Rubber Drops Second Day as High Stocks Pressure Prices

Rubber Drops Second Day as High Stocks Pressure Prices
March 15, 2012




Rubber declined for a second day on concern that high stockpiles in China, the world’s biggest consumer, and in Thailand will continue to pressure prices.

The August-delivery contract fell as much as 1 percent to 333.9 yen a kilogram ($3,989 a metric ton) on the Tokyo Commodity Exchange, before trading at 336.3 yen at 11:12 a.m. local time. The most-active contract has surged 28 percent this year.

Premier Wen Jiabao this month announced an economic growth target of 7.5 percent for this year, down from 8 percent over the past seven years. Natural-rubber inventories totaled 28,194 tons on March 8, based on a survey of nine warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said. That compared with last year’s low of 10,291 tons.

“High levels of rubber inventories in China raises concerns that import demand may slow,” said Chaiwat Muenmee, analyst at Bangkok-based commodity broker DS Futures Co. Abundant supplies from Thai operators are also weighing on prices, he said.

Declines may be limited as a weakening yen improved the appeal of the yen-denominated contracts, Gu Jiong, an analyst at commodity broker Yutaka Shoji, said by phone from Tokyo.

Japanese stocks advanced for a third day as the yen’s drop to an 11-month low against the dollar buoyed earnings prospects for exporters. Stocks gained as the yen reached 84.02 against the dollar today, its lowest since April 13. The currency has weakened on the Bank of Japan (8301)’s expansion of its asset-purchase program and signs of recovery in the U.S. BOJ Governor Masaaki Shirakawa signaled on March 13 that additional bond purchases aren’t off the table.

May-delivery rubber in Shanghai dropped 0.2 percent to 28,805 yuan ($4,550) a ton. The Thai cash price remained unchanged at 124.05 baht ($4.05) a kilogram yesterday, the Rubber Research Institute of Thailand said.





Market on Mar 14: Spot rubber edges higher
March 14, 2012




KOTTAYAM, MARCH 14:

Spot rubber turned better on Wednesday. The market made marginal gains amidst scattered transactions though there were no fresh factors to trigger a bullish mood in the commodity. The trend was partially mixed.

Sheet rubber improved to Rs 191 (190.50) a kg, according to traders. The grade increased to Rs 191.50 (191) a kg, according to Rubber Board. In futures, the March series concluded at Rs 190.10 (189.96), April at Rs 196.20 (195.99), May at Rs 200.70 (200.45), June at Rs 202.60 (202.45), July at Rs 202.26 (203.05) and August at Rs 203.10 (201.07) a kg for RSS 4 on the National Multi Commodity Exchange.

RSS 3 (spot) slipped to Rs 202.54 (202.60) a kg at Bangkok. The March futures dropped from ¥321 a kg to ¥320.5 (Rs 191.89) a kg in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 191 (190.50); RSS-5: 189 (188); ungraded: 185 (185); ISNR 20: 189.50 (188.50) and latex 60 per cent: 129 (128.50).







Global uncertainties to keep rubber bearish
March 14, 2012



MUMBAI (Commodity Online): Due to global economic uncertainties, natural rubber (NR) prices are likely to remain sluggish. The global NR production in 2011-12 is expected to be around 10.5 million tons compared to 10.3 million tons recorded in the previous year, according to Association of Natural Rubber Producing Countries (ANRPC).

The price of the commodity depends upon the consumption by the major consuming nations . China is the largest consumer of NR in the world and due to the persisting global economic slowdown, the consumption rate of the country is still uncertain.

According to ANRPC, the NR imports by major consuming nations has dipped 4.8% during January-March 2012 period.

While according to reports, production in coming years is expected to rise in the major producing nations like Indonesia and Thailand on increased tapping areas.

Meanwhile, According to India’s Rubber Board, the production is expected to be around 902,000 tons for 2012.

The production during the April 2011-February2012 period, India NR production stood at 841,500 tons and Consumption at 880,920 tons.

In Tokyo Commodity Exchange (TOCOM), the commodity for March delivery traded up3.2 yen to 321 yen per Kg on Wednesday.

And in India’s National Multi Commodity Exchange (NMCE), the NR traded at Rs 19,025 on 14th March at 10:45 IST.







February rubber imports jump – Industry board
March 13, 2012




MUMBAI: Imports of natural rubber into India jumped to 22,924 tonnes in February from 8,458 tonnes in the year earlier period, the industry body said in a statement on Tuesday.

Production fell to 57,100 tonnes in February, from 57,600 tonnes a year ago.

Consumption rose to 80,500 tonnes, as against 78,000 tonnes in the year-before period.