Rubber prices rise on purchase plans

TOCOM rubber futures rose on Monday as investors covered short positions on news that Thailand plans to import 10,000 tonnes of rubber and China will boost economic growth, which in turn will improve demand for rubber, though gains were limited by concerns over the euro zone economy after a G8 meeting failed to offer a specific prescription to the crisis.

Thailand will import rubber by receiving deliveries from TOCOM in a bid to avoid shipment delays at a time when domestic supply is tight because of the impact of unseasonal rains.

Curretly, rubber contract for June to October delivery were trading at ¥283, ¥284.1, ¥285.5, ¥280.7 and ¥276.1 per kg, respectively on the Tokyo Commodity Exchange. On Monday, RSS4 grade closed at `194 a kg at Kottayam and RSS3 grade closed at `205.85 today at Bangkok.

Read lot more in Rubber4U – 1st June 2012 issue

Rubber showing positive trend

With the slowing global economic crisis and increasing consumption of natural rubber by the tyre sector in India, the rubber futures in Tokyo commodity Exchange and in India’s National Multi Commodity Exchange rose.

India is expected to produce double the number of truck, bus radial tyre to 4.8 million tyres in 2012-13 from 2.67 million tyres in 2011-12 is likely to keep the price of natural rubber higher.

Production and consumption of natural rubber in 2011-12 were 8,99,400 tonnes and 966,750 tonnes, respectively. Natural rubber consumption in the tyre sector increased by 6.3%, whereas in the non-tyre sector it declined by 5.4%. Import and export of NR in 2011-12 were 2,05,433 tonnes and 27,145 tonnes respectively. The carryover stock at the end of March 2012 was 2,30,000 tonnes.

Production and consumption of natural rubber in 2012-13 are projected at 9,42,000 tonnes and 1,006,000 tonnes respectively — a deficit of 64,000 tonnes.

While delivering the keynote address at the inaugural meeting of the Rubber Board campaign for improving the quality of sheet rubber, Kaushik Roy, Convener, Raw Material group, Automotive Tyre Manufacturers Association said that Indian rubber industry has great potential globally, and the country could be the growth driver especially after the recession. The ongoing decade will be a game changer for both the rubber plantation sector and the rubber industry. A commitment is required for quality in production.

According to Automotive Tyre Manufacturers' Association, tyre production and exports increased by 6% and 24%, respectively during April 2011- February 2012 period.

Read lot more in Rubber4U – 15th May 2012 issue