Tuesday, September 2, 2014

Growers seeks hike in import duty

The international and domestic natural rubber market continues to be under pressure, due to subdued demand and bearish trend in the overseas market. The crisis in the domestic rubber industry has deepened as prices continue to collapse. In India RSS4 grade rubber slipped to its weakest level since 2009 and currently trading at `.127 a kg. While rubber growers in Karnataka have urged the Central Government to increase the import duty on natural rubber to 75% from the current 20% or `.30 a kg, whichever is lower.

According to the Rubber Trade Association of Japan, crude rubber inventories at Japanese ports stood at 16,903 tonnes, as of 20th August, down by 3.6% compared to 10th August. While rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 3.9% to 163,706 tonnes, last week.

Vietnam’s General Department of Customs said that during January-August 2014, country’s natural rubber export was 548,000 tonnes and its value was US$989 million. Rubber export saw a decline of 9.8% in volume and 31.9% in value compared to the same period last year. In an effort to boost export, Vietnam is considering cutting the rubber export tax to zero from the current rate of 1%.

Natural rubber import is likely to be more attractive for domestic consumers as leading producing countries weigh more concessions on export. The benchmark RSS4 grade rubber closed at `.127 a kg at Kottayam, while RSS3 grade closed at `.107.84 a kg at Bangkok and Malaysian SMR20 closed at `.98.69 a kg. On National Multi Commodity Exchange September 2014 futures were trading at `.126.80 a kg, October at `.125.45, November at `.125.25 and December at `.125.40 a kg, at 15.30 IST. On Tokyo Commodity Exchange, September 2014 futures series closed at ¥188 a kg, October at ¥189.4, November at ¥193.2, December at ¥196.3, January 2015 at ¥198.7 and the contract for delivery in February 2015 closed at ¥200.2 a kg. Tommorrow the market may move from red to green and may trade between ¥198 and ¥202 a kg, for February contract.

Read lot more in Rubber4U – 15th September 2014 issue

For 2014-15 Rubber Forecast, http://rubber4u.com/Public/RForecast.pdf

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