Wednesday, December 31, 2014
Tuesday, December 16, 2014
Market improved on fresh buying
During April-November 2014 period, the cumulative
value of exports increased 6.01% to `.1305792.96 crore, compared
to `.1231786.75 crore
during the same period of 2013. While cumulative value of imports for the
period April-November 2014 was `.1915697.85 crore as
against `.1801892.93 crore during the same period of 2013,
registering a growth of 6.32%. The trade deficit for April-November 2014 was
estimated at `.609904.89 crore.
The rupee on 28th August 2013 hit a lifetime
low of 68.85 against the US dollar on strong demand for the American currency. For
the FY 2014-15, the rupee dropped to its weakest level of 63.46 against dollar on
16th December 2014, as the dollar strengthened against other global currencies.
India's wholesale price inflation in November
eased to 0%, compared to 1.77% in the previous month. The index for the rubber
and plastic products group declined by 0.1% due to lower price of rubber
products.
Kerala has sought `.1000
crore from Centre's Price Stabilisation Fund to provide relief to rubber
growers suffering due to sharp fall in price of natural rubber. The Kerala
Congress (M) delegation stressed that natural rubber imports into the country
should be banned till the domestic price stabilised to a remunerative level.
They pointed out that with Rubber Board statistics; it proves that there is a
huge stock of rubber in the country, there is no justification for imports
projected against the coming months.
Thailand rubber growers threatened to launch
a massive protest if the government failed to increase prices to 80 baht per kg
from about 40 baht currently within a month.
China’s import tariffs for rubber are
currently set at 20% of the value and capped at 1,200 yuan a tonne. According
to analysts, the ministry was expected to raise the cap to 1,600 yuan a tonne
following recommendations by the local rubber association.
The market improved on fresh buying and short
covering as sellers stayed back following the moderate gains. The benchmark
RSS4 grade rubber closed at `.114.50 a kg at
Kottayam, while RSS3 grade closed at `.102.53 a kg at
Bangkok and Malaysian SMR20 closed at `.93.26 a kg. On
National Multi Commodity Exchange December 2014 futures closed at `.113.71
a kg, January 2015 at `.114.69 and February at `.115.98 a kg. On
Tokyo Commodity Exchange, December 2014 futures series closed at ¥181.5 a kg, January
2015 at ¥187.6, February at ¥193, March at ¥196.6, April at ¥200 and the
contract for delivery in May 2015 closed at ¥201.8 a kg. On Wenesday, most
probably Tocom futures contract for delivery in May 2015 may trade in positive
range between ¥200 & ¥207 a kg.
Sunday, December 14, 2014
Will industry revive from crisis?
Malaysia, Indonesia and Thailand are
intensifying their efforts to help stop the decline in world rubber prices
which is affecting their economies and planters. Plantation Industries and
Commodities Minister, Amar Douglas Uggah Embas, said 11 Association of Natural
Rubber Producing Countries (ANRPC) nations contribute 95% to the world’s
natural rubber supply and if we all worked together, it would make a big impact
in handling the issue.
Indian Rubber Growers Association (IRGA) urged
the government to immediately increase the import duty to 25%. The Kerala
Government should also facilitate more uptake of rubber from the State to
improve prices by way of tax concessions and explore the possibility of rubberisation
of 20% of roads every year.
IRGA has also asked the domestic tyre
manufacturers to buy rubber from India at the landed cost of imported rubber.
Otherwise, the growers have threatened to boycott domestic tyre manufacturers
and resort to buying of cheaper imported tyres, the same way as the raw
material is being imported by the tyre industry. The growers association
comprising UPASI, APK, IRGA etc have filed a petition under the Provisions of
Safeguard before the Directorate of Safeguards-New Delhi to protect the
domestic rubber growers from un-controlled and unrestricted imports.
The benchmark RSS4 grade rubber closed at `.113.50
a kg at Kottayam, while RSS3 grade closed at `.96.52 a kg at
Bangkok and Malaysian SMR20 closed at `.89.36 a kg. On
National Multi Commodity Exchange December 2014 futures closed at `.114.05
a kg, January 2015 at `.112.92 and February at `.113.33 a kg. On
Tokyo Commodity Exchange, December 2014 futures series closed at ¥179.7 a kg, January
2015 at ¥184.8, February at ¥188.4, March at ¥192.2, April at ¥194.6 and the
contract for delivery in May 2015 closed at ¥195.9 a kg. On Monday, most
probably Tocom futures contract for delivery in May 2015 may trade in positive
range between ¥195 & ¥205 a kg.
To know
stock difference read Rubber4U – 15th December 2014 issue: http://rubber4u.com/Public/R4U12b.pdf
Tuesday, December 9, 2014
Rubber slips further down as oil prices falls
The crude oil price has fallen to its weakest
point since October 2009 at US$62.87 per barrel, which has dropped slightly
following the publication of China's monthly trade data, which came in well
below the expectations. China's State Reserves Bureau is to buy 128,500 tonnes
of rubber for its stockpiles, but market participants doubt the move would
offer support to prices.
Rubber farmers are threatening to march on
Bangkok next year if their demands for higher prices and an industry rescue
plan are not met. The Thai government has announced four more short-term
measures to arrest plummeting rubber prices ahead of a planned protest by
farmers. While Tokyo Commodity Exchange rubber contract for May delivery had fallen
to ¥193.6 per kg. It earlier in the day it touched a low of ¥192.7 a kg.
The benchmark RSS4 grade rubber closed at `.115
a kg at Kottayam, while RSS3 grade closed at `.95.28 a kg at
Bangkok and Malaysian SMR20 closed at `.88.80 a kg. On
National Multi Commodity Exchange December 2014 futures closed at `.113.32
a kg, January 2015 at `.113.36 and February at `.114.24 a kg. On
Tokyo Commodity Exchange, December 2014 futures series closed at ¥180.7 a kg, January
2015 at ¥182.6, February at ¥186.1, March at ¥190, April at ¥192.2 and the
contract for delivery in May 2015 closed at ¥193.6 a kg.
Wednesday, December 3, 2014
Inventories declining
Kerala chief minister Oommen Chandy informed
the Assembly that government would demand a curb on import or hike in the
import duty of rubber. The issue would be brought to the notice of the Prime
Minister Narendra Modi when a state delegation meets him soon to apprise him of
the state's concern. Further fall in price of rubber would not only adversely
affect farmers, but also the state's economy. It would also ultimately hit tyre
manufactures in the country, as production would fall with farmers shifting to
other crops
The recent slump in oil prices continued to
weigh on global markets. Brent crude oil dropped to $67.53 a barrel before
recovering to trade around $70.54 a barrel. India, world's fourth largest oil
consumer annual imports 3.8 million barrels of crude per day. As on 1st December,
the international crude oil price of Indian Basket declined to US$ 67.72 a
barrel. Rupee closed weaker at `.62.14 a US$ on 1st December
as against `.61.97 a US$ on 28th November. Reserve Bank of India kept
interest rates unchanged at 8% as widely expected.
According to the nation’s Ministry of
Commerce, Thailand’s natural rubber exports declined 11% to 291641 tonnes in
October. According to a data from the Rubber Trade Association of Japan, as on
20th November, crude rubber inventories at Japanese ports stood at 9,791
tonnes, down by 5.8% compared to 10 days earlier. Rubber inventories in the
warehouses monitored by SHFE declined 24.3% to 136531 tonnes.
The benchmark RSS4 grade rubber closed at `.116.50
a kg at Kottayam, while RSS3 grade closed at `.97.48 a kg at
Bangkok and Malaysian SMR20 closed at `.91.84 a kg. On
National Multi Commodity Exchange December 2014 futures closed at `.114.75
a kg, January 2015 at `.115.77 and February at `.117.02 a kg. On
Tokyo Commodity Exchange, December 2014 futures series closed at ¥184.1 a kg, January
2015 at ¥187.5, February at ¥190.8, March at ¥194.7, April at ¥196.7 and the
contract for delivery in May 2015 closed at ¥198.2 a kg. On Thursday, most
probably Tocom futures contract for delivery in May 2015 may trade between ¥198
& ¥202 a kg.
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