Rubber sets a 7-day losing streak in Tokyo

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The benchmark Tokyo rubber futures August contract plunged 5.2 per cent on Thursday to close the main session at ¥269.4 per kg.

It finished near a seven-week low, having broken sharply down through its 50-day moving average around ¥292 and recording a seven-day losing streak that was its worst run since September 2014, according to Reuters.

And rubber’s move arguably is not yet stretched. The contract’s 14-day relative strength index, the commodity sector’s closely watched momentum gauge, finished the session at 35.2, not yet below the 30 mark that heralds the “oversold” threshold.

What’s going on?

Well, the pullback needs to be put in perspective. On January 31, rubber futures hit an intraday five-year high of ¥366.7, having more than doubled over just four months.

Helped by the broader market’s Trump-inspired “risk on” mood, rubber prices rallied as buoyant Chinese car sales data boosted expectations of greater tyre demand. Additional momentum was provided by supply-side problems as heavy rainfall in Thailand, a big rubber producer, was seen crimping production. But at the January peak, rubber’s 14-day RSI hit 79, into the “overbought” zone that is seen beginning at 70.  

Read the source article at FT.com

ANRPC Releases Natural Rubber Trends & Statistics, January 2017

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The Association of Natural Rubber Producing Countries (ANRPC) is happy to release its Natural Rubber Trends & Statistics, January 2017. Natural rubber (NR) prices have registered a good start in the beginning of 2017 with an average 10% growth across key NR markets, in spite of the price decline to US$1.00 per kilogram during early […]

The post ANRPC Releases Natural Rubber Trends & Statistics, January 2017 appeared first on Global Rubber Markets.

Read the source article at Global Rubber Markets News

Alliance Raises Tire Prices

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Alliance Tire Americas Inc. (ATA) will raise the prices of its OTR and commercial products by 8%, effective April 1, 2017. Specific changes will vary depending on the product line and segment, ATA notes.

Like the other tiremaker raising tire prices, ATA also attributed the price increase to the escalating costs of raw materials.

“ATA is committed to making sure that our customers are receiving high-quality, application-specific, purpose-built tires at the most economical costs possible,” said James Clark, president or Alliance Tire Americas. “Due to the significant increases in the cost of natural rubber and other raw materials used in tire production, we are required to increase our prices at this time.”

Read the source article at Tire Review

Ansell shares fall 6 pct on flat profit and rising costs

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, Feb 13 (Reuters) – Australian  maker Ansell Ltd said on Monday that rising raw material costs and foreign exchange fluctuations kept half-year profit flat, sending shares to a six-month low.

The company, which makes goods ranging from gloves to diving suits, reaffirmed its earnings target and said it had received several expressions of interest for the purchase of its profitable 120-year-old condom business.

But analysts said earnings per share were tracking at the low end of the $1 to $1.12 full-year guidance.

“It’s a bit of a miss … operationally the result is fairly flat and the only positive is that the sexual wellness is still on track to be sold,” said Bill Keenan, general manager of direct equities research at broker Lonsec.

Ansell shares skidded as much as 6.2 percent on the result to touch A$20.75 ($15.90), a six-month low, before rebounding to settle around A$21.70, while the broader Australian market rose 0.48 percent.

Half-year profit was $69.8 million, the company said, compared with $69.6 million previously.

Read the source article at Global Rubber Markets News

Demand for Tires in China Is Making Your Rubber Gloves Pricier

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Demand for Tires in China Is Making Your Rubber Gloves Pricier by China’s tire demand has helped a rubber ingredient surge 117% Rubber glove makers’ raw material costs jumped 45% since Sept. Consumers across the globe donning gloves to do the dishes may soon feel the heat from rubber being burned on China’s roads. Surging car sales in China in the last few months have more than doubled the price of a little-known chemical called butadiene.

Read the source article at Bloomberg.com

Thai rubber producers say can maintain exports despite floods

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BANGKOK, Jan 31 (Reuters) – Thai rubber exporters say they have enough of the commodity in stockpiles to ensure only minimal disruption to scheduled shipments in the wake of deadly floods in key growing regions.

Global rubber prices this week soared to five-year highs on worries over supply following floods that started in December, swamping plantations in the world’s top producer at the height of the tapping season.

But Thai exporters of rubber, used to churn out everything from tyres to surgeons’ gloves, told Reuters they did not expect any major impact on shipments due to stocks already in place.

 

Read the source article at Global Rubber Markets News

Natural Rubber prices rebounds amid Thai floods

Natural rubber (NR) prices in India jumped to a two-and-a-half-year high last weekend on limited supplies and tracking gains in overseas markets due to supply disruptions in top producer Thailand, according to reports.

In the last weekend the spot price of the most-traded RSS-4 rubber (Ribbed smoked sheet) at the Kottayam market in the top producing southern state of Kerala (India) rose to Rs 146 rupees ($2.14) per kg, the highest since June 2014.

Read the source article at Rubber Asia

Rubber growers see fortunes rising despite demonetisation

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Excellent insight in to issues facing rubber tree growers in India today. Rubber is one of the most important commodities – maybe pass crude, water and oxygen – requires active management, and has a wast socio-economic impact. Read on!

This is one crop that seems to have bucked the demonetisation blues. Since November 8, the day the Narendra Modi government announced the outlawing of all existing Rs 500 and Rs 1,000 denomination currency notes, prices of natural rubber have gone up from Rs 117 to Rs 143 per kg for first-grade ‘RSS-4’ sheets traded in Kerala’s Kottayam market.

The above increase — linked mainly to rising global crude oil prices, which have also made synthetic substitutes such as styrene butadiene rubber more expensive — has cheered growers here. In the recent past, they have witnessed RSS-4 prices in Kottayam swing from Rs 240-plus in February 2011 to a low of Rs 91 per kg in February 2016, before the current recovery that has, coincidentally, happened post-demonetisation.

At Pala, Kanjirapally and other high-range areas of Kottayam in the central Kerala rubber heartland, growers have managed to overcome the impact of demonetisation, thanks not only to improved realisations but also the prevailing practice of marketing their produce. Although tapping of trees is done every alternate day, most farmers sell natural rubber sheets, processed from the extracted milky latex, only once or twice in a month. When prices go up, farmers hold back their produce in the expectation of making gains from delaying sales.

Read the source article at Global Rubber Markets News

SriLanka: Rubber can raise US$ 5 bn soon -Minister

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Rubber and rubber value addition will result in foreign exchange earnings of about US$ 5 billion in the short run said Plantation Industries Minister, Navin Dissanayake. 

Expert feedback has indicated that oil prices will continue dominance of rubber price structures.

However, such influences being unavoidable, the minister indicated that Rubber and rubber value addition will result in foreign exchange earnings of about US$ 5 billion in the short run. Indicators were that oil prices will stabilise at current levels for about a year. Consequential to such stabilisation the projected US$ 5 billion earnings were real assessments of the rubber market.

Dissanayake noted that irrespective of reduced production, the recent price escalation of rubber placed Sri Lanka in the billion dollar foreign exchange earner segment in 2016. This would further improve with oil price influences gaining dollar value resulting in concomitant increases in rubber prices.

Read the source article at Global Rubber Markets News

Denka to increase polychloroprene prices

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LaPLACE, Louisiana – Denka Performance Elastomer LLC will increase the prices of its Denka Neoprene branded polychloroprene rubber manufactured at a facility in LaPlace.

The increase, Denka said, begins 1 Feb, applies to both the domestic and overseas markets and represents a minimum of $400 (€380) per tonne. This cost is in addition to price increases announced late last year.

Read the source article at European Rubber Journal