Tire, O-ring, auto parts production rises in China

BEIJING (May 24, 2011)—Production of radial tires in China in the first three months of 2011 increased by 8.7 percent, O-ring output jumped 35 percent and automotive antivibration products manufacturing rose more than 45 percent, according to the China Rubber Industries Association.

Overall, tire exports increased slightly in the first quarter, rising to 40.9 percent of total tire production, the CRIA said. Total tire output rose by 5 percent, but this includes the impact of a 14- percent reduction in output of bias-ply tires.

The CRIA said profitability in China’s rubber industry continues to decline because of the increased prices of raw materials.

Source: http://www.rubbernews.com/subscriber/email.html?id=1306262597

Tokyo Futures Rise On Firmness In Other Commodities

Key Tokyo rubber futures rose on Wednesday (May 25), tracking other commodities higher, while market participants kept a close eye on Shanghai futures to gauge demand from China, the world's top consumer of rubber.
FUNDAMENTALS
The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery rose 6.6 yen or 1.8 percent to 382.5 yen per kg as of 0019 GMT.
The May contract will expire later on Wednesday (May 25), and the benchmark will switch to November delivery from Thursday (May 26).
Some dealers have said they expect futures to rise after the price finished above resistance at 370 yen on Tuesday (May 24).
The most active contract on the Shanghai rubber market for September delivery rose 785 yuan to settle at 31,615 yuan ($4,860.174) per tonne on Tuesday (May 24).
Oil prices were lower in early Asia on Wednesday (May 25) after rising 2 percent the day before in choppy trading when Goldman Sachs raised its price forecasts for Brent crude, saying demand from economic growth will eat into stockpiles and OPEC spare capacity.
The euro rose against the dollar in early Asia on Wednesday (May 25) following a slight relief rally across most markets after Monday's (May 23) widespread sell-off. Investors are encouraged by Spain's successful short-term debt offering and better-than-expected data from Germany and the United States.
MARKET NEWS
Japan's exports fell 12.5 percent in April from a year earlier, pushing the country into its first trade deficit in three months, Ministry of Finance data showed on Wednesday (May 25), after the earthquake in March disrupted supply chains and hurt output.
The volume of Japan's customs-cleared crude oil imports fell 14.0 percent in April from the same month a year earlier, the Ministry of Finance said on Wednesday (May 25).
Federal Reserve officials on Tuesday (May 24) expressed confidence in the U.S. economic recovery despite high gas prices and European financial jitters, and one suggested the U.S. central bank could reverse its ultra-loose monetary policy this year.
JK Tyre and Industries is looking to acquire a rubber plantation to offset rising input costs that are eroding the tyre maker's profits, a top official said on Tuesday (May 24).
Japan's benchmark Nikkei stock average opened up 0.16 percent.
U.S. stocks dipped in light volume on Tuesday (May 24) as lingering concerns about a slowdown in growth more than offset gains in energy shares.
(Reuters, May 25, 2011)

Indonesia: Govt told to better fund rubber producers

The government needs to better fund small plantations and improve planting policies to boost Indonesia’s rubber production, according to an international industry group.
Lekshmi Nairm a senior economist with the International Rubber Study Group, said on Monday that Indonesia’s rubber output per hectare was still far lower than other rubber producers in Southeast Asia, such as Malaysia and Thailand.
“If some level of capital assistance for small holdings is given through different government policies, as has already implemented in the cases of Thailand and Malaysia, then surely [local producers] can increase productivity and Indonesia can be a leading producer,” she said on the sidelines of the Asian Commodities and Derivatives Conference 2011 in Jakarta.
Lekshmi said that Indonesia also needed to improve implementation of its plantation revitalization scheme.
According to recent information from the Indonesian Rubber Association (Gapkindo), Indonesian plantations produce an average of 880 kilograms of rubber per hectare every year, or about half of output of plantations in Thailand or India, which can produce more than 1,500 kilograms.
Gapkindo executive director Suharto Honggokusumo said the government’s revitalization program had failed to help small plantations to raise output since the scheme’s implementation in 2007.
Small scale rubber plantations comprise 86 percent of Indonesia’s rubber plantations, while 14 percent are controlled by private and state-owned firms.
“Many farmers could not access the funds because most of them did not have the required land certificates as collateral,” he said.
The government revitalization program covered Indonesia’s three main commodities — oil palm, rubber and cacao.
Under the program, the government allocated Rp 4.4 trillion (US$514.8 billion) between 2007 and 2010 for interest-subsidized investment loans to be issued by seven state-owned banks, including Bank Mandiri and Bank Rakyat Indonesia.
The scheme was aimed at, among other things, opening 1.5 million hectares of new plantations, including 1.3 million hectares of oil palm plantations, 50,000 hectares of rubber plantations and 110,00 hectares of cacao plantations.
However, only 6,000 hectares of new rubber plantations have been opened under the program.
Suharto said the low productivity of Indonesian plantations could be partly attributed to the use of low-yield, poor quality clones and improper tapping and planting techniques.
“The problem lies in the poor education of our farmers and their poor purchasing power,” he said, adding that around 40 percent of rubber farmers still used poor quality clones.
Indonesia is currently the world’s second largest producer of natural rubber after Thailand. The nation’s rubber plantations, located principally in Sumatra, Java and Kalimantan, are slated to produce 3.08 million tons of rubber this year, up 8 percent from 2.85 million tons last year. World rubber production for 2011 has been estimated to top 10 million tons.

Source: http://www.thejakartapost.com/news/2011/05/25/govt-told-better-fund-rubber-producers.html

NR prices rebound

Tokyo -- Prices on Tokyo’s rubber exchanges rose once more overnight.

On Tokyo's Tocom Exchange, prices for the six-month contract increased by about yen 13 , closing at yen 380($4.64) per kg on Tuesday 24 May. Shorter-dated prices also moved up, closing at 412.3.

In Singapore, SGX said short-dated RSS3 were trading up by 6 cents at around $5.08 with longer-dated contracts up further at around $4.90. Short-dated TSR 20 was trading up at $4.48.

In India, the NMCE saw June deliveries trading at around Rs217 ($4.80) per kilo

In China, the Shanghai Futures Exchange also saw prices rise by around one yuan, with June deliveries trading at around Yuan 34.14 ($5.25) per kilo

Source: http://www.european-rubber-journal.com/fullitem.aspx?id=115636

Tokyo futures rise 2 percent

BANGKOK: Tokyo rubber futures ended 2 percent higher on Tuesday, supported by a recovery in oil prices and firmness in other commodities, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery rose 8.0 yen, or 2.1 percent, to settle at 375.9 yen ($4.587) per kg.

Some dealers said they expected TOCOM to rise further on Wednesday after the price finished above resistance at 370 yen.

The most active contract on the Shanghairubber market for September delivery rose 785 yuan to settle at 31,615 yuan ($4,860.174) per tonne.

Despite that small rise, rubber traders said the market was still concerned that global demand could be falling.

"Rubber sentiment improved, tracking a recovery in oil and rising gold, but the rises were still limited," said a Tokyo-based trader.

Brent crude futures rose to $110.77 a barrel on Tuesday, rebounding from the previous day's sharp fall as the prospect of strong oil demand trimming inventories overrode concerns about Europe's debt crisis.

Source: http://www.brecorder.com/top-news/111-markets-top-news/15153-tokyo-futures-rise-2-percent.html

Asian Physical Rubber Prices on May 24

Asian physical rubber prices were steady at relatively high levels on Tuesday (May 24), supported by firm prices on the Tokyo and Shanghai futures exchanges and limited supply in producing countries, dealers said.
PRICES OF PHYSICAL RUBBER COMPARED TO MAY 23

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, May 24, 2011)

Tokyo Futures Inch Up, But Uncertain Demand Limits Gains

Key Tokyo rubber futures inched higher early on Tuesday (May 24) after heavy selling the previous day, but weaker oil prices and further signs of a slowdown in China, the world's top rubber consumer, limited gains.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for October delivery was up 0.6 yen, or 0.2 percent, at 368.5 yen as of 0030GMT.
The most active Shanghai rubber contract for September delivery fell 655 yuan on Monday (May 23) to settle at 30,830 yuan ($4,748.128) per tonne.
The dollar was flat against the Japanese currency, but spiked to a two-month high against the euro as economic worries in Greece, Spain and Italy fanned renewed risk aversion.
U.S. crude oil fell by $1.05 to $96.65 per barrel in early Asian trade on Tuesday (May 24) on a stronger dollar due to renewed concerns over euro zone debt.
MARKET NEWS
South Korea's Hyundai Motor has stopped production of diesel engines at its Ulsan plant due to a protracted strike from component supplier Yoosung Enterprise, Yonhap news reported on Tuesday (May 24).
Toyota Motor Corp and cloud computing company Salesforce.com Inc will build a social network service that will enable owners to become "friends" with their cars and get tweet-like reminders for maintenance checks and other notices.
U.S. drivers enjoyed the biggest one-week drop in gasoline prices since December 2008, as cheaper crude oil cut costs at the pump, the Energy Department said on Monday.
Japan's Nikkei share average opened down 0.58 percent at 9,406.04 on Tuesday (May 24) after U.S. shares closed at their lowest level in a month on worries over recent weakness in global manufacturing.
(Reuters, May 24, 2011)