Rises In Rubber Prices Backed By A Rally In Oil Prices

During 28 Jan. and 1 Feb., rubber futures and physical markets settled mixed. The benchmark contract for July delivery on the bellwether TOCOM fell to 467.60 yen/kg on 1 Feb. from 469.10 yen/kg on 28 Jan. due mainly to the strengthening Japanese yen against the U.S. dollar and some profit-taking ahead of the week-long Lunar New Year holidays in China starting 2 February. However, crude oil futures rebounded during the period caused by concerns about the political protest in Cairo and currently strong market fundamentals could capped the fall.

On the Shanghai futures exchange, the most active rubber contract for May delivery rose from 40,460 yuan/ton on 28 Jan. to 41,390 yuan/ton on 1 Feb. in anticipation and expectation of further rises in commodity prices including crude oil futures, rubber  futures, and physical markets after the Chinese Lunar New Year holidays as a dry wintering season has started in major rubber producing countries and investors expect no further monetary tightening measures by China’s central bank in the coming weeks.

DESCRIPTION		28 JAN		31 JAN		1 Feb		CHANGE **		% CHANGE		UNIT
IRCo's DCP		550.76		550.40		553.21		2.45		0.44%		US cents/kg
TOCOM/RSS3 *
- Feb. 11		479.30		478.70		478.40		-0.90		-0.19%		Yen/kg
- Jul. 11		469.10		466.00		467.60		-1.50		-0.32%		Yen/kg
SHFE/RSS3 ***		40,460		41,255		41,390		930		2.30%		Yuan/ton
AFET/RSS3
- Feb. 11		175.50		176.75		176.75		1.25		0.71%		THB/kg
- Aug. 11		175.00		174.80		175.50		0.50		0.29%		THB/kg
RRIT ****
- RSS3		176.80		178.05		178.05		1.25		0.71%		THB/kg
- STR20		169.80		170.30		170.30		0.50		0.29%		THB/kg
SIR20 *****		551.00		544.00		545.00		-6.00		-1.09%		US cents/kg
SMR20 *****		551.00		547.00		543.00		-8.00		-1.45%		US cents/kg

Source: IRCo

Note: * Day sessions

** Change between 28 Jan. and 1 Feb. 2011

*** The highest daily trading volume was in May 2011

***** RRIT means Rubber Research Institute of Thailand

****** Offer, f.o.b., Asian physical rubber prices for Feb./Mar. delivery, Dow Jones

There is a high possibility that the political protest in Egypt will continue until the White House can talk to Egyptian President Hosni Mubarak to step down safely. If not, we are likely to see further rises in crude oil futures beyond US$100 a barrel and on rubber futures and physical markets in the coming days.

(Source: http://www.irco.biz/BlogMoreDetial.php?id=2723&ShowContent=news)

Spot rubber rebounds on short covering

KOTTAYAM, FEB. 2:

Spot rubber bounced back on Tuesday. Prices gained further catalysed by the sharp come back on the National Multi Commodity Exchange. Prices are likely to edge higher this week as bargain hunting driven by lower supplies and strong world markets are seen supporting, dealers said. The wide difference between local and international prices is tempting farmers to hold their produce. Certain tyre manufactures bought actively.

According to market circles, sheet rubber improved to Rs 228 (222.50) a kg on fresh buying and short covering. The grade increased to Rs 226.50 (223.50) a kg both at Kottayam and Kochi, as reported by the Rubber Board.

FUTURES GAIN

In futures, the February series flared up to Rs 232.00 (224.86), March to Rs 236.90 (228.88), April to Rs 246.65 (238.56) and May to Rs 253.00 (245.69) a kg for RSS 4 on the NMCE.

RSS 3 firmed up at its February futures to ¥480.5 (Rs 269.18) from ¥478.4 a kg on the Tokyo Commodity Exchange. The grade (spot) finished higher at Rs 265.21 (262.64) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 228 (222.50); RSS-5: 219 (216); ungraded: 214 (210.50); ISNR 20: 222 (220) and latex 60 per cent: 150 (149).

(Source: http://www.thehindubusinessline.com/markets/commodities/article1150552.ece)

Training in rubber products

KOTTAYAM, FEB 2:

The Rubber Board is to organise a five-day training in the manufacture of latex-based rubber products at the Rubber Training Institute at Kottayam from February 7-11. The course content includes production of rubber band, gloves, rubber thread and balloons. The training fee is Rs 1,200.SC/ST candidates will be given 50 per cent concession in course fee. The payment may be made by money order or demand draft in favour of the Director (Training), Rubber Board, payable at Kottayam.

The application on white paper along with fee may be forwarded to the Director (Training), Rubber Training Institute, Rubber Board PO, Kottayam -9, Kerala. Details can be had from phone: 0481- 2351313.

(Source: http://www.thehindubusinessline.com/markets/commodities/article1150161.ece)

Tokyo Rubber Futures Rise

Key Tokyo rubber futures edged up on Tuesday (February 1) but the firming of the yen and a dip in oil prices later in the session capped gains, while trading activity also slowed ahead of China's week-long New Year holidays. The benchmark rubber contract on the Tokyo Commodity Exchange for July delivery settled up 1.6 yen or 0.3 percent at 467.6 yen ($5.71) per kg on Tuesday, after rising as much as 1.2 percent to 471.5 yen.
The benchmark TOCOM futures hit a record high of 484.9 yen last week. The spot TOCOM contract for February delivery settled higher at 478.4 yen compared with the distant contract for July delivery, reflecting concerns about supplies in the near term, traders said. On the Shanghai futures exchange, the most active rubber contract for May delivery closed at 41,710 yuan per tonne.
(Business Recorder, February 2, 2011)

Asian Physical Rubber Prices - Feb 2

Asian physical rubber prices were steady to higher on Wednesday (February 2), supported by rising futures prices on the Tokyo Commodity Exchange and thin supply, dealers said.
PRICES OF PHYSICAL RUBBER COMPARED TO FEB 1

NOTE - The prices quoted above are offer prices collected from traders in Thailand, Indonesia and Malaysia. They are not official prices quoted by state-run rubber agencies in those countries.
(Reuters, February 2, 2011)

Goodyear Introduces 11 Commercial Products

Three brands. Eleven new products. Goodyear Tire & Rubber Co. gave its commercial dealers something to cheer about at its 2011 Dealer Conference in Grapevine, Texas, on Jan. 28.
When the company announced it was introducing wide-base tires and retreads for long-haul use, a number of dealers in attendance clapped.
"In the past, Goodyear was cautious about getting into the wide-base segment," said Donn Kramer, director of marketing for commercial tires. "The primary issue with the category has always been what happens if a tire goes down?"
Goodyear's solution: wide-base tires with DuraSeal, a built-in tire sealant.
Here are the 11 new products, starting with the wide-base tires.
1. G392 SSD (for Super Single Drive). It features both DuraSeal and Fuel Max technologies.
2. G394 trailer tire. It is the companion tire to the G392 SSD, with the same technologies.
3. & 4. G392 and G394 Fuel Max Super Single UniCircle and precure retreads.
5. G572 LHD Fuel Max. It features a deep (30/32-inch) tread depth and is SmartWay-certified. Goodyear claims it is the first tire with a built-in RFID chip that will survive the retread process. It is being tested in size 11R22.5 before it is rolled out.
6. G278 MSD. The Super Single tire, the successor to the G178, is designed for severe service conditions. It also has a 30/32-inch tread depth. It is available in three sizes: 385/65R22.5, 425/65R22.5 and 445/65R22.5.
7. G278 MSD precure retread.
8. G289 WHA UniCircle retread. (The G289 is a waste haul tire.)
9. Dunlop SP464. The mileage drive tire is based off the Goodyear G362.
10. Kelly KTD. The regional drive tire features rugged traction blocks designed to provide long wear in scrub applications. It is available in two low profile sizes: 225/70R19.5 and 245/70R19.5.
11. G619 Unicircle retread. It features a "long-wearing center zone" for mileage and a "high scrub zone" on the shoulders for cut and scuff resistance.
The new products are part of Goodyear's goal to work with its commercial dealers to address the needs of fleet customers, according to Joe Copeland, vice president of commercial tire systems.
(Modern Tire Dealer, January 28, 2011)

Rubber drops as Egypt unrest reduces appeal

Rubber dropped as a strengthening Japanese currency and unrest in Egypt reduced the appeal of the commodity used to make tyres. Futures in Shanghai reached an all-time high.

The July-delivery contract declined as much as 0.8% to 465.4 yen a kg ($5,673 a tonne) before settling at 466 yen on the Tokyo Commodity Exchange. The most-active contract earlier rose 1.4% and surged 12% this month, the seventh monthly advance. The May-delivery contract in Shanghai advanced to 41,850 yuan ($6,350) a tonne.

Japan’s currency traded near a one-week high against the euro on speculation Egypt’s political turmoil will destabilise the West Asia, spurring demand for safer assets. “The global economy has entered into a stage of uncertainty,” Ker Chung Yang, an analyst with Phillip Futures Pte., said by phone from Singapore. The unrest in Egypt has spurred concern of a contagion effect, he said.

Oil surged 4.3% on January 28, the most since September 2009, after clashes between police and protesters demanding an end to Egyptian President Hosni Mubarak’s 30-year regime. The crisis stoked concern that anti-government protests may spread to other Middle Eastern nations, slowing global economic growth, said Kazuhiko Saito, an analyst at Fujitomi Co.

Egypt’s President Hosni Mubarak met with top military commanders yesterday as tens of thousands of protesters defied a curfew and gathered in central Cairo, chanting slogans against his new prime minister and vice president. The unrest in Egypt followed an uprising that led to the January 14 overthrow of Tunisian president Zine El Abidine Ben Ali.

“Some investors locked in profits ahead of Chinese New Year,” said Wanwilai Choilek, manager at the Hadyai, Thailand branch of commodity broker DS Futures. “Demand is still there but subsiding ahead of the holidays.”

The physical price of natural rubber  in Thailand gained 0.7% to 177.80 baht ($5.71) per kg on Monday, according to Rubber Research Institute of Thailand. The price reached a record of 181.55 baht on January 25.

Increasing rain in the country’s southern provinces ahead of the low-production season will limit supply, while rising car sales have boosted the demand outlook, the institute said.

Rubber demand may grow 4.6% this year, boosted by strong vehicle sales, with consumption continuing to outpace supply in coming years, according to the International Rubber Study Group. Natural-rubber consumption in China may rise to 3.6 million tonne this year and India’s consumption may gain 5.2% to 9,91,000 tonne, according to the Association of Natural Rubber Producing Countries.

China’s natural-rubber inventories dropped for a third week, down 6,985 tonne to 58,547 tonne, according to a survey.

(Source: http://www.financialexpress.com/news/rubber-drops-as-egypt-unrest-reduces-appeal/744306/0)