Rubber

[winston]

Rubber Set for Glut as Slower Chinese Growth Cuts Demand, Hurting Prices

Supplies of rubber, used in tires and gloves, are set to exceed demand in the second half, reversing a shortage and pressuring global prices, as growth slows in Europe and China, the biggest consumer.

http://www.bloomberg.com/news/2012-05-2 ... rowth.html

[winston]

Thai govt buys 4,300 tonnes rubber in intervention

BANGKOK, May 29 (Reuters) - The Thai government has bought only 4,300 tonnes of rubber sheet from farmers so far under its intervention programme, far below the target of 200,000 tonnes, and it has had minimal impact on prices, government and industry official said on Tuesday.

"It is because of the complicated authorisation process that slowed down the buying programme, plus unfavourable weather that cut supply. That's why we haven't been able to buy much rubber so far," said Wit Pratuckjai, director general of the Office of the Rubber Replanting Aid Fund (ORRAF).


Source: Reuters

[winston]

Rubber Glut Extending Bear Market as Bridgestone Costs Tumble: Commodities

Rubber shortages are about to turn into a flood as China, the biggest consumer, grows at the slowest pace in three years, driving prices paid by Bridgestone Corp. and other tiremakers to the lowest since 2009.


http://www.bloomberg.com/news/2012-06-1 ... costs.html

[winston]

Demand from China will decrease 5% because of lower truck sales.

Source: Bloomberg TV

[winston]

Rubber Seen Dropping as Chinese Inventories Set to Equal Record

Rubber is poised to drop as sustained supplies from Southeast Asia and falling demand from China’s tiremakers push stockpiles to match their record at Qingdao port, the main shipment hub, an industry executive said.

Futures fell for the first time in four days.

http://www.bloomberg.com/news/2012-08-2 ... ecord.html

[winston]

Thailand, Indonesia, Malaysia to cut natural rubber exports for 6 months from Oct

Thailand, Indonesia and Malaysia plan to cut natural rubber exports by a a total of 300,000 mt from October 1 for six months, news reports said Thursday. About 60%, or 180,000 mt, of the cut will come in the first three months -- October-December.

http://www.platts.com/RSSFeedDetailedNe ... ls/7024246

[winston]

Big Three rubber producers to maintain export curbs

BANGKOK, Dec 12 (Reuters) - The world's top three rubber producers have agreed to keep up a policy of cutting exports, but see no need for additional steps to support prices, a senior Thai government official said on Wednesday.

In a bid to prop up prices, now standing at less than half of a record high attained in February 2011, Thailand, Indonesia and Malaysia agreed in August to cut exports by 300,000 tonnes.

They started cutting exports from Oct. 1, in a plan that runs through the end of March.

Thailand, the biggest exporter, is to cut rubber shipments by 150,000 tonnes as part of the August plan to cut exports.

Indonesia, the second biggest, will cut its sales by 100,000 tonnes and Malaysia will cut exports by 50,000 tonnes.

As global economic problems have sapped demand, prices have plunged from a record high of $6.40 per kg in February 2011.

The current RSS3 price of $3.00 to $3.10 per kg is an acceptable level that helped boost trade, traders and government officials at the meeting said.

Source: Reuters

[winston]

Rubber Slumps to Lowest Since 2009 as China Growth Slows

Rubber futures in Tokyo and Shanghai declined to the lowest level since 2009 on concern that slowing economic growth in China will reduce demand from the top user amid a global surplus.

http://www.bloomberg.com/news/2014-04-1 ... slows.html

[behappyalways]

[经济信息联播]橡胶暴跌调查 橡胶三年价跌7成 36万吨货压在青岛港
http://jingji.cntv.cn/2014/05/12/VIDE13 ... 4118.shtml

[winston]

Rubber Gloves – Malaysia

Nitrile Glove ASPs Declining Faster Than Expected

While natural rubber glove players had seen margins expanding in the recent reporting quarter, most of the glove companies under our coverage concurred that the operating landscape in the premium glove segment is becoming increasingly challenging given the huge build-up in nitrile glove production capacity.

We reduce Kossan’s FY14-16 earnings forecasts by 5-9% on expectations of a more rapid decline in premium glove ASPs.

Maintain MARKET WEIGHT.

Maintain HOLD on natural rubber glove players - Top Glove and Kossan...

While the lack of production capacity expansion in the natural rubber glove segment by peers and continuous penetration into the more lucrative nitrile glove segment suggest margin expansion for Top Glove, we remain concerned over the company’s ability to carry out an effective cost pass-through on the higher gas prices for its premium glove segment.

As such, we maintain our HOLD call on the stock with a target price of RM5.08, based on an unchanged 15x 2015F PE. Entry price of RM4.20.

Source: UOBKH