The government should look seriously into the grievances of rubber farmers who have been complaining about low prices over the last five years. True, the price of rubber, like most other commodities, such as palm oil, cacao and coal, is mainly influenced by global supply and demand, especially for Indonesia, which, as the world’s second…
Kuala Lumpur – Natural rubber prices recovered from a dip in late July, thanks to favourable market fundamentals and supply deficit, the Association of Natural Rubber Producing Countries (ANRPC) has reported.
In its latest release on trends and statistics in August, the association said global NR production reached 8.038 million tonnes within the first eight months of the year. Consumption was estimated at 8.544 million tonnes.
KUALA LUMPUR: The region’s top traditional rubber producers – Thailand, Indonesia and Malaysia – believe the current low price of natural rubber (NR) does not reflect the economic fundamentals that affect it. ITRC member countries account for 65% of global natural rubber (NR) production and 72% of world NR exports. A statement issued by the…
VIENTIANE (Vientiane Times/ANN) – Laos’ rubber exports have increased this year even though domestic farmers are still affected by low prices. In the first six months of the year, Laos earned almost US$45 million from rubber exports, an increase of 40.8 percent compared to the same period last year. The country earned US$40 million from rubber exports.
Continental AG (CTTAY) shares fell Thursday after the first-half performance of its ContiTech division and stagnating margins in its automotive business left investors disappointed.
The world’s second largest maker of car parts reported sales of €22.2 billion ($25.4 billion) for the six months to June 30, up 10% on the same period one year ago, before raising its full-year revenue forecast by just more than 1% to €44 billion.
However, the bottom line and group margin contracted slightly after the company was hit by higher raw materials prices in its tires division, the largest unit of the group.
Although world rubber demand remains strong, Thailand exports rubber mostly as a commodity, making farmers vulnerable to world’ s price swing. Adding value is necessary and the government has set up a rubber city and promote more domestic use of the product, he added.
Discontent among southern rubber farmers against the government has grown even as the government explained it has done its best to ease their woes stemming from plummeting rubber prices.
Government spokesman Sansern Kaewkamnerd said on Monday it was imperative that farmers understand world rubber prices were dictated by economic factors such as interest rates and oil prices.
“We have provided credits to be used as revolving funds for rubber planters’ groups and for rubber processors to buy latex directly from farmers,” he said.
World natural rubber (NR) production increased by 5.8 per cent year- on-year to 5.729 million tonnes during the first half of 2017, says the latest ANRPC report. As a result, ANRPC expects that the world supply during 2017 will be at 12.797 million tonnes, up 5.9 per cent from the previous year.
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.