Cambodian Rubber Exports Slide Sharply In First Five Months Of 2010

As per the latest updates from Association of Natural Rubber Producing Countries, Cambodian rubber exports dropped more than 34 percent in the first five months of this year compared with the same period in 2009, according to official figures from the Cambodia Import, Export, Inspection and Fraud Repression Department. Data released on Friday (July 2) show a 34.19 percent drop in exported rubber, from 13,057 tonnes to 9,730 tonnes, and growers blame harsh weather for reducing production during the first five months of the year. The official added that Cambodia had missed out on benefits from high prices because it exported most of its rubber to Vietnam.

The price of the highest-quality rubber, classified as grade 1 of 10, hit US$3,687.50 per tonne last week on the Malaysian Rubber Exchange. Grade 10 rubber reached $2,868.

In a bid to raise rubber production to 150,000 hectares by 2015, Cambodia inked a memorandum of understanding with Vietnam in September last year, offering 100,000 hectares in land concessions to 14 Vietnamese companies operating in Mondulkiri, Ratanakkiri, Kampong Thom Kratie and Preah Vihear provinces.

Vietnamese companies grew rubber on 10,000 hectares of land in Cambodia last year and planed to add 20,000 more by the end of 2010, some 30,000 hectares in 2011 and 40,000 hectares in 2012, according to the memorandum.

(indiainfoline.com)

Synthetic rubber production increases by 10 p.c.

Synthetic rubber production has rebounded in the last fiscal rising 10 per cent to 1.06 lakh tonnes, according to the Rubber Board data.

In the previous fiscal, production had dipped by nine per cent to 96,739 tonnes.

During 2009-10 fiscal, synthetic rubber consumption increased to 3.4 lakh tonnes registering a growth of 18.7 per cent against a negative growth of 1.4 per cent in the previous fiscal.

Consumption of the rubber by the automotive tyre sector, which accounts for more than half of synthetic rubber use in the country, increased by 28.7 per cent to 2.38 lakh tonnes in 2009-10, against 1.85 lakh tonnes in the previous fiscal.

The relative share of consumption of natural rubber and synthetic rubber in India changed to 73:27 during 2009-10 fiscal from 75:25 during 2008-09 fiscal, the board said.

Import of synthetic rubber by the rubber goods manufacturing industry during 2009-10 increased to 2.5 lakh tonnes compared to 1.9 lakh tonnes during 2008-09.

(thehindu.com)

Rubber Gains for Second Day on Speculation China Is Restocking

By Supunnabul Suwannakij

July 5 (Bloomberg) -- Rubber, trading unchanged, may climb for a second day on speculation that demand may increase as China and Japan replenish declining inventories.

Futures in Tokyo swung between a gain and loss of 0.6 percent. The price touched 260.3 yen per kilogram ($2.962 a metric ton) on July 2, the lowest level since June 10, on concern that a slowing global economic recovery may weaken demand for the commodity used for tires and gloves.

“Warehouse stocks in Japan and China are low,” Kazunori Kokubo, general manager of the international business department, at commodity broker Yutaka Shoji Co., said by phone from Tokyo. “People are eyeing Thai supply conditions,” he said.

The December-delivery contract rose as much as 1.6 yen to 268.2 yen, before trading unchanged at 266.6 yen on the Tokyo Commodity Exchange at 11:04 a.m. local time. The commodity has declined 3.4 percent since the start of the year.

China’s natural-rubber inventories increased 1,211 tons to 15,982 tons last week, based on a survey of 10 warehouses, the Shanghai Futures Exchange said on July 2. Still, stockpiles have slumped 89 percent this year.

November-delivery rubber on the Shanghai Futures Exchange gained 1.2 percent to 21,630 yuan ($3,193) a ton.

Tight global supplies and strong demand, especially from China, will support prices, the Association of Natural-Rubber- Producing Countries said in its June newsletter.

The possibility of a “marked improvement” in supply in the short term is limited given aging trees and weather constraints, the association said June 30.

Cash prices in Thailand fell on July 2 after U.S. economic data boosted concern that the global recovery may falter, according to the Rubber Institute of Thailand.

The Thai benchmark price tumbled 2.6 percent to 112.60 baht ($3.47) a kilogram that day. Prices are updated daily in the afternoons.

(bloomberg.com)

India Markets: Metals, Rubber stocks in demand

By Rutam Vora, Commodity Online

Indian markets opened higher with most commodity stocks trading in positive territory this morning. The markets, however, remained swinging between gains and losses in the morning trading hours today. 

While those among commodity stocks including metal, sugar, cement and rubber stocks traded with positive mark on Monday, July 05, 2010, oil & gas stocks remained weak with Reliance Natural Resources Ltd (RNRL) (BOM:532709) falling by 26.24% due to unfavourable swap ratio for its merger with group company Reliance Power Ltd (BOM:532939), which gained by close to 3% on the Bombay Stock Exchange (BSE) today. 

RBI move drive market sentiments

India’s central bank, Reserve Bank of India (RBI) on Friday, hiked the repo rate by 25 basis points to 5.5% from 5.25% and reverse repo rate, at which it absorbs excess cash from the banking system, by an equal 25 basis points to 4% from 3.75%, with immediate effect. 

The step is believed to address shooting up inflation and anchor inflationary expectations going forward. The central bank had said that the latest rate hike is a part of the calibrated exit from the expansionary monetary policy. This mid-cycle policy action has been warranted by the evolving macroeconomic situation, it said. 

However, the central bank move is believed be justified in terms of long-term fiscal and energy conservation objectives, the recent increase in fuel prices will have an immediate impact of around one percentage point on inflation based on wholesale price index (WPI), with second round effects also being felt in the months ahead, the Reserve Bank of India said. 

Significantly, two-thirds of WPI inflation in May 2010 was contributed by non-food items, suggesting that inflation is now very much generalized and that demand-side pressures are evident, the RBI said. 

Meanwhile, the benchmark index, Sensex traded at 17469.48 points up by marginal gains of 0.05% in the early trading hours on BSE today. 

European markets may trigger buying sentiments 

The road ahead for the markets seems positive for the remaining trading hours on Monday. According to analysts, markets look in a range-bound position mainly on the back of mixed cues from global markets. However any trigger from European markets may improve sentiments on Indian bourses and may give some room for trading opportunity. 

Metal stocks set firm 

The sectoral index, BSE Metals was marginally up with gains of 0.32% from its Friday’s close. Metal stocks including copper majors, Sterlite Industries (India) Ltd (BOM:500900) and Hindustan Copper Ltd (BOM:513599) inched ahead with gains of 0.75% and 0.21% respectively on Monday. 

Copper futures on LME were trading higher Monday on short covering and increased buying after last week's decline. 

Copper products maker, Nissan Copper Ltd (BOM:532789) zoomed up extending gains of last week at Rs.62.70 up by 6.45% from its previous close. Other metals gainers included Jai Corp Ltd (BOM:512237) and iron ore miner, Sesa Goa Ltd (BOM:500295). 

Sugar stocks maintain sweetness 

Most of the sugar stocks maintained uptrend on the Bombay Stock Exchange (BSE) during early trades on Monday. While Shree Renuka Sugars Ltd (BOM:532670), Dhampur Sugar Mills Ltd (BOM:500119) and Oudh Sugar Mills Ltd (BOM:507260) posted gains of around 0.5% each, EID Parry (India) Ltd (BOM:500125) and Bannari Amman Sugars Ltd (BOM:500041) posted handsome gains of over 1.5% each on the BSE today. 

Sugar futures on ICE ended higher Friday amid expectation that demand would rise in coming months. Back home in India, rains lashing across the country, seemed to have improved crop scenario for sugar cane. 

Rubber stocks positive 

At most places in Kerala received heavy rains on Sunday raising hopes for better plantation this year. Kerala is the main land for rubber cultivation in India, which includes main plantation districts of Kerala, Idukki and Wayanad. 

Though heavy rains inundated several low lying areas there has been no major threat to crop so far, growers said. Tapping of rubber is yet to pick up because of rains in growing areas. 

Tyre and other rubber products makers, JK Tyre & Industries Ltd (BOM:530007) and Goodyear India Ltd (BOM:500168) gained over 1% each on BSE, while Govind Rubber Ltd (BOM:509148) zoomed up by close to 6% on Monday. 

Oil & Gas stocks stay dizzy 

Oil stocks on the Bombay Stock Exchange (BSE) today saw selling pressure. The oil and gas index declined 0.44 per cent in the morning trades today. Crude oil futures on NYMEX were trading higher Monday on short covering after prices dropped sharply last week. 

Pit trading on the floor of NYMEX will not take place today because of U.S. Independence Day holiday. 

Anil Dhirubhai Ambani Group's (ADAG's) gas transportation company, Reliance Natural Resources (RNRL), will merge with sister firm Reliance Power (R-Power) in a Rs.50,000-crore, all-stock deal. The board of directors of the two companies, in meetings held on Sunday, approved a swap ratio of 4:1. 

While Reliance Industries Ltd (BOM:500325) maintained positive territory, other exploration majors including Oil India Ltd (BOM:533106), Oil & Natural Gas Corporation Ltd (BOM:500312) and Essar Oil Ltd (BOM:500134) remained under selling pressure on Monday morning trades. 

On the global front, most Asian stocks rose on Monday on optimism the Asian region will continue to grow even as there are mounting concerns about the pace of the global recovery. The key benchmark indices in Japan, Taiwan, South Korea and Indonesia rose by between 0.06% to 0.81%. 

US stocks fell on Friday, 2 July 2010 as disappointing jobs data joined other recent evidence pointing to a tepid economic recovery. The Dow Jones Industrial Average dropped 46.05 points, or 0.47% to 9,686.48. US markets remain closed on Monday, 5 July 2010, for Independence Day holiday.

(commodityonline.com)

Rubber Gains, Rebounding From 3-Week Low as China Replenishing Inventories

Rubber rebounded after sliding to the lowest level in three weeks as Chinese buyers began replenishing the lowest inventory level since 2003.

Futures in Tokyo advanced as much as 1.1 percent after earlier falling to the lowest since June 10. The price has slumped 6.4 percent this week, the biggest drop since the week ended May 7, on concerns over the health of the global economy.

“Bargain hunting after recent sharp falls erased losses in the market,” Katsumi Kinoshita, senior manager of the institutional department at Okata Shoji, said from Kobe. “Some investors stepped in on the hope that China would build up its low stockpiles,” he added.

The December-delivery contract rose as much as 2.8 yen to 267.5 yen per kilogram ($2,041 a metric ton) before settling at 266.6 yen on the Tokyo Commodity Exchange.

November-delivery rubber on the Shanghai Futures Exchange gained 0.2 percent to settle at 21,385 yuan ($3,157) a ton.

China’s natural rubber inventories increased 1,211 tons this week to 15,982 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said today.

Tight Supply

Tight global supply amid strong demand, especially from China, will support prices, the Association of Natural Rubber Producing Countries said in its June newsletter.

The possibility of any “marked improvement” in supply in the short term is limited, given aging rubber trees and weather constraints, the association said June 30.

Worries over a slowdown in the U.S. economy raised concern that demand for the commodity may weaken, pressuring rubber prices earlier today.

“U.S. data this week added to speculation that the economic recovery may stall,” Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone.

Reports on U.S. manufacturing, employment and home sales pointed to slower growth in the second half of the year, just as government spending to stimulate the economy begins to wane. Economists said data today will show the jobless rate in the world’s largest economy rose for the first time this year.

Cash prices in Thailand declined as investors were disappointed with U.S. economic data and worried about the global economic recovery, the Rubber Institute of Thailand said on its website today. The Thai benchmark price tumbled 2.6 percent today to 112.60 baht ($3.47) a kilogram, it said.

(bloomberg.com)

Rubber imports dipped in June due to high global prices

Natural rubber imports last month declined by more than half at 9,255 tonnes due to higher global prices, the latest Rubber Board data revealed today.

India had imported 20,258 tonnes in the same month last year. "Import of natural rubber decreased in June 2010 as the international price of sheet rubber was higher till June 8 than the domestic price," a senior rubber board official said. 

The rubber price (RSS-3 variety) at Bangkok market was hovering between Rs 169-181 per kg during June 1-8 period, while the domestic rate was in the range of Rs 166-169 per kg.

According to the data, domestic natural rubber production this year rose by five per cent to 57,000 tonnes in June as compared to 54,255 tonnes in the same month last year.

"Production increased last month on account of an increase in the tapped area (and) increased percentage of rain guarding during 2010-11, anticipating attractive price in the monsoon season," the official said.

Consumption grew marginally to 75,000 tonnes during June, 2010, compared to 74,220 tonnes in June, 2009.

For FY 2010-11, Rubber Board has projected rubber production to grow by 7.4 per cent at 8.93 lakh tonnes against 8.31 lakh tonnes in last fiscal while the domestic consumption is estimated to rise to 9.78 lakh tonnes this fiscal against 9.30 lakh tonnes in FY 2009-10.

Natural rubber import is projected to fall to 70,000 tonnes in 2010-11 from 1.7 lakh tonnes last fiscal, while exports are expected to almost double at 50,000 tonnes in the review period.

(business-standard.com)

Rise in spot rubber prices

On Thursday (01 July 2010), the spot rubber prices rose as the markets seemed to be gaining strength to narrow down the gap between the near month July series on the National Multi Commodity Exchange though the global markets were bearish. Sheet rubber increased to Rs 182.50 from Rs 179.75 per kg on fresh buying and short covering.

The July futures for RSS 4 declined to Rs 183.75 (184.58), August to Rs 174.13 (176.64), September to Rs 166.54 (169.11) and October to Rs 162.60 (164.47) per kg on the National Multi Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 182.50 (179.75); RSS-5: 178 (177); ungraded: 176 (174.50); ISNR 20: 160 (158) and latex 60 per cent: 127 (127).

(indiainfoline.com)