Sunday, September 15, 2013

Positive signs but weak outlook


International Rubber Study Group (IRSG) reduced its global demand growth outlook to 3.8% for 2013, down from its previous projection of 4%, due to weak consumption in the recession struck Europe. The IRSG pegged global demand for natural and synthetic rubber at 27 million tonnes for 2013, down from its prior estimate of 27.7 million tonnes.

In August 2013, India's natural rubber imports more than doubled from a year ago to 40,809 tonnes as a drop in domestic output due to heavy rainfall in Kerala, forcing tyre manufacturers to increase foreign purchases. Natural rubber production dropped 5.5% on year to 69,000 tonnes, while consumption eased by 4% to 80,000 tonnes.

In spite of the global economic slowdown, there were some pointers indicating positive signals in the rubber sector. 8.1% growth in rubber consumption by China in the first half of 2013, 4.1% growth in latex consumption and rise in vehicles sales in China and the US suggest good times for the rubber industry, said Sheela Thomas, chairperson - Rubber Board.

The Fed is expected to reduce its $85 billion a month bond-buying programme. The rupee has recovered more than 6% against the dollar since 3rd September. It looks like over the next few months WPI inflation might be headed up towards 8-10%.

Read lot more in Rubber4U – 1st October 2013 issue

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