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.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices
Read lot more in Rubber4U – 15th June 2014 issue

No comments:

Post a Comment