Posts Tagged ‘rubber production’

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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More Hybrid Varieties of Tur/Red Gram Set to Hit Market

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

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More hybrid varieties of Tur/Red Gram set to hit market

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More hybrid varieties of Tur/Red Gram set to hit market

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The Hyderabad-based International Crops Research Institute for the Semi-Arid Tropics (Icrisat), a non-profit, non-political agricultural research organisation, is set to release three new hybrid varieties of pigeon pea (tur or red gram) for commercial multiplication by seed companies, a senior scientist said.

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“After the commercialization of cytoplasmic male sterility (CMS)-based pigeon pea hybrid (ICPH 2671) two years ago, we have developed three more hybrid varieties.

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The test results are promising and we will give parental lines to seed companies for multiplication later this year,” CL Laxmipathi Gowda, Global Theme Leader, Crop Improvement and Management, Icrisat, told reporters.

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In Other major Commodities Update, there are news of Cane farmers in Maharashtra set to rake in at least Rs 4k crore of additional income in the current 2009-10 season and South India planters’ income dropping to Rs 1,479 cr.

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Cane farmers to reap bonanza

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Cane farmers in Maharashtra are set to rake in at least Rs 4,000 crore of additional income in the current 2009-10 season due to better prices paid by sugar mills.

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During the previous 2008-09 season (October-September), mills in the State crushed 400.27 lakh tonnes (lt) of cane and paid an average final rate of Rs 1,513 a tonne to growers at their farm-gate.

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That translated into a total income of Rs 6,056 crore for the farmers.

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For the ongoing season, total crushing is expected at 455 lt, with the final farm-gate price of cane averaging around Rs 2,250 a tonne.

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That would result in an income of Rs 10,237 crore or Rs 4,181 crore more than what was paid out in 2008-09, said Mr Prakash Naiknavare, Managing Director, Maharashtra State Cooperative Sugar Factories Federation.

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South India planters’ income drops Rs 1,479 cr:

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Going by the production figures and prices for coffee, tea, rubber, pepper,cardamom and vanilla, the plantation owners earned a total of Rs 14,834.84 crore in 2008.

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In 2009, it dropped to Rs 13,355.51 crore.

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Plantation industry sources said the data on the lower income for the growers do not take into account the rise in production costs.

This means, the plantation sector, as a whole, could have taken a bigger hit.

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The drop in rubber production has been a big drag on the income of the planters, who had to cope with Rs 10 a kg fall in prices.

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The average price in 2009 was Rs 97.56 a kg against Rs 107.74 in 2008.

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Currently, rubber prices average over Rs 130 a kg.

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

Marginal Dip in December’s Rubber Production

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

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Marginal Dip in December's Rubber Production

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Marginal dip in Dec rubber production:-

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Midway through the peak period, rubber production dipped marginally by 2 per cent to 98,000 tonnes in December against 1.00225 lakh tonnes last year.

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However, with industrial recovery firmly under way, rubber consumption remains robust, growing 17 per cent to 79,500 tonnes.

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Preliminary indications show severe slippage in Malaysia’s rubber production and India is likely to become the world’s third-largest producer of natural rubber after Thailand and Indonesia.

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In Other major Commodities Updates we can read that domestic pepper futures market continues to remain highly volatile and Sugar prices expected to remain higher in the coming month.

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Pepper futures continue to remain volatile:-

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The domestic pepper futures market continued to remain highly volatile because of the tug of war between the bulls and the bears.

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The prices were falling without any co-relation to the fundamentals.

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Spot prices fell from Rs 15,000 a quintal to Rs 13,700 in about a month.

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The reasons attributed included arrivals of the new crop, huge outstanding position in the January delivery and easing of other origins and so on.

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Around 1,200 tonnes of pepper would have its validity expired on Feb 5 and that is expected to be tendered for delivery and thus it might also enter the market.

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Sugar prices may remain firm in coming months:-

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Sugar prices are expected to remain higher in the coming months as lower acreage and poor rains will keep India’soutput at 15.3 million tonnes,

falling severely short of domestic consumption of about 23 million tonnes in the 2009/10 season.

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

Global cotton output may rise over 8%: ICAC

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

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Global cotton output may rise over 8%: ICAC

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Global cotton output may rise over 8%: ICAC


Cotton production world-wide is likely to rise by over 8% in the 2010-11 season on higher output in the US and China following high prices, a global cotton body says.

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The global cotton production in the 2010-11 season (October-September ) is projected at 24.1 million tonnes (mt), up 8.5% from 22.2 mt estimated for the ongoing 2009-10 season.

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Above figures were put forth by the International Cotton Advisory Committee (ICAC).

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According to ICAC, cotton production in China is likely to surge by a million tonne to 7.7 million tonne, while in the US it may climb by one tenth to 3 million tonne.

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However in India, production estimates are not changed much from 2009-10 season, it said.

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ICAC had earlier said that India is estimated to harvest 5.3 mt of fibre in this season.

Currently, harvesting is in progress across the country.

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In Other major Commodities Updates we can read about the news of fertiliser ministry urging the finance ministry to release the due subsidy payments and the decline of the natural rubber production rate, last year.

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Fertiliser ministry too seeks subsidy payments:

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The fertilisers ministry has urged the finance ministry to urgently resolve the liquidity problems faced by the country’s fertiliser industry following no payment of subsidy dues by the government since October 2009.

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The demand for subsidy payments comes even as the government is trying to resolve the issue of subsidy to petroleum companies.

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Industry estimates are that subsidy /concession for the October-March 2010 period will be around Rs 30,000 crore plus, bringing up the total subsidy for the fiscal to well over Rs 70,000 crore.

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The centre has allocated only Rs 49,980.25 crore towards fertiliser subsidy for 2009-10 (BE), including carryovers from 2008-09.

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The industry has argued that non-import of urgently needed raw materials and inputs may be jeopardized if the matter of the subsidies is not tackled on priority.

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Making matters worse, according to procedure, the industry cannot expect any further payment until the third supplementary to the Budget due only in end March.

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Rubber Output declines on dry weather:

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Natural rubber production in India, the world’s fourth-biggest producer, dropped 7.3 per cent last year after dry weather lowered yields in the main growing region, the state-owned Rubber Board said.

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The driest monsoon since 1972 lowered latex yield in rubber plantation in the southern Indian state of Kerala, Chandran said.

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Production also dropped because of  intense harvesting and ageing plantations,  Rubber Board Chairman Sajen Peter said on November 4.

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Stockpiles jumped 26 per cent to 261,400 tonnes at the end of December after exports last year slumped to 14,752 tonnes from 77,004 tons in 2008.

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RUBBER – STRETCHING & MOVING ON THE WAY AHEAD Final Part

Hello Friends here we come up with an extension of our previous blog, RUBBER – “STRETCHING & MOVING ON THE WAY AHEAD” Part 1

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RUBBER - STRETCHING & MOVING ON THE WAY AHEAD

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In previous Blog, we had touched upon the aspects like that of the investment scenario of rubber in India, price movement of the rubber in Indian market and gap in the demand and supply of the rubber in the market.

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Now in this part, we would look into the impact of the shortage of rubber industry on major industries and the scenario of the rubber production in other countries.

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IMPACT ON MAJOR INDUSTRIES:

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The acute shortages of rubber in the market & rising input cost have affected the tyre industry.

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The ticking demand from automobile industry is growing with days passing by, & the steep rise in raw material cost is exerting pressure on the companies to hike their product prices.

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Apollo has proposed a 5-10 per cent hike while JK Tyres may raise prices by 3-5 per cent.

The automobile firms are presently negotiating the price hike with the tyre companies.

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To curb this negative inflationary impact, the industry has asked permission for duty free import of one lakh tonnes.

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THE ELEVATION “Estimating the future”:

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Thailand & Indonesia accounting for over 60% of the global rubber production, have reported for a            9% & 6% fall in production this year.

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Also Malaysia output hit at 77,620 tonnes in November may pull other nations like China to make a aggressive buying from India.

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The country not confronting any shortage in the domestic market with higher relatively higher opening stock at 2.47 lakh tonnes by November-end is in a safer position as compared to other countries.

This is due to the higher import by the industry which was pegged at 1.32 lakh tonnes during the period.

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Estimating the future, in the lines of rise in domestic consumption by 3.5% as in this year  & export demand coming to the country with shortage in the major producing countries, the prices may ignite further.

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PLANNED LAYOUT “Paving the Way”:

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The government had decided to double the NR production in the country within a period of 10 years, with identifying & bringing around 4.5 lakh hectares of land under cultivation.

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The planned layout:

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1. To increase the acreage in the north-east by 26,200 hectares by 2011-12.

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2. Financial assistance to the tune of Rs 30,000 per hectare for fresh planting and re-planting activities in      these areas.

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3. Expenditure of Rs 23.47 crore for human resource development.

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4. Allocation of Rs 8.8 crore for research and development operations.

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5. An earmark of Rs 19.55 crore for assisting nursing of plantations, processing and marketing of rubber.

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6. Providing fencing to 25,000 hectares for rubber plantation and an additional 500 hectares with irrigation facilities during the eleventh five-year plan.

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7. In order to co-ordinate the development operations in the north-eastern states, an additional Rubber Production Commissioner exclusively for these area will be appointed.

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This was the final part of the topic RUBBER ………… “STRETCHING & MOVING ON THE WAY AHEAD”.

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Stay Tuned for more write ups in “Commodity Corner Series” on SMC Global Blog.

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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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