Showing posts with label rubber. Show all posts
Showing posts with label rubber. Show all posts

Tuesday 16 November 2010

Rubber prices at 30-year high

Rubber prices have this week hit a 30-year high, causing tyre makers to raise their prices by 10pc to 15pc.
Futures on the benchmark Tokyo commodities index surged to $4,661 per tonne, their highest since February 1980, and cash prices in Thailand climbed to an all-time record. Forecast rain is likely to worsen a supply shortage and Chinese inflation boosted demand across the commodity sector.

According to technical analysts from ProSpreads: "The fundamental reasons for rubber's recent gains are clear and evident: increased car sales in China, coupled with bad weather across South-East Asia, further squeezing supply. It would take a brave speculator to sell into this rally."


http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8132582/If-theres-a-global-gas-glut-why-are-prices-rising.html

Sunday 29 August 2010

Malaysia's rubber imports may top 600,000 tonnes this year

Malaysia's rubber imports may top 600,000 tonnes this year
Published: 2010/06/19

Malaysia, the world's third largest rubber producer, may have to import as much as 600,000 tonnes of the commodity this year to meet global demand despite rising domestic output, an official said yesterday.

Malaysian Rubber Board director general Dr Salmiah Ahmad said the country has to continue importing as capacity utilisation was rather low at 60 per cent to 70 per cent of 1.3 million tonnes a year at a time of strong demand from China.

"We have to import more this year as, Chinese demand is moving from strength to strength," she said at the sidelines of a regional conference. "It could go above 600,000 tonnes even." said Salmiah.

She was referring to China's booming car industry that has been posting double-digit growth for the past five months thanks to state-driven incentives to boost consumption.

China imports up to 700,000 tonnes of rubber from Malaysia yearly, industry data shows.

The global car industry swallows 70 per cent of natural rubber output that is dominated by Thailand, Indonesia and Malaysia.

Regional traders said Malaysia usually buys about 400,000 to 500,000 tonnes of natural rubber from top producer Thailand, and to some extent Indonesia and West Africa.

Thai dealers have increasingly taken long positions in the Tokyo Commodity Exchange rubber futures and hedge contracts with Malaysian buyers.

The November rubber contract slipped 0.5 per cent to 274.8 yen a kg at 0509 GMT.

Benchmark Thai RSS3 for July was unchanged at US$3.60 (RM11.74) and off 12 per cent from a record high of US$4.10 (RM13.37) a kg in April while Malaysia rubber grades were at US$2.90 (RM9.45).

Fears of supply disruptions due to El Nino-driven hotter weather earlier this year sapping yields have lifted all rubber grades including Malaysian prices that in turn boosted tapping activities in the first quarter, Salmiah said.

She said based on that scenario, Malaysia's production could hit 900,000 to 1 million tonnes this year from about 850,000 tonnes in 2009.

"Although hot weather from El Nino affected yields, the lack of rainy weather and good prices saw tapping days rise significantly," she said.

But the Malaysian Rubber Board's forecast still below output figures of about 1.1 and 1.2 million tonnes seen two or three years ago . - Reuters

Read more: Malaysia's rubber imports may top 600,000 tonnes this year http://www.btimes.com.my/Current_News/BTIMES/articles/RUBGROW/Article/#ixzz0xylQn3F0