AMSTERDAM — Group Michelin is raising prices in Europe in its various segments for the second time in 2017, the French tire-maker disclosed recently in a presentation with financial analysts.
The Association of Natural Rubber Producing Countries hereby releases the most updated picture of emerging developments in supply, demand and market trends in world rubber market, through the monthly bulletin “Natural Rubber Trends & Statistics” for April 2017.
… Based on the assessment, world supply of natural rubber, including supply from non-ANRPC countries, is anticipated to remain short of demand during all months up to December 2017. The shortfall is expected to progressively widen from April 2017 onwards to reach 688,000 tonnes in June 2017 before narrows down in subsequent months to reach 46,000 tonnes by December 2017.
World supply during January to April 2017 was short of demand by 466,000 tonnes, according to preliminary estimates. Despite a deficit supply, natural rubber prices have moved along a falling trajectory from February 2017 onwards largely due to factors external to the sector. Crude oil prices sharply fallen from February 2017 due to rising US shale gas output and reported failure in the effective implementation of the production curtailment programme agreed among OPEC members and major non-OPEC oil producing countries. Low crude oil prices keep sentiments down at Shanghai rubber futures and physical markets often follow suit.
The ongoing tug-of-war between natural rubber growers and consumers bears this out in ample measure.
The tussle relates to the state of rubber growers, and their claims that heightened imports have impacted domestic rubber production, which is contested by the tyre industry.
According to the latest data from the Rubber Board, natural rubber production actually increased in 2016-17 by 22 per cent over the previous year, Additionally, rubber imports declined by 7 per cent.
Rubber Board officials attributed the increased production to improved market price and the Board’s initiatives, including mass contact programmes to improve production and productivity.
The data effectively belies the rubber growers’ claims and validates the tyre industry’s diametrically opposite view.
With improving availability of natural rubber in the domestic market, there is a perceptible drop in rubber imports, says Satish Sharma, Chairman Automotive Tyre Manufacturers Association (ATMA).
“That lends credence to the tyre industry’s stand that natural rubber imports are only taking place to compensate for the domestic deficiency or in view of non-availability of certain grades of rubber on quality parameters,” he said.
ATMA also rebuts the claim that rubber imports are down because domestic prices are ruling lower than international prices.
Thailand, Malaysia and Indonesia are cooperating to ensure stability of world rubber prices, which continue to fluctuate after signs of recovery.
Titus Suksaard, governor of the Rubber Authority of Thailand, said the three countries, which account for 70% of the world’s natural rubber supply, recently held a meeting to discuss the situation.
They agreed that rubber prices will continue to rise because of several factors, including lower supply due to heavy rainfall and flooding in the South of Thailand. However, the big players in the natural rubber industry see prices as still volatile.
As a result, the three countries have agreed to increase domestic demand as much as possible. They will meet again in July to discuss the issue again and see whether prices are still fluctuating; if so, the group might consider controlling rubber exports to tamp down prices.
Malaysia, Indonesia and India implemented policies to reduce rubber plantations in a bid to curb production and boost market prices, said Mr Titus.
March, natural rubber continued unilateral decline in the trend continued to continue unilateral decline, and continue to hit a new low, but then encounter, stabilized stabilized, and returned to a technical rebound, which reflects the supply and demand of natural rubber market The relationship is reversed from the background and the essence of the reversal.
Prospects and Strategy Suggestions
Looking forward to April trend, by the international and domestic aspects of the neutral factors of the neutral intertwined effect, in the surrounding Tokyo City, Singapore rubber market both down the trend of deep down, Hujiao market outlook will continue the formation of the original deep down Of the trend, while subject to the global macroeconomic and financial situation neutral factors, although the short-term may fall sharply, but the medium-term may return to the low regional concussion trend, the operation should be short-term low-absorbing high-throwing.
THE Brunei Government has introduced a tax on rubber-related products. It was not explained why it needed to do this.
The products include stationery items like erasers, rubber bands etc. The tax will be between three to five per cent. This will burden the schools and the students. In these hard times we shouldn’t be burdening the families by making basic school necessities costly, especially for the low income families.
At present companies selling stationery items from Miri are active in Brunei and have taken a huge share of the stationery market. This has badly affected local businesses selling stationary items.
The monthly bulletin of Association of Natural Rubber Producing Countries (ANRPC), Natural Rubber Trends & Statistics, March 2017 is now available for our subscribers. During the first quarter of 2017, ANRPC member countries are estimated to have produced 2.499 million tonnes of natural rubber (NR), up 2.0% from the same period a year ago. Consumption […]
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Akron, Ohio – For the second time this year, Goodyear will increase prices across of all its brands in the US and Canada.
In an email statement 4 April, the tire maker said it will increase prices by approximately 6% beginning 1 May. This is in addition to a previously announced price increase that took effect 1 Feb.
According to a company spokesperson, the rising costs of raw materials is a key factor driving the second price hike.
Raw materials costs have been a driving force that has…
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.
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 […]
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