Wednesday, November 24, 2010

Unrealistic claim

The Automative Tyre Manufacturers Association (ATMA) is planning to send a reminder to the Centre, contesting the claims made by the Rubber Board. Tyre manufacturing companies have criticised the Rubber Board for inflating rubber stock position and stated that the stock claim made by the Rubber Board was merely on paper.

The closing stock, as reported by the Rubber Board to the Association of Natural Rubber Producing Countries (ANRPC), has been pegged at 38% of the country's total NR production. Even world's largest rubber producing countries including Thailand, Malaysia and Indonesia have closing stocks at mere 7%, 14% and 3%, respectively, of their production.

ATMA said that closing stock of the world’s biggest rubber consumer – China, is only 6% of its total consumption. But India has one third of its total consumption stockpiled as stock.

Rajiv Budhraja, director general of ATMA said, when rubber prices are ruling at an all time high and the very availability is a concern, such tall stock claims are unrealistic.

Rise in trading fees to curb speculation

China will increase the costs of trading agriculture and metal futures as part of the government’s efforts to limit speculation and tame inflation.
Premier Wen Jiabao’s government has pledged to use price controls and may raise interest rates a second time this year to rein in inflation that surged last month to the fastest pace in two years.

Read lot more in Rubber4U – 1st December 2010 issue

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