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
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