Posts Tagged ‘oil marketing companies’

NATURAL RUBBER

Natural rubber and the different types of synthetic rubbers are used in many different end-products. The most important is the tyre sector taking about half the total consumption. Currently, the only commercially important source of natural rubber is latex cultivated from the Heve a brasiliensis tree.


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Global production and consumption

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Thailand is the largest natural-rubber producer and exporter in the world followed by Indonesia and Malaysia, which together produced almost 70 percent of the natural rubber in the world. Other important producing nations are India, Vietnam and China.

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According to International Rubber Study Group global natural-rubber production is forecast to rise by 6.1% to 10.25 million tonnes in 2010 and by a further 7.3% to 11.0 million tonnes in 2011. But currently the world is headed for a shortfall in production due to rains and floods in the rubber-growing region of Thailand and Indonesia.

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Global rubber consumption reached 23.1 million tonnes in the twelve months to June 2010, 11.2% higher than at the same point in 2009, reflecting a recovery in the demand for vehicles and tyres. Global natural-rubber supply fell back in the second quarter of 2010, with production growth slowing from 4.9% to 3.5%. Global natural rubber demand is expected to be around 114,000 tonnes higher in 2010, at 10.3 million tonnes, compared to the previous forecast. According to Goldman Sachs Group Inc. consumption will outpace supply by 127,000 tonne, the most since 2007.

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China is the biggest importer of natural rubber followed by USA and Japan. General Administration of Customs reported that China’s natural rubber imports in August rose 4.9% from a year earlier to 158,589 metric tons.

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Production and consumption in India

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India is the fourth largest natural-rubber producer and second largest consumer. According to Rubber Board estimates, India is likely to produce 8.93 lakh tonnes of rubber in the current fiscal. During the April—August period of the current fiscal, the production of rubber increased to 2.97 lakh tonnes from 2.74 lakh tonnes in the same period last year. Rubber cultivation in India has been traditionally confined to
hinterlands of southwest coast. Kerala and Tamil Nadu together constitute the traditional rubber growing regions in the country. Kerala alone contributes 91% of the total rubber produced in India . Tyre makers constitute about 60-70% of the total rubber consumption in India.

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Correlation of Rubber and Crude Oil Prices

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There is a 91% correlation between rubber and oil prices from April 1998 to the recent period. Petroleum is used to produce the bulk of the synthetic rubber. Rubber prices have surged from around `2000 per quintal in April 1998 to `14,000 per quintal in October 2009, while crude prices have shot up from around USD 20 per barrel to USD 80 per barrel by October 2009. This shows astounding relativity between the global
economic indicator and rubber prices.

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Current scenario

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The global economic recovery and growth in China are powering demand for rubber products. World auto sales, propelled by Chinese demand, will increase 8 percent this year. In domestic market, since January 2010, tyre makers have already raised prices by 10-14 percent in four stages. A hike in March was due to the increase in excise duties, while the others were due to the rise in natural rubber costs.

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According to Rubber Board, the monthly average natural rubber (RSS-4) prices have gone up 75 percent year-on-year in August to `17952/quintal. Around the same time in 2009, the costs were at `10250 /quintal. From `13772 /quintal. in January 2010, rubber prices reached a high of `18900/quintal in July 2010.

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Rubber Imports Seen Rising to Record Levels This Fiscal

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Rubber Imports Seen Rising to Record Levels This Fiscal

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Rubber imports seen rising to record levels this fiscal :

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Having crossed 1.42 lakh tonnes during January, rubber imports are poised to surpass all-time records this year.

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Imports during the first nine months of the current fiscal have surged 118 per cent.

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Industry estimates put the year-end import at 1,80,000 tonnes, more than double the 77,616 tonnes imported in 2008-09.

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Import during 2007-08 was 86,394 tonnes and in 2006-07 it was 89,799 tonnes.

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Increasing demand from the consuming industry and production slippages are spurring imports.

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With the country slipping out of recession, rubber demand and consumption have picked up from last February onwards, sources in the Rubber Board said.

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In Other major Commodities Updates we can read about centre govt move to boost ethanol price.

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🙂

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Centre tries to boost ethanol price, violates contracts with OMCs:

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The move could boost prices for your evening tipple and all other sectors using alcohol as an input/raw material.

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And that, after violating earlier ethanol supply contracts struck between Oil Marketing Companies (OMCs) and sugar mills, besides circumventing the stipulations fo the National Biofuel Policy, all ostensibly to advantage sugar companies.

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The new ethanol requirement will take effect from Feb. 1 and last 90 days.

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In direct contrast, the food ministry here has pro-actively revived the ethanol doping programme (EDP) for fuel even while facilitating a higher price level for the new contracts in a year of low cane output and high priced sugar imports.

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🙂

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Agri industry incurring Rs 76,500 cr annual loss

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Agri industry incurring Rs 76,500 cr annual loss

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Agri industry incurring Rs 76,500 cr annual loss:

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Faced with an annual loss of Rs 76,500 crore, the Indian agriculture industry needs to gear up infrastructure facilities as also the allied food processing industry on a war footing.

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A top official of National Dairy Research Institute Deemed University, Karnal has said so, on Monday.

Out of the loss of Rs 76,500 crore, equivalent to the annual budget of three big states,

Rs 52,400 crore accounts for perishable fruits, vegetables and poultry products.

The huge loss, despite annual agriculture production of 149 million tons, was mainly due to

an inefficient supply chain, very low food processing and huge post harvest loss, he said.

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In Other major Commodities Updates, we can read that Oil firms have agreed to pay Rs 27 a litre, or 25% higher from existing level, for buying ethanol from sugar mills for doping petrol.

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Oil firms agree to pay 25% more for ethanol:

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After years of wrangling between oil marketing companies and sugar millers over the price at which ethanol should be sold

for fulfilling the government’s commitment of 5% blending with petrol, a consensus on the price seems to have been arrived between both the parties.

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State-owned oil companies are believed to have agreed to pay Rs 27 a litre, or 25% higher from existing level, for buying ethanol from sugar mills for doping petrol.

Indian Oil, Hindustan Petroleum and Bharat Petroleum have agreed to raise ethanol procurement price from Rs 21.50 a litre to Rs 27 per litre.

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The companies will not float any new tender but will buy any ethanol offered at these rates.

Currently, oil marketing companies (OMCs)—

Indian Oil, Hindustan Petroleum and Bharat petroleum—pay Rs 21.50 to buy a litre of ethanol while the sugar millers were seeking a price up to Rs 31 a litre.

The state-run oil firms had previously expressed willingness to pay Rs 26 a litre, a rate which was not acceptable to millers.

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Sources said a compromise was reached at Rs 27 a litre.

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🙂

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