Jojo Mathew

27-06-2024

Japanese rubber futures rebounded on today as the yen hit a 38-year low against the dollar, making the commodity more affordable to overseas buyers.

The Osaka Exchange December delivery was up 2.5 yen, or 0.75% and SHFE September delivery was up 65 yuan, or 0.43%.

Oil prices slid in early Asian trade today as a surprise build in U.S. stockpiles fuelled fears about slow demand from the top oil consumer.

Top rubber producer Thailand’s meteorological agency warned of “heavy to very heavy rains and accumulations that may cause flash flood and runoff” on June 27.

The International Rubber Study Group projects global Natural rubber production to increase by 1.1% year-on-year in 2024, reaching 14.502 million tons.

On the demand side, global consumption of Natural rubber is anticipated to rise by 3.1% year-on-year in 2024, totaling 15.748 million tons.China is expected to lead this growth with a 5.5% increase, followed by India at 3% and Vietnam at 6%.

Inventory levels at the key Qingdao warehouse have dropped by 28% since the beginning of the year, suggesting a possible uptick in Chinese rubber consumption.

The tire industry is being cautious in their procurement of high-priced rubber materials.

Heavy rainfall has caused disruptions in the harvesting of natural rubber, resulting in a decrease in its availability in the local markets.

Due to heavy rains, low arrivals, and increase in shipping costs, natural rubber can remain expensive for importing countries.

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11-06-2024

Rubber News For Today
11-06-2024

Japanese rubber futures edged down Today on profit taking in view of heightened uncertainty on rubber yields and top consumer China’s stockpiling decisions. Higher oil prices and a weaker yen limited losses.

The Osaka Exchange November delivery was down 5.5 yen, or 1.54%, and (SHFE) September delivery reopened after the Dragon Boat Festival holidays and was down 115 yuan, or 0.73%.

Attention should be paid to China’s stockpiling policy and the improving rubber tapping in production areas of various rubber producung countries.

Oil prices rose today, extending the previous day’s rally on hopes of higher seasonal fuel demand and potential U.S. crude purchases for its petroleum reserve, though gains were capped by a firmer dollar.

The tight supply of all forms of natural rubber will support the prices to stay high in short run.

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Tire manufacturers are raising prices as a result of the rubber shortage in major markets. The price of RSS-4 grade rubber went up by Rs 200 to trade at 18,600 in a single day. Rubber exporting countries are getting ready to increase sheet prices in response to the expected rise in demand from the Asian tyre sector. Concerns are arising in the industrial sector about the potential shortage of sheet and latex due to heavy rains causing tapping interruptions in various rubber producing countries, including Thailand.

27-04-2024

Farmers in India are facing uncertainty as the price of natural rubber has dropped in both the international and domestic markets. Despite hopes that the previous upward trend would continue due to tight supply, the price has taken a tumble. The domestic price of rubber had been steadily increasing since January of this year, but it has now fallen significantly.

On March 18, the Bangkok price of RSS-4 variety was ₹231 per kg, but it has now plummeted to ₹185 per kg, resulting in a loss of ₹46 per kg. Although the decline in the international market has been sharp, the drop in the domestic market appears to be less steep. In the Kottayam market, the price has fallen from ₹186 per kg in March to ₹180 per kg on Wednesday.

The international price decline can be attributed to various factors, including a shortage of purchases by China. However, recent rainfall in rubber-growing areas of southern and central Kerala has raised hopes of an improvement in the domestic supply situation. Additionally, there is a perception that rubber production may increase in other rubber-producing countries.

To support the rubber industry, the Rubber Board had introduced an incentive of ₹5 per kg for exported sheet rubber between March 15 and June 30. The Board had also established an Export Promotion Council to capitalize on the higher prices in the international market. However, the downward trend in the international market has posed challenges for these efforts. The majority of rubber produced in India is processed and sold as sheet RSS4.

In 2022-23, India produced a total of approximately 8.30 lakh tonnes of rubber, and production is expected to increase in 2023-24.

27-03-2024

Japanese rubber futures edged up for a second straight session today amid weather concerns in top producer Thailand and a weaker yen, while strong manufacturing data in the U.S. also bolstered investor sentiment.

The Osaka September delivery was up 2.7 yen, while The SHFE May delivery was down 115 yuan.

Thailand’s meteorological agency warned of severe weather conditions in upper Thailand from March 26-27, potentially causing crop damage.
The Japanese yen weakened to a 34-year low 0.14% to 151.76 against the dollar and Nikkei average opened 0.29% higher.

The drop in rubber prices last week was mainly because the big dealers and traders were taking their profits,not because there was an increase in production.

With the industrial sector needing more sheet rubber, many countries that produce rubber are now converting latex into rubber sheets.

Experts say that The international market will still have a shortage of rubber until September, and prices will stay high.

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