Rubber

[millionairemind]

Not sure if anyone's tracking rubber prices, but it has fallen by half from last year's peak, similar to other commodities.

Published January 26, 2009
Indonesia starts cutting exports to prop up rubber

(JAKARTA) Indonesia, the world's second biggest rubber producer, has started cutting exports to help support prices, a top industry official said on Friday, although the government has not yet endorsed the export cut mechanism.
Joint efforts: Indonesia will reduce exports by 116,000 tonnes during the first quarter, as part of an agreement with top producers Malaysia and Thailand

The export cut is part of a pact by the top three rubber producers - Thailand, Indonesia and Malaysia - in December to take 915,000 tonnes of rubber out of the market in 2009, or a sixth of their combined exports of 5.5 million tonnes in 2007.

The plan will see Indonesia reduce exports by 116,000 tonnes during the first quarter, 40 per cent of the total in January, 35 per cent in February, and 25 per cent in March, said Daud Husni Bestari, chairman of the Indonesia Rubber Association (Gapkindo). 'We have set the exports quota to nine Gapkindo chapters. The chapters then set the quota for each member,' Mr Bestari said.

Gapkindo members account for about 90 per cent of Indonesia's rubber exports, he said.

'Non-members must register with the trade ministry and will also get export quotas from Gapkindo. Without having the registration number, customs and excise offices will not allow them to export,' he said.

He said Gapkindo had proposed the export cut mechanism to the trade minister for approval, but while waiting for 'formal endorsement' the members had implemented it.

'Apparently exports are falling. But I would say that even without the quota system, exports should fall because production is declining,' Suryadi Mulya, a director of trading firm CV Darmaga, said.

He said he was aware of the introduction of the export cut mechanism, but was not certain of the impact on prices, which had lost more than half their value from a 56-year high in July.

Indonesia's rubber production rose to 2.76 million tonnes in 2007 from 2.64 million tonnes a year earlier. Output is estimated to stay flat at 2.8 million tonnes in 2008, Suharto Honggokusumo, a Gapkindo official, said. -- Reuters

[millionairemind]

June 22, 2009
M'sia rubber exports to fall 10%
KUALA LUMPUR - MALAYSIAN rubber exports may fall 10 per cent this year, nearly doubling from a plan to cut exports along with other producers, as global demand from the automobile sector remains weak, a top industry official said on Monday.

The auto industry accounts for 70 per cent of world rubber demand and despite China's surging automobile sales, orders have yet to flow in strongly for rubber in Malaysia, said Malaysian Rubber Board Chairman Megat Zaharuddin.

Malaysia, the No.3 rubber supplier after Thailand and Indonesia, shipped out 1.1 million tonnes of the commodity in 2008.

The new estimate is nearly double Malaysia's initial plan to remove 55,070 tonnes of rubber this year along with Thailand and Indonesia's respective export cuts under the International Rubber Consortium (IRCo) to shore up prices.

Mr Megat's forecast is more optimistic compared with other MRB officials who had predicted exports to fall by 30 per cent this year when US carmakers asked for government bailouts.

'The positive news about economic recovery is there but it has yet to translate into more demand for Malaysian rubber from the auto sector,' Mr Megat told Reuters in an interview.'If we are really unlucky, we are looking at a 10 percent drop in exports. But hopefully China comes in, the news out of there is positive so far.'

Record demand from China's automobile sector is expected to support rubber prices that have already bounced from seven-year lows of US$1.1 (S$1.60) a kilogram in December, thanks to heavy rains and replanting programmes.

Cargoes to China have picked up after the Lunar New Year fesival in January as it had earlier defaulted on shipments late last year when physical prices plummeted.

China has overtaken the US as the world's largest automobile market this year, perking up the gloomy industry as passenger car sales in May soared 47 per cent from a year earlier as stimulus measures lured consumers to showrooms.

'Prices (for Malaysian rubber) should not go below 5 ringgit (S$2.05) a kilogram for the rest of the year, output is weak and we are banking on China demand and strong oil,' Mr Megat said.'So far the full-year average (for 2009) is slightly below this price level but it will become a solid price soon enough.' -- THOMSON REUTERS

[millionairemind]

Not sure if anyone is tracking rubber prices. The FOB physical closing prices of rubber have almost doubled this year.

December 16, 2009, 2.04 pm (Singapore time)

China cuts rubber import tax, aiding tyremakers

BEIJING - China will cut import tariffs on rubber in 2010, helping domestic tyre makers who enjoyed increasing demand from rocketing Chinese car production but got embroiled in a US trade dispute in 2009.

The import tax on natural rubber will fall 23 per cent to 2,000 yuan per tonne, while the tax on higher-value rubber smoked sheet will fall 38 per cent to 1,600 yuan per tonne, the Ministry of Finance said on Wednesday. Both were previously taxed at 2,600 yuan, or a much less commonly used flat 20 per cent, which remains unchanged.

The tax cut will help reduce costs for Chinese buyers and traders said it could spur imports by China, the world's largest consumer of rubber.

'We might import more in the coming months, but we will first calculate our cost, considering the demand and natural rubber prices in the global market,' Sheng Liang, a trader with Qingdao International Rubber Exchange Market, said.

'But we still see stable market demand, and as the import tax for rubber smoked sheet was revised down so much, we might consider buying more smoked sheet,' Mr Sheng added.

Traders in Thailand said the move should support physical rubber prices and prevent them from falling significantly over the year end period when supply is expected to rise due to favourable weather in what is the world's biggest rubber producer.

'That would help support physical prices and futures prices as well,' said a trader at Thailand Hat Yai rubber centre.

A Singapore-based trader said the tax cut would help support tyremakers to produce and export more, and is expected to keep demand for natural rubber buoyant next year.

'I think the Chinese government wants to support the tyre industry. They are sending a message to the market that they will import more rubber next year,' he said.

The benchmark rubber contract in Shanghai Commodity Exchange rose by 3.3 per cent on Wednesday. The most active rubber contract on Tokyo Commodity Exchange, currently May 2010, rose to a 1-week high at 263.1 yen a kg, up 4 per cent.

One southeast Asian dealer said the tariff change meant natural rubber imports would enjoy relatively lower costs than synthetic rubber, which could help synthetic rubber regain some market share from natural rubber in China.

Imports of synthetic rubber, which is cheaper than natural rubber, jumped 17 per cent in the first 11 months of this year compared to the same months of 2008, while shipments of natural rubber slowed 2.8 per cent, according to data from China's customs office.

China imported 1.53 million tonnes of natural rubber and 1.34 million tonnes of synthetic rubber between January and November.

The same dealer said China's own rubber producers would see the policy change as a weakening of the protection of their industry. But two Chinese rubber traders said they had hoped for a bigger cut in the tariff.

The import duty for natural emulsion remained at 720 yuan per tonne, or a flat rate of 10 per cent. -- REUTERS

[winston]

not vested

Flood delays 50,000 tonnes Thai rubber shipments

BANGKOK, Nov 3 (Reuters) - Combined shipments of around 50,000 tonnes of Thai smoked rubber sheet (RSS3) have been delayed due to transport disruption caused by severe floods in the south, the county's major rubber area, dealers said on Wednesday.

"Rubber producers in Thailand have informed us that rubber that was sold for November shipment needed to be delayed by a few weeks due to flooding," said a dealer in Singapore.


Source: Reuters

[winston]

Not vested

*DJ China October Natural Rubber Imports 160,000 Tons, Up 60% On Yr


Source: Dow Jones Newswire

[winston]

Not vested

*DJ Shanghai Rubber Futures Hit 5% Limit-Down; CNY132,500/Ton


Source: Dow Jones Newswire

[winston]

by kiasiDBT

Rubber surge : Demand soars for major Asian grades

http://www.commodityonline.com/news/Rub ... 8-3-1.html

[winston]

Posted by kiasiDBT in the GMG thread:-


From Biz Times

Sunday, Dec 19, 2010

http://www.btimes.com.my/Current_News/B ... index_html

Rubber prices set to continue uptrend

The Malaysia rubber market is expected to continue its uptrend next week as tight supplies globally and the on-going wet weather continue to weigh on prices.

Tyre-grade SMR 20 is expected to touch 1,450.0 sen per kg next week, a dealer said, adding that the undertone of the market was still intact.

"The fundamentals are very strong due to the wet weather in rubber producing countries like Malaysia, Indonesia and Thailand," said a dealer.

]He said the strong fundamentals are likely to continue until the first quarter of next year as supplies continue to be in short supply.

Malaysian rubber prices ended the week higher with the unofficial SMR 20 hitting an all-time high of 1,440.5 sen per kg, up 48 sen from 1,392.5 sen per kg last Friday.

Latex-in-bulk increased 24.5 sen to 962.0 sen per kg from 937.5 sen per kg previously.

The Malaysian Rubber Board official physical price for tyre grade SMR 20 jumped 44.5 sen higher at 1,432.5 sen per kg, from 1,388.0 sen per kg, last Friday while latex-in-bulk rose 26.5 sen to 959.5 sen per kg from 933.0 sen per kg previously. -- Bernama

[winston]

Not vested. So 10% correction from high ?

Thai exporters see rubber retreating from record high

BANGKOK, Jan 17 (Reuters) - Physical rubber prices, now at record highs, are expected to retreat over the next few weeks as demand starts to fall, with buyers becoming reluctant to pay up, the head of the Thai Rubber Association said on Monday.

"Those prices are not realistic and they are likely to fall back soon as demand is dropping," Luckchai Kittipol, president of the exporters group, told Reuters.

He forecast the price of benchmark Thai RSS3 would ease to around $4.80-$5.00 per kg by early February from the record high of $5.55-$5.60 per kg on Monday.


Source: Reuters

[kennynah]

okamoto aspiring for 0.001 standards...thus needing lesser rubber