Wednesday, June 25, 2014

Relief extended


During 2013-14, auto industry has been struggling and car sales fell 4.65% to 17,86,899 units compared to 18,74,055 units in 2012-13. In the Interim Budget presented in February 2014, excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced to 8% from 12%, 24% from 30% for SUVs, 20% for mid-sized car from 24% and 24% for large cars from 27%, which is applicable till 30th June 2014. Today, Finance Minister Arun Jaitley extended the excise duty cut till December 2014. The industry hope demand to improve in the festive season between September and December.

Today the benchmark RSS4 grade rubber closed at `.148 a kg at Kottayam, while RSS3 grade closed at `.129.92 a kg at Bangkok and Malaysian SMR20 closed at `.107.59 a kg. The last traded prices on National Multi Commodity Exchange at 4.40 pm IST, for July 2014 were at `.145.01 a kg, August at `.144.91, September at `.143.90 and October at `.143 a kg. On Tokyo Commodity Exchange, July 2014 futures series closed at ¥207.2 a kg, August at ¥209.6, September at ¥212.7, October at ¥214.8, November at ¥217.3 and the contract for delivery in December 2014 closed at ¥219.4 a kg.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices

Tuesday, June 24, 2014

As inventory falls, prices moved up


Oil prices pull back as traders pull back from their worst case scenarios and focus on the fact that oil exports from Iraq's southern ports are near record highs. Thailand military government plans to shore up falling rubber prices by increasing domestic rubber consumption instead of intervening in the market.

After a fraud investigation at the port, banks are more careful in granting financial support. It is estimated that stocks of natural, synthetic and compound rubber slipped to 327,900 tonnes from 362,200 tonnes in mid-May. About 14% of the stock holding is compound rubber made of natural and synthetic rubber used in tyres, which dealers say is mostly tied to financing deals. The inventory of natural rubber in Qingdao has fallen more than 3% to 261,000 tonnes since May. One of the reasons why stocks have fallen is because there has been less rubber for financing and the stock is expected to fall further. A drop in Qingdao stocks is usually positive for rubber prices as it implies stronger demand.

Today the benchmark RSS4 grade rubber closed at `.147.50 a kg at Kottayam, while RSS3 grade closed at `.130.14 a kg at Bangkok and Malaysian SMR20 closed at `.107.90 a kg. The last traded prices on National Multi Commodity Exchange for July 2014 were at `.148.15 a kg, August at `.148.01, September at `.147.20 and October at `.145.75 a kg. On Tokyo Commodity Exchange, June 2014 futures series closed at ¥206.1 a kg, July at ¥207.2, August at ¥210.1, September at ¥212.7, October at ¥214.9 and the contract for delivery in November 2014 closed at ¥217 a kg. The benchmark rubber contract for November delivery dropped ¥1.3 to settle at ¥217 a kg, as profit taking and a decline in crude oil market pressured the prices.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices

Friday, June 20, 2014

Welcome move


Natural rubber prices have reached the lowest point in the last five years and this situation has pushed farmers into deep financial crisis. The Association of Planters of Kerala attributed the unabated imports by rubber consuming industries as the main reason for the continuing free fall of prices and has urged the government to ban rubber imports to protect the growers from further crisis. If this trend is allowed to continue, the situation might lead to farmers' suicides, and abandon rubber cultivation or switch over to other activity.

The United Planters’ Association of Southern India (Upasi) has welcomed the move to formulate a national rubber policy. Upasi is of the view that any policy formulation should be inclusive by addressing the real concerns of the sector, which comprise more than a million natural rubber growers, 6000 micro, small and medium rubber manufacturing units and a few tyre manufacturers in the country.

Today, the benchmark RSS4 grade rubber closed at `.146 a kg at Kottayam, while RSS3 grade closed at `.127.99 a kg at Bangkok and Malaysian SMR20 closed at `.104.17 a kg. On National Multi Commodity Exchange, July 2014 futures closed at `.146.66 a kg, August at `.145.61, September at `.144.61 and October at `.142.59 a kg. On Tokyo Commodity Exchange, June 2014 futures series closed at ¥200.4 a kg, July at ¥203.1, August at ¥205.4, September at ¥207.7, October at ¥210 and the contract for delivery in November 2014 closed at ¥212.7 a kg.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices

Thursday, June 19, 2014

Waiting for the direction


Rubber and tyre manufacturing is shifting to Asia and India enjoys a unique position both in terms of natural rubber production and consumption. Unfortunately India’s potential in the sector has not been fully harnessed. Certain limiting factors have come in the way of full blossomed growth. Now the Union government has constituted an expert committee to formulate National Rubber Policy, which will be chaired by the Additional Secretary (Plantations) Department of Commerce. The panel has members drawn from relevant ministries, Rubber Board, industry, growers, processors and research bodies. A notification in this regard has been issued by Department of Commerce, Ministry of Commerce and Industry, Government of India. The expert committee will submit its report including the draft of the National Rubber Policy as early as possible, say, within six months, says the notification.

The committee will examine issues relating to production, development and exports of rubber and related products and make recommendations for a broad based policy related to Natural, Synthetic and Reclaimed Rubber.

The Finance Minister Arun Jaitley is likely to present the Union Budget for 2014-2015 in Parliament on 11th July, while Rail Budget 2014-15 to be presented by Railway Minister Sadananda Gowda on 9th July. Major sectors are awaiting government’s announcement that will not only give direction to the Indian economy but will also pave the road for development of these sectors.

Today, the benchmark RSS4 grade rubber closed at `.145.50 a kg at Kottayam, while RSS3 grade closed at `.127.93 a kg at Bangkok and Malaysian SMR20 closed at `.104.38 a kg. On National Multi Commodity Exchange, June 2014 futures closed at `.146.26 a kg, July at `.145.36, August at `.143.74 and September at `.141.92 a kg. On Tokyo Commodity Exchange, June 2014 futures series closed at ¥201 a kg, July at ¥200.8, August at ¥201.8, September at ¥204.5, October at ¥206.6 and the contract for delivery in November 2014 closed at ¥208.9 a kg. On Friday, the market is expected to be in positive trend and may cross ¥211 a kg.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices