Friday, November 8, 2013

Lots of expectation in waiting

Top executives from Cooper Tire & Rubber Co. and Apollo Tyres Ltd. were testified in three-day trial held in Delaware's Chancery Court on Cooper's motion to force Apollo Tyres Ltd. to carry out its proposed $2.5 billion merger with Cooper Tire & Rubber Co. Apollo has said it is committed to the takeover, but not at the current price. The lack of financial information about the Chinese operation raises accounting questions; hence the Indian company alleged it cannot close the deal until it gets accurate, updated financial information from Cooper.

Natural rubber imports by China increased to 190,000 tonnes in October 2013, compared to 179,921 tonnes in September 2013 and 170,409 tonnes in October 2012. India’s natural rubber imports in October shoot up 81% to 33486 tonnes, while production, consumption and exports dropped 7.3%, 3.57% and 59% respectively on y-o-y. RSS4 grade closed at `.156.50 a kg at Kottayam, while National Multi Commodity Exchange November futures closed at `.155.90 a kg, December at `.157.08 and January 2014 at `.159.08 a kg. RSS3 grade closed at `.156.60 a kg at Bangkok and Malaysian SMR20 closed at `.143.39 a kg. As Japanese currency strengthened, it reduced the appeal of yen denominated contracts. Tokyo Commodity Exchange, November futures series closed at ¥245.3 a kg, December at ¥247.5, January 2014 at ¥250, February at ¥252.6, March at ¥255.2 and the contract for delivery in April 2014 at ¥256.9 a kg.

Read lot more in Rubber4U – 15th November 2013 issue

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