40,000 tonnes of NR import allowed at 7.5% duty

Indian government has permitted imports of 40,000 tonnes of natural rubber at a concessional duty of 7.5% for the current fiscal. This is in line with the one allowed last fiscal. The move to allow imports at a lower duty follows demand from the user industry, to allow import of two lakh tonnes duty-free.

The import will meet consumers' need for just 15 days, going by the consumption of 80,500 tonnes in June. Growers, however, are totally opposed to imports, as it may suppress domestic prices.

Since 1^st April 2011, the Customs duty on natural rubber has been fixed at 20% or Rs.20 a kg, whichever is lower. In the first quarter of the current fiscal, NR imports doubled to 38,233 tonnes from 19,118 tonnes during the same period of previous fiscal.

Read lot more in Rubber4U – 1st August 2011 issue

India to head IRSG for 2 years

India has been elected as the new Chairman of the International Rubber Study Group. Mrs. Sheela Thomas, Chairperson of the Indian Rubber Board, will officiate as the Chairman of International Rubber Study Group (IRSG), for the next two years. The decision was made unanimously in the meeting of the Heads of Delegations (HOD) held on 14th July 2011 at Singapore. EU was elected as the new Vice Chairman for the next two years. Members opined that India, being both a producer and a consumer of rubber, would be in a good position to protect the interests of both producers and consumers in IRSG.

While presiding over the meeting of the HOD, the new Chairman of IRSG, Mrs. Sheela Thomas, highlighted the need for increasing the coordination among ANRPC, IRSG and IRRDB. There should not be duplication of work among the organisations and the synergy of expertise of the three organisations would be appropriately utilised for the benefit of rubber industry.

Read lot more in Rubber4U – 1st August 2011 issue

Rubber4U

1st July 2011 issue

Rubber price at Rs. 207 per kg.

Natural rubber prices today fell by Rs 3 to hit a nearly three month low of Rs 207 per kg in line with the fall in prices in the global markets. On 25th June, natural rubber prices was at Rs 216 per kg at Kottayam. (Since 1st January 2011, the lowest price was on 14th March at Rs. 185 per kg.)

The rate of RSS3 grade natural rubber in the international market at Bangkok today fell by Rs 1.97 to Rs 207.49 per kg as compared to Rs 212.63 per kg on 24th June.

The future markets both domestic and international also have been down, which have further affected the domestic spot prices. At the National Multi Commodity Exchange (NMCE), rubber future prices for July delivery closed at Rs 206.73 per kg. At Tokyo Commodity Exchange futures prices for July delivery ruling at 358 yen (Rs 199.47).

Read lot more in Rubber4U – 1st July 2011 issue

Rubber prices likely to be lower next week

Once again domestic natural rubber price is above the international prices. Today, price of natural rubber (RSS-4 grade) in the domestic market (at Kottayam) closed at Rs 217 a kg and on the other hand the international price of RSS3 grade at Bangkok closed at 215.26 a kg.

It is expected that rubber prices to decline further in the coming days and one can expect to see the price to touch Rs. 206 a kg in the domestic market and in the international market there is an indication of upward trend and probable will touch Rs. 222 a kg.

Read lot more in Rubber4U – 1st July 2011 issue

Rubber4U

15th June 2011

Rubber prices may rise

The Society of Indian Automobile Manufacturers (SIAM) has trimmed its annual growth forecast for passenger cars from 16-18% to 14-16%. Automobile component manufacturers are raising the prices on account of high input costs, which in turn forces the automobile manufacturers further raise the prices to avoid a squeeze on margins. Increased borrowing rates and surging fuel prices would further drag the industry momentum.

With the global economy slowing down and OPEC mulling a production quota hike, crude oil prices would come down in the coming months. This would also bring down the prices of synthetic rubber and would replace natural rubber in a limited way curbing the natural rubber demand.

Rubber Board had projected domestic consumption of natural rubber to the tune of 9.77 lakh tonnes mainly on automobile demand. But with sluggish sales in the offing, it is highly unlikely that there would be such a huge demand. This means rubber inventories in India would climb.

Natural rubber prices have seen a steep decline in the past few weeks due to better production and rising imports. However, prices are expected to recover in the coming days as production is about to enter a lean phase with the onset of monsoon.

As on 6th June, the prices of natural rubber (RSS4 grade) closed at Rs 226.50 per kg and are likely to trade between Rs. 220 and Rs 238 per kg, till June end.

Read lot more in Rubber4U – 15th June 2011 issue