India's Synthetic Rubber Production Could Not Fulfill Domestic Demand

By Siwaporn Bumroongpan

India's synthetic rubber (SR) production in the April–June period amounted to 26,956 metric tons, up 9% from a year earlier, the state-run Rubber Board said. SR consumption in April – June period amounted to 99,160 tons, up 27.3% from a year earlier. Demand from tire makers pushed SR demand to 69,173 tons, up 33.4% during the same period.  Imported SR amounted to 76,948 tons in the April – June period, and SR stocks as at end June were 39,655 tons.

IRCo noted that overall SR consumption in India in the April – June period was three times higher than its production, and imported SR was still a big portion to fulfill domestic SR demand.

(irco.biz)

Japan's Vehicle Production Up 20.8% in August

By Siwaporn Bumroongpan

Vehicle production in Japan rose for the tenth consecutive month by 20.8% year on year in this August to 690,689 units, up from 571,773 units in an earlier August due to solid government buying incentives, The Japan Automobile Manufacturers Association said Thursday.

IRCo has its own view that the Japanese have benefited from the strengthening yen against the U.S. dollar and other rival currencies because they can buy vehicles at very comfortable prices in the wake of persistent deflation. That also boosts imported volume of natural rubber (NR) to Japan and NR prices in the world market.

(irco.biz)

India to host third annual conference of ANRPC

India will be hosting the the third Annual Rubber Conference, the 33rd Assembly and other committees of the Association of Natural Rubber Producing Countres (ANRPC) here for five days from today.

The Rubber conference will be held on Oct 6, which will be inaugurated by Union minister of state for Agriculture, K V Thomas. Le Quang Thung, Acting Chairman Vietnam Rubber will preside over the function, Rubber Board chairman, Sajan Peter, told reporters here.

Prof Djoko S Damardjati, Secretary General ANRPC will deliver the keynote address.

   

The theme of this year's confernce is 'Natural Rubber Industry in the New Decade Opportunties, Challenges and Strategies'. Papers would be presented by 10 member countries in three sessions, he said.

   

About 400 delegates including rubber Industry players, policy makers, researchers and analysts are among those who would be participating.

     

The first session focusing on the theme 'Outlook for Global Supply and Demand of Rubber' will be chaired by Dr Asoka Nugawela, Director, Rubber Research Institute of Sri Lanka, Prof Djoko S Damardjati, Secretary General ANRPC and Jom Jacon, Senior Economist of ANRPC will jointly present the paper titled 'Global Supply and Demand of Rubber'.

   

Another paper 'Outlook for Global Demand for Natural and Synthetic Rubber' by Dr Stephen V Evans, Secretary General International Rubber Study Group, Singapore.

   

The focus of the second session will be on 'Natural Rubber Industry in ANRPC member Countries: Present Status, Opportunties, Challanges and Strategies for the Future'.

    

Another session on 'Developments in Rubber Market and Downstream Sectors in Natural Rubber Producing Countries' will also be held besides a panel discussion of 'Supply and Demand of Rubber in the new Decade-Emerging issues and Strategies'.

    

ANRPC is an intergovernmental organisation having 11 mebers presently including China, Indonesia, Malaysia, Sri Lanak, Thailand besides India.

   

The committee's aim is to improve productivity of rubber holdings, reduce cost, increase value addtiion in downstream rubber sector among others.

(business-standard.com)

Rise in spot rubber prices

On Monday (04 October 2010), the spot rubber prices rose due to supply concerns following the widespread rains all over the plantation areas, bringing tapping almost to a halt. Sheet rubber increased to Rs. 171 from Rs. 170 per kg on fresh buying and short covering.

The October futures for RSS 4 rose to Rs. 174.70 (173.69), November to Rs. 177 (176.11), December to Rs. 179.50 (178.44) and January to Rs. 182.60 (180.89) per kg on the National Multi Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 171 (170); RSS-5: 167 (165); ungraded: 164 (162); ISNR 20: 167 (165) and latex 60 per cent: 116 (115.50).

(indiainfoline.com)

Quán Hàu – Quê hương yêu dấu

Quán Hàu – Quê hương yêu dấu

Reduce customs duty on rubber: Commerce dept

NEW DELHI: The commerce department has suggested a reduction in customs levy on natural to address the flawed import duty structure where an input is taxed at a higher rate than the final product, in this case tyres. 

Tyre manufacturers have been demanding a reduction in rubber import duties from the existing 20% as the import duty on tyres is much lower at 10%, creating an inverted duty structure that disincentivises local manufacturing. “We have submitted our taxation proposal to the revenue department (finance ministry). Now, the department has to take a call,” a commerce department official said. 

The proposed reduction in duty, if implemented, will bring down the production cost for a number of industries which use rubber as input, especially tyres. 

However, a decision is not going to be easy as rubber producers want duties to stay as they argue that imports at a lower rate will increase imports, forcing domestic prices lower and cause losses to farmers and traders. 

The commerce department says it is aware of the farmers’ concerns. “Our proposal strikes a middle ground,” the official said, indicating that import duties would come down, but not to the extent (7.5%) demanded by various associations including the Automotive Tyre Manufacturer’s association (ATMA) and Indian Cycle and Rickshaw Tyres Manufacturing Association. 

Prices of natural rubber are currently around Rs 170 a kg, as compared to below Rs 80-90 a kg last year. As per estimates made by ATMA, domestic rubber is likely to fall short of consumption requirements for 2010-11 by approximately 1,76,000 MT, leaving ample scope for imports. The rubber industry in the country manufactures around 35,000 different products and has an estimated turnover of Rs 45,000 crore. It employs more than five million people.

(economictimes.indiatimes.com)

India''s synthetic rubber demand outstrips production

New Delhi, Sep 30 (PTI) In sync with the trend in the previous years, India''s synthetic rubber demand has far outstripped production during the first quarter of the current fiscal owing to increased consumption from tyre makers.

During the April-June period of the current fiscal, while domestic production of synthetic rubber increased 8.9 per cent to 26,956 tonnes over the same quarter last fiscal, consumption grew 26.75 per cent to 99,160 tonnes, the Rubber Board data revealed.

"The increased consumption is because of the buoyancy in the country''s automobile markets. Of the total consumption in the April-June period of the current fiscal, 69,173 tonnes were consumed by the tyre makers," a Board official said.

Synthetic rubber serves as a substitute for natural rubber and is also increasingly being used in printing textiles. This rubber is made using raw materials mostly from the petroleum industry.

Mukesh Ambani-owned Reliance Industries is the leading producer of synthetic rubber in the country. Synthetics and Chemicals Ltd is also one of the major producers.

India had consumed 77,290 tonnes and produced 24,775 tonnes of synthetic rubber in the first quarter of 2009-10.

The demand-supply gap is bridged through imports, which have jumped by over 35 per cent to 76,948 tonnes during the April-June period over 56,625 tonnes in the corresponding period in 2009-10.

During the month of June, synthetic rubber output grew by nearly 5.5 per cent in the country to 9,254 tonnes from 8,776 tonnes in the same month last year. Consumption increased by 26.75 per cent to 33,235 tonnes in June this year.

India had produced 106,743 tonnes and consumed 347,710 tonnes of synthetic rubber in 2009-10 fiscal.

(news.in.msn.com)