Monday, January 10, 2011

Industry is doubtful about stock projection

Natural rubber consuming industries are doubtful about the Rubber Board’s high inventory projection of 307,710 tonnes as on 31st December 2010. Natural rubber traders based in Kerala also agree with the views of the consuming industry.

The projection is not very convincing, said Rajiv Budhraja, director general of Automotive Tyre Manufacturers Association.

Rubber output in the country has not shown any appreciable increase during the past few years. The board’s output and inventory projections appear to be highly inflated. The readily available stocks in the hands of growers and traders will not be more than 50,000 tonnes, said N Radhakrishnan, Advisor - Cochin Rubber Merchants’ Association.

Rubber Chemical manufacturer seek for safeguard duty

The largest manufacturer of rubber chemicals - Nocil Ltd., has asked for imposition of safeguard duty for three years on the rubber chemical, extensively used in treating natural rubber, synthetic rubber and other synthetic rubber based compounds.

Rubber prices have shot up in the domestic market, chemical intermediaries are not benefiting because many countries, including the US, China and Saudi Arabia have excess supply and lean domestic market, forcing companies in these countries to sell their material at a cheaper rate.

The Directorate General of Foreign Trade has begun investigations on pleas for anti-dumping duties on two basic organic chemicals widely used for rubber processing.

Read lot more in Rubber4U – 15th January 2011 issue

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