Monday, June 30, 2014
Wednesday, June 25, 2014
Relief extended
During 2013-14, auto industry has been
struggling and car sales fell 4.65% to 17,86,899 units compared to 18,74,055
units in 2012-13. In the Interim Budget presented in February 2014, excise duty
on small cars, scooters, motorcycles and commercial vehicles was reduced to 8%
from 12%, 24% from 30% for SUVs, 20% for mid-sized car from 24% and 24% for
large cars from 27%, which is applicable till 30th June 2014. Today, Finance
Minister Arun Jaitley extended the excise duty cut till December 2014. The
industry hope demand to improve in the festive season between September and
December.
Today the benchmark RSS4 grade rubber closed
at `.148 a kg at Kottayam, while RSS3 grade closed at `.129.92
a kg at Bangkok and Malaysian SMR20 closed at `.107.59 a kg. The
last traded prices on National Multi Commodity Exchange at 4.40 pm IST, for
July 2014 were at `.145.01 a kg, August at `.144.91, September at
`.143.90 and October at `.143 a kg. On Tokyo
Commodity Exchange, July 2014 futures series closed at ¥207.2 a kg, August at
¥209.6, September at ¥212.7, October at ¥214.8, November at ¥217.3 and the
contract for delivery in December 2014 closed at ¥219.4 a kg.
What our readers say: http://rubber4u.com/Public/Views.pdf
Tuesday, June 24, 2014
As inventory falls, prices moved up
Oil prices pull back as traders pull back
from their worst case scenarios and focus on the fact that oil exports from
Iraq's southern ports are near record highs. Thailand military government plans
to shore up falling rubber prices by increasing domestic rubber consumption
instead of intervening in the market.
After a fraud investigation at the port,
banks are more careful in granting financial support. It is estimated that stocks
of natural, synthetic and compound rubber slipped to 327,900 tonnes from
362,200 tonnes in mid-May. About 14% of the stock holding is compound rubber made
of natural and synthetic rubber used in tyres, which dealers say is mostly tied
to financing deals. The inventory of natural rubber in Qingdao has fallen more
than 3% to 261,000 tonnes since May. One of the reasons why stocks have fallen
is because there has been less rubber for financing and the stock is expected
to fall further. A drop in Qingdao stocks is usually positive for rubber prices
as it implies stronger demand.
Today the benchmark RSS4 grade rubber closed
at `.147.50 a kg at Kottayam, while RSS3 grade closed at `.130.14
a kg at Bangkok and Malaysian SMR20 closed at `.107.90 a kg. The
last traded prices on National Multi Commodity Exchange for July 2014 were at `.148.15
a kg, August at `.148.01, September at `.147.20 and October
at `.145.75 a kg. On Tokyo Commodity Exchange, June 2014
futures series closed at ¥206.1 a kg, July at ¥207.2, August at ¥210.1,
September at ¥212.7, October at ¥214.9 and the contract for delivery in
November 2014 closed at ¥217 a kg. The benchmark rubber contract for November
delivery dropped ¥1.3 to settle at ¥217 a kg, as profit taking and a decline in
crude oil market pressured the prices.
What our readers say: http://rubber4u.com/Public/Views.pdf
Friday, June 20, 2014
Welcome move
Natural rubber prices have reached the lowest
point in the last five years and this situation has pushed farmers into deep
financial crisis. The Association of Planters of Kerala attributed the unabated
imports by rubber consuming industries as the main reason for the continuing
free fall of prices and has urged the government to ban rubber imports to
protect the growers from further crisis. If this trend is allowed to continue,
the situation might lead to farmers' suicides, and abandon rubber cultivation
or switch over to other activity.
The United Planters’ Association of Southern
India (Upasi) has welcomed the move to formulate a national rubber policy. Upasi
is of the view that any policy formulation should be inclusive by addressing
the real concerns of the sector, which comprise more than a million natural
rubber growers, 6000 micro, small and medium rubber manufacturing units and a
few tyre manufacturers in the country.
Today, the benchmark RSS4 grade rubber closed
at `.146 a kg at Kottayam, while RSS3 grade closed at `.127.99
a kg at Bangkok and Malaysian SMR20 closed at `.104.17 a kg. On
National Multi Commodity Exchange, July 2014 futures closed at `.146.66
a kg, August at `.145.61, September at `.144.61 and October
at `.142.59 a kg. On Tokyo Commodity Exchange, June 2014
futures series closed at ¥200.4 a kg, July at ¥203.1, August at ¥205.4,
September at ¥207.7, October at ¥210 and the contract for delivery in November
2014 closed at ¥212.7 a kg.
What our readers say: http://rubber4u.com/Public/Views.pdf
Thursday, June 19, 2014
Waiting for the direction
Rubber and tyre manufacturing is shifting to
Asia and India enjoys a unique position both in terms of natural rubber
production and consumption. Unfortunately India’s potential in the sector has
not been fully harnessed. Certain limiting factors have come in the way of full
blossomed growth. Now the Union government has constituted an expert committee
to formulate National Rubber Policy, which will be chaired by the Additional
Secretary (Plantations) Department of Commerce. The panel has members drawn
from relevant ministries, Rubber Board, industry, growers, processors and research
bodies. A notification in this regard has been issued by Department of
Commerce, Ministry of Commerce and Industry, Government of India. The expert
committee will submit its report including the draft of the National Rubber
Policy as early as possible, say, within six months, says the notification.
The committee will examine issues relating to
production, development and exports of rubber and related products and make
recommendations for a broad based policy related to Natural, Synthetic and
Reclaimed Rubber.
The Finance Minister Arun Jaitley is likely
to present the Union Budget for 2014-2015 in Parliament on 11th July, while Rail
Budget 2014-15 to be presented by Railway Minister Sadananda Gowda on 9th July. Major sectors are awaiting government’s announcement
that will not only give direction to the Indian economy but will also pave the
road for development of these sectors.
Today, the benchmark RSS4 grade rubber closed
at `.145.50 a kg at Kottayam, while RSS3 grade closed at `.127.93
a kg at Bangkok and Malaysian SMR20 closed at `.104.38 a kg. On
National Multi Commodity Exchange, June 2014 futures closed at `.146.26
a kg, July at `.145.36, August at `.143.74 and September
at `.141.92 a kg. On Tokyo Commodity Exchange, June 2014
futures series closed at ¥201 a kg, July at ¥200.8, August at ¥201.8, September
at ¥204.5, October at ¥206.6 and the contract for delivery in November 2014
closed at ¥208.9 a kg. On Friday, the market is expected to be in positive
trend and may cross ¥211 a kg.
What our readers say: http://rubber4u.com/Public/Views.pdf
Saturday, June 14, 2014
Friday, June 13, 2014
Hopping for some relief
All India Rubber Industries Association (AIRIA)
in its pre-budget submission to the Ministry of Finance has stated that
finished products can easily be imported as import duty on rubber products is
in the range of 0 to 10%, while the duty on raw materials for the rubber
industry is between 5% and 70%. Not only the import duty on raw materials is
higher, the duty is levied even on those raw materials which are not produced
in the country. Quoting Capexil data, AIRIA has stated that the import duty on
raw materials is the highest in India when compared to the neighbouring rubber
products manufacturing countries. Rubber industry hopes on correction of
inverted duty structure in the coming Union Budget.
Malaysian government announced that rubber
tappers throughout the country would receive the RM500 subsidy.
On Thursday, the benchmark RSS4 grade rubber
closed at `.145.50 a kg at Kottayam, while National Multi Commodity
Exchange, June 2014 futures closed at `.142.43 a kg, July at
`.143.68, August at `.142.11, September at
`.141.07 and October at `.140 a kg and today
trading in green. Today, RSS3 grade closed at `.123.96 a kg at
Bangkok and Malaysian SMR20 closed at `.100 a kg. On Tokyo
Commodity Exchange, June 2014 futures series closed at ¥188 a kg, July at ¥191,
August at ¥192.6, September at ¥196, October at ¥199.2 and the contract for
delivery in November 2014 closed at ¥201.1 a kg.
What our readers say: http://rubber4u.com/Public/Views.pdf
Wednesday, June 11, 2014
India likely to achieve 5.5% growth
New government showing signs of economic
reforms and brings in transparency in governance, the World Bank feels that India
could achieve an economic growth rate of 5.5% this year as compared to 4.7%
last year.
The auto industry produced a total 1,990,010
vehicles including passenger vehicles, commercial vehicles, three wheelers and
two wheelers in May 2014 as against 1,742,939 in May 2013, registering a growth
of 14.18% over the same month last year.
The sales of passenger vehicles declined by 3.46%,
commercial vehicles segment registered a de-growth of 19.69%, three wheelers
sales grew by 5.29% and two wheelers registered a sales growth of 14.03% in
April-May 2014 over the same period of 2013. In April-May 2014, overall
automobile exports grew by 22.23%.
According to Rubber Board data, natural
rubber production during April-May 2014 dropped 7% to 104,000 tonnes compared
with 112,000 tonnes during the same period of 2013. While consumption had a
slight increase of 0.4% at 165,000 tonnes, compared to 164,305 tonnes in April–May
2013. Natural rubber imports were up 80% during the April–May 2014 period
compared with the same period in 2013-14. A sharp drop in the international
prices of natural rubber over the local prices is the chief reason for the rise
in imports. While exports put up a poor show, dropping 98% to just 40 tonnes,
compared to 1,723 tonnes exported during the April-May 2013 period.
Today, the benchmark RSS4 grade rubber closed
at `.145.50 a kg at Kottayam, while RSS3 grade closed at `.122.91
a kg at Bangkok and Malaysian SMR20 closed at `.98.94 a kg. On
National Multi Commodity Exchange, June 2014 futures were trading at `.142.75
a kg, July at `.144.35, August at `.142.22, September at
`.141.70 and October at `.140.75 a kg, while
Mini Rubber contract for June at `.141 a kg. On Tokyo
Commodity Exchange, June 2014 futures series closed at ¥188.5 a kg, July at ¥189.8,
August at ¥191.6, September at ¥195.5, October at ¥198.1 and the contract for
delivery in November 2014 closed at ¥199.9 a kg.
What our readers say: http://rubber4u.com/Public/Views.pdf
Monday, June 9, 2014
Be cautious
A decision by Thailand's military government
to suspend a plan to sell 200,000 tonnes of rubber from stocks has done little
to support Tokyo's benchmark prices. Rubber inventory in China has dropped in
recent weeks to below 160,000 tonnes, but stocks in the bonded warehouses
remain high at around 360,000 tonnes. The high rubber inventory in Qingdao
suggests speculators are still using the commodity as collateral for financing.
Tyre grade prices are likely to fall again
next week as consumers wait for bargains.
Finance Minister Arun Jaitley will meet
captains of Indian industry to elicit their views on the Union Budget, which is
likely to be presented in the first week of July.
Today, the benchmark RSS4 grade rubber closed
at `.144.50 a kg at Kottayam, while RSS3 grade closed at `.120.09
a kg at Bangkok and Malaysian SMR20 closed at `.98.92 a kg. On
National Multi Commodity Exchange, June 2014 futures closed at `.143.81
a kg, July at `.144.41, August at `.141.67, September at
`.141.37 and October at `.140.790 a kg, while
Mini Rubber contract closed at `.142.26 a kg. On
Tokyo Commodity Exchange, June 2014 futures series closed at ¥183.6 a kg, July
at ¥185.3, August at ¥186.9, September at ¥190, October at ¥192.6 and the
contract for delivery in November 2014 closed at ¥193.8 a kg. On Tuesday, the
market is expected to trade in positive trend.
What our readers say: http://rubber4u.com/Public/Views.pdf
Read
lot more in Rubber4U – 15th June 2014 issue
Friday, June 6, 2014
NR surplus may last till 2016
Rubber Research Institute of India’s collaboration
with National Institute of Research and Development in Defence Shipbuilding would
open a new chapter in the use of natural rubber in India. RRII had delivered
prototypes of a few rubber-based articles to NIRDESH and they were found useful
in defence applications.
While sixth year of global surplus may
depress natural rubber prices through 2016 as maturing trees boost production
and slowing economic growth would reduces demand in China. Natural rubber supply
will outpace demand by 316,000 tonnes in 2016, compared with 483,000 tonnes in
2015, according to London-based Rubber Economist Ltd.
China’s economy is forecast to grow 7.3% this
year, the weakest pace since 1990. Inventories in Qingdao-China, reached a
record 270,000 tonnes as of 16th May, according to Qingdao International Rubber
Exchange Market. Imports may expand 10.7% this year to 4.26 million tonnes,
slowing from last year’s growth of 14.3%, said Association of Natural Rubber
Producing Countries.
Futures in Tokyo, the global benchmark
contract, have tumbled 26% this year, touching a four-year low in April. Lower
prices may boost earnings for tyre makers. Shares of India's tyre makers are
trading at their highs, as prices of natural rubber fell to their lowest in
4-1/2 years in the global market.
Indian tyre makers are increasing imports of
natural rubber as it is cheaper overseas compared to local supplies. On Friday,
the benchmark RSS4 grade rubber closed at `.144.50 a kg at
Kottayam, while RSS3 grade closed at `.119.47 a kg at
Bangkok and Malaysian SMR20 closed at `.98.79 a kg. On
National Multi Commodity Exchange, June 2014 futures closed at `.143.10
a kg, July at `.142.99, August at `.139.93, September at
`.139.45 and October at `.138.50 a kg. On
Tokyo Commodity Exchange, June 2014 futures series closed at ¥182.4 a kg, July
at ¥184.2, August at ¥185.6, September at ¥189.2, October at ¥191.7 and the
contract for delivery in November 2014 closed at ¥193 a kg.
What our readers say: http://rubber4u.com/Public/Views.pdf
Read
lot more in Rubber4U – 15th June 2014 issue
Sunday, June 1, 2014
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