[30 Jan] Japan's Auto Production up 8.6% on Year in December

Production of cars, trucks and buses in Japan increased 8.6% on year in December for the second consecutive monthly gain, the Japan Automobile Manufacturers Association said Friday.

Vehicle output rose to 788,067 vehicles in December from 725,825 vehicles in the same month a year earlier, the association said.

Domestic vehicle demand totaled 372,608 vehicles, up 21.6%.

(Source: irco.biz)

[30 Jan] Asian Rubber Mixed; Drop In Long-Term Contracts Supports

Asian rubber futures settled mixed Friday, with Thai rubber factories canceling or not renewing long-term contracts with tire makers supporting prices but concerns lingered over tightening of liquidity in China, said trade participants.

A fall in the number of long-term physical sale contracts can push up demand in the spot market; it helped in the recovery of Tocom prices during the night session, they said.

The benchmark July contract on Tocom settled Y0.5 lower at Y274.3 a kilogram after reaching an intraday high of Y279.9.

Prices recovered again during the night session with July contract hitting an intra-session high of Y278.1/kg.

"While the insistence of Thai companies to trade on spot prices and shun long-term deals is supportive concerns over China's liquidity levels and tightening of monetary policy are keeping a check on further gains in the market," said an exporter in Singapore.

He said these factors are pulling prices in different directions.

Many investors no longer have confidence to keep long positions open overnight and therefore quickly took profits, said a Tokyo-based executive at commodities brokerage.

Exporters said renewals of Thailand's long-term rubber trade contracts in January are down by at least 50% from a year earlier in terms of volumes traded.

The shift in trade towards spot market deals from long-term contracts is significant because it is resulting in more demand in the cash market and is supportive for prices in the medium term, they said.

The number of long-term contracts by Thai rubber suppliers has reduced a lot this year, said Pongsak Kerdvongbundit, managing director of Von Bundit Ltd., Thailand's largest manufacturer of natural rubber.

"Prices in long-term contracts are mostly lower than spot prices which are on the rise. Therefore, most factories are refusing to do long-term contracts," he said.

A top executive of a major Thai producer said his company has reduced the volumes traded under long-term contracts by almost 50% in 2010 and such contracts now have hardly a 10% share in the company's total natural rubber trade.

The benchmark May contract on the Shanghai Futures Exchange settled CNY50 higher at CNY23,195/ton.

The benchmark September contract on the Agricultural Futures Exchange of Thailand settled THB0.95 lower at THB100/kg.

Asian physical rubber prices were higher on strong buying interest and concerns that Thailandhas cut down volumes traded under long-term contracts.

(Source: irco.biz)

[30 Jan] Singapore, Costa Rica Complete Free Trade Talks

Singapore and Costa Rica have concluded talks for a free trade agreement, the city-state's trade ministry said Friday.

The two countries will sign the accord "once domestic processes are completed," the ministry said in a statement, referring to the ratification of the pact by their respective parliaments.

"Singapore will grant immediate duty free access for all imports from Costa Rica, while Costa Rica would eliminate tariffs for 90.6% of its tariff lines upon entry into force of the agreement," the statement said.

Tariffs on the remaining products would be eliminated over a period of 10 years.

Trade between the nations hit S$413.7 million ($295.5 million) in 2009, up 40% from 2004, the statement said.

Singapore's imports from Costa Rica comprise mainly electronic valves and machine parts. Its exports to Costa Rica include precision measuring instruments and rubber.

Singapore, a small, open economy highly dependent on trade, has signed a network of free trade pacts with several countries in Asia, the Middle East as well as the United States.

(Source: irco.biz)

[30 Jan] Thai Rubber Firms Canceling, Not Renewing Long-Term Deals

Many of Thailand's rubber factories are canceling or not renewing long-term export contracts with tiremakers, preferring spot deals in the cash market to take advantage of a bullish price trend, several trading executives said separately Friday.

Renewals of long-term contracts in January are down by at least 50% from a year earlier in terms of volumes traded, they said. Thailand is world's largest producer and exporter of natural rubber, shipping out close to 2.6 million tons annually.

The shift in trade towards spot market deals from long-term contracts is significant because it is resulting in more demand in the cash market and is supportive for prices in the medium term, they said.

"The number of long-term contracts by Thai rubber suppliers has reduced a lot this year," said Pongsak Kerdvongbundit, managing director of Von Bundit Ltd., Thailand's largest manufacturer of natural rubber.

He didn't divulge the number of long-term contracts Von Bundit has finalized with tiremakers in 2010, but said for the industry at large they are substantially lower.

Since prices are rising month after month, rubber factories consider it more profitable to sell at the price prevailing at the time of shipment, traders said.

Natural rubber futures on the Tokyo Commodity Exchange are currently hovering around Y275 kilogram, up from around Y160/kg in June last year and briefly rose above Y300/kg this month.

Under long-term contracts, tiremakers buy a specific quantity of natural rubber from factories for delivery over a period of six months or one year, normally starting from January or October. The price for the shipments each month are calculated at a premium or discount to the average price of the previous month, usually based on the Singapore Commodity Exchange.

However, when prices fell sharply during the second half of 2008 due to the global economic recession, many buyers, particularly from China defaulted on their purchase contracts.

Now, with prices rising, the situation is the opposite.

"Rubber factories are trying to wriggle out of long-term sale contracts because there is a large difference between prices of even two successive months," said a Thailand-based executive of global trading company Marubeni.

Large tiremakers generally purchase rubber from several factories and use a mix of both long-term and spot deals to meet their needs, and with term supply receding demand pressure is now increasing in the spot market, he said.

A Singapore-based trade executive of tiremaker Goodyear declined to comment.

At the beginning of November, Tocom rubber futures traded around Y225/kg. Prices jumped to Y250/kg at the start of December and Y285/kg in early January.

"If the USS raw material supply is locked in at current price levels, and RSS3 rubber is sold at the average price of previous month, the margins are negative," said an executive at another major Thai rubber producer, Thai Hua.

Buyers argue that for shipment in January, rubber factories would have locked-in their USS purchases in December, but factories contend that floods affected availability late last year.

Von Bundit's Pongsak said the wintering season will start in the next few weeks, bringing lower yields and production.

"Prices in long-term contracts are mostly lower than spot prices which are on the rise. Therefore most factories are refusing to do long-term contracts," he said.

A top executive of a major Thai producer said his company has reduced volumes traded under long-term contracts by almost 50% in 2010, and such contracts now account for barely a 10% share of the company's total natural rubber trade.

Another rubber producer said his company is continuing long-term contracts, but only with a few reliable large tiremakers that didn't default after the fall in prices in 2008.

He said many importers in China--the world's largest natural rubber importer and consumer--have to make purchases at spot prices, increasing their costs of production.

(Source: irco.biz)

Rubber exports predicted to top $1bil in 2010

VietNamNet Bridge – Rubber exports could rise by a fourth to US$1.5 billion this year, Tran Thi Thuy Hoa, general secretary of the Viet Nam Rubber Association, said.

The global economic turbulence badly affected the rubber industry last year, causing a fall both in demand and price. The International Rubber Study Group has forecast global rubber demand to keep rising from now through 2019, Hoa said, noting that global consumption of natural rubber this year is expected to be 10.43 million tonnes, 8 per cent higher than 2009.

Rubber prices are also forecast to increase on the back of the rising demand and higher crude oil prices, she said.

The global economic turbulence badly affected the rubber industry last year, causing a fall both in demand and price. Many Vietnamese firms incurred heavy losses and had to lay off workers.

In early 2009 raw rubber prices plunged to around $1,000 a tonne against $3,000 in August 2008.

But the situation improved considerably in the second half, with prices consistently rising, especially in recent months, Hoa said.

They climbed to $2,004 by December, Hoa said, noting they have continued to rise this month.

She attributed the price rise to a recovery in demand from many industries around the world and a fall in rubber supply after three leading producers, Thailand, Indonesia, and Malaysia, cut output by more than 6 per cent.

Global supply last year was only 9.36 million tonnes, 640,000 tonnes lower than in 2008.

"Although Viet Nam exports rubber to 73 countries, including the US and Japan, nearly 70 per cent of our exports are sold to China," Hoa said.

The country last year exported 489,230 tonnes to China for $761.46 million, or 67.4 per cent of its total export figure.

To avoid the risks involved in putting all their eggs in the China basket, Hoa said rubber exporters needed to diversify their markets.

She also urged administrative agencies to provide timely information about the Chinese market, including price and changes to rubber import regulations, so that they can cope with changes.

Rubber trees would be planted on 30,000-40,000 hectares this year, Hoa said, while total output is expected to be around 770,000 tonnes, of which 750,000 tonnes would be exported.

(VietNamNet/Viet Nam News)

Silicone implants that generate 'leccy invented for US spooks

In news sure to delight topheavy Z-list celebrities everywhere, US boffins funded by shadowy federal agencies say they have developed a new kind of silicone implant which can generate electrical power from the movements of the bodily area in which it is placed.

The new technology, developed at Princeton University in the States, involves adding piezo-electric lead zirconate titanate (PZT) to silicone, creating a material which generates electricity when squeezed, mashed or wobbled.

"Because the silicone is biocompatible, it is already used for cosmetic implants," note the Princeton engineers.

"Natural body movements [could] power pacemakers, mobile phones and other electronic devices."

"The new electricity-harvesting devices could be implanted in the body to power devices perpetually, and the body wouldn't reject them," adds Michael McAlpine, Princeton engineering prof.

The boffins describe their revolutionary new implantable power-generation tech as "piezo-rubber chips".

"The beauty of this is that it's scalable," said Yi Qi, a postdoctoral researcher who works with McAlpine. "As we get better at making these chips, we'll be able to make [the power units] larger and larger."

Exact performance figures on the kit aren't given, but it seems that some users at least might be able to generate substantial amounts of power. Famously be-funbagged cross-platform media node Katie Price/Jordan, for instance, was memorably described as nothing more than "two bags of silicone" recently - she would presumably be able to jumpstart a truck merely by loosening her lingerie and doing a few brisk knee bends.

Intriguingly in this context, the Princeton team specifies that the kit can also work in reverse, rather as a normal electrical generator can also function as a motor. If power is supplied to the silicone piezo-modules from an external source, they can be made to flex, bulge or oscillate.

Perhaps most interestingly of all, McAlpine and his colleagues' research was funded by the United States Intelligence Community - "a cooperative of federal intelligence and national security agencies".

Just why the US spooks would be looking into perpetual in-body power supplies is unlikely to be revealed. However, the possibilities range from cybernetically enhanced super-agents to the rumoured existence of implantable tracker bug technology of some kind, perhaps placed in or on prisoners during the Wars on Stuff. ®

(Source: theregister.co.uk)

[29 Jan] Asia Rubber Settles off Lows; Thai Firms Resume Shipments to Kumho

Asian rubber futures settled off lows Thursday, bouncing back on speculative buying after falling for the fifth successive trading day and slipping to a five-week low, said trade participants.

They said the market could test the daily upper limit Friday - rise by Y10 a kilogram - on the back of further buying support.

Thai firms resuming natural rubber exports to South Korea's Kumho Tire Co. and strong physical purchases by tire makers in China and Japan also supported the market.

The benchmark July contract on Tocom settled Y3.4 lower at Y274.8/kg, off an intraday low of Y269/kg, a level not seen since Dec. 24.

Prices recovered sharply in the night session, with the July contract ending at an intra-session high of Y283.6/kg.

Between morning and night sessions, prices moved in a wide range spanning Y14.6. In the morning session prices were almost limit-down while in the night session they were almost limit-up.

"As prices moved below Y280/kg, many funds were taken off guard and had to liquidate longs to cut losses," said an executive at a Tokyo-based commodities brokerage, noting this was in continuation of yesterday's trend, with investors liquidating long positions in June instead of rolling them over to July.

Speculative buying and short covering by shippers and physical dealers helped prices recover.

Traders put Y278.6/kg as a point of key technical resistance; with the breaking of this level in the night session, buying by large institutional funds resumed.

Thailand's natural rubber manufacturing firms have resumed shipments to South Korea's Kumho Tire Co., Bangkok-based trading executives said Thursday.

"The bank has opened the line of credit, so we are guaranteed our payment and will ship out one of the cargoes as soon as the vessel is arranged," said an executive at one of the Thai suppliers with a long-term contract to supply natural rubber to Kumho.

Kumho is now under a debt rescheduling program together with Kumho Industrial Co. as part of the parent group's fundamental restructuring.

The benchmark May contract on the Shanghai Futures Exchange settled CNY810 lower at CNY23,145 a metric ton, off an intraday low of CNY22,760.

The new benchmark September contract on the Agricultural Futures Exchange of Thailand settled THB1.65 higher at THB100.95/kg, off an intraday low of THB97.50.

Thai natural rubber manufacturing firms Thursday sold RSS3 grade rubber to tire makers in Japan at $3,030/ton, free on board Bangkok, for shipment in containers in February, as buyers snapped up cargoes to take advantage of the recent downward correction in prices.

(Source: irco.biz)

[29 Jan] Thailand: Criminal Uses Threat to Extort Rubber Farmers in Nakhon Sri Thammarat

Police in Nakhon Si Thammarat province are sending a force to protect rubber farmers after they have been extorted by a plotter who called himself the Khai-Mhook Bandit.

Residents in Thung Song district of Nakhon Si Thammarat province have asked for police protection after they were extorted for money.

On January 21st, letters signed by Khai-Mhook Bandit were nailed to rubber trees at ten farms, threatening each of them to pay a 300,000 baht protection fee.

The letters were discovered along with intimidating machete-inflicted cuts on the trees.

The provincial police have assigned two protection teams to ensure the safety of the rubber farmers, who must work every morning.

One of the rubber farmers made a plea to the police to catch the culprit as soon as possible. Since the farmers have received the letters, some are too afraid to work on the farms.

However, round-the-clock protection from the police has helped some farmers regain their confidence.

The provincial police say an investigation is being conducted and they expect to catch the culprit within a week.

Meanwhile, two protection teams will continue to oversee the security of the farmers.

(Source: irco.biz)

[29 Jan] Tyre Makers Shop Around; Sellers Wary of Defaults

Tyre makers and Chinese buyers snapped up rubber after prices dropped nearly 8 percent in the past week, but weakness in futures market triggered worries about defaults, dealers said on Thursday. Thai RSS3, Indonesian SIR20 and Malaysian SMR20 grade changed hands at between $2.92 and $3.0 a kg late on Wednesday for nearby shipment, with main buyer China showing keen interest to buy on dips.

Goodyear Tire & Rubber also bought SIR20.

"China starts to ask for more goods but there are not many people who are willing to sell after a sharp drop in futures market," said a dealer in Indonesia's main growing island of Sumatra.

"There are also fears of defaults. The price has gone down so much in the past week. It's a scary market," he added.

Benchmark RSS3 was quoted at around $3 a kg on Thursday, down from $3.25 on Wednesday last week, when the price revisited a 56-year peak scaled in mid 2008.

Cash prices closely follow Tokyo rubber futures, which have slipped more than 9 percent since rising to a 16-month high of 306 yen a kg two weeks ago on selling driven by a firmer yen and worries that China's efforts to curb lending could sap demand for commodities.

China, the world's largest rubber consumer, imported 1.71 million tonnes of natural rubber in 2009, up 1.74 percent from the previous year, customs data showed. Local tyre makers are likely to step up purchases before the Lunar New Year in mid-February.

China shocked the market in late 2008 when buyers refused to pay for their cargoes after cash prices plunged from their July peak as Tokyo futures tumbled from a 28-year high, and the global economic meltdown slashed demand for cars in Europe, North America and Japan.

"If the market continues to come down, then defaults might happen, but I think some buyers will continue to come in," said a dealer in Thailand's southern city of Hat Yai.

"People have been waiting for a correction and I think we will start to see more buyers," he added.

Singapore dealers, who normally sell rubber to China, bought RSS3 at $3 a kg for February shipment but there were no reports of deals for another Thai grade, STR20.

Supplies picked up in Thailand, the world's largest producer, after heavy rains disrupted tapping. The dry wintering season is expected to start in Sumatra in the next few weeks.

SIR20 changed hands 132.50 and 133.00 U.S. cents a pound free on board (FOB) Jambi and at 132.75 FOB Palembang and Belawan in Sumatra. Goodyear bought rubber in overnight deals at 133 and 133 cents for March shipment, dealers said.

"It's a high production period in producing countries. So we have more than enough supply of raw material," said a dealer in Singapore. "That's why we have to sell."

Malaysia's SMR20 was traded around $3 a kg late on Wednesday.

(Source: irco.biz)

[29 Jan] Thai Firms Sell RSS3 Rubber to Japan at $3,030/Ton, FOB

Thai natural rubber manufacturing firms Thursday sold RSS3 grade rubber to tire makers in Japan at $3,030 a metric ton, free-on-board Bangkok, for shipment in containers in February, trading executives said.

Companies are making offers around $3,100/ton, but actual trades are at much lower levels as buyers rush in to take advantage of the recent downward correction, they said.

Last week, Thai exporters was making RSS3 offers at record-high levels above $3,200/ton, but had to scale down their rates after a sharp correction in futures markets.

(Source: irco.biz)

[29 Jan] Thai Futures Exchange Plans Rice, Ethanol Futures

The Thai government hopes the Agricultural Futures Exchange of Thailand will launch new contracts for paddy rice in the first half of this year and ethanol in the second half, the Bangkok Post reported Thursday.

Wanchai Palotaitakerng, secretary-general of the Agricultural Futures Trading Commission, said plans also call for futures contracts to be developed for commodities such as corn and raw sugar, according to the report.

Thailand's commodities market must increase its product variety if it's to reach its trading target of 5,000 contracts a day by 2014, he said.

The exchange currently offers futures in rubber smoked sheets, tapioca chips, white 5% rice and Thai Hom Mali rice. Rubber futures so far are the most liquid contract.

(Source: irco.biz)

[28 Jan] Asian Rubber Settles Lower As Japan's Inventories Surge 7.8%

Asian rubber futures settled lower Wednesday for the fourth successive trading day, slipping to a four-week low tracking a sharp rise in Japan's natural rubber inventories and weaker crude oil, said trade participants.

Concerns over a U.S proposal to restrict proprietary trading by banks, which can affect liquidity in commodity derivatives, continued to rattle natural rubber investors across all major Asian bourses in Tokyo, Singapore, Bangkok and Shanghai.

The new benchmark July contract on the Tocom settled Y8.0 lower at Y278.2 a kilogram, close to the intraday low of Y276.5/kg.

Prices fell further during the night session, with the July contract hitting an intra-session low of Y275.1/kg, a level not reached this year. Night session prices aren't included in intraday trading.

Many investors, instead of rolling over long positions to July from June, are liquidating them, says executive at Tokyo-based commodities brokerage.

Natural rubber stocks in Japan as of Jan. 20 stood at 6,877 metric tons, up 7.8% from 6,380 tons Jan. 10, according to data issued Wednesday by the Rubber Trade Association of Japan.

Japan's natural rubber stocks had declined to historically low levels of 3,902 tons Nov. 10 and are still 32% lower than end-May 2009.

However, a recent rise in stocks prompted fresh selling pressure on Tocom rubber futures.

"Higher stocks create enough leeway for traders to ship out more volumes to China," said a Tokyo-based trading executive.

He said this gives an option to tire makers in China to meet raw material requirements from neighboring Japan at a discount instead of directly buying costlier cargoes from producing countries.

Traders in Japan import rubber from Thailand, Malaysia and Indonesia and sell some existing inventories to China to make a profit, as prices are hovering around 15-month highs.

The benchmark May contract on the Shanghai Futures Exchange settled CNY510 lower at CNY23,955/ton.

The benchmark August contract on the Agricultural Futures Exchange of Thailand settled THB2.60 lower at THB99.30/kg.

Asian physical rubber prices were lower as futures markets tumbled again but buying was limited due to price volatility.

"Buyers are hesitant in making large purchases as they fear prices may ease further," said a Singapore-based trader.

Thailand's RSS3 rubber, which was being offered around $3,200/ton, free on board for March shipment a few days back, is now quoted at $3,050/ton or lower.

(Source: irco.biz)

[28 Jan] Tocom Rubber Futures Fall 3.3% on Liquidity Concerns, Crude

Natural rubber futures on the Tokyo Commodity Exchange fell 3.3% Wednesday on fresh selling pressure amid weak crude oil and concerns that liquidity may shrink after implementation of new U.S. restrictions on banks' participation in proprietary trading.

The new benchmark July contract traded Y9.6 lower at Y276.6 a kilogram.

Many investors are just liquidating long contracts instead of rolling them over to July from June, said an executive at a Tokyo-based commodities brokerage.

(Source: irco.biz)

[28 Jan] Japan Jan. 20 Natural Rubber Stocks Up 7.8% from Jan. 10

Natural rubber stocks in Japan as of Jan. 20 stood at 6,877 metric tons, up 7.8% from 6,380 tons Jan. 10, according to data issued Wednesday by the Rubber Trade Association of Japan.

Japan's natural rubber stocks had declined to historically low levels of 3,902 tons Nov. 10 and are still 32% lower than end-May 2009.

Natural latex stocks rose to 266 tons from 264 tons, while synthetic rubber stocks rose to 1,832 tons from 1,508 tons.

The association didn't provide any reasons for the changes.

Strong demand from tire makers in China had dragged down Japan's inventories in recent months, and importers said they are now replenishing stocks.

Traders in Japan import rubber from Thailand, Malaysia and Indonesia and sell some of the existing inventories to China to make a profit, as prices are hovering around 15-month highs.

(Source: irco.biz)

[28 Jan] Ivory Coast 2009 Rubber Exports Up 5%

Ivory Coast's natural rubber exports totalled 220,375 tonnes from January to December 2009, up 4.8 percent on the previous year, provisional port data showed on Tuesday.

Ivory Coast is Africa's leading grower of natural rubber.

Following are port figures in tonnes, from the start of theyear:

	Dec 09	Nov 09	Dec 08
Abidjan	13,949	9,516	8,852
San Pedro	9,781	11,890	9,757
Total	23,730	21,406	18,609
Cumulative	220,375	196,645	210,190
NOTE: Port data for Abidjan is provisional and could be revised.

(Source: irco.biz)