Synthetic rubber production down 11% in April
New Delhi, July 30: India’s synthetic rubber production fell by 11 per cent to 8,285 tonnes in April this year, while its consumption declined by 5 per cent to 35,150 tonnes during the period, latest Rubber Board data said.
In April 2011, rubber production stood at 9,262 tonnes, while consumption of the commodity was 36,890 tonnes.
During the month under review, consumption by the auto tyre industry also fell by 8 per cent to 25,834 tonnes from 28,062 tonnes in the year-ago period, the data said.
Import of synthetic rubber declined up by 5 per cent to 26,420 tonnes in April, 2012, from 27,868 tonnes in the same period previous year.
The total stock of synthetic rubber in the country at the end of April, 2012, stood at 49,880 tonnes.
Synthetic rubber is mostly used in the manufacture of tyres, besides in cycle tyres and tubes, footwear, belts and hoses, among other items.
The country’s synthetic rubber consumption rose 3 per cent to 4,23,350 tonnes last fiscal against 4,11,830 tonnes in the 2010-11 fiscal, while production rose marginally to 1,10,599 tonnes from 1,10,340 tonnes in the same period.
During 2011-12, consumption by the auto tyre industry rose by 3 per cent to 3,07,365 tonnes from 2,98,414 tonnes in the year-ago period.
Synthetic rubber import went up by 8 per cent to 3,27,625 tonnes in 2011-12, from 3,02,030 tonnes during 2010-11.
(Source: The Hindu BusinessLine)
Rubber Demand in China Set to Contract 5% as Truck Sales Tumble
By Bloomberg News
July 31 Natural-rubber demand in China, the
world’s largest user, may drop this year as slumping truck sales
and slowing economic growth cut sales of heavy-duty tires,
according to the country’s biggest maker.
Usage may contract as much as 5 percent, said Shen Jinrong,
chairman of Hangzhou Zhongce Rubber Co. Shen’s outlook compares with a forecast in June from Chris Pardey, chief executive at Singapore-based trading company RCMA Commodities Asia Group, for a 2.3 percent drop in demand to 3.69 million metric tons.
Lower demand may extend rubber’s 12 percent drop in Tokyo
this year, with prices poised for a fifth monthly decline in
July. China’s economy expanded in the second quarter at the
slowest pace in three years as Europe’s debt crisis hurt exports.
Komatsu Ltd., the world’s second-biggest maker of dump trucks, said this month that demand in China wouldn’t recover this year.
The country is going through a so-called structural
adjustment, during which passenger-car sales remain robust,
while truck sales moderate, Shen said in an interview on July
26. That’s a major factor affecting rubber consumption since
the truck sector is the heaviest user, he said.
January-delivery rubber dropped 0.8 percent to 230.5 yen a
kilogram ($2,947 a ton) on Tokyo Commodity Exchange at 10:46 a.m. in Singapore. Its decline this year has exceeded the fall in the Standard & Poor’s GSCI Spot Index of 24 raw materials including oil and copper, which is down 0.1 percent.
Truck Tires
It’s the sales of Truck Bus Radial tires, or TBRs --
particularly those for earthmovers or heavy-duty trucks used in
mining and steel making -- that suffered the most, Shen said.
Prices are likely to stabilize from here or slide a bit
further in the second half.
China’s growth slowed to 7.6 percent in the three months
ended June, the sixth deceleration, as Europe’s crisis sapped
exports and a crackdown on property speculation curbed domestic
demand. Sales of trucks in China fell 7 percent in the first six
months as passenger-vehicle sales grew 7.1 percent, according to
data from the China Association of Automobile Manufacturers.
We might see the whole tire industry in China still
achieve low single-digit growth in terms of sales this year,
said Shen, who forecast in March that natural-rubber demand in
China may be flat in 2012 on poor commercial-vehicle demand.
Komatsu Chairman Masahiro Sakane said in a July 19
interview that I don’t think China will recover this year.
The company’s sales of excavators in China fell more than half
in the three months to June 30 from a year earlier, President
Kunio Noji said in an interview earlier this month.
A tire for a medium-to-heavy commercial vehicle uses as
much as 18 kilograms (40 pounds) of natural rubber on average,
compared with less than 1 kilogram for a typical passenger-car
tire, according to CLSA Asia-Pacific Markets in Singapore.
China accounts for 33 percent of global demand and tires
represent 70 percent of natural-rubber consumption in the
country, according to Sri Trang (Shanghai) Ltd., a unit of
Thailand’s biggest publicly listed producer.
(Source: Bloomberg)
Tuesday, July 31, 2012
Monday, July 30, 2012
Curbs Sought in Rubber Futures Trading
Curbs Sought in Rubber Futures Trading
A tougher regime, restricting the current monthly transactions to be strictly against delivery, will curb daily volatility in rubber futures trading to great extend, the trading community has said.
Sharing this view with the Expert Committee constituted by the Forward Markets Commission (FMC) to examine the issues in rubber futures trading, it said the restrictions would help bring down the unprofessional activity that marred the process.
The committee held its sitting at the Indian Rubber Research Institute on Thursday. George Valey, member and president of Indian Rubber Dealers’ Federation (IRDF), said one of the major terms of reference of the committee was to examine the restriction on daily volatility of futures trade in natural rubber from the present 4 per cent (3+1) to 1 or 2 per cent. It was also found that much of the speculative activity occurred during the 1st to 15th of every month, he said.
If we can bring in the restriction, the unprofessional activity from those who are here for a quick buck could be discouraged, he said.
The traders also found the current permitted rate of volatility of 4 per cent, too high. The present rate was fixed in 2003 when the price of natural rubber was much lower. With the prices now hovering around Rs.200 per kg, the permitted volatility rate in rupee terms will come to Rs.16 per kg (which means rubber price can vary between Rs.192 and Rs.208), he said.
But the optimum permissible volatility level would be 2 per cent (1+1) for a reasonable business atmosphere. Mr. Valey said. This would also have a positive impact on the marginal traders whose business, in turn, had impact on the farm gate price of the product, he added.
The traders wanted to bring in transparency in the business through a system wherein the identity of the real sellers and buyers of each of the transactions would be displayed online. They called for fixing ceiling on the quantity that could be possessed by traders at 500 tonnes.
The next meeting of the committee would be in Kochi, its chairman K.K. Abraham said.
(Source: The Hindu)
Rubber Output to Climb to 2.92 Million Tons in Third Quarter
By Swansy Afonso
July 27 -- Rubber production from key growers
may expand at a slower pace of 2.1 percent in the three months
through September, compared with a growth of 6.2 percent a year ago, the Association of Natural Rubber Producing Countries said.
Output from members, representing 93 percent of global
supply, may climb to 2.92 million metric tons, the group said in
its monthly bulletin today. Production in 2012 will grow 4.8
percent to 10.83 million tons, it said.
Exports in the July-September period may total 2.07 million
tons, compared with 2.04 million tons a year earlier, the
association said. Shipments this year may be close to 8.28
million tons estimated in June, it said.
(Source: Bloomberg)
A tougher regime, restricting the current monthly transactions to be strictly against delivery, will curb daily volatility in rubber futures trading to great extend, the trading community has said.
Sharing this view with the Expert Committee constituted by the Forward Markets Commission (FMC) to examine the issues in rubber futures trading, it said the restrictions would help bring down the unprofessional activity that marred the process.
The committee held its sitting at the Indian Rubber Research Institute on Thursday. George Valey, member and president of Indian Rubber Dealers’ Federation (IRDF), said one of the major terms of reference of the committee was to examine the restriction on daily volatility of futures trade in natural rubber from the present 4 per cent (3+1) to 1 or 2 per cent. It was also found that much of the speculative activity occurred during the 1st to 15th of every month, he said.
If we can bring in the restriction, the unprofessional activity from those who are here for a quick buck could be discouraged, he said.
The traders also found the current permitted rate of volatility of 4 per cent, too high. The present rate was fixed in 2003 when the price of natural rubber was much lower. With the prices now hovering around Rs.200 per kg, the permitted volatility rate in rupee terms will come to Rs.16 per kg (which means rubber price can vary between Rs.192 and Rs.208), he said.
But the optimum permissible volatility level would be 2 per cent (1+1) for a reasonable business atmosphere. Mr. Valey said. This would also have a positive impact on the marginal traders whose business, in turn, had impact on the farm gate price of the product, he added.
The traders wanted to bring in transparency in the business through a system wherein the identity of the real sellers and buyers of each of the transactions would be displayed online. They called for fixing ceiling on the quantity that could be possessed by traders at 500 tonnes.
The next meeting of the committee would be in Kochi, its chairman K.K. Abraham said.
(Source: The Hindu)
Rubber Output to Climb to 2.92 Million Tons in Third Quarter
By Swansy Afonso
July 27 -- Rubber production from key growers
may expand at a slower pace of 2.1 percent in the three months
through September, compared with a growth of 6.2 percent a year ago, the Association of Natural Rubber Producing Countries said.
Output from members, representing 93 percent of global
supply, may climb to 2.92 million metric tons, the group said in
its monthly bulletin today. Production in 2012 will grow 4.8
percent to 10.83 million tons, it said.
Exports in the July-September period may total 2.07 million
tons, compared with 2.04 million tons a year earlier, the
association said. Shipments this year may be close to 8.28
million tons estimated in June, it said.
(Source: Bloomberg)
Tuesday, July 24, 2012
RUBBER FUTURES TRADE: PANEL TO SUBMIT REPORT
RUBBER FUTURES TRADE: PANEL TO SUBMIT REPORT
The Centre has constituted an expert committee to examine various issues in rubber futures trading and for making suitable recommendations. The Department of Consumer Affairs under Forward Markets
commission had received several complaints on futures trading. The department decided to make more transparent in rubber futures trading, the Committee Chairman Prof K K Abraham told reporters here.
The 11-member committee will examine the restriction on the daily volatility of futures trade in rubber from four per cent to one or two per cent. The committee will also deliberate on the manner of
ensuring physical delivery of at least 10 per cent of the trade transacted on the exchange.
The committee, set up in April, will seek opinion from rubber growers, traders and brokers of futures trading, and submit its report to FMC within six months, he said. Earlier the price of rubber was decided
by tyre companies and big businessmen and after that a parallel marketing system implemented which was helpful to the growers.
The futures trading in rubber will be adversely affected if the restriction on the daily volatility reduced from four per cent to one or two per cent. The committee will organise its meeting in rubber consuming
centres including Mumbai, Kolkota, New Delhi and Ahmedabad prior to submitting its report.
(Source: Bloomberg quoting PTI)
The Centre has constituted an expert committee to examine various issues in rubber futures trading and for making suitable recommendations. The Department of Consumer Affairs under Forward Markets
commission had received several complaints on futures trading. The department decided to make more transparent in rubber futures trading, the Committee Chairman Prof K K Abraham told reporters here.
The 11-member committee will examine the restriction on the daily volatility of futures trade in rubber from four per cent to one or two per cent. The committee will also deliberate on the manner of
ensuring physical delivery of at least 10 per cent of the trade transacted on the exchange.
The committee, set up in April, will seek opinion from rubber growers, traders and brokers of futures trading, and submit its report to FMC within six months, he said. Earlier the price of rubber was decided
by tyre companies and big businessmen and after that a parallel marketing system implemented which was helpful to the growers.
The futures trading in rubber will be adversely affected if the restriction on the daily volatility reduced from four per cent to one or two per cent. The committee will organise its meeting in rubber consuming
centres including Mumbai, Kolkota, New Delhi and Ahmedabad prior to submitting its report.
(Source: Bloomberg quoting PTI)
Wednesday, July 4, 2012
Chinese megacity limits new car sales
Chinese megacity limits new car sales
July 2, 2012
An employee walks past new cars at the parking lot of Changan Ford Mazda Automobile Co. Ltd, Ford Motor’s joint venture in China, in Chongqing Municipality, October 12, 2010. REUTERS/Stringer
China’s booming southern city of Guangzhou has imposed a cap on the number of cars allowed to be sold in an effort to curb worsening traffic and pollution, state media reported on Monday.
Guangzhou, one of the biggest cities in China with a population of more than 16 million according to the Chinese press, will issue registration plates for only 120,000 small and medium-sized passenger cars for the next 12 months.
The policy is aimed at “ensuring the effective flow of the city’s transportation and protecting and improving the air quality,” said a city government statement posted online after the weekend announcement.
The number of cars that will be allowed to be sold over the next year is roughly half the total sold in 2011, according to reports in the state media.
Guangzhou had 2.4 million cars by the end of May, more than double the number five years ago, according to a report in the China Business News.
It becomes the third Chinese city, after the capital, Beijing, and Guiyang in the country’s southwest, to introduce registration plate limits in an effort to combat the escalating number of cars on China’s roads.
July 2, 2012
An employee walks past new cars at the parking lot of Changan Ford Mazda Automobile Co. Ltd, Ford Motor’s joint venture in China, in Chongqing Municipality, October 12, 2010. REUTERS/Stringer
China’s booming southern city of Guangzhou has imposed a cap on the number of cars allowed to be sold in an effort to curb worsening traffic and pollution, state media reported on Monday.
Guangzhou, one of the biggest cities in China with a population of more than 16 million according to the Chinese press, will issue registration plates for only 120,000 small and medium-sized passenger cars for the next 12 months.
The policy is aimed at “ensuring the effective flow of the city’s transportation and protecting and improving the air quality,” said a city government statement posted online after the weekend announcement.
The number of cars that will be allowed to be sold over the next year is roughly half the total sold in 2011, according to reports in the state media.
Guangzhou had 2.4 million cars by the end of May, more than double the number five years ago, according to a report in the China Business News.
It becomes the third Chinese city, after the capital, Beijing, and Guiyang in the country’s southwest, to introduce registration plate limits in an effort to combat the escalating number of cars on China’s roads.
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