Friday, May 13, 2016

Soft launch for new market


The International Tripartite Rubber Council (ITRC) said ITRC members Thailand, Indonesia and Malaysia have announced the soft launch of a regional rubber market (RRM). The trade platform is anticipated to be operational by June 2016. They had selected potential sellers to trade on the platform and will next invite buyers to register and trade on the platform, said ITRC’s operational arm, the International Rubber Consortium (IRCo).

It was reported by the International Rubber Study Group that global natural rubbber stock in September 2015 was 2.8 million tonnes compared with 3.2 million tonnes in 2014.

U.S. oil futures moved lower on Friday, as renewed concerns over a global supply glut and a stronger U.S. dollar weighed. U.S crude futures for June delivery were down 1.13% at $46.17 a barrel.

Russian company, Omsk Carbon Group (OCG) is increasing prices for its carbon black products with effect from 1st June.

The benchmark RSS4 grade rubber closed at `.129 a kg at Kottayam, while RSS3 grade closed at `.118.63 a kg at Bangkok and Malaysian SMR20 closed at `.94.07 a kg. On National Multi Commodity Exchange May 2016, the futures closed at `.129.67 a kg, June at `.125.46, July at `.125.68 and August 2016 closed at `.125.68 a kg. Tokyo Commodity Exchange May 2016 futures series closed at ¥164 a kg, June at ¥168.4, July at ¥169.9, August at ¥170.1, September at ¥171.4 and the contract for delivery in October 2016 closed at ¥173.1 a kg.

To read Rubber4U – 15th May 2016 issue: http://rubber4u.com/Public/Abcd.pdf
For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

Monday, May 9, 2016

Measures to control crisis


The inadequate allocation of funds to the Rubber Board of India would have a cascading effect on the activities and functioning of crucial departments like production, research and extension. The increasing concerns over the decline in natural rubber production, the Parliamentary panel has called upon the Finance Ministry to allocate adequate funds to carry out re-plantations optimally.

According to the China’s Ministry of Commerce statement, it will start an anti-dumping review on chloroprene rubber imported from Japan, United States and European Union from 10th May 2016. The review, which will last till 9th May 2017, the anti-dumping measures will continue to be effective during the review.

The benchmark RSS4 grade rubber closed at `.135 a kg at Kottayam, while Malaysian SMR20 closed at `.96.28 a kg. On National Multi Commodity Exchange May 2016, the futures closed at `.134.57 a kg, June at `.136.55, July at `.137.28 and August 2016 closed at `.137.30 a kg. Tokyo Commodity Exchange May 2016 futures series closed at ¥175.5 a kg, June at ¥176.5, July at ¥178.2, August at ¥177.8, September at ¥178.9 and the contract for delivery in October 2016 closed at ¥180.7 a kg. On Tuesday, most probably Tocom futures contract for delivery in October 2016 may trade in the positive range of ¥178 & ¥184 a kg.

To read Rubber4U – 15th May 2016 issue: http://rubber4u.com/Public/Abcd.pdf
For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

Tuesday, May 3, 2016

Recovery washed out


Soft domestic demand and slowdown in new business from overseas markets were said to be behind the sluggish performance for UK manufacturers in April 2016. While in the first quarter of 2016 Indonesia's manufacturing activity declined 1.34% from the fourth quarter of 2015 according to data from Statistics Indonesia (BPS). This decline is primarily caused by weaker growth of the processed tobacco industry (-9.99%), rubber & plastic industry (-7.66%), paper & paper products industry (-5.73%), the motor vehicles, trailers and semi-trailers industry (-4.54%) and electrical equipment (-4.13%).

Tokyo prices had climbed to a nine-month high amid hopes for improved demand from China and on speculation that dry weather across Southeast Asia could reduce rubber output. But on 2nd May, benchmark Tokyo Commodity Exchange rubber futures fell to their lowest in nearly two weeks, as the yen soared to an 18 month high versus the dollar. The Tocom rubber contract for October delivery fell 3.7% to close at ¥187.3 per kg, the lowest since 19th April.

Vietnam's natural rubber exports this year could drop 12% compared to 2015, to a six-year low at around 1 million tonnes, as part of the country's commitment to curb supplies and help stabilise prices, an industry official said on Thursday.

The benchmark RSS4 grade rubber closed at `.137 a kg at Kottayam, while RSS3 grade closed at `.119.72 a kg at Bangkok and Malaysian SMR20 closed at `.98.72 a kg. On National Multi Commodity Exchange May 2016, the futures closed at `.132.42 a kg, June at `.134.44 and July 2016 closed at `.135.40 a kg. Tokyo Commodity Exchange May 2016 futures series closed at ¥182 a kg, June at ¥182.7, July at ¥184, August at ¥184.1, September at ¥185.5 and the contract for delivery in October 2016 closed at ¥187.3 a kg.

To read Rubber4U – 1st May 2016 issue: http://rubber4u.com/Public/Abcd.pdf
For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf