Saturday, May 30, 2015
Friday, May 29, 2015
Bull on the run
Rubber prices continued to rise as demand
from the world's biggest consumer China picked up, while supply constrain from
Thailand aided the rally. The joint efforts by major natural rubber producing
countries to curb output and boost prices have started to show its results. SICOM
benchmark was trading near a nine-month high of 164.90 U.S. cents per kg, and
was on track for its biggest monthly gain since September 2012.
The benchmark RSS4 grade rubber closed at `.127
a kg at Kottayam, while RSS3 grade closed at `.121.20 a kg at
Bangkok and Malaysian SMR20 closed at `.103.04 a kg. On
National Multi Commodity Exchange June 2015 futures closed at `.127.32
a kg, July at `.130.99 and August at `.131.77 a kg. On
Tokyo Commodity Exchange, June 2015 futures series closed at ¥229.5 a kg, July
at ¥230.2, August at ¥232, September at ¥234.7 October at ¥238 and the contract
for delivery in November 2015 closed at ¥241.2 a kg.
To read Rubber4U – 1st June
2015 issue: http://rubber4u.com/Public/Abcd.pdf
Tuesday, May 26, 2015
Weaker yen boosting NR prices
The major natural rubber producing countries
agreed earlier this month to explore ways to strengthen prices, including a
common trading platform. The world’s largest natural rubber supplier – Thailand
is working on ways to reduce supply to boost prices. Inventories tracked by the
Shanghai Futures Exchange have dropped 15% this year and this month touched the
lowest since September 2013.
Japan’s currency fell to the lowest level
since 2007 against the dollar, boosting the appeal of contracts denominated in
yen. Optimism about Chinese demand and a weaker yen supported rubber prices. Rubber
in Tokyo advanced by the most since May 2013 as Japan’s currency plunged. The
contract for November delivery on the Tokyo Commodity Exchange surged 6.3% to
settle at ¥231.2 a kg, the highest since April 2014.
The benchmark RSS4 grade rubber closed at `.125.50
a kg at Kottayam, while RSS3 grade closed at `.118.78 a kg at
Bangkok and Malaysian SMR20 closed at `.97.79 a kg. On
National Multi Commodity Exchange June 2015 futures closed at `.127.43
a kg, July at `.129.53 and August at `.129.89 a kg. On
Tokyo Commodity Exchange, June 2015 futures series closed at ¥220.1 a kg, July at
¥221.9, August at ¥223.5, September at ¥226.5 October at ¥229.3 and the
contract for delivery in November 2015 closed at ¥231.2 a kg. On Wednesday,
most probably Tocom futures contract for delivery in November 2015 may trade in
the range of ¥228 & ¥236 a kg.
Saturday, May 23, 2015
Proposal to strengthen natural rubber price
Association Natural Rubber Producing
Countries (ANRPC) Assembly which was held in Kuala Lumpur recently agreed to
submit concrete proposals to strengthen the price structure for natural rubber.
The issue will be reviewed again at next annual ANRPC Assembly to be held in
October 2015.
The benchmark RSS4 grade rubber closed at `.125
a kg at Kottayam, while RSS3 grade closed at `.117.78 a kg at
Bangkok and Malaysian SMR20 closed at `.96.51 a kg. On
National Multi Commodity Exchange June 2015 futures closed at `.126.31
a kg, July at `.128.62 and August at `.129.02 a kg. On
Tokyo Commodity Exchange, May 2015 futures series closed at ¥208.4 a kg, June
at ¥210.2, July at ¥212, August at ¥213.1, September at ¥215.2 and the contract
for delivery in October 2015 closed at ¥217.7 a kg.
To read Rubber4U – 1st June
2015 issue: http://rubber4u.com/Public/Abcd.pdf
Thursday, May 14, 2015
Thursday, May 7, 2015
Will there be a negative impact due to hike in duty
There has been a mixed reaction to the
increase in the import duty on natural rubber to 25% from 20% by the Union
government. The rubber consuming sector has protested against the decision while
producers have welcomed it.
Growers are of view that the increase in
import duty will help shore up domestic rubber prices at least on medium term. In
the last five days, the price of RSS-4 grade rubber has touched `.127
per kg. With the hike in duty, the landed price of TSR grade rubber will be higher
against the domestic material. The current price differential between
international and local price should hold good. Otherwise, the rubber consuming
sector might be tempted to stock up through import.
The decision to increase import duty will
cause a severe blow to the value addition within the country and Make-in-India
initiative of the government. Indian rubber goods manufacturing industries fear
they will be badly hit. Increase in the import duty on natural rubber will
worsen the inverted duty structure. Finished rubber goods can be imported at 10%
while the raw material can be brought in only at 25%. The industry has termed
the decision as unfriendly and a dampener on future investments. Already many
manufacturing units have closed down due to competition from cheaply imported
rubber goods. Many of them are shunning manufacturing in favour of trading of
rubber goods imported from China and other countries. If this trend continues
then what will happen to consumption of natural rubber.
The benchmark RSS4 grade rubber closed at `.126.50
a kg at Kottayam, while RSS3 grade closed at `.117.98 a kg at
Bangkok and Malaysian SMR20 closed at `.96.35 a kg. On
National Multi Commodity Exchange May 2015 futures were trading at `.124
a kg, June at `.128.49 and July at `.130.63 a kg at 16.10
IST. On Tokyo Commodity Exchange, May 2015 futures series closed at ¥214 a kg, June
at ¥215.8, July at ¥216.2, August at ¥217.3, September at ¥219.9 and the
contract for delivery in October 2015 closed at ¥222.4 a kg.
Published on 7th May 2015
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