Unrealistic claim

The Automative Tyre Manufacturers Association (ATMA) is planning to send a reminder to the Centre, contesting the claims made by the Rubber Board. Tyre manufacturing companies have criticised the Rubber Board for inflating rubber stock position and stated that the stock claim made by the Rubber Board was merely on paper.

The closing stock, as reported by the Rubber Board to the Association of Natural Rubber Producing Countries (ANRPC), has been pegged at 38% of the country's total NR production. Even world's largest rubber producing countries including Thailand, Malaysia and Indonesia have closing stocks at mere 7%, 14% and 3%, respectively, of their production.

ATMA said that closing stock of the world’s biggest rubber consumer – China, is only 6% of its total consumption. But India has one third of its total consumption stockpiled as stock.

Rajiv Budhraja, director general of ATMA said, when rubber prices are ruling at an all time high and the very availability is a concern, such tall stock claims are unrealistic.

Rise in trading fees to curb speculation

China will increase the costs of trading agriculture and metal futures as part of the government’s efforts to limit speculation and tame inflation.
Premier Wen Jiabao’s government has pledged to use price controls and may raise interest rates a second time this year to rein in inflation that surged last month to the fastest pace in two years.

Read lot more in Rubber4U – 1st December 2010 issue

No plans to fix maximum price

Indian government said that it has no plans to put a ceiling on maximum price of NR in the wake of spurt in natural rubber prices due to disruption in rubber production and supply.

Minister of Commerce and Industry Anand Sharma said the tyre manufacturers had averred that there was a shortage of natural rubber and demanded a ceiling on the maximum price of natural rubber, but the government is of the view that fixation of any maximum price of natural rubber may not be desirable, keeping in view interests of all stakeholders and sustainable existence of the rubber sector as a whole.

 

Read lot more in Rubber4U – 1st December 2010 issue

Prices of NR likely to remain above Rs 200 a kg during the week

Natural rubber prices in Kottayam market have surged to a record high of Rs 200 per kg on Diwali, and are likely to trade at that level due to disruption of rubber production as continuous rain has been affecting the rubber production.

The surge in international prices of rubber was also fueling the domestic prices.

According to Indian Meteorological Department forecast, Kerala may get more rain in next three-four days, which in turn will increase the concerns of production shortage.

U.S. crude oil for December delivery touched a 2-year high above $87 a barrel before settling near $86.85 for the week. The commodity was up $5.42 or 6.6% in the week.

India's October industrial production data is also scheduled for next week. Any sign of increased demand for raw materials from Asia-Pacific's major growth engines will further increase the risk appetite and push up commodity prices.

In coming days, currency market reaction to developments at G-20 summit in Korea will likely guide the commodities.

Read lotmore in Rubber4U – 15^th November  2010 issue

NR production down by 7.6% and import up by 81.2%

According to a statement released by Rubber Board, India’s natural rubber production declined by 7.6% to 82,000 tonnes during the month of October 2010, when compared to the same period of previous year which stood at 88,775 tonnes. The decrease in production was due to the excessive rain during the month of October.

The cumulative production of rubber during the first seven months (April-October) of current fiscal grew by 4.5% to 437,400 tonnes.

Disruption of production in Kerala, key rubber growing state, has led to a shortage to tune of 30% which was met through imports.

Natural rubber imports jumped by 81.2% to 18,148 tonnes in October on account of increased demand from tyre manufacturers and disruption in domestic production.

The import of natural rubber during the first seven month (April-October period) of current fiscal grew marginally to 132,724 tonnes against 132,106 tonnes in the comparable period last fiscal.

Natural rubber consumption during October 2010 grew by 4.5% to 81,500 tonnes as against 77,950 tonnes in the same period of last year, on increased demand from the tyre manufacturers.

The aggregate consumption of the natural rubber in the first seven month (April-October period) of current fiscal grew by 3% to 550,550 tonnes against 534,315 tonnes in the comparable period last year.

As on 5^th November 2010 the natural rubber (RSS4) has reached a peak of Rs. 200/- per kg at Kottayam - Kerala, India.

Read lotmore in Rubber4U – 15^th November  2010 issue