Posts Tagged ‘Rubber Board’

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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Physical Rubber Shows Mixed Trend on Friday

Physical rubber showed a mixed trend on Friday, the market was a bit apprehensive with the import news and took cautious approach. Meanwhile, the Rubber Board has reported that the natural rubber production in the country was picking up and the production during April-July 2010 was 223250 tonnes compared with 209575 tonnes in the previous year.

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Spot price for RSS-4 variety remained unchanged at Rs 189 while RSS-5 closed at Rs 179.50 compared to its previous closing of Rs 180.

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In the futures market for August delivery for RSS 4 improved to Rs 190.50 compared to its previous closing of Rs 189.99 while the September delivery closed at Rs 176.95 compared to its previous closing of Rs 175.56 on the National Multi Commodity Exchange.

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Whereas Copper prices decline for the second straight day on Friday

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Copper prices pared their early gains to close lower for the second-straight day on Friday, on getting disappointing employment data from the United States, the investors got concerned about a slowing economic recovery. Though, some pullback was seen with decline in energy markets putting the near-term demand prospects for the red metal bright.

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Copper for September delivery closed lower by 1.05 cents to finish at $3.3430 per lb, after trading in a range of $3.3250 and $3.38 on the Comex metals division of the New York Mercantile Exchange. On the London Metal Exchange, benchmark copper shed $30 to close at $7,370 a tonne.

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Food Inflation at 17.5%, Households Pay Price

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

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Food inflation at 17.5%, households pay price

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Food inflation at 17.5%, households pay price:

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The government on Thursday said that the average wholesale price of food items had increased by a whopping 17.5% in the past one year.

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The figure was 15.6% a week ago.

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RBI to shift to a tighter money policy,which in turn would lead to a rise in interest rates.

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The Centre has blamed this year’s poor monsoon for high food prices.

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It also put the onus on state governments to control prices through better management of food supply through ration shops.

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In Other major Commodities Updates, we bring you the news of Govt opting for transgenic tech to boost pulses production and Natural rubber prices going double in a year.

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Govt looks to transgenic tech to boost pulses production:

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The Union government is drawing up a comprehensive programme to introduce transgenic technology to improve the productivity of pulses.

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Bt refers to a gene sourced from a soil bacterium that is transferred to plants and acts as an insecticide.

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The Bt gene activates a toxin that kills a class of pests largely responsible for damaging plants and, thus, denting yields.

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They are genetically low yielding and less responsive to inputs compared with other cereals and oil seeds.

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Not only are they more prone to pests and diseases, hybrids and genetically modified varieties are not available to enhance productivity.

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The agriculture department has said it plans to increase pulse production by 2 mt and acreage by 4 million ha by 2012.

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Natural rubber prices double in a year:

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The natural rubber (NR) prices have almost doubled in a year.

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The benchmark grade RSS-4 variety was quoted at Rs 128 a kg on Thursday compared with Rs 65 a kg on same day last year.

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The rubber market is now poised to break all records despite good production this season.

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The local market follows its global peers resulting in a sharp increase in the prices in the futures trading.

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According to Rubber Board estimates, production in November increased to 103,000 tonnes compared with 95,550 tonnes in the same month last year.

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Production is expected to be at its peak in this month due to the winter season and supply is expected to improve further.

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The board estimates also revealed that the total stock in the country increased to 247,000 tonnes.

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This is due to the sharp increase in imports and a drop in exports during April-November.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

After 20 Years, India to Import Rice

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

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After 20 Years, India to Import Rice

After 20 years, India to import rice:

India, a traditional rice exporter, will import the grain for the first time in 20 years to meet a projected shortfall of the crop hit by drought and floods, government said yesterday.

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The government estimates that there would be a shortfall of over 15 million tonnes in the 2009-10 Kharif (summer) season due to drought and floods in several states.

Thailand’s Foreign Trade department announced that the world’s biggest rice exporter is expected to release part of its huge stock of almost six million tonnes of rice stockpile to India, besides eight other countries, through g-to-g sales programmes.

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In Other major Commodities Updates we can see that the demand-supply gap for natural rubber in the country is set widen.

Demand-supply gap for rubber stretches:

The demand-supply gap for natural rubber in the country is set widen as production is expected to fall and demand set to rise above earlier stimates.

Rubber production for April-October period was 9.4 per cent lower at 4,35,125 tonnes against 4,80,230 tonnes last year.

Consumption grewn three per cent to 5,36,100 tonnes (5,20,375 tonnes).

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The production-consumption mismatch resulted in a sharp rise in imports and a corresponding fall in exports.

Imports increased 133 per cent to 1,26,472 tonnes (54,283 tonnes), while exports plunged 92 per cent to 3,859 tonnes (34,000 tonnes), sources in the Rubber Board said.

The Rubber Board has scaled down the production target for the current fiscal by 2.8 per cent to 8.40 lakh tonnes from the earlier estimates of 8.67 lakh tonnes announced in April.

The forward estimates of production has moved up 6.8 per cent to 9.31 lakh tonnes from the earlier estimate of 8.81 lakh tonnes.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here