Friday, November 9, 2012

Coming days will be complex, volatile and uncertain


According to the National Bureau of Statistics, China’s inflation at the wholesale level, dropped 2.8% y-o-y in October, compared to 3.6% decline in September. But the rate of the PPI inched up 0.2% in October on m-o-m basis. The PPI figures show that the economy is rebounding slightly but still at a low level.

Malaysian Rubber Glove Manufacturers Association wants the government to defer the implementation of the minimum wage policy, which will be implemented w.e.f 1st January 2013. There will be a cost increase of RM500 for each unskilled worker and majority of them are foreign workers. The country has about two million foreign workers and that would translate into about RM12 billion a year.

Natural rubber tapping in India is going on smoothly. Rubber production peaks during October-January and starts falling from February. Some farmers are holding back material, but supplies are sufficient due to increase in imports. Tyre makers are placing more orders. They are building inventory, which indicates that there is a possibility of natural rubber prices further going down, estimated to touch a level of `.169 a kg.

Natural rubber imports in the first seven months of the current financial year rose nearly 31.3% compared to same period of 2011-12 to 130,966 tonnes. There is possibility that natural rubber imports could touch 218500 tonnes mark, which was forecasted in Rubber4U-15th August 2012 issue.

Read lot more in Rubber4U – 15th November 2012 issue

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