Still rubber under pressure

The National Science Foundation has awarded $800,000 to University of Akron (Ohio-United States) researcher Judit E. Puskas for her project to create a halogen-free synthetic rubber made from renewable resources. This funding will help push new eco-friendly materials to market. If successful, Puskas’ research project will result in a new material that will reduce the carbon footprint of the SR manufacturing process and produce improved, cost-effective thermoplastic biocompatible rubber, according to University of Akron.

Thailand military government has sold half of its 200,000 tonne rubber stockpile to a Thai rubber exporter and aims to sell the rest by the end of September. The government has signed a contract with the exporter and rest of the rubber stock should be cleared up from the state warehouses within three months. The 100,000 tonnes of rubber was sold at 62.60 baht ($1.95) a kg.

Despite light rain, Thiru Onam, the most important day in the 10 day long festival, was celebrated across Kerala with a lavish 26 dish traditional vegetarian lunch. People were in a festive mood, while a few from the central district of Kerala recalled the celebration days when the rubber prices were at its peak.

A slowdown in demand along with oversupply in the global markets, natural rubber prices have fallen to its five year low, while domestic imports have increased. Now the planters seek safeguards in the form of hike in import or anti-dumping duty to sustain their business in face of rising production costs. If the price decline continues, majority of planters will be forced to abandon rubber cultivation or switch over to other activities.

The benchmark RSS4 grade rubber closed at `.125.50 a kg at Kottayam, while RSS3 grade closed at `.105.62 a kg at Bangkok and Malaysian SMR20 closed at `.97.94 a kg. On National Multi Commodity Exchange September 2014 futures were trading at `.121.94 a kg, October at `.120.62, November at `.120.70 and December at `.121.50 a kg, at 16.20 IST. On Tokyo Commodity Exchange, September 2014 futures series closed at ¥184.7 a kg, October at ¥185.5, November at ¥189.5, December at ¥192.9, January 2015 at ¥195.4 and the contract for delivery in February 2015 closed at ¥196.6 a kg.

What our readers say: http://rubber4u.com/Public/Views.pdf

For 2014-15 Rubber Forecast, http://rubber4u.com/Public/RForecast.pdf

Growers seeks hike in import duty

The international and domestic natural rubber market continues to be under pressure, due to subdued demand and bearish trend in the overseas market. The crisis in the domestic rubber industry has deepened as prices continue to collapse. In India RSS4 grade rubber slipped to its weakest level since 2009 and currently trading at `.127 a kg. While rubber growers in Karnataka have urged the Central Government to increase the import duty on natural rubber to 75% from the current 20% or `.30 a kg, whichever is lower.

According to the Rubber Trade Association of Japan, crude rubber inventories at Japanese ports stood at 16,903 tonnes, as of 20th August, down by 3.6% compared to 10th August. While rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 3.9% to 163,706 tonnes, last week.

Vietnam’s General Department of Customs said that during January-August 2014, country’s natural rubber export was 548,000 tonnes and its value was US$989 million. Rubber export saw a decline of 9.8% in volume and 31.9% in value compared to the same period last year. In an effort to boost export, Vietnam is considering cutting the rubber export tax to zero from the current rate of 1%.

Natural rubber import is likely to be more attractive for domestic consumers as leading producing countries weigh more concessions on export. The benchmark RSS4 grade rubber closed at `.127 a kg at Kottayam, while RSS3 grade closed at `.107.84 a kg at Bangkok and Malaysian SMR20 closed at `.98.69 a kg. On National Multi Commodity Exchange September 2014 futures were trading at `.126.80 a kg, October at `.125.45, November at `.125.25 and December at `.125.40 a kg, at 15.30 IST. On Tokyo Commodity Exchange, September 2014 futures series closed at ¥188 a kg, October at ¥189.4, November at ¥193.2, December at ¥196.3, January 2015 at ¥198.7 and the contract for delivery in February 2015 closed at ¥200.2 a kg. Tommorrow the market may move from red to green and may trade between ¥198 and ¥202 a kg, for February contract.

Read lot more in Rubber4U – 15th September 2014 issue

What our readers say: http://rubber4u.com/Public/Views.pdf

For 2014-15 Rubber Forecast, http://rubber4u.com/Public/RForecast.pdf

Rubber4U

Rubber4U - 1st September 2014 issue

Petrol price reduced while diesel hiked

With the decline in international oil prices, petrol price was reduced by `.1.51 a litre (`.1.82 a litre including taxes in Delhi), while diesel rates are hiked by 50 paise a litre (`.0.57 a litre including taxes in Delhi), which is effective from midnight. Rates will vary from city to city depending on local sales tax or VAT.

Read lot more in Rubber4U – 1st September 2014 issue

What our readers say: http://rubber4u.com/Public/Views.pdf

For 2014-15 Rubber Forecast, http://rubber4u.com/Public/RForecast.pdf

Sale of rubber stockpiles delayed

The National Council for Peace and Order is likely to delay the sale of 210,000 tonnes of rubber in stockpiles. The sale would not go ahead without measures in place to ensure prices remain stable.

To comply with a Supreme Court ruling, the finance minister passed a regulation that applied the 10% VAT to 14 agricultural products, including rubber. The Indonesian national alliance of rubber producers has rejected the imposition of 10% value-added-tax, which would disrupt its production and exports. The measure comes at the wrong time when farmers are struggling against falling rubber prices. The situation could worsen whenever rubber prices gained as farmers would have to pay a higher tax.

The tyre manufacturers are reaping the benefit of falling rubber prices. While with the revival in auto demand tyre makers will have the advantage of both lower raw material price and growth in sales volume. Replacement market already giving a good business, the outlook for the industry is healthy.

As expected, Tokyo Commodity Exchange, August 2014 futures series closed at ¥188.2 a kg, September at ¥190.1, October at ¥193, November at ¥196.1, December at ¥198.4 and the contract for delivery in January 2015 closed at ¥200.1 a kg. On National Multi Commodity Exchange September 2014 futures were trading at `.127 a kg, October at `.126.15, November at `.126 and December at `.126.90 a kg, at 12.10 IST.

What our readers say: http://rubber4u.com/Public/Views.pdf

For 2014-15 Rubber Forecast, http://rubber4u.com/Public/RForecast.pdf

Rubber prices under pressure

Thailand military government has approved the sale of the country's accumulated rubber stocks and is in negotiations with potential buyers. Country spent $689 million in accumulating rubber stocks under earlier programs.

The National Council for Peace and Order (NCPO) has approved a budget of 5.94 billion baht for the overhaul of the rubber industry as proposed by the Natural Rubber Policy Committee. The measures involve maintaining a stock to stabilise prices, improving planters’ liquidity, developing the rubber market and conducting research and development on rubber products. NCPO has also agreed to allocate 10 billion baht to be loaned to farmers’ organizations to buy rubber from the planters and another 15 billion baht to be lent to private companies to upgrade their machinery in the production of finished rubber products.

In an effort to help Vietnamese companies compete in the world market, the Ministry of Finance is considering cutting the rubber export tax to zero from the current rate of 1%.

The benchmark RSS4 grade rubber closed at `.129 a kg at Kottayam, while RSS3 grade closed at `.109.86 a kg at Bangkok and Malaysian SMR20 closed at `.100.25 a kg. On National Multi Commodity Exchange September 2014 futures closed at `.127.05 a kg, October at `.125.95, November at `.126.44 and December at `.126.84 a kg. On Tokyo Commodity Exchange, August 2014 futures series closed at ¥187.3 a kg, September at ¥189.2, October at ¥192.6, November at ¥195.6, December at ¥197.7 and the contract for delivery in January 2015 closed at ¥199.6 a kg. On Wednesday the market is expected to trade in the range of ¥198 & ¥202 a kg and may close in green.

What our readers say: http://rubber4u.com/Public/Views.pdf

For 2014-15 Rubber Forecast, http://rubber4u.com/Public/RForecast.pdf

Rubber surplus to shrink

According to the International Rubber Study Group, global surplus of natural rubber will shrink 46% in 2015 as demand expands and farmers reduce tapping. Natural rubber production will outpace demand by 202,000 tonnes from 371,000 tonnes in 2014.

According to The Rubber Economist Ltd., inventories will reach 3.79 million tonnes by the end of 2014 and 4.33 million tonnes by 2015. Reserves will increase to the equivalent of 3.9 months of consumption at the end of 2014. Due to continued decline in natural rubber prices, farmers are showing less interest in tapping, while tyre demand is boosting usage. On Tokyo Commodity Exchange, the contract for delivery in January rose 0.3% to settle at 197.5 a kg.

The benchmark RSS4 grade rubber closed at `.130 a kg at Kottayam, while RSS3 grade closed at `.110.67 a kg at Bangkok and Malaysian SMR20 closed at `.100.81 a kg. On National Multi Commodity Exchange September 2014 futures were trading at `.128.70 a kg, October at `.127.90 and November at `.128 a kg, at 16.15 IST. On Tokyo Commodity Exchange, August 2014 futures series closed at ¥182.5 a kg, September at ¥188, October at ¥190.6, November at ¥193.4, December at ¥195.8 and the contract for delivery in January 2015 closed at ¥197.5 a kg.

What our readers say: http://rubber4u.com/Public/Views.pdf

For 2014-15 Rubber Forecast, http://rubber4u.com/Public/RForecast.pdf