Sunday, December 25, 2011

AITDF seek removal of antidumping duty

Due to falling demand for tyres and depreciating rupee making imports costlier, All India Tyre Dealers’ Federation (AITDF) have urged the government to immediately notify the removal of anti-dumping duty.

In August 2011, the Customs, Excise and Service Tax Appellate Tribunal had set aside the antidumping duty levied by the government. The tribunal directed the government to immediately withdraw anti-dumping duty on tyre imports from China and Thailand. Department of Commerce had imposed duty of $32 to $90 on import of truck or bus radials. According to AITDF, the notification is yet to be published in the official gazette, although the government has honoured the order of the tribunal.

According to S P Singh, AITDF convener, anti-dumping duty continues to be levied even now, we, therefore urge the government to immediately notify the withdrawal of the duty. The removal of antidumping duty will help the trade and will provide relief to radial tyre users in the country.

Read lot more in Rubber4U – 1st January 2012 issue

Monday, December 19, 2011

NR modified bitumen may be used in construction & maintenance of road

As natural rubber modified bitumen improves the durability of roads by reducing susceptibility towards temperature variations and improving the desirable properties, the use of natural rubber modified bitumen has been specified by the Ministry of Road Transport & Highways for binder courses and wearing courses laid on National Highways. The Central Road Research Institute has tested the technology for use of modified bitumen including natural rubber modified bitumen in construction and maintenance of roads under Ministry’s sponsored research scheme.

Read lot more in Rubber4U – 1st January 2012 issue

Seeking imposition of Safeguard duty

The Association of Carbon Black Manufactures on behalf of Phillips Carbon and Hi-Tech Carbon, has requested the Directorate General of Safeguards (DGS) for immediate imposition of safeguard duty on imports of carbon black originating from China for a period of four years, as the profitability of the domestic industry has been affected due to increased imports.

According to the Association, the imports from China have increased from 13,944 MT in 2008-09 to 70,193 MT in 2011-12.

The government has decided to investigate whether the increased import of carbon black from China was hurting the domestic manufacturers who are seeking imposition of a safeguard duty. 

Read lot more in Rubber4U – 1st January 2012 issue

Monday, December 12, 2011

Regional physical market to create a new benchmark

Rubber has lost 33% on the Tokyo Commodity Exchange this year from a peak due to Europe's debt crisis raising concern that demand may decline. Today, January & May delivery contract closed at 264.7 yen & 276.9 yen a kg respectively, on Tocom. Representatives from the three governments - Thailand, Indonesia and Malaysia, are meeting to discuss stabilising prices and proposed to establish a physical market.

There’s a desire from the governments of the three countries to set up a market as soon as possible that would be based on the real supply and demand fundamentals. Establishment of a market would help producers trade with more transparent and reliable prices. The contract would most likely trade in dollars, said Tjahjono Budiarto Tjandra, chairman of the Committee on Strategic Market Operations at the International Rubber Consortium Ltd., in Bali.

Establishing a physical market may involve the Indonesia Commodity & Derivatives Exchange, the Agricultural Futures Exchange of Thailand and the Malaysia Derivatives Exchange.

Read lot more in Rubber4U – 15th December 2011 issue

Friday, December 9, 2011

EU summit treaty failed

Today crude oil prices dipped after Europe's leaders failed to agree a new treaty to tackle the debt crisis. Brent North Sea crude for delivery in January shed 32 cents to $107.79 a barrel. New York's main contract, light sweet crude for January, dipped 23 cents to $98.11 a barrel. The market was very nervous before the summit and the fear is that Brent crude oil prices will continue to fall towards the $100 a barrel mark, prompted by the lack of stability and the knock-on economic effect of the confusion across Europe.

However, 23 EU nations - including the 17 that use the euro - agreed to sign an accord to make greater fiscal discipline legally binding. The 17 euro members are now negotiating to form into a separate euro group where strict controls over budgets will be devolved to Brussels.

European Union president Herman Van Rompuy said euro area and other member states will aim to make available additional resources of up to 200 billion euro to the International Monetary Fund. The European Stability Mechanism (ESM) would come into force earlier than first mooted, in July 2012.

Today, RSS-4 grade rubber declined and closed at Rs. 201.50 a kg at Kottayam. RSS-3 grade increased to Rs 183.30 a kg at Bangkok. At Tokyo Commodity Exchange futures prices for December delivery declined and closed at ¥260.3 a kg, for January delivery closed at ¥267.5 a kg, February closed at  ¥272.6 and ¥274.8 a kg for March 2012 contract.

Read lot more in Rubber4U – 15th December 2011 issue

Wednesday, December 7, 2011

Positive outlook

Market sentiment regarding the eurozone sovereign debt crisis improved after Italy's new government put forward an package aimed at balancing the country's budget by 2013 and also European policymakers are working on new steps to resolve the eurozone sovereign debt crisis ahead of a key EU summit starting on Thursday.

The 30 billion euro package unveiled by Italian Prime Minister Mario Monti on 4th December, was taken as a positive cue by the market because the measures outlined not only Italy's plans to cut spending but also its growth strategy for the years ahead. On the other hand, US jobs report indicated that the unemployment rate in November fell to a 32 month low of 8.6%.

The natural rubber prices have built on last week's gain and remain firmly supported on losing ground due to worries about the outlook for the global economy. The latest estimates of demand and supply of natural rubber by the Association of Natural Rubber Producing Countries indicates that the supply would be 5.6% low (to 10.02 million tonnes) in 2011 and 3.6% in 2012.

On the other hand various industry players are planning to pour in huge investments to increase capacities across their product portfolio. These capacity expansion plans are anticipated to ultimately result into high tyre production, which is expected to grow around 10% during 2011-2014.

Read lot more in Rubber4U – 15th December 2011 issue

Sunday, December 4, 2011

No further cut in import duty

Automotive Tyre Manufacturers' Association (ATMA) had made a request to allow import of two lakh tonnes of natural rubber duty free, to which the Centre has ruled out further reduction in import duty.

Since 1st April 2011, natural rubber attracts basic customs duty of 20% ad-valorem or Rs 20 a kg, whichever is lower. A further concessional rate of basic customs duty of 7.5% ad-valorem has been provided to imports of natural rubber up to an aggregate quantity of 40,000 tonnes during financial year 2011-12.

Taking into account the interest of domestic growers, there is no proposal to carry out a further reduction in import duty on natural rubber at this stage, said S.S. Palanimanickam, Minister of State for Finance, in a written reply to a Lok Sabha question.

Read lot more in Rubber4U – 15th December 2011 issue