Key Tokyo rubber futures fell from one-month highs on Friday (May 27), hurt by a stronger yen and growing concerns over the sovereign debt crisis in Europe and the growth outlook.
FUNDAMENTALS
The benchmark contract on the Tokyo Commodity Exchange for November delivery, which debuted on Thursday (May 26), was down 4.4 yen or 1.1 percent to 387.0 yen per kg as of 0030 GMT.
The contract rose as high as 392.2 yen on Thursday (May 26), the highest for any benchmark since April 28, when firmer oil prices and rising Shanghai rubber futures helped support sentiment.
The most-active Shanghai rubber contract for September delivery rose 395 yuan to close at 32,690 yuan ($5,033.933) per tonne on Thursday (May 26).
Asian physical rubber prices were a little higher on Thursday (May 26), supported by rising futures prices in Tokyo and limited supply in producing countries, dealers said.
The euro remained under pressure on Friday (May 27) on mounting doubts Greece will receive the next round of aid from the International Monetary Fund and on global outlook concerns, while the dollar slid against the yen.
U.S. crude futures stood steady above $100 a barrel on Friday (May 27) after falling more than 1 percent a day earlier on weak U.S. economic data that raised worries about oil demand.
MARKET NEWS
The International Monetary Fund could withhold the next slice of aid to Greece due next month, the head of euro zone finance ministers said on Thursday, spooking markets with the possibility of default.
Unexpectedly weak consumer spending hobbled the U.S. economy in the first quarter and fresh signs of a slowdown in the labour market pointed to an uphill struggle for the recovery.
Honda Motor Co Ltd said its North American assembly plants will not reach full production until August for most vehicles, and it will take even longer for the high-volume Civic compact car.
Global natural rubber production was forecast to rise to 9.936 million tonnes in 2011, lower than a previous estimate of 10.025 million tonnes, due to output revisions in Indonesia and the Philippines, industry group ANRPC said on Thursday (May 26).
The Nikkei stock average edged lower on Friday as optimism over a rise in U.S. stocks was offset by a stronger yen.
U.S. stocks rose for a second day on Thursday (May 26) in a choppy session, with technology and consumer discretionary stocks leading the way after upbeat earnings.
Friday, May 27, 2011
Tokyo Futures Fall on Firmer Yen, Growth Worries
Spot rubber declines on buyer resistance
KOTTAYAM, MAY 27:
Physical rubber prices declined on Friday. Though there has been no visible selling pressure in the market as arrivals continued to be low, prices slipped on buyer resistance. Transactions were meagre.
The rubber market continues to be clouded by uncertainties according to the Association of Natural Rubber Producing Countries (ANRPC). Prices from mid-April onwards have been on the decline although at a slow pace on growing concerns about global economy, strengthening of Japanese yen and marginal drop in crude oil prices.
Sheet rubber surrendered to Rs 214 (217) a kg, according to traders. The grade moved down to Rs 215.50 (217) a kg both at Kottayam and Kochi, according to the Rubber Board.
The June series weakened to Rs 215.31 (216.51), July to Rs 219.27 (220.47), August to Rs 218.50 (219.91) and September to Rs 218 (218.55) while the October series improved to Rs 215.55 (213.50) and November to Rs 217.15 (214.00) a kg for RSS 4 on the National Multi Commodity Exchange.
The June futures inched up to ¥418 (Rs 232.99) from ¥417 a kg during the day session but then finished unchanged in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) slipped to Rs 233.27 (233.32) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 214 (217); RSS-5: 212 (214); ungraded: 210 (212); ISNR 20: 207 (209) and latex 60 per cent 128 (130).
Source: http://www.thehindubusinessline.com/markets/commodities/article2054528.ece
Import of Synthetic Rubber in China - tons
| Source Country | During Apr-11 | % change from Apr-10 | Unit value ($/ton) | During Jan-Apr.11 | % change from Jan-Apr.10 | |||||
| South Korea | 26,375 | -29.1 | 3,283 | 112,548 | -20.6 | |||||
| Japan | 17,815 | -20.0 | 3,661 | 75,200 | -18.0 | |||||
| USA | 17,760 | -3.6 | 4,037 | 79,299 | 14.5 | |||||
| Russia | 13,810 | -47.8 | 4,095 | 48,851 | -43.3 | |||||
| Taiwan | 9,520 | -29.2 | 2,939 | 38,979 | -18.6 | |||||
| France | 5,514 | -19.1 | 3,669 | 19,068 | 13.5 | |||||
| Canada | 4,396 | 37.7 | 4,938 | 12,971 | 35.1 | |||||
| Germany | 3,610 | -47.6 | 2,925 | 21,891 | 8.7 | |||||
| Malaysia | 2,579 | -9.7 | 4,450 | 11,040 | 8.1 | |||||
| Belgium | 2,471 | -21.1 | 3,863 | 15,457 | -5.7 | |||||
| Britain | 2,355 | -16.0 | 3,438 | 11,490 | 21.8 | |||||
| Netherlands | 1,995 | -3.7 | 3,357 | 10,502 | 51.9 | |||||
| Mexico | 1,971 | 21.2 | 3,677 | 8,665 | 91.8 | |||||
| Italy | 1,903 | -18.5 | 2,965 | 6,241 | 18.0 | |||||
| Thailand | 1,785 | -53.1 | 2,845 | 9,734 | -41.8 | |||||
| Brazil | 894 | -2.9 | 3,213 | 2,672 | -47.4 | |||||
| Iran | 750 | -28.2 | 3,565 | 3,080 | -49.7 | |||||
| UAE | 342 | 3,830 | 997 | |||||||
| Singapore | 321 | -32.7 | 4,481 | 1,000 | -37.1 | |||||
| Spain | 279 | -87.4 | 2,338 | 898 | -84.7 | |||||
| Indonesia | 242 | 114.3 | 1,110 | 2,048 | -52.0 | |||||
| Hongkok | 141 | -48.2 | 3,149 | 817 | -3.7 | |||||
| Others | 1,472 | |||||||||
| Total | 118,300 | -27.1 | 3,621 | 503,337 | -14.8 |
Source: Customs Department, Government of China
Note: Synthetic latex grades are accounted in wet weight
China: Shanghai Warehouse Rubber Stocks Down 26.2 Percent
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 26.2 percent from last Friday, the exchange said on Friday (May 27).
Changes in metals stocks are reported as follows:
DELIVERABLE ON WARRANT 
(Reuters, May 27, 2011)
Europe: Truck sales continue recovery
Brussels – Registrations of new commercial vehicle registrations increased by 9.5 percent across the EU in April, according to new data from ACEA, the European federation of vehicle makers.
Among the major markets, only France (-3.0 percent) and Spain (-14.3 percent) declined while Germany (+12.2 percent) and the UK expanded (+23.6 percent). From January to April, a total of 657,707 new vehicles were registered, or 13.5 percent more than over the same period a year ago. France (+7.7 percent) recorded the most vehicles (161,941 units), followed by the UK (104,190) and Germany (103,020) which grew by 28.6 percent and 25.5 percent respectively.
Heavy truck (over 16t) sales continued to accelerate, with sales reaching 20,581 new heavy trucks in April. All major markets posted strong growths, leading to an overall 52.4 percent upturn in the region. The British market expanded by 72.7 percent, followed by the Netherlands (+62.1 percent), France (+47.8 percent), Spain (+32.5 percent) and Germany (+31.5 percent).
From January to April, 78,624 new trucks were registered in the EU, or 61.9 percent more than in the same period last year. Germany (+50.9 percent) was the biggest market, recording 19,860 units, while France (+62.8 percent) ranked second with 13,369 new vehicles. The Netherlands (+40.6 percent) and Spain (+40.7 percent) performed similarly. The UK saw its demand increase by 79.9 percent.
The same picture emerged in mid-sized trucks (3.5t – 16t) with 27,338 new vehicles regitered in the EU in April, posting a 42.4 percent increase compared to the same month a year earlier. Growth prevailed across countries, ranging from +56.7 percent in the Netherlands to +48.8 percent in the UK, +40.1 percent in France, +31.3 percent in Germany and +28.9 percent in Spain.
Over the first four months, the most significant markets performed similarly as demand for new trucks grew by 36.2 percent in the Netherlands, 40.8 percent in Spain, 43.3 percent in the UK, 45.4 percent in Germany and 52.2 percent in France. Overall, new truck registrations increased by 48.7 percent, totaling 103,935 units.
Sales of vans (up to 3.5t) also increased, but much more slowly. In April, demand for new vans were up 4.6 percent** in the EU*, amounting to 127,814 units. Of the most significant markets, France (-6.6 percent) and Spain (-19.0 percent) faced a downturn, while new registrations increased in Germany (+5.1 percent) and the UK (+21.4 percent).
Four months into the year, new van registrations totaled 543,030 units, or 8.9 percent more than in the first four months of 2010. France was the largest market and expanded by 4.5 percent. Germany (+18.9 percent) and the UK (+29.0 percent) both posted a double-digit growth, while Spain saw its market contract by 11.3 percent.
Once again, sales of buses and coaches declined. Registrations slipped by 0.3 percent in April as the Spanish (+56.7 percent) and German (+14.4 percent) markets expanded while new registrations were down in France (-18.3 percent) and the UK (-10.7 percent).
From January to April, the EU* recorded 10,742 new buses and coaches, or 1.3 percent less than in the same period in 2010. The UK and France remained the largest markets despite a downturn of 28.2 percent and 13.6 percent respectively. The German market was stable (+0.5 percent), while the Spanish expanded by 66.4 percent.
Due to the unavailability of data from Italy since January 2011, figures reported for that country are an extrapolation made by data provider AAA. They are not actual market figures, hence the possibility of an error margin with regard to the EU totals. Italy usually accounts for 10 to 15 percent of the EU Commercial Vehicle market.
Source: european-rubber-journal.com
NMCE, India: Rubber up, castor seed down Friday
MUMBAI (Commodity Online) : On Friday, till5 pm, National Multi Commodity Exchange of India ltd (NMCE) traded in 18 Commodities. The total volume is 13842 lots with a turnover of Rs.438.26 crores.
RUBBER FUTURES traded with a total volume of 7632 lots and a turnover of 165Crs. 88Lakhs. The Total Open interest in all series was 5412.June Series lost Rs.120 at LTP at the end of today's first session at Rs.21531.00. July Series lost Rs.120 at LTP at the end of today's first session at Rs.21927.00. September Series lost Rs.55 at LTP at the end of today's first session at Rs.21800.00. August Series lost Rs.141 at LTP at the end of today's first session at Rs.21850.00. October Series gained Rs.205 at LTP at the end of today's first session at Rs.21555.00. November Series gained Rs.315 at LTP at the end of today's first session at Rs.21715.00
CASTOR SEED 10 MT FUTURES traded with a total volume of 244 lots and a turnover of 11Crs. 97Lakhs. June Series lost Rs.49 at LTP at the end of today's first session at Rs.4859.00
RAPE/MUSTARD SEED FUTURES traded with a total volume of 966 lots and a turnover of 24Crs. 53Lakhs. June Series lost Rs.4.7 at LTP at the end of today's first session at Rs.503.30
NICKEL FUTURES traded with a total volume of 4 lots and a turnover of 10Lakhs. June Series lost Rs.0.3 at LTP at the end of today's first session at Rs.1057.00. July Series gained Rs.1 at LTP at the end of today's first session at Rs.1061.00
COPPER FUTURES traded with a total volume of 172 lots and a turnover of 7Crs. 09Lakhs. June Series lost Rs.0.15 at LTP at the end of today's first session at Rs.412.45. August Series lost Rs.0.8 at LTP at the end of today's first session at Rs.417.00
ZINC FUTURES traded with a total volume of 788 lots and a turnover of 40Crs. 46Lakhs. May Series lost Rs.0 at LTP at the end of today's first session at Rs.99.50. June Series lost Rs.0.7 at LTP at the end of today's first session at Rs.102.00
LEAD FUTURES traded with a total volume of 308 lots and a turnover of 17Crs. 58Lakhs. June Series lost Rs.0.95 at LTP at the end of today's first session at Rs.113.25
GOLD FUTURES traded with a total volume of 26 lots and a turnover of 58Lakhs. June Series lost Rs.18 at LTP at the end of today's first session at Rs.22357.00
SACK FUTURES traded with a total volume of 752 lots and a turnover of 33Crs. 88Lakhs. June Series gained Rs.36 at LTP at the end of today's first session at Rs.3641.00
RAW JUTE FUTURES traded with a total volume of 768 lots and a turnover of 25Crs. 61Lakhs. May Series lost Rs.0 at LTP at the end of today's first session at Rs.3304.60. June Series lost Rs.15.9 at LTP at the end of today's first session at Rs.3321.50
COFFEE REP BULK FUTURES traded with a total volume of 6 lots and a turnover of 10Lakhs. May Series lost Rs.0 at LTP at the end of today's first session at Rs.11180.00
CHANA FUTURES traded with a total volume of 508 lots and a turnover of 12Crs. 81Lakhs. June Series lost Rs.17 at LTP at the end of today's first session at Rs.2505.00
GUARGUM FUTURES traded with a total volume of 44 lots and a turnover of 4Crs. 54Lakhs. June Series gained Rs.103.5 at LTP at the end of today's first session at Rs.10464.50
GUARSEED 10 MT FUTURES traded with a total volume of 142 lots and a turnover of 4Crs. 70Lakhs. June Series gained Rs.32 at LTP at the end of today's first session at Rs.3347.00
ISABGULSEED FUTURES traded with a total volume of 498 lots and a turnover of 27Crs. 11Lakhs. June Series gained Rs.54 at LTP at the end of today's first session at Rs.5459.40. August Series gained Rs.55 at LTP at the end of today's first session at Rs.5567.40
SOYOIL 10 MT FUTURES traded with a total volume of 612 lots and a turnover of 39Crs. 81Lakhs. June Series lost Rs.6.45 at LTP at the end of today's first session at Rs.644.05
ALUMINIUM 5 TON FUTURES traded with a total volume of 370 lots and a turnover of 21Crs. 44Lakhs. June Series lost Rs.1.1 at LTP at the end of today's first session at Rs.114.80
GOLD GUINEA FUTURES traded with a total volume of 2 lots and a turnover of The Total Open interest in all series was 62. May Series lost Rs.0 at LTP at the end of today's first session at Rs.17865.00
Source: http://www.commodityonline.com/news/Rubber-up-castor-seed-down-Friday-at-NMCE-39417-3-1.html
Apollo Tyres open to buying rubber plantations: MD
NEW DELHI: Apollo Tyres Ltd is open to the possibility of buying rubber plantations to fight surging rubber prices that have been eroding tyre makers' margins, a top executive said on Friday.
"As far as buying rubber plantations, or for that matter any kind of backward integration, is concerned, we are always open to possibilities depending upon the need of the hour," Neeraj Kanwar , vice-chairman and managing director, told in an e-mailed response.
The tyre maker is reviewing contracts with suppliers to correct rubber prices, and also maintaining a leaner and efficient inventory and working towards greater production efficiency to deal with higher prices of rubber, a key raw material for tyre, he said.