New Year - Rubber4U Issue

Rubber4U - 1st January 2014 issue

Challenging cheerful year ahead

The rupee hit all-time lows against the U.S. dollar in late August amid a global emerging market sell-off and concerns about India's record current account deficit. While the currency has clawed back some ground since new RBI governor took office in September.

The governments of many countries have doled out economic stimulus packages for the automotive industry to add vigor to automobile manufacturing, which have led to an increase in the level of production and demand for tyres. Tyres are not only used in new vehicles, but need to be replaced in old vehicles as well due to wear and tear. Replacement is also a major market for tyres, which is steadily growing.

Imports became controversial since prices that rose to over `.195 a kg in August and dropped to around `.150 a kg during the first half of December. Prices have recovered to some extent, primarily after the government revised import duty to 20% or `.30 a kg, whichever is lower, which came into effect from 20th December 2013. Government has kept the ad valorem rate at the same level, while the specific rate is fixed. The specific rate will come into play when prices of imports fall.

In June, a positive response from the shareholders clears the path for Apollo Tyres to complete the merger process and expects to close the transaction by year end and it was slated to be the single largest outbound deal in India’s automotive industry. But US based Copper Tire & Rubber Company said it was terminating the stake sale arrangement with Apollo Tyres Ltd.

The Asian market is expected to provide a boost to the tyre industry. The U.S. and European region is projected to witness a growth below the global average, which is boosted by rubber requirements in China. Latin America and the Middle East are also expected to up the demand for tyres due to increased automotive production in the regions.

On the last day of the year, RSS4 grade closed at `.164 a kg at Kottayam. On Monday, National Multi Commodity Exchange January 2014 futures closed at `.166.55 a kg, February at `.169.05, March at `.171.92, April at `.174.90 and May at `.176.25 a kg. Tokyo Commodity Exchange, January 2014 futures series closed at ¥279.8 a kg, February at ¥275.9, March at ¥273.8, April at ¥272.9, May at ¥273.7 and the contract for delivery in June 2014 at ¥274.5 a kg. While RSS3 grade closed at `.157.49 a kg at Bangkok and Malaysian SMR20 closed at `.142.08 a kg, on Friday.

Rubber4U wishes all its readers and well-wishers a Happy & Prosperous New Year

It's time to move forward

The agreement which was slated to be the single largest outbound deal in India’s automotive industry, has collapsed. US based Copper Tire & Rubber Company said it was terminating the stake sale arrangement with Apollo Tyres Ltd. 

Today, RSS4 grade closed at `.164 a kg at Kottayam, while National Multi Commodity Exchange January 2014 futures closed at `.166.55 a kg, February at `.169.05, March at `.171.92, April at `.174.90 and May at `.176.25 a kg. Tokyo Commodity Exchange, January 2014 futures series closed at ¥279.8 a kg, February at ¥275.9, March at ¥273.8, April at ¥272.9, May at ¥273.7, and the contract for delivery in June 2014 at ¥274.5 a kg. While on Friday RSS3 grade closed at `.157.49 a kg at Bangkok and Malaysian SMR20 closed at `.142.08 a kg.

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

Read lot more in New Year - Rubber4U – 1st January 2014 issue

New Year to bring cheer

Depreciated currency, combined with economic revival in the US and EU could translate to robust business opportunities for Indian exporters in 2014. Global rubber surplus seen expanding as production outpaces demand. Taking current scenario into consideration, a rebound in Indian natural rubber price in the coming months is highly anticipated.

On Saturday, RSS4 grade closed at `.163 a kg at Kottayam, while National Multi Commodity Exchange January 2014 futures closed at `.165.90 a kg, February at `.168.57 and March at `.171.60 a kg. While on Friday RSS3 grade closed at `.157.49 a kg at Bangkok, while Malaysian SMR20 closed at `.142.08 a kg. Tokyo Commodity Exchange, January 2014 futures series closed at ¥279.8 a kg, February at ¥274.7, March at ¥275.3, April at ¥275.4, May at ¥276.2, and the contract for delivery in June 2014 at ¥277.3 a kg.

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

Read lot more in New Year, Rubber4U – 1st January 2014 issue

Import duty hiked

The import duty on natural rubber will be 20% or `.30 a kg, whichever is lower, according to a senior Finance Ministry official. The new duty has come into effect from 20th December 2013. Government has kept the ad valorem rate at the same level, while the specific rate is fixed. The specific rate will come into play when prices of imports fall. As a result RSS4 at Kottayam closed at `.156 a kg on Saturday. For more details visit www.rubber4u.com /Statistic / Notice.

Read lot more in Rubber4U – 1st January 2014 issue

Markets cautious

World markets were cautious on Wednesday as investors waited to see if the Federal Reserve might announce it is trimming its massive stimulus program. The Federal Reserve has announced that it will cut its monthly bond-buying programme by $10bn a month from January. In a statement, finance minister P. Chidambaram said, India is better prepared now to deal with the consequences of a mild tapering by the US Federal Reserve than it was earlier this year. Markets have already factored in the decisions of the US Federal Reserve.

Rubber prices on Tokyo Commodity Exchange fluctuated near a three-month high as the U.S. Federal Reserve starts its two-day meeting and amid speculation that Chinese buyers will boost purchases before Thailand restarts export fees on shipments from January after a four-month exemption. Prices touched ¥287.9 a kg on Monday, the highest intra-day level since 9th September 2013.

On Wednesday, RSS4 grade closed at `.153 a kg at Kottayam. While today on National Multi Commodity Exchange January 2014 futures were trading at `.157.65 a kg, February at `.159.86 and March at `.162.66 a kg, at 13.20 IST. RSS3 grade closed at `.159.65 a kg at Bangkok, while Malaysian SMR20 closed at `.142.87 a kg. Tokyo Commodity Exchange, December futures series closed at ¥285 a kg, January 2014 at ¥279.8, February at ¥278, March at ¥278.1, April at ¥278.7 and the contract for delivery in May 2014 at ¥280.6 a kg.

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

Read lot more in Rubber4U – 1st January 2014 issue