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)