The National Council for Peace and Order is
likely to delay the sale of 210,000 tonnes of rubber in stockpiles. The sale
would not go ahead without measures in place to ensure prices remain stable.
To comply with a Supreme Court ruling, the
finance minister passed a regulation that applied the 10% VAT to 14
agricultural products, including rubber. The Indonesian national alliance of
rubber producers has rejected the imposition of 10% value-added-tax, which would
disrupt its production and exports. The measure comes at the wrong time when
farmers are struggling against falling rubber prices. The situation could
worsen whenever rubber prices gained as farmers would have to pay a higher tax.
The tyre manufacturers are reaping the benefit
of falling rubber prices. While with the revival in auto demand tyre makers
will have the advantage of both lower raw material price and growth in sales
volume. Replacement market already giving a good business, the outlook for the
industry is healthy.
As expected, Tokyo Commodity Exchange, August
2014 futures series closed at ¥188.2 a kg, September at ¥190.1, October at ¥193,
November at ¥196.1, December at ¥198.4 and the contract for delivery in January
2015 closed at ¥200.1 a kg. On National Multi Commodity Exchange September 2014
futures were trading at `.127 a kg, October at `.126.15, November at `.126
and December at `.126.90 a kg, at 12.10 IST.
What our readers say: http://rubber4u.com/Public/Views.pdf
For
2014-15 Rubber Forecast, http://rubber4u.com/Public/RForecast.pdf
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