Saturday, January 22, 2011

Import of natural rubber under TRQ scheme

In view of Customs Notification No. 128/2010-Customs dated 22.12.2010, to allow import of Natural Rubber under exim codes 4001 21, 4001 22 and 4001 29 at concessional duty in the current financial year 2010-11, it has been decided by Director General of Foreign Trade to invite applications for allocation of the TRQ of Natural Rubber from Actual users as per following details:
Applications for allocation shall be sent only by e-mail at in the proforma at Annexure -1 to this Public Notice. Applications for allocation of TRQ shall be received from 18.01.2011 (12.00 noon) to 24.01.2011 (till 5.00 pm). EFC in DGFT will evaluate and allot TRQ to the applicants. The allocation of the TRQ will be based on the Natural Rubber consumption during 2009-10, as certified by Rubber Board. Allottees of TRQ shall file application in ANF2B along with prescribed application fee to concerned Regional Authority of DGFT, who will issue the TRQ authorization as per allocation by EFC. Imports of the allocated TRQ must be completed before 31.3.2011.

{Import of Natural Rubber under the Tariff Rate Quota (TRQ) Scheme in the current financial year 2010-2011 under Para 2.59 of HBP Vol.I, 2009-2014 - DGFT Public Notice No.23/(RE 2010)/2009-14 [F.No. 01/93/180/M-67/AM04/PC2(B)]}

Read lot more in Rubber4U – 1st February 2011 issue

Monday, January 17, 2011

It is really a grower’s paradise now

As the main season in production of natural rubber is coming to an end, growers are reluctant to sell their stock immediately in the hope of getting higher price, as the prices are rising daily. This affects the supply of natural rubber in the domestic market and the rubber good manufacturers are not getting rubber even at higher prices.

Today natural rubber RSS4 grade price reached a high of Rs 225/- a kg on strong global cues coupled with high demand. In Bangkok, price of RSS3 grade was at Rs 251.91 a kg.

The nourishing global market along with reports of low production and rising crude prices led to hoarding by growers and local traders expects the market would remain bullish for the next couple of months and are in the hope of price crossing Rs 250 a kg.

The huge gap in the domestic and global trading prices favours exports and indications are now bright for a rise in exports in the coming months.

The rubber-based industries, especially the tyre industry are now facing a serious crisis as imports are not viable even at a reduced duty of 7.5%.

Last month, the government had announced that it will permit the import of a maximum of 40,000 tonnes of natural rubber at a concessional duty rate of 7.5% by 31st March 2011, with the aim of checking rising domestic prices. Today government invited applications for import of up to 40,000 tonnes of natural rubber by the end of the current fiscal at a concessional duty rate of 7.5%.

Demand of tyre manufacturers to ban futures trading in rubber has been rejected. Managing Director and CEO of National Multi Commodity Exchange of India - Anil Mishra has urged tyre manufacturers to actively get involved in the futures market rather than keeping away from it.

Read lot more in Rubber4U – 1st February 2011 issue

Monday, January 10, 2011

Industry is doubtful about stock projection

Natural rubber consuming industries are doubtful about the Rubber Board’s high inventory projection of 307,710 tonnes as on 31st December 2010. Natural rubber traders based in Kerala also agree with the views of the consuming industry.

The projection is not very convincing, said Rajiv Budhraja, director general of Automotive Tyre Manufacturers Association.

Rubber output in the country has not shown any appreciable increase during the past few years. The board’s output and inventory projections appear to be highly inflated. The readily available stocks in the hands of growers and traders will not be more than 50,000 tonnes, said N Radhakrishnan, Advisor - Cochin Rubber Merchants’ Association.

Rubber Chemical manufacturer seek for safeguard duty

The largest manufacturer of rubber chemicals - Nocil Ltd., has asked for imposition of safeguard duty for three years on the rubber chemical, extensively used in treating natural rubber, synthetic rubber and other synthetic rubber based compounds.

Rubber prices have shot up in the domestic market, chemical intermediaries are not benefiting because many countries, including the US, China and Saudi Arabia have excess supply and lean domestic market, forcing companies in these countries to sell their material at a cheaper rate.

The Directorate General of Foreign Trade has begun investigations on pleas for anti-dumping duties on two basic organic chemicals widely used for rubber processing.

Read lot more in Rubber4U – 15th January 2011 issue

Saturday, January 8, 2011

Will NR prices touch triple two figure?

India's NR output in December edged up by 0.6% to 1,01,500 tonnes as favourable weather condition allowed farmers to increase tapping. As weather is very favourable for tapping, in January 2011 NR production would be higher than the same period of previous year.

Prices of natural rubber surged to a record Rs 214.50 per kg in the domestic markets on fall in arrivals and international prices of rubber touching new highs of Rs. 239.87 on 7th January 2011.

The NR prices are further expected to go up as forecasted by Rubber4U during IRC 2010, which is expected to touch Rs. 222/- per kg.

There is a decline in arrivals of natural rubber in the domestic market, as farmers are reluctant to sell their produce on expectations of further rise in prices, as international prices of natural rubber are now ruling at around Rs 239.50 per kg, a clear gap of Rs. 15/- per kg.

Read lot more in Rubber4U – 15th January 2011 issue

Tuesday, January 4, 2011

Increased demand will worsen supply shortage

After data showed manufacturing in the US expanded in December at the fastest pace in seven months, boosting confidence in the economic recovery and raising concern that increased demand will worsen a supply shortage. Rubber is supported by tight supplies as shipments from Thailand remain low. Supply will decline further as Thailand enters a low production period (February to April) next month.

China’s natural rubber inventories were at 66,515 tonnes, i.e. 56% lower than the previous year, which was at 1,51,832 tonnes, based on a survey of 10 warehouses.

According to Rubber Board, rubber imports by India jumped to 10,500 tonnes in December 2010 from 6,138 tonnes a year ago. Total import during April – December 2010 period is 156,608 tonnes.

Natural rubber prices have jumped to a new high at Rs. 209.50 per kg at Kottayam on concerns over supply situation which has fuelled the price rise and also a spurt in the international prices, which is currently at Rs. 226.39 per kg at Bangkok.

Read lot more in Rubber4U – 15th January 2011 issue