012 is more severe than in 2011, export barriers may be more. European debt crisis intensified, the EU economic downturn can solve the problem overnight, the United States and the extent of Japan’s economic recovery than expected, will affect China’s tire exports. Domestic demand and stimulate the domestic economy, the “troika” is unlikely to be a big highlight. 4 trillion yuan investment finishing work on the tire market and emerging industries will be driven more limited. Automotive industry in 2011 only about 3% growth rate, growth is expected in 2012, 6% to 8%, driven relatively weak. On the whole, the prospects for next year’s tire sales more difficult than this year. However, growth slowed, but also brings to the enterprise structural adjustment, to the way a good time, standardize processes, increase the means of information, explore the modern marketing network model, companies will likely gain more.
Some people say that the tire industry is starting earlier than the chicken to sleep later than donkeys, profit more than paper thin. “The homogenization of the era, leading technology and provide value for money of services, or to windfall profits. And the basis of information who pockets the first drum.” Lifa Rong, vice president of Triangle Tyre Co., said the wave of global environmental protection , the initiative has become an inevitable trend, advance research and innovation can not be eliminated.Different markets, different models of the requirements are different, the product of precise positioning, the product can be more competitive.
Increase in automobile inventories increased pressure on the rubber market
Written by HMH | December 29, 2011 | 0 |
Shanghai rubber futures contract on May 29 fell 1.92% in early trading.Italian market for long-term Treasury bonds auction was pessimistic, auto stocks rise and sell stocks, Qingdao Free Trade Zone, the message will be increased pressure on the rubber market. However, China may adjust the reserve in the New Year period, limiting declines.
28, the New York Mercantile Exchange, February crude contract fell $ 1.98 to $ 99.36, down 2%. Italian Treasury auction results showed that the country on the 28th were successful auction of € 9 billion and € 1.733 billion six-month and 2-year bonds, but the good does not provide much support, 10-year bond yields back to 7% of the bit above the critical level.Italy will auction three years and 10 years bonds, investors worried that the auction may have worse performance, resulting in the euro area credit crunch may be. However, the tension in the Middle East situation continues to constitute a support for oil prices. Crude oil fell, to cut the cost of synthetic rubber, natural rubber market on the negative.
Weather conditions, natural rubber producing areas of Thailand, north-central Thailand, sunny cloudy, cloudy south; areas of Malaysia, the Malay Peninsula, southern cloudy, with rain in northern Kalimantan; areas of Indonesia, Sumatra, north of the equator cloudy equatorial Sumatra south of the rain, rain in southern Kalimantan; producing areas of China, Hainan, cloudy, cloudy, Yunnan. Recent weather on tapping little effect on production and transportation.
Asian spot market, the first trading day, prices fell. Market participants to bid carefully. Traders said low bids, despite the world’s largest rubber importer and consumer countries – China market purchases. A trader in Singapore said China bids lower than USD 3,300 per tonne, closing difficult. January 3, Yan Pianjiao shipment Thai RSS3 336-338 cents per kg.29, the Malaysian standard rubber SMR20 1 月 official quoted FOB morning remained stable.
Other aspects, the current inventory has exceeded two million domestic passenger cars, equivalent to 11 per month before the 1 / 6. The Automobile Association predicts auto market growth in 2011, about 2%. The growth of the domestic auto market has significantly slowed down, the situation is even more optimistic about next year. As the stock high, the recent decline in vehicle production is likely, rubber demand eased.
Overall, the commodity market is encountering resistance. Italian bond auction largely better than expected, but failed to ease investor anxiety.Investors noted that the 10-year Treasury interest rates are close to dangerous levels of 7%. In addition, the European banking sector loans will be deposited in the European Central Bank European Central Bank, reflecting concerns about the banking sector liquidity and pessimistic economic outlook. The external situation is slightly negative on the rubber market.Data show that China’s stock more than 2 million passenger cars, while sales increased sharply in recent months. 2012 grew by only 2% of the car, then driving the demand for rubber is extremely limited, and recovery in production in Southeast Asia will be more than 5%. Market rumors Qingdao conserved region of the inventory will be thrown to the spot market, short-term pressures will increase.
Traders out of natural rubber will accelerate the pace of integration
Written by HMH | December 29, 2011 | 0 |
Near the end of the year, the industry also moved into year-end inventory. However, a large number of domestic rubber traders, about the past is not a good year in 2011 – now with the natural rubber imports higher level, increasing the pressure on its huge inventory.
“The recent Free Trade Zone within the U.S. rubber prices rebound, can no longer seize the opportunity to see some goods and then, try to reduce these losses.” Qingdao, a trading company official told reporters that Mr. Wu, the company set a number of years, imports of standard plastic have not yet been processed. Since the second half, the bonded rubber stocks remain high, while the shipments were great, so Jiaojia shipments rebound opportunity fleeting, so recently he has been actively associated with the downstream manufacturers to determine the intention of buying and selling. “Although prices of imported low-cost shipping, but shipping now on, otherwise the latter part of inventory and then go up, prices may be lower.” Wu somewhat helpless.
His worries are not redundant. According to the latest Customs statistics show that in November, domestic natural rubber (including adhesive) chain of total imports have increased significantly year on year, monthly imports up to 309,400 tons, a new high for the history of the second month (September this year to 314,200 tons .) And 1-11 months, the domestic total reached 2.6735 million tons of imports, an increase of 3.2%. Among them, the sharp rise in imports marked plastic total imports this year is to promote a major factor. November imports of 186,500 tons domestic standard rubber for high 1-November total imports of 1,441,300 tons, representing an increase of 17.9%.
With the substantial growth in imports, the domestic rubber key distribution center of imports – Qingdao Free Trade Zone inventory continued to run high since the second half. Latest data show that Qingdao Bonded rubber stock has climbed to 18.8 million tons, 30,000 tons adhesive, synthetic rubber, 29,000 tons, a total of 247,000 tons inventory. Than “11″ before 20 million tons of high growth in the current inventory was within the bonded area.
“Inventory is high on the one hand to the inventory of the early progress is slow, the other is domestic traders to Hong Kong due to pre-order one after another.” Treasure Island rubber analyst Zoude Hui told reporters that since 2009, a large number of new rubber traders emerged, due to the lack of these new traders in the industry a large number of pre-judgment order, leading to a sharp decline in Jiaojia this year, the country’s natural rubber imports remains high.
Road through futures analyst Li Hongyang that, under normal circumstances, the downstream tire companies will fill in the annual March 10-11 to prepare inventories of raw materials into production early next year, traders will be stocking earlier in advance. However, the domestic auto market this year, growth is slowing down, the tire business orders decline led to greatly reduced demand for raw materials. Although in October or so, a wave of domestic tire companies centralized purchasing, but does not last long, so the import of natural rubber squeeze serious trade links.
Natural rubber as a communication an important part of the upstream and downstream, in the middle part of the chain traders are more sensitive to changes. But for many new entrants to the traders, the overall market this year, the test environment is more fast and heavy. According to IRSG forecast global rubber consumption this year, an increase of 3.7%, significantly lower than the 5.4% increase in the supply side. From a domestic perspective, enterprises are facing automobile tires cool down this year, double the increase in overseas trade friction test, the overall industry profit margin has shrunk dramatically, to purchase more raw materials are used with the purchase. Meanwhile, many companies began to adjust tire product formulations to enhance the proportion of synthetic rubber, which caused the demand for natural rubber is not a small impact.
”The current trade in the middle part of the pressure will increase, especially for some of the smaller traders.” Rubber trade of a domestic enterprise managers Ho said that under the conditions of high stock price of natural rubber a short time is difficult to have large changed. Currently a number of large traders of pressure is not great, but for budding small and medium traders, the situation is very grim. Rubber trade links has emerged out of the integration, will be significantly accelerated the pace of late.
Tight supply seen boosting rubber prices
Written by HMH | December 31, 2011 | 0 |
Continued tight supply coupled with the forthcoming Lunar New Year festival in January is expected to see the Malaysian rubber market opening on a high note come 2012.
Supply of the commodity is expected to slow down even further in the next two months as latex output from Thailand is expected to be considerably reduced as a result of the dry weather there.
“The market is worried about the shortage situation,” said a dealer, adding that the situation would be aggravated with the hoarding of the commodity by traders who kept rubber in warehouses, waiting to capitalise on higher prices.
On a week-to-week basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 this week fell 30 sen to 1,023.5 sen per kg which was 37.5 per cent lower when compared with a year ago prices.
Latex-in-bulk lost 18.5 sen to 645 sen per kg this week and was 34.58 per cent easier when compared with the same period last year. — Bernama
Written by HMH | December 30, 2011 | 0 |
Strength of domestic demand to promote the export market is limited bewildering
Talking about the situation in the tire industry in 2011, CEOs of companies with the largest word is “entangled”, if coupled with a word, it is “disturbed”, the price of natural rubber and tire up off the fluctuations, so that many When people lament the end of the year “finally get through to the.” How will the market next year? Reporters operate tire industry in the country during the working meeting interview, we hear more of in next year’s industry concerns about the situation.
“Next year may be more difficult than this year, the situation is more complex, companies either to reduce the operating rate, or pressure stocks. Turned out to be pain, pain now may be a long, 2 to 3 years may have more difficult.” Double Coin Holdings Limited, Vice General Manager Zhang Wanyou think so.
“2011 is a very tangled one year, 2012 will be a very challenging year for the growth rate of domestic car production and sales are dropping, little growth in tire demand, but production has increased dramatically, because by the 4 trillion million investment boost, tire industry in 2009 earned a lot of money to stimulate the investment enthusiasm, many projects were launched in 2012. Now that we have felt the pressure of excess steel tire, and did not let the industry cut production The overall inventory down. semi-steel tire, the Dawangzhuang new items on the side, an annual output of 5 million are considered small and large known to reach 20 million annual production capacity of these projects if the total production, the whole world to excess. “Hangzhou Zhongce Rubber Co., Ni Jie, general manager of tire sales company said.
Guangzhou South China Rubber Tire Co., Ltd. Fu Xiangdong deputy general manager told reporters that came into effect in November next year although the EU labeling law does not specify what level are not allowed to enter, but the EU has been more rational consumers, labeling consumer market after the implementation of its How things have changed, focusing on consumption patterns will not change, should be given attention. Moreover, in 2011 no bad weather in Europe can be the European distributor in the second and third quarters of hoarding a lot of winter tires, taking up much money, how much of the impact of future sales, it also remains unclear. Coupled with growth in emerging economies slowing, Brazil, South Africa, currency devaluation, export market is not optimistic is an indisputable fact.
“Natural rubber prices are not very optimistic.” Aeolus Tyre Co., Ltd. Deputy General Manager of Pingyao Ling said. He was found to Thailand in October, before the processing base of natural rubber in Thailand, mainly in southern, northern Thailand, there are now several large-scale plant under construction, these plants processing technology is good, large-scale, on the future price of natural rubber will be generated impact. Jiaojia fluctuations, unstable economic performance of enterprises.
Fan Rende, president of China Rubber Industry Association, said the international situation in 2012 is more severe than in 2011, export barriers may be more. European debt crisis intensified, the EU economic downturn can solve the problem overnight, the United States and the extent of Japan’s economic recovery than expected, will affect China’s tire exports. Domestic demand and stimulate the domestic economy, the “troika” is unlikely to be a big highlight. 4 trillion yuan investment finishing work on the tire market and emerging industries will be driven more limited. Automotive industry in 2011 only about 3% growth rate, growth is expected in 2012, 6% to 8%, driven relatively weak. On the whole, the prospects for next year’s tire sales more difficult than this year. However, growth slowed, but also brings to the enterprise structural adjustment, to the way a good time, standardize processes, increase the means of information, explore the modern marketing network model, companies will likely gain more.
Some people say that the tire industry is starting earlier than the chicken to sleep later than donkeys, profit more than paper thin. “The homogenization of the era, leading technology and provide value for money of services, or to windfall profits. And the basis of information who pockets the first drum.” Lifa Rong, vice president of Triangle Tyre Co., said the wave of global environmental protection , the initiative has become an inevitable trend, advance research and innovation can not be eliminated.Different markets, different models of the requirements are different, the product of precise positioning, the product can be more competitive.
Increase in automobile inventories increased pressure on the rubber market
Written by HMH | December 29, 2011 | 0 |
Shanghai rubber futures contract on May 29 fell 1.92% in early trading.Italian market for long-term Treasury bonds auction was pessimistic, auto stocks rise and sell stocks, Qingdao Free Trade Zone, the message will be increased pressure on the rubber market. However, China may adjust the reserve in the New Year period, limiting declines.
28, the New York Mercantile Exchange, February crude contract fell $ 1.98 to $ 99.36, down 2%. Italian Treasury auction results showed that the country on the 28th were successful auction of € 9 billion and € 1.733 billion six-month and 2-year bonds, but the good does not provide much support, 10-year bond yields back to 7% of the bit above the critical level.Italy will auction three years and 10 years bonds, investors worried that the auction may have worse performance, resulting in the euro area credit crunch may be. However, the tension in the Middle East situation continues to constitute a support for oil prices. Crude oil fell, to cut the cost of synthetic rubber, natural rubber market on the negative.
Weather conditions, natural rubber producing areas of Thailand, north-central Thailand, sunny cloudy, cloudy south; areas of Malaysia, the Malay Peninsula, southern cloudy, with rain in northern Kalimantan; areas of Indonesia, Sumatra, north of the equator cloudy equatorial Sumatra south of the rain, rain in southern Kalimantan; producing areas of China, Hainan, cloudy, cloudy, Yunnan. Recent weather on tapping little effect on production and transportation.
Asian spot market, the first trading day, prices fell. Market participants to bid carefully. Traders said low bids, despite the world’s largest rubber importer and consumer countries – China market purchases. A trader in Singapore said China bids lower than USD 3,300 per tonne, closing difficult. January 3, Yan Pianjiao shipment Thai RSS3 336-338 cents per kg.29, the Malaysian standard rubber SMR20 1 月 official quoted FOB morning remained stable.
Other aspects, the current inventory has exceeded two million domestic passenger cars, equivalent to 11 per month before the 1 / 6. The Automobile Association predicts auto market growth in 2011, about 2%. The growth of the domestic auto market has significantly slowed down, the situation is even more optimistic about next year. As the stock high, the recent decline in vehicle production is likely, rubber demand eased.
Overall, the commodity market is encountering resistance. Italian bond auction largely better than expected, but failed to ease investor anxiety.Investors noted that the 10-year Treasury interest rates are close to dangerous levels of 7%. In addition, the European banking sector loans will be deposited in the European Central Bank European Central Bank, reflecting concerns about the banking sector liquidity and pessimistic economic outlook. The external situation is slightly negative on the rubber market.Data show that China’s stock more than 2 million passenger cars, while sales increased sharply in recent months. 2012 grew by only 2% of the car, then driving the demand for rubber is extremely limited, and recovery in production in Southeast Asia will be more than 5%. Market rumors Qingdao conserved region of the inventory will be thrown to the spot market, short-term pressures will increase.
Traders out of natural rubber will accelerate the pace of integration
Written by HMH | December 29, 2011 | 0 |
Near the end of the year, the industry also moved into year-end inventory. However, a large number of domestic rubber traders, about the past is not a good year in 2011 – now with the natural rubber imports higher level, increasing the pressure on its huge inventory.
“The recent Free Trade Zone within the U.S. rubber prices rebound, can no longer seize the opportunity to see some goods and then, try to reduce these losses.” Qingdao, a trading company official told reporters that Mr. Wu, the company set a number of years, imports of standard plastic have not yet been processed. Since the second half, the bonded rubber stocks remain high, while the shipments were great, so Jiaojia shipments rebound opportunity fleeting, so recently he has been actively associated with the downstream manufacturers to determine the intention of buying and selling. “Although prices of imported low-cost shipping, but shipping now on, otherwise the latter part of inventory and then go up, prices may be lower.” Wu somewhat helpless.
His worries are not redundant. According to the latest Customs statistics show that in November, domestic natural rubber (including adhesive) chain of total imports have increased significantly year on year, monthly imports up to 309,400 tons, a new high for the history of the second month (September this year to 314,200 tons .) And 1-11 months, the domestic total reached 2.6735 million tons of imports, an increase of 3.2%. Among them, the sharp rise in imports marked plastic total imports this year is to promote a major factor. November imports of 186,500 tons domestic standard rubber for high 1-November total imports of 1,441,300 tons, representing an increase of 17.9%.
With the substantial growth in imports, the domestic rubber key distribution center of imports – Qingdao Free Trade Zone inventory continued to run high since the second half. Latest data show that Qingdao Bonded rubber stock has climbed to 18.8 million tons, 30,000 tons adhesive, synthetic rubber, 29,000 tons, a total of 247,000 tons inventory. Than “11″ before 20 million tons of high growth in the current inventory was within the bonded area.
“Inventory is high on the one hand to the inventory of the early progress is slow, the other is domestic traders to Hong Kong due to pre-order one after another.” Treasure Island rubber analyst Zoude Hui told reporters that since 2009, a large number of new rubber traders emerged, due to the lack of these new traders in the industry a large number of pre-judgment order, leading to a sharp decline in Jiaojia this year, the country’s natural rubber imports remains high.
Road through futures analyst Li Hongyang that, under normal circumstances, the downstream tire companies will fill in the annual March 10-11 to prepare inventories of raw materials into production early next year, traders will be stocking earlier in advance. However, the domestic auto market this year, growth is slowing down, the tire business orders decline led to greatly reduced demand for raw materials. Although in October or so, a wave of domestic tire companies centralized purchasing, but does not last long, so the import of natural rubber squeeze serious trade links.
Natural rubber as a communication an important part of the upstream and downstream, in the middle part of the chain traders are more sensitive to changes. But for many new entrants to the traders, the overall market this year, the test environment is more fast and heavy. According to IRSG forecast global rubber consumption this year, an increase of 3.7%, significantly lower than the 5.4% increase in the supply side. From a domestic perspective, enterprises are facing automobile tires cool down this year, double the increase in overseas trade friction test, the overall industry profit margin has shrunk dramatically, to purchase more raw materials are used with the purchase. Meanwhile, many companies began to adjust tire product formulations to enhance the proportion of synthetic rubber, which caused the demand for natural rubber is not a small impact.
”The current trade in the middle part of the pressure will increase, especially for some of the smaller traders.” Rubber trade of a domestic enterprise managers Ho said that under the conditions of high stock price of natural rubber a short time is difficult to have large changed. Currently a number of large traders of pressure is not great, but for budding small and medium traders, the situation is very grim. Rubber trade links has emerged out of the integration, will be significantly accelerated the pace of late.
Tight supply seen boosting rubber prices
Written by HMH | December 31, 2011 | 0 |
Continued tight supply coupled with the forthcoming Lunar New Year festival in January is expected to see the Malaysian rubber market opening on a high note come 2012.
Supply of the commodity is expected to slow down even further in the next two months as latex output from Thailand is expected to be considerably reduced as a result of the dry weather there.
“The market is worried about the shortage situation,” said a dealer, adding that the situation would be aggravated with the hoarding of the commodity by traders who kept rubber in warehouses, waiting to capitalise on higher prices.
On a week-to-week basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 this week fell 30 sen to 1,023.5 sen per kg which was 37.5 per cent lower when compared with a year ago prices.
Latex-in-bulk lost 18.5 sen to 645 sen per kg this week and was 34.58 per cent easier when compared with the same period last year. — Bernama
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