Rubber Futures in Tokyo Climb to Five-Month High at 314.2 Yen a Kilogram

Rubber futures in Tokyo climbed to the highest level in five months as improvement in U.S. economic data boosted investor confidence in the recovery. 

The March- delivery contract advanced 0.9 percent to 314.2 yen per kilogram before trading at 313.9 yen at 10:11 a.m.

(bloomberg.com)

Rubber Climbs to Five-Month High as China's Manufacturing Growth Quickens

Rubber advanced for a third day to a five-month high after data showed China’s manufacturing grew at a faster pace and the U.S. economy expanded, spurring investor purchases of the commodity used in tires.

The most-active contract gained as much as 1.9 percent to 317.3 yen per kilogram ($3,806 a metric ton), the highest level since April 26, before settling at 315.8 yen on the Tokyo Commodity Exchange. Rubber extended gains after jumping 16 percent last quarter, the best performance since the three months ended Dec. 31.

China’s manufacturing expanded at the fastest pace in four months in September, adding to signs that economic growth is stabilizing even as the government curbs energy use and tries to cool the property market. U.S. government data showed yesterday the nation’s economy grew at a 1.7 percent annual rate in the second quarter, faster than the 1.6 percent previously estimated.

“A pessimistic view about the global economy has waned,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. “Rubber may continue an upward trend, in tandem with other industrial materials, amid expectations for sustained growth.”

China’s purchasing managers’ index rose to 53.8 from 51.7 in August, the country’s logistics federation and statistics bureau said in an e-mail today. The median forecast of 15 economists surveyed by Bloomberg News was 52.5. Readings above 50 indicate expansion.

Auto Sales

Today’s data add to a manufacturing survey released Sept. 29 that also showed an acceleration, suggesting China’s economic momentum may counter weakness in the global recovery. The nation’s growth may be aided in coming months by government plans to speed the completion of stimulus projects and boost public housing construction.

U.S. auto sales in September may have been the fastest since March as consumers returned to showrooms, helping the industry’s recovery from the worst year in almost three decades, a survey showed.

Industrywide deliveries, to be released today, may have reached an annual rate of 11.7 million vehicles this month, the average of nine analysts’ estimates compiled by Bloomberg. That would top the 9.4 million pace last September, the month after the U.S. “cash for clunkers” program ended, and match March’s 11.7 million rate, according to Autodata Corp.

Inventories Expand

“Rubber inventories in China expanded, reflecting purchasing demand, while supply remains limited, driving rubber prices higher,” Sureerat Kunthongjun, an analyst at AGROW Enterprise Ltd., said by phone from Bangkok. Rainfall in Thailand, the largest exporter, obstructed tapping and lowered production, she said.

Natural rubber inventories monitored by the bourse expanded 4,680 tons to 31,580 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the exchange said yesterday.

The Shanghai rubber market is closed as China celebrates National Day holidays from Oct. 1 to Oct. 7.

Gains in rubber futures were limited after the dollar came under pressure against the Japanese currency, weakening the appeal of yen-based contracts. The yen traded at 83.36 per dollar at 4:55 p.m. in Tokyo from 83.53 yesterday.

(bloomberg.com)

Rubber attains 5-month peak on strong demand

TOKYO (Commodity Online): Rubber prices remained firm for the third straight day on the Tokyo Commodity Exchange (TOCOM) this morning. The buoyancy in the prices was backed by faster manufacturing growth in China, indicating improved outlook for the demand. 

The prices hit a five-month high on the bourses. The near-month contract on TOCOM jumped 1.6% to 316.3 yen per kilogram (USD 3,789 per tonne), the highest level since April 27. The plant commodity has gained 16% so far during the last quarter. 

The Chinese government released the manufacturing data showing a faster growth in September against past four months. This has come in the wake of the government’s curbs on energy use and its efforts to cool the property market, which has seen sudden upsurge in past few months. 

Further, the optimism was further strengthened with US government’s data showing improvement in the GDP growth. The country’s economy grew at a 1.7% of annual rate in the second quarter, faster than the 1.6 percent previously estimated. 

Natural rubber inventories monitored by Shanghai markets expanded by 4,680 tonnes to 31,580 tonnes based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin. 

Further, the global outlook for the car industry remains positive with increased monthly sales by the car companies for a sustained period. This will further boost the demand for natural rubber for tyre industry. As the demand outlook seems robust, the prices will further scale up on the bourses.

(commodityonline.com)

Natural rubber production up 4.3 pc in September at 77,500 tn

New Delhi, Oct 1 (PTI) Increased area under rain guarding system and favourable weather condition surged India''s natural rubber production by 4.3 per cent in September to 77,500 tonnes as compared to the same month last year.

The country had produced 74,300 tonnes of rubber in September, 2009, the Rubber Board said in a statement.

The statement, however, did not mention the details of how much acreage increased under rain guarding system, which prevents rain from interfering with the rubber collection.

During the April-September period this fiscal, the production of natural rubber (NR) -- mainly used in tyre manufacturing -- increased to 3.75 lakh tonnes from 3.48 lakh tonnes in the same period last year.

"Production of natural rubber up to September, 2010, increased by 7.6 per cent compared to the corresponding period of the previous year due to the increased percentage of rain guarding, favourable weather conditions and attractive price," it said.

Rubber consumption in September this year, however, dipped marginally to 78,765 tonnes from 78,000 tonnes a year-ago.

However, the consumption grew by 2 per cent in the first half of the current fiscal vis-a-vis the same period last fiscal.

The country consumed 4.65 lakh tonnes of rubber in the April-September period of the current fiscal as compared to 4.56 lakh tonnes in the corresponding period last fiscal.

"The growth in consumption of natural rubber increased by 2 per cent up to September 2010, out of which automotive tyre sector''s consumption increased by 4 per cent," it said.

According to the Rubber Board estimates, India is likely to produce 8.93 lakh tonnes of rubber in the current fiscal, while consumption would be around 9.78 lakh tonnes.

(news.in.msn.com)

India Natural Rubber Imports Climb 54% in September

Oct. 1 (Bloomberg) -- Natural rubber imports by India, the fourth-biggest producer, surged 54 percent in September as tire makers increased purchases, the state-owned Rubber Board said.

Incoming shipments jumped to 28,720 metric ton from 18,612 tons a year ago, the board said today. Purchases in the April- September period declined 12 percent to 107,190, it said.

India’s passenger car sales rose to a record for a second straight month in August as economic growth and new models from Nissan Motor Co. and Volkswagen AG stoked demand. Bridgestone Corp. said in March it will spend 50 billion yen on a second plant in the country, joining local rivals Apollo Tyres Ltd. and Ceat Ltd. in adding capacity.

Rubber production last month climbed 4.3 percent to 77,500 tons after farmers increased tapping to benefit from high prices, the board said. Output in the nine months ended Sept. 30 added 7.6 percent to 375,250 tons, it said.

Demand in April to September expanded 2 percent to 465,550 tons as tire makers boosted output and exports, the board said. Stockpiles at the end of last month totaled 268,065 tons, 28 percent more than a year earlier, it said.

(businessweek.com)

Liberia economy boosted by rubber output: IMF

WASHINGTON (Reuters) - Liberia's economy is set to expand more than 6 percent this year from 4.5 percent in 2009, amid a rebound in rubber production and prices, the International Monetary Fund said on Thursday.

In a statement at the end of a staff mission to the capital Monrovia this week, the IMF said foreign direct investment commitments to Liberia have increased sharply following the ratification of several iron ore and palm oil concessions.

Several legislative acts to support private sector development and tackle corruption had also been approved, the IMF said.

This month the government has passed a slew of new laws to bolster investment, including Liberia's first fully fledged commercial code, and had set up a commercial court and set out a new business law framework.

The IMF mission said discussions with the authorities had focused on medium-term economic and financing challenges, including funding for the country's development strategy and ways to accelerate growth outside mining and agricultural concessions.

Talks also included issues around funding for infrastructure and financial models of concessions, which are projected to provide the government with new revenue.

The Fund said tackling remaining impediments to private sector investment and employment opportunities were critical.

The state of the economy will feature strongly when President Ellen Johnson Sirleaf stands for reelection next year.

Johnson Sirleaf, Africa's first female president, has said she will run again to finish the task she began of rebuilding a country devastated by a war.

Steel giant ArcelorMittal, China Union and others are already investing in its iron ore sector, while Chevron Corp is among those exploring for oil and gas.

(af.reuters.com)

Spot rubber rules steady

On Thursday (30 September 2010), the spot rubber continued to rule steady as the market activities were in an extremely slow pace and most of the traders were reluctant to enlarge their commitments following the uncertainties prior to the Ayodhya verdict. Sheet rubber closed unchanged at Rs. 168.5 per kg amidst scattered transactions.

The October series moved up marginally to Rs. 172.2 (171.39), November to Rs. 173.96 (173.44), December to Rs. 176.68 (176.12), and January to Rs. 178.98 (178.67) per kg for RSS 4 on the National Multi Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 168.5 (168.5); RSS-5: 165 (165); ungraded: 162 (162); ISNR 20: 163 (163) and latex 60 per cent: 115.5 (115.5).

(indiainfoline.com)