Monday, February 29, 2016
Sunday, February 28, 2016
Lots of expectations, will it get fulfilled?
Union Budget 2016-17 will be presented on 29th February and industry
expects to see a blueprint that would strengthen the demand scenario and would
be focused on pushing the Indian economy to the targeted GDP growth. Finance
minister Arun Jaitley faces a tough task of balancing the needs of farm sector
as well as the industry when he presents his third Budget. On the tax front,
the Budget may continue with the status quo, while it may tinker with the
exemptions.
While the fortune of the Indian tyre industry is knotted with the
performance of the automotive sector. With economic activity gathering pace and
the RBI ushering in monetary easing, it could boost consumer sentiment. The domestic
production of natural rubber is insufficient to meet the growing demand; import
dependence will remain for quite some time, as the gap is widening. But it
should not be at the cost of hurting domestic business, especially when the
industry is going through a manufacturing slump. Demand for tyres is expected
to accelerate in 2016-17. Industry expects this budget to help boost demand and
keep the industry momentum going.
The Association of Planters of Kerala wanted
amendments in the Plantation Labour Act, which mandates the provision of
housing, sanitation and medical care facilities to workers. While Indian Rubber
Dealers Federation has urged the Centre to enhance the replanting subsidy to `.1
lakh per hectare from the present `.20,000. Growers seek
a temporary ban on imports till a safeguard duty is levied.
Automotive Tyre Manufacturers Association
(ATMA) said the existing curbs on natural rubber import are restricting them
from sourcing the raw material at competitive prices at a time when domestic
output is declining sharply. In view of such steep fall in natural rubber
production, imports are a must to meet the growing demand of tyres from auto
and transport sectors. High import duties on natural rubber and much lower duties
on finished tyres is leading to indiscriminate surge in import and dumping of
tyres in India.
Don’t expect much on Monday.
The benchmark RSS4 grade rubber closed at `.96.50
a kg at Kottayam, while RSS3 grade closed at `.89.42 a kg at
Bangkok and Malaysian SMR20 closed at `.78.03 a kg. On
National Multi Commodity Exchange March 2016, the futures closed at `.98.53
a kg, April at `.101.94 and May 2016 closed at `.103.90
a kg. Tokyo Commodity Exchange March 2016 futures series closed at ¥147.4 a kg,
April at ¥149.5, May 2016 at ¥152.3, June at ¥153.9, July at ¥155.2 and the
contract for delivery in August 2016 closed at ¥155.6 a kg. On Monday, most
probably Tocom futures contract for delivery in August 2016 may trade in
negative range of ¥153 & ¥158 a kg.
For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf
Saturday, February 20, 2016
NR production down, while import increased
India’s natural rubber production for the
month of January 2016 decreased by 3.45% to 56,000 tonnes compared to 58,000
tonnes during January 2015. While the consumption during the month decreased by
2.21% to 82,000 tonnes compared to 83,850 tonnes during the same period of 2015.
Natural rubber stock decreased by 2.42% to 242,000 tonnes from 248,000 tonnes
in January 2015.
Natural rubber imports in January 2016 increased
20.70% to 35,174 tonnes from 29,141 tonnes in January 2015. Import of natural
rubber was mainly from Indonesia, Thailand, Vietnam and Malaysia.
The benchmark RSS4 grade rubber closed at `.94.50
a kg at Kottayam, while RSS3 grade closed at `.87.62 a kg at
Bangkok and Malaysian SMR20 closed at `.75.24 a kg. On
National Multi Commodity Exchange March 2016, the futures closed at `.97.39
a kg, April at `.100.40 and May 2016 closed at `.102.72
a kg. Tokyo Commodity Exchange February 2016 futures series closed at ¥141 a
kg, March at ¥144.4, April at ¥147.3, May 2016 at ¥150.6, June at ¥152.7 and
the contract for delivery in July 2016 closed at ¥153.2 a kg.
For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf
Thursday, February 18, 2016
Market to remain weak
Automotive Tyre Manufacturers' Association
(ATMA) the most active industry bodies representing `.50,000
crore automotive tyre industry has elected K M Mammen, chairman & managing
director of MRF Ltd. as Chairman of ATMA. While Satish Sharma, president (Asia
Pacific, Middle East and Africa) of Apollo Tyres Ltd. has been elected as Vice
Chairman.
The moves by major natural rubber exporters to
limit shipments could assist in the near-term, but a significant price movement
in the coming months is not expected. The rubber market will continue to
struggle with an overhang of stocks, encouraged by economic slowdown in China
and weak oil prices which enhance the competitiveness of synthetic rubber. The
negative economic sentiment and low petroleum prices will not support an
increase in natural rubber demand.
The benchmark RSS4 grade rubber closed at `.94
a kg at Kottayam, while RSS3 grade closed at `.87.55 a kg at
Bangkok and Malaysian SMR20 closed at `.75.14 a kg. On
National Multi Commodity Exchange February 2016, the futures closed at `.198.02
a kg, March at `.101.13, April at `.102.43 and May 2016
at `.104.07 a kg. Tokyo Commodity Exchange February 2016
futures series closed at ¥142.6 a kg, March at ¥144.6, April at ¥147.6, May
2016 at ¥150.6, June at ¥152.4 and the contract for delivery in July 2016
closed at ¥152.6 a kg.
For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf
Sunday, February 14, 2016
Thursday, February 4, 2016
Future outlook
Rubber Skill Development Council (RSDC) and
Tripura University has signed a Memorandum of Understanding (MoU) for conducting
a programme called Bachelor of Vocation (B.Voc) in Rubber Technology. The three
year course is approved by the University Grants Commission under the Ministry
of Human Resource Development. The MoU was signed by Vinod T Simon, chairman of
RSDC, and O S Adhikari, registrar of Tripura University.
A fourteen member delegation led by Mohinder
Gupta, president of All India Rubber Industries Association, supported by the
MSME ministry, is visiting Japan during 8-12 February 2016 for exploring trade
and investment opportunities in rubber sector. Both the countries are among the
world’s largest producers of rubber and rubber products.
The benchmark RSS4 grade rubber closed at `.91.50
a kg at Kottayam, while RSS3 grade closed at `.85.73 a kg at
Bangkok and Malaysian SMR20 closed at `.75.48 a kg. On
National Multi Commodity Exchange February 2016 futures closed at `.91.66
a kg, March at `.93.76, April at `.96.04 and May closed
at `.97.73 a kg. On Tokyo Commodity Exchange, February 2016
futures series closed at ¥152 a kg, March at ¥150.5, April at ¥152.9, May at ¥156,
June at ¥157.2 and the contract for delivery in July 2016 closed at ¥157.3 a kg.
On Friday, most probably Tocom futures contract for delivery in July 2016 may
trade in negative range of ¥153 & ¥156 a kg.
Wednesday, February 3, 2016
Peaceful hartal
LDF has called for a hartal in Kottayam
district demanding measures to be taken to save the rubber farmers. LDF
activists took out protest marches in many places in the district. The dawn to
dusk hartal was peaceful but partial. While buses remained off the road and
shops remained closed, private vehicles could be seen in large numbers on the
road.
The benchmark RSS4 grade rubber closed at `.92
a kg at Cochin, while RSS3 grade closed at `.85.14 a kg at
Bangkok and Malaysian SMR20 closed at `.73.60 a kg. On
National Multi Commodity Exchange February 2016 futures closed at `.91.05
a kg, March at `.93.03, April at `.95.34 and May closed
at `.99.50 a kg. On Tokyo Commodity Exchange, February 2016
futures series closed at ¥148.7 a kg, March at ¥149, April at ¥150.5, May at ¥153.5,
June at ¥154.1 and the contract for delivery in July 2016 closed at ¥153.6 a kg.
On Thursday, most probably Tocom futures contract for delivery in July 2016 may
trade in the range of ¥153 & ¥160 a kg.
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