NR prices and production up

Uptrend in natural rubber production continues and in the month of December 2016 production increased by 12.07%, compared to the production during the same period of 2015. In December 2016, the output has surged to 65,000 tonnes compared to 58,000 tonnes in the same month in 2015. Total natural rubber production during April-December 2016 is 4,93,000 tonnes whereas it was 4,40,000 tonnes in 2015, showing 12.05% increase.

The Indian Rubber Board has developed an online system for applying for licences issued to manufacturers, dealers and processors as well as for filing returns. This system, as a part of the ongoing e-governance programme of the Board was launched by A. Ajith Kumar IAS, executive director of Rubber Board. The solution named ‘RUBIS’ had been deployed at the web address www.rbegp.in, which can also be accessed from the website of the Board.

The benchmark RSS4 grade rubber closed at `.156 a kg at Kottayam, while RSS3 grade closed at `.195.69 a kg at Bangkok and Malaysian SMR20 closed at `.156.96 a kg. On National Multi Commodity Exchange the last traded price for February 2017 futures was `.159.17 a kg, March at `.166.34, April at `.173.66 and May at `.178.02 a kg. Tokyo Commodity Exchange February 2017 futures series closed at ¥347 a kg, March at ¥339.1, April at ¥333.2, May at ¥333.7, June at ¥333 and the contract for delivery in July closed at ¥331.3 a kg.

To read Rubber4U – 1st February 2017 issue: http://rubber4u.com/Public/Abcd.pdf

For 2016-17 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

Market cautiously optimistic

While addressing the inauguration of India Rubber Expo 2017, KM Mammen, chairman of Automotive Tyre Manufacturers Association and chairman & managing director of MRF Ltd., said Make in India is a powerful incentive for Indian tyre makers not just to expand in the Indian market, but also manufacture quality tyres locally for exports to other markets.

The Reserve Bank of India is working on a plan to reduce online transaction costs as it tries to encourage more digital banking. While based on the recommendations made by domestic oil producers, finance minister Arun Jaitley is likely to cut the cess on domestic crude oil, an announcement which is expected in the Union Budget 2017-18.

The outlook for rubber is expected to improve this year amid the gradual global recovery. But the market seems cautiously optimistic on the commodity's fundamental outlook. According to the Rubber Authority of Thailand, as a result of the floods, country’s natural rubber output is expected to fall by 7.6% this year to 4.38 million tonnes, down from the 4.74 million tonnes previously expected.

The benchmark RSS4 grade rubber closed at `.150 a kg at Kottayam, while RSS3 grade closed at `.179.49 a kg at Bangkok and Malaysian SMR20 closed at `.147.67 a kg. On National Multi Commodity Exchange the last traded price for February 2017 futures was `.150.43 a kg, March at `.156.58, April at `.163.48 and May at `.168.02 a kg. Tokyo Commodity Exchange January 2017 futures series closed at ¥303.4 a kg, February at ¥302.6, March at ¥297.4, April at ¥288.6, May at ¥288.6 and the contract for delivery in June closed at ¥288.3 a kg. During January 2017, trading range was between ¥261.7 (low on 4th January) and ¥308.5 a kg (high on 16th January).

To read Rubber4U – 1st February 2017 issue: http://rubber4u.com/Public/Abcd.pdf

For 2016-17 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

Rubber prices jump to 2-1/2 year high

Rubber industry looks set for a turnaround as international rubber prices continue their strong rebound. Domestic traders and industry officials said yesterday they were optimistic that rubber prices, which increased over 59% since 5th February 2016, would continue to rise as the global economy recovers and demand driven heavily by developing economies catches up with supply.

Benchmark TOCOM rubber futures rallied to their highest in nearly four years, extending gains into a third session, boosted by supply concerns after flooding hit in Thailand. Natural rubber prices in India jumped to a two-and-a-half-year high today on limited supplies and tracking gains in international markets due to supply disruptions in Thailand. Now domestic growers are delaying selling expecting further rise in prices. The rally in overseas markets is also boosting sentiment.

The price rise would increase the raw material cost of tyre makers, thereby putting pressure on their profit margin, as natural rubber makes up more than 40% of the cost of a tyre.

The benchmark RSS4 grade rubber closed at `.145 a kg at Kottayam, while RSS3 grade closed at `.175.49 a kg at Bangkok and Malaysian SMR20 closed at `.151.73 a kg. On National Multi Commodity Exchange the last traded price for January 2017 futures was `.144.68 a kg, February at `.148.32, March at `.153.44, April at `.159.64 and May at `.166.78 a kg. Tokyo Commodity Exchange January 2017 futures series closed at ¥299.5 a kg, February at ¥300.9, March at ¥299.5, April at ¥296.8, May at ¥297.8 and the contract for delivery in June closed at ¥299 a kg. On Friday, most probably Tocom futures contract for delivery in June 2017 may trade in the range of ¥292 & ¥298 a kg.

To read Rubber4U – 15th January 2017 issue: http://rubber4u.com/Public/Abcd.pdf

For 2016-17 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf