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

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