Wednesday, September 30, 2015
Tuesday, September 29, 2015
Cut in RBI repo rate
Today, Reserve Bank of India cut its key repo
rate by 50 basis points to 6.75%, with inflation running at record lows and the
economy in danger of slowing down. On the other hand, the international crude
oil price of Indian basket declined 0.31% to US$44.79 a barrel on 28th September
as against US$44.93 a barrel on 25th September. While Rupee closed stronger at `.66.08
per US$ on 28th September as against `.66.10 per US$ on 25th
September.
The benchmark RSS3 grade closed at `.86.94
a kg at Bangkok and Malaysian SMR20 closed at `.81.18 a kg. On
National Multi Commodity Exchange October 2015, the futures were trading at at `.114
a kg, November at `.113.79, December at `.114 and January 2016
at `.114 a kg at 12.20 IST. Tokyo Commodity Exchange October
2015 futures series closed at ¥153 a kg, November at ¥154.4, December at ¥158.3,
January 2016 at ¥161.4, February at ¥163 and the contract for delivery in March
2015 closed at ¥164.5 a kg.
For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf
Monday, September 28, 2015
Indication of short uptrend in October
The anti-dumping duty can be imposed only if
goods are imported at dumping prices. Safeguard duties are measures to protect
the domestic industry from a sudden surge in imports. The World Trade
Organization does not allow such duties to be imposed for more than four years
at a stretch.
In February 2015, Automotive Tyre
Manufacturers' Association (ATMA), in its pre-budget submission, has urged the
government to increase the customs duty on tyres from basic rate of 10% to 20%
and putting imports of tyres under negative list in all trade agreements, so as
to provide a level-playing field to the domestic manufacturing. And now ATMA
has sought safeguard tariffs on car tyre imports from China and South Korea.
The benchmark RSS4 grade rubber closed at `.112.50
a kg at Kottayam, while RSS3 grade closed at `.87.91 a kg at
Bangkok and Malaysian SMR20 closed at `.82.39 a kg. On
National Multi Commodity Exchange October 2015 futures closed at `.114.25
a kg, November at `.113.92 and December at `.114.53 a kg. Tokyo
Commodity Exchange October 2015 futures series closed at ¥160.1 a kg, November
at ¥160.5, December at ¥164.6, January 2016 at ¥167.4, February at ¥169.4 and
the contract for delivery in March 2015 closed at ¥170.6 a kg. On Tuesday, most
probably Tocom futures contract for delivery in March 2016 may trade in negative
and in the range of ¥162 & ¥167 a kg.
Thursday, September 24, 2015
Sentiment remains uncertain
Today, Tokyo Commodity Exchange rubber futures
fell after long national holiday in Japan and slowing demand in China due to biggest
fall in China’s factory activity. The Tocom rubber contract for February
delivery had fallen ¥5.7 per kg. According to a private survey, activity in
China’s factory sector unexpectedly shrank to a six and half year low in
September, raising fears of a sharper slowdown.
The Shanghai rubber futures contract ended
lower over concerns of slowing demand from China's automobile industry. Overall
investor sentiment remains uncertain after the Federal Reserve declined to
raise interest rates for the first time since 2006 last week.
Oil prices, along with the overall
commodities sector, have been increasingly sensitive to any negative news on
China's economy in recent weeks. Global oil markets tumbled on Wednesday, and
on Thursday closed in green, WTI crude futures closed at US$ 44.91 per barrel, while
Brent crude futures closed at US$ 48.17 a barrel.
Today the benchmark RSS4 grade rubber closed
at `.112 a kg at Kottayam, while RSS3 grade closed at `.87.42
a kg at Bangkok and Malaysian SMR20 closed at `.80.92 a kg. On
National Multi Commodity Exchange October 2015 futures closed at `.114.45
a kg, November at `.113.80, December at `.113.92 and January
2016 closed at `.114.09 a kg. On Tokyo Commodity Exchange, September 2015
futures series closed at ¥156 a kg, October at ¥155.4, November at ¥158.6, December
2015 at ¥161.5, January 2016 at ¥164.2, and the contract for delivery in February
2016 closed at ¥165.6 a kg.
To read Rubber4U – 1st October
2015 issue: http://rubber4u.com/Public/Abcd.pdf
Monday, September 14, 2015
Thursday, September 10, 2015
Rubber growers worried
According to news report, China plans to
launch a Yuan denominated international benchmark for crude oil futures this
year. The contract will be traded at the Shanghai International Energy Exchange
and will be a price reference for medium sour crude, a variety preferred by
Asian players. While Iran has reduced the quarterly price for its flagship
crude to the lowest in three years in a bid to lure Asian buyers. The price
reduction is just one of the steps taken by the OPEC producer to ramp up output
and regain market share lost since U.S and European sanctions aimed at its
nuclear program.
The All Rubber Planters’ Association has
expressed concern over reduction in the tapping activities, due to fall in the rubber
price. The tapping has come down by 30 to 40% in recent times and has demanded
that the government hike the import duty on natural rubber to protect the
domestic growers.
There are around 2 lakh hectares of land is
available for expansion in Karnataka, of this, around 55,000 growers in the
State have ventured into rubber cultivation on an area of around 50,000
hectares of land. They produce around 40,000 tonnes of natural rubber a year. With
the crash in the prices of natural rubber, tapping of rubber from trees has
come down by almost 40% during the year. While the re-planting in old rubber
plantations has been stopped now, expansion of rubber crop in new areas has
also come down drastically, said P Gopalakrishna Bhat, secretary of the
association.
A seminar of rubber growers of Karnataka will
be held at Jain Bhavan, Bypass Road, Puttur in Dakshina Kannada on 11th September
at 11 am, to discuss and mitigate the woes of rubber growers. The seminar will
be inaugurated by district minister B Ramanath Rai.
Today the benchmark RSS4 grade rubber closed at
`.112 a kg at Kottayam, while RSS3 grade closed at `.90.78
a kg at Bangkok and Malaysian SMR20 closed at `.83.50 a kg. On
National Multi Commodity Exchange September 2015 futures closed at `.113.86
a kg, October at `.113.17, November at `.113.09 and December closed
at `.112.92 a kg. On Tokyo Commodity Exchange, September 2015
futures series closed at ¥160.7 a kg, October at ¥164.8, November at ¥166.5, December
2015 at ¥169.9, January 2016 at ¥171.8, and the contract for delivery in February
2016 closed at ¥172.9 a kg. On Friday, most probably Tocom futures contract for
delivery in February 2016 may trade in the range of ¥175 & ¥179 a kg.
To read Rubber4U – 15th September
2015 issue: http://rubber4u.com/Public/Abcd.pdf
Wednesday, September 9, 2015
NR output up, import down
Crude oil prices remained steady but at low
levels as concerns remained that high global production was being met by
increasingly slowing demand. Oil prices have fallen almost 60% since June 2014
on a global supply glut, while production remained near record highs.
In India, natural rubber production rose 7.8%
in August to 55,000 tonnes compared to 51,000 tonnes during August 2014, while consumption
grew to 87,500 tonnes from 86,300 tonnes in August 2014. Natural rubber imports
fell 32% to 33,292 tonnes, compared to same period of 2014.
During the April-August 2015 period, natural
rubber production fell 11% to 2.42 lakh tonnes from 2.72 lakh tonnes during
same period of 2014. Consumption declined by 1.7% to 418,080 tonnes from 425,285
tonnes. Imports decreased to 178,756 tonnes from 192,966 tonnes. However,
exports grew to 194 tonnes during April-August 2015 from 184 tonnes in the same
period of 2014.
Today the market was in positive trend and
can expect the same tomorrow also. The benchmark RSS4 grade rubber closed at `.112
a kg at Kottayam, while RSS3 grade closed at `.90.72 a kg at
Bangkok and Malaysian SMR20 closed at `.84.99 a kg. On
National Multi Commodity Exchange September 2015 futures closed at `.113.68
a kg, October at `.113.58, November at `.113.47, December at `.113.33
and January 2016 closed at `.113 a kg. On Tokyo
Commodity Exchange, September 2015 futures series closed at ¥162.9 a kg,
October at ¥166.2, November at ¥168.1, December 2015 at ¥171, January 2016 at ¥173.4,
and the contract for delivery in February 2016 closed at ¥174.3 a kg. On Thursday,
most probably Tocom futures contract for delivery in February 2016 may trade in
the range of ¥169 & ¥176 a kg.
To read Rubber4U – 15th September
2015 issue: http://rubber4u.com/Public/Abcd.pdf
Friday, September 4, 2015
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