Rubber4U

Friday, August 30, 2013

Is Thailand in the process of levy waiver!

As Asia began to cool off and the West remained sluggish, the prices of natural rubber have crashed, threatening the incomes of millions of farmers. Rubber farmers have blocked roads and railways in the past week to pressure the government to guarantee rubber prices as it has done for rice growers. Thailand government may waive levies on rubber exports so that shippers can pass on the saving to farmers. Thai government is likely to advise exporters to purchase raw rubber at prices above market rate.

Rubber resumed a rally as optimism grew that Europe’s economy may solidify its recovery and signs of renewed strength in the Chinese economy. China accounts for 33% of global demand and tyres represent 70% of natural rubber consumption in the country.

China has stepped up its rubber production over the last five years as it seeks to meet rising domestic demand and reduce imports. Production has also risen in other emerging producing countries like Vietnam, Laos, Cambodia and Myanmar.

From 2008-12, global rubber production increased by 3.7% a year, from 10.1 million tonnes in 2008 to 11.4 million last year. It is expected to reach 11.6 million tonnes this year. Consumption also increased by 3.1% a year for the same period, from 10.2 million tonnes in 2008 to 10.9 million last year. It is projected to reach 11.1 million tonnes this year.

At Kottayam, RSS4 grade closed at `.185.50 a kg, while RSS3 grade closed at `.178.62 a kg at Bangkok, Malaysian SMR20 closed at `.163.75 a kg. On the Tokyo Commodity Exchange, September futures series closed at ¥256.4, October at ¥258.8, November at ¥260, December at ¥263.1, January 2014 at ¥266.9 and the contract for delivery in February 2014 closed at ¥269.1 a kg. While on the National Multi Commodity Exchange September futures closed at `.183.50 a kg, October at `.182.75, November at `.183.24 and December at `.183.70 a kg. Tommorrow further downward trend can be noticed.

Read lot more in Rubber4U – 1stSeptember 2013 issue

Wednesday, August 21, 2013

Manchester United announces sponsorship with Apollo Tyres

Manchester United Football Club and Apollo Tyres has announced a three-year regional partnership in which Apollo Tyres becomes the Club's Official Tyre Partner in the UK and India. Apollo Tyres will create football based play zones, using recycled rubber, in local communities in the UK and India to encourage healthy lifestyles among youngsters. This partnership will allow Apollo not only to promote its brand, but also to engage and communicate with Manchester United’s strong fans, close to 46 million following in UK and India. The tie-up will pay off for the brand and this could lead to customer acquisition instead of just customer awareness and builds a long term relationship with the brand.

Import to decrease as local prices falls

Global natural rubber market has managed to maintain the upward momentum, while the domestic market has dropped. As mentioned earlier August will be the testing ground for future trend. Rubber based industries - especially non-tyre sector is facing serious problems, due to advent of cheap imported goods and higher input costs. On the other hand, tyre industry is also facing crisis as offtake from the auto sector has scaled down and in turn has slowed down the demand for natural rubber.

At Kottayam, RSS4 grade closed at `.184 a kg, while RSS3 grade closed with a positive note at `.163.69 a kg at Bangkok, Malaysian SMR20 closed at `.150.57 a kg. On the Tokyo Commodity Exchange, August futures series closed at ¥251.5, September at ¥253.7, October at ¥255, November at ¥256.1, December at ¥258 and the contract for delivery in January 2014 closed at ¥260.6 a kg, after touching a high of ¥263.7 and a low of ¥257.9 a kg. While on the National Multi Commodity Exchange September futures were trading at `.176.62 a kg, October at `.171.95, November at `.169.25 and December at `.169 a kg. at 4.30 pm IST.

Monday, August 19, 2013

August will be the testing ground

India's current account deficit hit a record high 4.8% of GDP, while its economic growth has slowed to a decade low of 5%. On Tuesday, Indian Rupee has dropped to all time low of 63.77 against US dollar, breaching the previous low of 62.03. Policymakers' measures to prop up the currency have so far proved ineffective. Further measures are expected but are unlikely to be effective in the current scenario, as rupee is estimated to go further down. It is estimated to touch 64.45 mark.

On the Tokyo Commodity Exchange, August futures series were trading in negatives at ¥255.5, September at ¥255.7, October at ¥256.3, November at ¥257.4, December at ¥260, and the contract for delivery in January at ¥262.3 a kg, on Tuesday at 13.10 JST.

Sunday, August 18, 2013

As Rupee drops, rubber too drops

The Indian Rupee dropped to all time low of 62 against dollar. Natural rubber imports in July jumped 39.2% to 29,311 tonnes, when compared to July 2012. Drop in domestic production due to heavy rainfall has forced tyre manufacturers to increase import of the commodity. Rains giving way to the resumption of tapping in most plantations in Kerala, the production and supply may improve in the coming weeks. The natural rubber prices dropped on buyer resistance, amidst low volumes as there had been no quantity sellers in the market.

Sheet rubber declined to `.188 a kg at Kottayam, while RSS3 grade closed with a positive note at `.159.91 a kg at Bangkok, Malaysian SMR20 closed at `.146.41 a kg. On the Tokyo Commodity Exchange, August futures series closed at ¥255.7, September at ¥261.2, October at ¥261.8, November at ¥262.8, December at ¥265.1, and the contract for delivery in January closed at ¥267 a kg. On National Multi Commodity Exchange, natural rubber September futures closed at `.179.28, October at `.171.24, November at `.167.98 and December at `.167.61 a kg.

Read lot more in Rubber4U – 1stSeptember 2013 issue