Tuesday, January 4, 2011

Increased demand will worsen supply shortage

After data showed manufacturing in the US expanded in December at the fastest pace in seven months, boosting confidence in the economic recovery and raising concern that increased demand will worsen a supply shortage. Rubber is supported by tight supplies as shipments from Thailand remain low. Supply will decline further as Thailand enters a low production period (February to April) next month.

China’s natural rubber inventories were at 66,515 tonnes, i.e. 56% lower than the previous year, which was at 1,51,832 tonnes, based on a survey of 10 warehouses.

According to Rubber Board, rubber imports by India jumped to 10,500 tonnes in December 2010 from 6,138 tonnes a year ago. Total import during April – December 2010 period is 156,608 tonnes.

Natural rubber prices have jumped to a new high at Rs. 209.50 per kg at Kottayam on concerns over supply situation which has fuelled the price rise and also a spurt in the international prices, which is currently at Rs. 226.39 per kg at Bangkok.

Read lot more in Rubber4U – 15th January 2011 issue

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