Shanghai Futures Exchange natural rubber settles higher, tracking local equities. Analysts say
technical buying after the recent fall also contributes to price gains; they tip short-term consolidation as investors
watch developments from Libya and Japan's nuclear emergency. The benchmark September rubber settles CNY385, or 1.1%,
higher at CNY35,345/ton.
Tuesday, March 22, 2011
KLCI Off 0.1%; 1505-1515 Range Tipped
The KLCI is off 0.1% at 1507.94 in early afternoon trade but the market breadth remains
positive with 443 advancers against 230 decliners, as concerns over Japan's nuclear crisis ease. "Sentiment has clearly
improved but a lot of the buying interest is in second-liners, which have been battered down last week," a local dealer
says. He tips the index in a 1505-1515 range for the rest of the session. Among gainers KL Kepong (2445.KU) is up 0.8%
at MYR20.88, SapuraCrest (8575.KU) is up 2.8% at MYR3.62 and Sime Darby (4197.KU) is up 0.9% at MYR9.11. Decliners
include MISC (3816.KU), which is down 3.5% at MYR7.66 and F&N (3689.KU), which is down 1.1% at MYR15.62.
positive with 443 advancers against 230 decliners, as concerns over Japan's nuclear crisis ease. "Sentiment has clearly
improved but a lot of the buying interest is in second-liners, which have been battered down last week," a local dealer
says. He tips the index in a 1505-1515 range for the rest of the session. Among gainers KL Kepong (2445.KU) is up 0.8%
at MYR20.88, SapuraCrest (8575.KU) is up 2.8% at MYR3.62 and Sime Darby (4197.KU) is up 0.9% at MYR9.11. Decliners
include MISC (3816.KU), which is down 3.5% at MYR7.66 and F&N (3689.KU), which is down 1.1% at MYR15.62.
Tocom Rubber Up, May Gain More; Y450 Resistance
Tocom rubber futures settle higher after gaining as much as 6.3% intraday; although the Thai
government Monday put on hold further measures to boost prices due to a strong rebound, a Thailand-based trader says the
prospect it may intervene further in the event of another sharp fall will support prices. Major producing countries are
also in the low-output season and cash prices are strong, likely allowing more upside, another trader says.
Bangkok-based DS Futures analyst Chaiwat Muenmee pegs key resistance at Y450/kg. Benchmark August RSS3 rubber settles
Y25.3 or 6.2% higher at Y433.9/kg, off an intraday high of Y434.5/kg.
government Monday put on hold further measures to boost prices due to a strong rebound, a Thailand-based trader says the
prospect it may intervene further in the event of another sharp fall will support prices. Major producing countries are
also in the low-output season and cash prices are strong, likely allowing more upside, another trader says.
Bangkok-based DS Futures analyst Chaiwat Muenmee pegs key resistance at Y450/kg. Benchmark August RSS3 rubber settles
Y25.3 or 6.2% higher at Y433.9/kg, off an intraday high of Y434.5/kg.
Sicom Rubber Futures Mixed; Downside Limited
Sicom rubber futures are mixed midday. Tight supply amid the low-production season is likely
to support rubber prices, limiting any downside, says a trader. Sicom is likely to take Tocom cues during the rest of
the day. The benchmark Sicom April RSS3 contract trades 2.7 U.S. cents higher at 560 cents/kg. The April TSR20 contract
is down 3 cents at 511 cents/kg.
to support rubber prices, limiting any downside, says a trader. Sicom is likely to take Tocom cues during the rest of
the day. The benchmark Sicom April RSS3 contract trades 2.7 U.S. cents higher at 560 cents/kg. The April TSR20 contract
is down 3 cents at 511 cents/kg.
Thai USS3 Rubber Prices Rise; Exporters Buying
Physical prices of Thai USS3 rubber rise to THB151.91-THB157.17/kg vs THB146.29-THB155.2/kg
Monday, as arrivals continue to remain low. Outside the central markets, factories are paying around THB150-THB160/kg.
Large exporters are quoting prices on the upper end of the scale to secure USS3 supplies in the low-production season, a
trader says. Sales in Thailand's three central markets total around 18.4 tons Tuesday versus 9.1 tons Monday: 12.1 tons
in Hat Yai, 4.3 tons in Surat Thani, 2 tons in Chandee.
Monday, as arrivals continue to remain low. Outside the central markets, factories are paying around THB150-THB160/kg.
Large exporters are quoting prices on the upper end of the scale to secure USS3 supplies in the low-production season, a
trader says. Sales in Thailand's three central markets total around 18.4 tons Tuesday versus 9.1 tons Monday: 12.1 tons
in Hat Yai, 4.3 tons in Surat Thani, 2 tons in Chandee.
RUBBER NEWS: Tocom Rubber Rises In Catch-Up; Tight Supply
RUBBER NEWS: Tocom Rubber Rises In Catch-Up; Tight Supply: "Tocom RSS3 rubber futures rise as much as 5.1% in early trade, catching up with gains in other Asian rubber markets Monday when the Japanese..."
Tocom Rubber Rises In Catch-Up; Tight Supply
Tocom RSS3 rubber futures rise as much as 5.1% in early trade, catching up with gains in
other Asian rubber markets Monday when the Japanese bourse was closed for a public holiday. More upside is likely for
Tocom as major producers are also in low production season, says Bangkok-based DS Futures analyst Chaiwat Muenmee.
Strong physical market prices are also supporting the market, as spot supply is tight, says another trade participant in
Thailand. The benchmark Tocom August contract trades Y10 higher at Y418.6/kg, off its intraday high of Y429.6/kg.
other Asian rubber markets Monday when the Japanese bourse was closed for a public holiday. More upside is likely for
Tocom as major producers are also in low production season, says Bangkok-based DS Futures analyst Chaiwat Muenmee.
Strong physical market prices are also supporting the market, as spot supply is tight, says another trade participant in
Thailand. The benchmark Tocom August contract trades Y10 higher at Y418.6/kg, off its intraday high of Y429.6/kg.
Monday, March 21, 2011
China Feb Natural Rubber Imports Down 14.4% At 107,218 Tons
China's natural rubber imports in February declined 14.4% compared with the same month last
year, to 107,218 metric tons, the General Administration of Customs said Monday.
January's natural rubber imports were down 27% from January, when 147,382 tons were imported, the data showed.
During the January-February period, China shipped in 254,590 tons of natural rubber, a decline of 14.2% from the same
period last year.
China is the world's biggest importer of natural rubber and sources most of its supplies from Thailand, Indonesia and
Malaysia--the world's leading natural rubber producers.
year, to 107,218 metric tons, the General Administration of Customs said Monday.
January's natural rubber imports were down 27% from January, when 147,382 tons were imported, the data showed.
During the January-February period, China shipped in 254,590 tons of natural rubber, a decline of 14.2% from the same
period last year.
China is the world's biggest importer of natural rubber and sources most of its supplies from Thailand, Indonesia and
Malaysia--the world's leading natural rubber producers.
Thai USS3 Rubber Prices Up Sharply; Arrivals Low
Physical prices of Thai USS3 rubber rise sharply to THB146.29-THB155.2/kg vs
THB132.55-THB134.55/kg Friday, as arrivals remain low amid the low production season. Traders are awaiting the outcome
of the national rubber committee meeting in Bangkok Monday, after the government pledged support for prices last week.
Outside the central markets, factories are paying THB150-THB156/kg. Sales in Thailand's three central markets total
around 9.1 tons Monday versus 7 tons Friday: 3.6 tons in Hat Yai, 1.5 tons in Surat Thani, 4 tons in Chandee.
THB132.55-THB134.55/kg Friday, as arrivals remain low amid the low production season. Traders are awaiting the outcome
of the national rubber committee meeting in Bangkok Monday, after the government pledged support for prices last week.
Outside the central markets, factories are paying THB150-THB156/kg. Sales in Thailand's three central markets total
around 9.1 tons Monday versus 7 tons Friday: 3.6 tons in Hat Yai, 1.5 tons in Surat Thani, 4 tons in Chandee.
Sicom Rubber Futures Up; Wintering Support
Sicom rubber futures up midday, supported by recent announcements on minimum prices in major producers Thailand and Indonesia and the low-production wintering season in these nations. The benchmark Sicom April
RSS3 contract price isn't readily available due to block trades; May RSS3 trades 9 U.S. cents higher at 534 cents/kg.
The April TSR20 contract price is also not readily available; the May contract is up 6 cents at 501 cents/kg.
Think Again / A Second Look At Sectors And Stocks
(From THE WALL STREET JOURNAL EUROPE)
There's room for M&A
in the North Sea oil sector
Don't bank on initial public offerings in the North Sea's oil-and-gas exploration sector. Rather, acquisitions will
pick up as market leaders seek to boost reserves with acquisitions of smaller players. Privately owned First Oil PLC is
bound to draw the big boys' gaze.
Based in Aberdeen, U.K., and controlled by its chairman, Ian Suttie, First Oil reported 2010 revenue of GBP 63 million
($101.7 million) and could easily attract interest from Dana Petroleum, a GBP 1.67 billion business, also based in
Aberdeen, that has an aggressive M&A track record.
IPO or trade sale? Let's look at the landscape.
North Sea oil output is declining by 6% a year, and as reservoirs empty, increasingly high-cost techniques are
required to exploit them. These techniques may be arresting the rate of decline, but the growing marginal cost of
extraction, combined with diminishing reserves, has driven most major oil companies from the North Sea, opening the
field to smaller companies.
There are plenty of profits still to be made. The trade group Oil & Gas UK recently reported that the North Sea
produced 2.3 million barrels of oil a day in 2010 and explorers have discovered more.
All this points to medium-term consolidation among smaller players and a surging need for capital to fund their
expensive and complex core operations.
Dana is an obvious buyer for First Oil. The two firms have a production partnership in the Anglia oil field and are
partners on discoveries in the Kerloch and Platypus fields. Another partner, Apache Corp., with a stock-market value of
$43 billion,has been a key beneficiary of the major firms' withdrawal and also has an acquisitive bent.
Of course, an IPO window may open for First Oil, but history suggests not. According to Dealogic, there have been only
22 IPOs of more than $75 million in the European oil-and-gas-exploration sector since 1995. Only four involved U.K.
companies.
Meanwhile, the North Sea's big fish lie in wait.
-- Mike Weir and Alessandro Pasetti
Akzo's unhappy shareholders
Akzo Nobel NV's shareholders own a stock that trades where it did 10 years ago. They should be hoping that Akzo gets
bought. They are more likely to get something less satisfying: Akzo seeking to buy a smaller company.
Akzo has the makings of a target, with a low relative valuation at under six times estimated 2011 earnings before
interest, tax, depreciation and amortization, modest net debt and a sound profit-growth trajectory. But its own size and
the poor balance sheet of its most likely buyer -- Dow Chemical Co. -- make a takeout unlikely.
The next-best option for the Dutch chemicals maker is to act as a consolidator in coatings and specialty chemicals, a
role the firm played through its 2007 acquisition of Imperial Chemical Industries PLC. A bid for Germany-based Symrise
AG or U.K.-based Croda International PLC would make sense.
Symrise and Croda have high margins and countercyclical properties. Either deal could be financed easily: Both
companies have low debt and enterprise values under 3 billion euros ($4.21 billion), compared to Akzo's 12 billion
euros.
Akzo's three business units -- performance coatings, decorative paints and specialty chemicals -- account for almost
equal shares of its revenue. However, the specialty chemicals unit is responsible for by far the largest share (44%) of
group Ebitda, making bulking up further there an accretive proposition.
Both Symrise and Croda offer Ebitda margins of 20%-plus, versus the 12% Akzo's combined businesses posted last year.
Then there are the possible cost savings, to further boost Akzo's Ebitda margin, which the market expects to expand from
the low- to the mid-teens by 2013.
Symrise specializes in flavors, fragrances and cosmetic ingredients. In addition to the countercyclical nature of its
business, its presence in emerging markets -- a key area for Akzo -- makes the German company especially appetizing.
Nearly half of Symrise's 2010 revenue of 1.6 billion euros came from emerging economies.
Croda is focused on specialty chemicals for the consumer care and industrial specialties markets. A presence in
coatings and polymers would make a good fit with Akzo's current portfolio.
All that said, investors would surely prefer a takeover. Might one be pulled off, against the odds?
-- Alessandro Pasetti and Jacob Plieth
---
Think Again uses material from Dow Jones Investment Banker. For more information, visit www.dowjones.com/banker.
There's room for M&A
in the North Sea oil sector
Don't bank on initial public offerings in the North Sea's oil-and-gas exploration sector. Rather, acquisitions will
pick up as market leaders seek to boost reserves with acquisitions of smaller players. Privately owned First Oil PLC is
bound to draw the big boys' gaze.
Based in Aberdeen, U.K., and controlled by its chairman, Ian Suttie, First Oil reported 2010 revenue of GBP 63 million
($101.7 million) and could easily attract interest from Dana Petroleum, a GBP 1.67 billion business, also based in
Aberdeen, that has an aggressive M&A track record.
IPO or trade sale? Let's look at the landscape.
North Sea oil output is declining by 6% a year, and as reservoirs empty, increasingly high-cost techniques are
required to exploit them. These techniques may be arresting the rate of decline, but the growing marginal cost of
extraction, combined with diminishing reserves, has driven most major oil companies from the North Sea, opening the
field to smaller companies.
There are plenty of profits still to be made. The trade group Oil & Gas UK recently reported that the North Sea
produced 2.3 million barrels of oil a day in 2010 and explorers have discovered more.
All this points to medium-term consolidation among smaller players and a surging need for capital to fund their
expensive and complex core operations.
Dana is an obvious buyer for First Oil. The two firms have a production partnership in the Anglia oil field and are
partners on discoveries in the Kerloch and Platypus fields. Another partner, Apache Corp., with a stock-market value of
$43 billion,has been a key beneficiary of the major firms' withdrawal and also has an acquisitive bent.
Of course, an IPO window may open for First Oil, but history suggests not. According to Dealogic, there have been only
22 IPOs of more than $75 million in the European oil-and-gas-exploration sector since 1995. Only four involved U.K.
companies.
Meanwhile, the North Sea's big fish lie in wait.
-- Mike Weir and Alessandro Pasetti
Akzo's unhappy shareholders
Akzo Nobel NV's shareholders own a stock that trades where it did 10 years ago. They should be hoping that Akzo gets
bought. They are more likely to get something less satisfying: Akzo seeking to buy a smaller company.
Akzo has the makings of a target, with a low relative valuation at under six times estimated 2011 earnings before
interest, tax, depreciation and amortization, modest net debt and a sound profit-growth trajectory. But its own size and
the poor balance sheet of its most likely buyer -- Dow Chemical Co. -- make a takeout unlikely.
The next-best option for the Dutch chemicals maker is to act as a consolidator in coatings and specialty chemicals, a
role the firm played through its 2007 acquisition of Imperial Chemical Industries PLC. A bid for Germany-based Symrise
AG or U.K.-based Croda International PLC would make sense.
Symrise and Croda have high margins and countercyclical properties. Either deal could be financed easily: Both
companies have low debt and enterprise values under 3 billion euros ($4.21 billion), compared to Akzo's 12 billion
euros.
Akzo's three business units -- performance coatings, decorative paints and specialty chemicals -- account for almost
equal shares of its revenue. However, the specialty chemicals unit is responsible for by far the largest share (44%) of
group Ebitda, making bulking up further there an accretive proposition.
Both Symrise and Croda offer Ebitda margins of 20%-plus, versus the 12% Akzo's combined businesses posted last year.
Then there are the possible cost savings, to further boost Akzo's Ebitda margin, which the market expects to expand from
the low- to the mid-teens by 2013.
Symrise specializes in flavors, fragrances and cosmetic ingredients. In addition to the countercyclical nature of its
business, its presence in emerging markets -- a key area for Akzo -- makes the German company especially appetizing.
Nearly half of Symrise's 2010 revenue of 1.6 billion euros came from emerging economies.
Croda is focused on specialty chemicals for the consumer care and industrial specialties markets. A presence in
coatings and polymers would make a good fit with Akzo's current portfolio.
All that said, investors would surely prefer a takeover. Might one be pulled off, against the odds?
-- Alessandro Pasetti and Jacob Plieth
---
Think Again uses material from Dow Jones Investment Banker. For more information, visit www.dowjones.com/banker.
Thursday, March 17, 2011
RTAE London Rubber Prices - Mar 17 09:07:00 pm 03/17
LONDON (Dow Jones)--Daily London rubber prices in euro cents a kilogram from the Rubber Trade Association of Europe,
or RTAE, with change on day.
Month Offer Change
No. 3 R.S.S. Apr-11 370.00 +24.00
Oct-11 367.00 +22.50
TSR 20 Apr-11 354.00 +39.25
Oct-11 355.25 +38.50
or RTAE, with change on day.
Month Offer Change
No. 3 R.S.S. Apr-11 370.00 +24.00
Oct-11 367.00 +22.50
TSR 20 Apr-11 354.00 +39.25
Oct-11 355.25 +38.50
Asian Rubber Settles Higher; Thai Government Moves Boost
SINGAPORE (Dow Jones)--Asian rubber settled higher Thursday as recent moves by the Thai government and industry
players gave a leg up to prices, which fell sharply in March from record high levels in February mainly due to external
factors.
Benchmark August natural rubber futures on the Tokyo Commodity Exchange gained as much as 8.1% before settling 7.6%
higher at Y396.9 a kilogram.
Thai Deputy Prime Minister Suthep Thaugsuban said Monday the government will keep local USS3 rubber prices at
THB120/kg or more and that exporters will be asked to suspend shipments.
Traders are taking the statement as a cue to stockpile and to not try to push prices down, a trader in southern
Thailand said. "It's not that difficult to do that now anyway as it's the low-production season."
Thai unsmoked sheet 3-grade breached the THB120/kg set by the government at the central market auctions, giving
further support to Tocom rubber. USS3 arrivals at central markets fell to 3.5 metric tons Thursday at the central
markets--down from 122.5 tons Monday.
Suthep said there will be another official meeting Monday to discuss the export halt, the Bangkok Post reported
Wednesday.
Leaders of the Rubber Growers Cooperative Federation of Thailand will meet Prime Minister Abhisit Vejjajiva next week
to ask the government to intervene in the issue of falling rubber prices, the Bangkok Post reported Thursday.
The Thai government, through the International Rubber Consortium, has asked Indonesia and Malaysia to maintain prices
as well, International Rubber Consortium acting Chief Executive Yium Tavarolit said Thursday.
August Tocom rubber closed Y12.2 or 3.1% higher at Y409.1/kg in the night session, which is considered part of the
next day's trading.
Natural rubber on the Shanghai Futures Exchange settled 1.9% higher at CNY34,255/ton on bargain-hunting. Orient
Securities Futures analyst Lin Hui tipped nearby resistance at CNY35,000/ton on chart-based cues.
Ribbed smoked sheet 3-grade on the Singapore Commodity Exchange settled at 500 U.S. cents/kg, while technically
specified rubber 20-grade also settled sharply higher. Singapore-based dealers said there might have been some
short-covering going on.
Physical rubber prices were higher, in line with the price recovering on the futures markets.
Some big Thai exporters weren't offering, citing low raw material availability, uncertainty over price volatility amid
large price swings, and recent government announcements.
Exporting firms also got increasingly uncertain about entering into new deals given government calls for an export
halt.
"If we don't export, then what do we do? We are both producer and exporter," said an executive at a major exporter.
Some Malaysian producers were also not offering; "that should be the way; some China buyers are trying to back out of
deals done at higher prices earlier, they want to buy at the lower prices now. So they (producers) don't offer and these
buyers have to fulfill their contracts," said a Singapore-based dealer.
A trader in Sumatra said he sold so much rubber after strong gains Wednesday that he has nothing to offer Thursday, as
raw material arrivals were low amid the low-production season. "I have to start collecting raw material again before I
can sell," said the trader in Medan.
The current tight supply in major natural rubber producing countries will help support prices, after the market
plunged from record high levels following the earthquake and tsunami in Japan, the Malaysian Rubber Board said Thursday.
Asian Rubber Futures
March 17 Change from
previous settlement
Tocom Aug RSS3 Y396.9/kg Up Y27.9
Shanghai Sep SCR5 CNY34,255/ton Up CNY645
Thai Oct RSS3 THB139.5/kg Up THB7
Sicom Apr RSS3 500 U.S. cents/kg Up 41.3 cents
Sicom Apr TSR20 486 U.S. cents/kg Up 52 cents
Physical prices in Asia, quoted in U.S. cents/kg, free on board:
Grade Shipment March 17 March 16
Bids Offers Bids Offers
RSS3 Apr/May - - - 460-465
STR20 Apr/May - - - 415-420
SIR20 Apr/May - 485-486 - 420-430
SMR20 Apr/May - 490 - 425
USS3 Mar THB120.09-THB121.38/kg THB102.37-THB103.55/kg
players gave a leg up to prices, which fell sharply in March from record high levels in February mainly due to external
factors.
Benchmark August natural rubber futures on the Tokyo Commodity Exchange gained as much as 8.1% before settling 7.6%
higher at Y396.9 a kilogram.
Thai Deputy Prime Minister Suthep Thaugsuban said Monday the government will keep local USS3 rubber prices at
THB120/kg or more and that exporters will be asked to suspend shipments.
Traders are taking the statement as a cue to stockpile and to not try to push prices down, a trader in southern
Thailand said. "It's not that difficult to do that now anyway as it's the low-production season."
Thai unsmoked sheet 3-grade breached the THB120/kg set by the government at the central market auctions, giving
further support to Tocom rubber. USS3 arrivals at central markets fell to 3.5 metric tons Thursday at the central
markets--down from 122.5 tons Monday.
Suthep said there will be another official meeting Monday to discuss the export halt, the Bangkok Post reported
Wednesday.
Leaders of the Rubber Growers Cooperative Federation of Thailand will meet Prime Minister Abhisit Vejjajiva next week
to ask the government to intervene in the issue of falling rubber prices, the Bangkok Post reported Thursday.
The Thai government, through the International Rubber Consortium, has asked Indonesia and Malaysia to maintain prices
as well, International Rubber Consortium acting Chief Executive Yium Tavarolit said Thursday.
August Tocom rubber closed Y12.2 or 3.1% higher at Y409.1/kg in the night session, which is considered part of the
next day's trading.
Natural rubber on the Shanghai Futures Exchange settled 1.9% higher at CNY34,255/ton on bargain-hunting. Orient
Securities Futures analyst Lin Hui tipped nearby resistance at CNY35,000/ton on chart-based cues.
Ribbed smoked sheet 3-grade on the Singapore Commodity Exchange settled at 500 U.S. cents/kg, while technically
specified rubber 20-grade also settled sharply higher. Singapore-based dealers said there might have been some
short-covering going on.
Physical rubber prices were higher, in line with the price recovering on the futures markets.
Some big Thai exporters weren't offering, citing low raw material availability, uncertainty over price volatility amid
large price swings, and recent government announcements.
Exporting firms also got increasingly uncertain about entering into new deals given government calls for an export
halt.
"If we don't export, then what do we do? We are both producer and exporter," said an executive at a major exporter.
Some Malaysian producers were also not offering; "that should be the way; some China buyers are trying to back out of
deals done at higher prices earlier, they want to buy at the lower prices now. So they (producers) don't offer and these
buyers have to fulfill their contracts," said a Singapore-based dealer.
A trader in Sumatra said he sold so much rubber after strong gains Wednesday that he has nothing to offer Thursday, as
raw material arrivals were low amid the low-production season. "I have to start collecting raw material again before I
can sell," said the trader in Medan.
The current tight supply in major natural rubber producing countries will help support prices, after the market
plunged from record high levels following the earthquake and tsunami in Japan, the Malaysian Rubber Board said Thursday.
Asian Rubber Futures
March 17 Change from
previous settlement
Tocom Aug RSS3 Y396.9/kg Up Y27.9
Shanghai Sep SCR5 CNY34,255/ton Up CNY645
Thai Oct RSS3 THB139.5/kg Up THB7
Sicom Apr RSS3 500 U.S. cents/kg Up 41.3 cents
Sicom Apr TSR20 486 U.S. cents/kg Up 52 cents
Physical prices in Asia, quoted in U.S. cents/kg, free on board:
Grade Shipment March 17 March 16
Bids Offers Bids Offers
RSS3 Apr/May - - - 460-465
STR20 Apr/May - - - 415-420
SIR20 Apr/May - 485-486 - 420-430
SMR20 Apr/May - 490 - 425
USS3 Mar THB120.09-THB121.38/kg THB102.37-THB103.55/kg
Thai Rubber Futures Settle Limit-Up On Policy Moves
("MARKET TALK: Thai Rubber Futures Settle Limit-Up On Policy Moves," at 0955 GMT, misstakenly called the next session
the night session in the second sentence. There is no night session. The correct version follows:)
1008 GMT [Dow Jones] RSS3 rubber on the Agricultural Futures Exchange of Thailand settles limit-up as the Thai
government moves to shore up prices of the commodity by setting a floor price for local rubber, and reiterating calls
for an export ban. AFET is likely to be supported in the next session by concerns about the supply of raw material, say
traders. The benchmark AFET October RSS3 contract settles THB7 or 5.3% higher at THB139.5/kg. (huileng.tan@dowjones.com)
the night session in the second sentence. There is no night session. The correct version follows:)
1008 GMT [Dow Jones] RSS3 rubber on the Agricultural Futures Exchange of Thailand settles limit-up as the Thai
government moves to shore up prices of the commodity by setting a floor price for local rubber, and reiterating calls
for an export ban. AFET is likely to be supported in the next session by concerns about the supply of raw material, say
traders. The benchmark AFET October RSS3 contract settles THB7 or 5.3% higher at THB139.5/kg. (huileng.tan@dowjones.com)
Shanghai Rubber Futures Higher; More Upside Ahead
Shanghai Futures Exchange natural rubber settles higher on bargain-hunting after recent
declines; analysts say gains on Tocom also help SHFE; they tip more upside next session on continued dip-buying. Orient
Securities Futures analyst Lin Hui tips nearby resistance at CNY35,000/ton on chart-based cues. The new benchmark
September rubber settles CNY645, or 1.9%, higher at CNY34,255/ton.
declines; analysts say gains on Tocom also help SHFE; they tip more upside next session on continued dip-buying. Orient
Securities Futures analyst Lin Hui tips nearby resistance at CNY35,000/ton on chart-based cues. The new benchmark
September rubber settles CNY645, or 1.9%, higher at CNY34,255/ton.
Japan March 10 Natural Rubber Stocks 6.9% Lower In 10 Days -Association
SINGAPORE (Dow Jones)--Natural rubber stocks in Japan totaled 7,568 metric tons on March 10, down 6.9% from 8,133 tons
on Feb. 28, according to data issued Thursday by the Rubber Trade Association of Japan.
Natural latex stocks fell slightly to 363 tons from 367 tons, while solid synthetic rubber stocks fell to 1,665 tons
from 1,733 tons.
The association didn't provide reasons for the changes.
on Feb. 28, according to data issued Thursday by the Rubber Trade Association of Japan.
Natural latex stocks fell slightly to 363 tons from 367 tons, while solid synthetic rubber stocks fell to 1,665 tons
from 1,733 tons.
The association didn't provide reasons for the changes.
Thai Government Moves Boost Natural Rubber Prices
By Huileng Tan
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)--Recent moves by Thailand, the world's largest natural rubber producer and exporter, have shored
up the commodity's prices, which fell sharply this month from record high levels in February.
The Thai government, through the International Rubber Consortium, has asked Indonesia and Malaysia to maintain prices
after Thailand announced a minimum price for the commodity, IRCo acting Chief Executive Yium Tavarolit said Thursday.
IRCo comprises officials and exporters from Thailand, Indonesia and Malaysia, which collectively account for about 70%
of global natural rubber output.
Yium said the three members have agreed to work together on any potential price control measures, which could include
export suspension below a certain price level.
In late 2008, IRCo members had decided to reduce supply in 2009, but the measure didn't kick in as prices recovered.
Yium said Tuesday that the three countries would meet this week to discuss measures to stem falling prices, but that
meeting is now on hold as prices have recovered somewhat and as the Thai authorities hold their own meeting first.
Meanwhile, the Thai authorities and industry players have also been taking steps to support the market. Thailand
accounts for about one-third of global rubber output.
Deputy Prime Minister Suthep Thaugsuban Monday pledged to maintain local rubber prices at no less than THB120 a
kilogram. He also urged suspension of exports and is calling for a meeting of agencies Monday to discuss the measure,
the Bangkok Post reported Wednesday.
Meanwhile, leaders of the Rubber Growers Cooperative Federation of Thailand will meet Prime Minister Abhisit Vejjajiva
next week to ask the government to intervene in the issue of falling rubber prices, the paper said Thursday.
Yium said agricultural authorities in Thailand will also meet soon to discuss the issue of price controls before
contacting Indonesia and Malaysia.
IRCo said Wednesday it is also setting up a joint working group with the China Rubber Industry Association to counter
price volatility. China is the world's largest consumer and importer of the commodity.
The moves by Thailand have boosted prices, with Thai unsmoked sheet 3-grade rubber breaching the THB120/kg level
Thursday at the central markets versus THB89.00-THB102.59/kg Monday.
Traders and farmers are also taking cues from Suthep's statement to stockpile the commodity and to not try to push
prices down, said a trader in southern Thailand.
This sent USS3 arrivals down to 3.5 metric tons Thursday at the central markets--down from 122.5 tons Monday.
On the bellwether Tokyo Commodity Exchange, whose benchmark contract rubber price has been recovering since Wednesday,
the August contract settled at Y396.9/kg Thursday, off a fourth-month low of Y335 Tuesday.
Tocom rubber prices hit a record high of Y535.7/kg on Feb. 18 before sliding sharply, as market sentiment was damped
by geopolitical tensions in the Middle East, tightening fears in China and the earthquake and tsunami in Japan, despite
the fact that major producing countries are in the low-production season.
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)--Recent moves by Thailand, the world's largest natural rubber producer and exporter, have shored
up the commodity's prices, which fell sharply this month from record high levels in February.
The Thai government, through the International Rubber Consortium, has asked Indonesia and Malaysia to maintain prices
after Thailand announced a minimum price for the commodity, IRCo acting Chief Executive Yium Tavarolit said Thursday.
IRCo comprises officials and exporters from Thailand, Indonesia and Malaysia, which collectively account for about 70%
of global natural rubber output.
Yium said the three members have agreed to work together on any potential price control measures, which could include
export suspension below a certain price level.
In late 2008, IRCo members had decided to reduce supply in 2009, but the measure didn't kick in as prices recovered.
Yium said Tuesday that the three countries would meet this week to discuss measures to stem falling prices, but that
meeting is now on hold as prices have recovered somewhat and as the Thai authorities hold their own meeting first.
Meanwhile, the Thai authorities and industry players have also been taking steps to support the market. Thailand
accounts for about one-third of global rubber output.
Deputy Prime Minister Suthep Thaugsuban Monday pledged to maintain local rubber prices at no less than THB120 a
kilogram. He also urged suspension of exports and is calling for a meeting of agencies Monday to discuss the measure,
the Bangkok Post reported Wednesday.
Meanwhile, leaders of the Rubber Growers Cooperative Federation of Thailand will meet Prime Minister Abhisit Vejjajiva
next week to ask the government to intervene in the issue of falling rubber prices, the paper said Thursday.
Yium said agricultural authorities in Thailand will also meet soon to discuss the issue of price controls before
contacting Indonesia and Malaysia.
IRCo said Wednesday it is also setting up a joint working group with the China Rubber Industry Association to counter
price volatility. China is the world's largest consumer and importer of the commodity.
The moves by Thailand have boosted prices, with Thai unsmoked sheet 3-grade rubber breaching the THB120/kg level
Thursday at the central markets versus THB89.00-THB102.59/kg Monday.
Traders and farmers are also taking cues from Suthep's statement to stockpile the commodity and to not try to push
prices down, said a trader in southern Thailand.
This sent USS3 arrivals down to 3.5 metric tons Thursday at the central markets--down from 122.5 tons Monday.
On the bellwether Tokyo Commodity Exchange, whose benchmark contract rubber price has been recovering since Wednesday,
the August contract settled at Y396.9/kg Thursday, off a fourth-month low of Y335 Tuesday.
Tocom rubber prices hit a record high of Y535.7/kg on Feb. 18 before sliding sharply, as market sentiment was damped
by geopolitical tensions in the Middle East, tightening fears in China and the earthquake and tsunami in Japan, despite
the fact that major producing countries are in the low-production season.
Tocom Rubber Settles Higher; May Test Y400/Kg
Tocom RSS3 rubber futures settle higher after gaining as much as 8.1% intraday; the
recovering physical market is supporting Tocom, as the Thai government pledges support for prices by calling for minimum
prices and even an export halt after prices fell sharply last month due to external factors. "Tocom may test Y400/kg if
physical prices holds up above THB120/kg," says a Thailand-based trader, referring to the Thai government's minimum set
price level for local rubber prices. Tocom may still be weighed by pre-weekend profit-taking Friday, particularly if
the nuclear situation in Japan remains uncertain. The benchmark Tocom August contract settles Y27.9 or 7.6% higher at
Y396.9/kg, off the intraday high of Y399/kg.
recovering physical market is supporting Tocom, as the Thai government pledges support for prices by calling for minimum
prices and even an export halt after prices fell sharply last month due to external factors. "Tocom may test Y400/kg if
physical prices holds up above THB120/kg," says a Thailand-based trader, referring to the Thai government's minimum set
price level for local rubber prices. Tocom may still be weighed by pre-weekend profit-taking Friday, particularly if
the nuclear situation in Japan remains uncertain. The benchmark Tocom August contract settles Y27.9 or 7.6% higher at
Y396.9/kg, off the intraday high of Y399/kg.
Sicom Rubber Futures Up; Thai Raw Material Recovers
Sicom rubber futures up midday, as the Thai government and industry players move quickly to
shore up prices following an exacerbated slide in prices after the earthquake and tsunami in Japan; the price of the raw
material USS3 in Thailand has risen back above the minimum THB120/kg level that the government has pledged to maintain.
The benchmark Sicom April RSS3 contract trades 23.3 U.S. cents higher at 482 cents/kg. The April TSR20 contract is up
25 cents at 459 cents/kg.
shore up prices following an exacerbated slide in prices after the earthquake and tsunami in Japan; the price of the raw
material USS3 in Thailand has risen back above the minimum THB120/kg level that the government has pledged to maintain.
The benchmark Sicom April RSS3 contract trades 23.3 U.S. cents higher at 482 cents/kg. The April TSR20 contract is up
25 cents at 459 cents/kg.
Korea Kumho Petrochem To Set Up JV With JG Summit - Yonhap
(Dow Jones)--Korea Kumho Petrochemical Co. (011780.SE) has signed a deal with JG Summit Petrochemical Corp.
(JGSPC) of the Philippines to set up a joint venture to build a butadiene plant, Yonhap news agency reported Thursday,
citing the Korean company.
The 50-50 joint venture to be built at Bantangas, about 110 km south of Manila, will help the South Korean company
expand its source of procurement of raw materials used in synthetic rubber, the report said.
In February, Korea Kumho Petrochemical completed the expansion of its high butadiene rubber plant in Yeosu, raising
its production capacity to 287,000 tons a year from 167,000 tons earlier, it said.
(JGSPC) of the Philippines to set up a joint venture to build a butadiene plant, Yonhap news agency reported Thursday,
citing the Korean company.
The 50-50 joint venture to be built at Bantangas, about 110 km south of Manila, will help the South Korean company
expand its source of procurement of raw materials used in synthetic rubber, the report said.
In February, Korea Kumho Petrochemical completed the expansion of its high butadiene rubber plant in Yeosu, raising
its production capacity to 287,000 tons a year from 167,000 tons earlier, it said.
Tocom Rubber Higher As Physical Market Gains
Tocom RSS3 rubber futures rise as prices rise in the Thai physical market Thursday, with USS3
prices breaching the THB120/kg minimum levelvset by the government. The world's largest producer, Thailand is also
taking steps to shore up natural rubber prices amid a price slide in the last month; industry officials are expected to
meet government leaders soon to discuss measures. "If physical prices go up more, I think Tocom will gain further," says
a trader in southern Thailand. Thai Rubber Association chairman Luckchai Kittipol said earlier this week that
fundamentals point to Tocom rubber moving to Y400/kg "soon." The benchmark Tocom August contract trades Y28.2 higher at
Y397.2/kg.
prices breaching the THB120/kg minimum levelvset by the government. The world's largest producer, Thailand is also
taking steps to shore up natural rubber prices amid a price slide in the last month; industry officials are expected to
meet government leaders soon to discuss measures. "If physical prices go up more, I think Tocom will gain further," says
a trader in southern Thailand. Thai Rubber Association chairman Luckchai Kittipol said earlier this week that
fundamentals point to Tocom rubber moving to Y400/kg "soon." The benchmark Tocom August contract trades Y28.2 higher at
Y397.2/kg.
Thai USS3 Rubber Prices Up; Stockpiling
Physical prices of Thai USS3 rubber rise to THB120.09-THB121.38/kg vs THB102.37-THB103.55/kg
yesterday, as prices find upside amid government support to maintain prices at a minimum level of THB120/kg. Sellers
also stockpiling; arrivals fall to below 5 tons with nothing sold at Surat Thani. "There are many bids today because
prices are still pretty low compared with previous record high levels," says a trader. Outside the central markets,
factories are paying THB110-THB125/kg. Sales in Thailand's three central markets total around 3.5 tons Thursday versus
9.22 tons yesterday: 2.9 tons in Hat Yai, 0.6 tons in Chandee.
yesterday, as prices find upside amid government support to maintain prices at a minimum level of THB120/kg. Sellers
also stockpiling; arrivals fall to below 5 tons with nothing sold at Surat Thani. "There are many bids today because
prices are still pretty low compared with previous record high levels," says a trader. Outside the central markets,
factories are paying THB110-THB125/kg. Sales in Thailand's three central markets total around 3.5 tons Thursday versus
9.22 tons yesterday: 2.9 tons in Hat Yai, 0.6 tons in Chandee.
Thailand Asks Indonesia, Malaysia To Maintain Rubber Prices -IRCo
The Thai government via the International Rubber Consortium has asked Indonesia and Malaysia to
set minimum levels for rubber prices after Thailand announced a similar move, IRCo acting Chief Executive Yium
Tavarolit said Thursday.
Yium said that the three IRCo member countries have agreed to work together on any potential price-control measures.
Thailand Monday pledged to maintain local rubber prices at no less than THB120 a kilogram, amid a sharp slide in
prices from record highs in February.
Yium said that agricultural authorities in Thailand will meet this week to discuss the issue of the price controls
before contacting Indonesia and Malaysia.
Thailand, Indonesia and Malaysia account for about 70% of global natural rubber production.
set minimum levels for rubber prices after Thailand announced a similar move, IRCo acting Chief Executive Yium
Tavarolit said Thursday.
Yium said that the three IRCo member countries have agreed to work together on any potential price-control measures.
Thailand Monday pledged to maintain local rubber prices at no less than THB120 a kilogram, amid a sharp slide in
prices from record highs in February.
Yium said that agricultural authorities in Thailand will meet this week to discuss the issue of the price controls
before contacting Indonesia and Malaysia.
Thailand, Indonesia and Malaysia account for about 70% of global natural rubber production.
Wednesday, March 16, 2011
Dow Corning and the Centre for Vision in the Developing World Launch Children's Vision Correction Initiative
OXFORD, United Kingdom--(BUSINESS WIRE)--March 16, 2011--
Dow Corning, a global leader in silicon-based technology, and the Centre for Vision in the Developing World (CVDW) are
jointly announcing a collaboration to create an innovative new way to help correct the vision of children in the
developing world. Dow Corning has committed US $3 million of funding and materials expertise to the CVDW as part of this
collaboration to launch an initiative called Child ViSion(TM).
The Child ViSion(TM) initiative will design, manufacture and distribute a child-specific version of self-adjustable
eyeglasses to children in the developing world. (Photo: Business Wire)
The Child ViSion(TM) initiative will design, manufacture and distribute a child-specific version of self-adjustable
eyeglasses to children in the developing world. The aim is to increase the effectiveness of classroom-based education by
improving children's ability to see the blackboard from which they are being taught.
"There are 100 million children or more in the developing world who need glasses to benefit fully from their education
in the classroom. This problem arises principally because there are too few eye care professionals in the developing
world," said Prof. Josh Silver, Oxford University physicist, founder and director of the CVDW, and inventor of the
world's first universal fluid-filled adjustable eyeglasses. "Through this collaboration with Dow Corning, CVDW can now
expand our efforts to provide eyeglasses to the children who need them for their education."
The goal of the CVDW, a United Kingdom-based Community Interest Company, is to improve vision for people in the
developing world who lack access to adequate vision correction.
"This collaboration between Dow Corning and the Centre for Vision in the Developing World will combine our expertise
to help bring improved vision correction to children in desperate need," said Stephanie A. Burns, Chairman and CEO of
Dow Corning.
Through Child ViSion(TM), Dow Corning will work with the CVDW to explore how self-adjustable eyeglasses can be
designed specifically for the needs of children so that the glasses are able to withstand daily use, are light weight
and look more appealing, which will increase the likelihood that they will be worn. Another key element of the
initiative will be to ensure the design can be scaled up to mass-production levels, which includes lowering the cost of
production.
"Dow Corning fluids played a critical role in Prof. Silver's pioneering self-adjustable glasses, which have already
provided vision correction to approximately 40,000 people in more than 20 countries," said James Stephenson, Dow Corning
global Healthcare marketing manager and leader of the Child ViSion(TM) initiative at Dow Corning. "We are excited to
further our relationship with the CVDW and to see how our silicon-based technologies can now improve vision correction
and the quality of life for children in the developing world."
To learn more about Child ViSion(TM), visit dowcorning.com/childvision.
Join the Child ViSion(TM) discussion on Twitter by following #hcvision
Editor's Note
Prof. Silver's original self-adjustable glasses contain special lenses composed of clear membranes that are filled
with Dow Corning silicone fluid. By adding or removing fluid via a removable syringe and dial attached to the glasses'
frame, wearers can modify the curvature of the lenses and therefore the strength of their glasses. The glasses are
designed to provide vision correction for myopia (nearsightedness), hyperopia (farsightedness) and presbyopia (inability
to focus on near objects).
About Dow Corning
Dow Corning (dowcorning.com) provides performance-enhancing solutions to serve the diverse needs of more than 25,000
customers worldwide. A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than
7,000 products and services via the company's Dow Corning(R) and XIAMETER(R) (xiameter.com) brands. Dow Corning is
equally owned by The Dow Chemical Company and Corning, Incorporated. More than half of Dow Corning's annual sales are
outside the United States. Dow Corning's global operations adhere to the American Chemistry Council's Responsible
Care(R) initiative, a stringent set of standards designed to advance the safe and secure management of chemical products
and processes.
About the Centre for Vision in the Developing World
The Centre for Vision in the Developing World (CVDW) believes everyone, no matter where they are in the world, should
have access to vision correction. The Centre is working on a number of projects and has an ambitious vision for the
future - one billion people to get the glasses they need but to which they lack access by 2020.
Dow Corning, a global leader in silicon-based technology, and the Centre for Vision in the Developing World (CVDW) are
jointly announcing a collaboration to create an innovative new way to help correct the vision of children in the
developing world. Dow Corning has committed US $3 million of funding and materials expertise to the CVDW as part of this
collaboration to launch an initiative called Child ViSion(TM).
The Child ViSion(TM) initiative will design, manufacture and distribute a child-specific version of self-adjustable
eyeglasses to children in the developing world. (Photo: Business Wire)
The Child ViSion(TM) initiative will design, manufacture and distribute a child-specific version of self-adjustable
eyeglasses to children in the developing world. The aim is to increase the effectiveness of classroom-based education by
improving children's ability to see the blackboard from which they are being taught.
"There are 100 million children or more in the developing world who need glasses to benefit fully from their education
in the classroom. This problem arises principally because there are too few eye care professionals in the developing
world," said Prof. Josh Silver, Oxford University physicist, founder and director of the CVDW, and inventor of the
world's first universal fluid-filled adjustable eyeglasses. "Through this collaboration with Dow Corning, CVDW can now
expand our efforts to provide eyeglasses to the children who need them for their education."
The goal of the CVDW, a United Kingdom-based Community Interest Company, is to improve vision for people in the
developing world who lack access to adequate vision correction.
"This collaboration between Dow Corning and the Centre for Vision in the Developing World will combine our expertise
to help bring improved vision correction to children in desperate need," said Stephanie A. Burns, Chairman and CEO of
Dow Corning.
Through Child ViSion(TM), Dow Corning will work with the CVDW to explore how self-adjustable eyeglasses can be
designed specifically for the needs of children so that the glasses are able to withstand daily use, are light weight
and look more appealing, which will increase the likelihood that they will be worn. Another key element of the
initiative will be to ensure the design can be scaled up to mass-production levels, which includes lowering the cost of
production.
"Dow Corning fluids played a critical role in Prof. Silver's pioneering self-adjustable glasses, which have already
provided vision correction to approximately 40,000 people in more than 20 countries," said James Stephenson, Dow Corning
global Healthcare marketing manager and leader of the Child ViSion(TM) initiative at Dow Corning. "We are excited to
further our relationship with the CVDW and to see how our silicon-based technologies can now improve vision correction
and the quality of life for children in the developing world."
To learn more about Child ViSion(TM), visit dowcorning.com/childvision.
Join the Child ViSion(TM) discussion on Twitter by following #hcvision
Editor's Note
Prof. Silver's original self-adjustable glasses contain special lenses composed of clear membranes that are filled
with Dow Corning silicone fluid. By adding or removing fluid via a removable syringe and dial attached to the glasses'
frame, wearers can modify the curvature of the lenses and therefore the strength of their glasses. The glasses are
designed to provide vision correction for myopia (nearsightedness), hyperopia (farsightedness) and presbyopia (inability
to focus on near objects).
About Dow Corning
Dow Corning (dowcorning.com) provides performance-enhancing solutions to serve the diverse needs of more than 25,000
customers worldwide. A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than
7,000 products and services via the company's Dow Corning(R) and XIAMETER(R) (xiameter.com) brands. Dow Corning is
equally owned by The Dow Chemical Company and Corning, Incorporated. More than half of Dow Corning's annual sales are
outside the United States. Dow Corning's global operations adhere to the American Chemistry Council's Responsible
Care(R) initiative, a stringent set of standards designed to advance the safe and secure management of chemical products
and processes.
About the Centre for Vision in the Developing World
The Centre for Vision in the Developing World (CVDW) believes everyone, no matter where they are in the world, should
have access to vision correction. The Centre is working on a number of projects and has an ambitious vision for the
future - one billion people to get the glasses they need but to which they lack access by 2020.
France Calls For G-7, G-20 Meetings On Japan Crisis
PARIS (Dow Jones)--France called Wednesday for a meeting of finance ministers of the Group of Seven leading nations to
assess the consequences of the Japanese crisis on markets, as well as a meeting of energy and economy ministers of the
Group of 20 industrial and developing nations , to foster international cooperation on energy.
French Finance Minister Christine Lagarde said finance ministers and central bankers from the G-7 countries--the U.S.,
Japan, the U.K., France, Canada, Italy and Germany--would discuss ways to support Japan's response to the crisis,
including the potential purchase of Japanese bonds.
"I've asked for a meeting of G-7 finance ministers and central bankers to see how we can buy [Japanese] bond issues
and how we can react on a financial level," Lagarde said coming out of the weekly cabinet meeting in the Elysee
courtyard.
French President Nicolas Sarkozy said he will call for a meeting of energy and economy ministers of the G-20 in the
coming weeks to review options for the global energy mix.
A French government official said the G-7 meeting will take the form of a conference call, and will happen before the
end of the week, although he noted that it is too early to assess the consequences of the Japanese crisis on the world
economy.
The G-20 meeting could happen before the one planned in Washington on April 14-15, though the schedule could be tight,
considering G-20 finance ministers and central bankers are also due to meet in Nanjing, China, soon, the official said.
Sarkozy took a strong stance in favor of nuclear energy. The country, he said, remains committed to nuclear power, on
which it depends for about two-thirds of its energy needs, and isn't planning to stop any of its 58 reactors, although
a thorough check will be carried out on all of the country's nuclear plants.
"France has made the choice of nuclear energy, which is key to its energy independence and in the fight against
greenhouse gases... I remain today convinced of the pertinence of this choice," Sarkozy said in a statement. "The
lessons from the Fukushima accident will be drawn with a complete review of security systems of our nuclear plants. This
work will be made public," he said.
assess the consequences of the Japanese crisis on markets, as well as a meeting of energy and economy ministers of the
Group of 20 industrial and developing nations , to foster international cooperation on energy.
French Finance Minister Christine Lagarde said finance ministers and central bankers from the G-7 countries--the U.S.,
Japan, the U.K., France, Canada, Italy and Germany--would discuss ways to support Japan's response to the crisis,
including the potential purchase of Japanese bonds.
"I've asked for a meeting of G-7 finance ministers and central bankers to see how we can buy [Japanese] bond issues
and how we can react on a financial level," Lagarde said coming out of the weekly cabinet meeting in the Elysee
courtyard.
French President Nicolas Sarkozy said he will call for a meeting of energy and economy ministers of the G-20 in the
coming weeks to review options for the global energy mix.
A French government official said the G-7 meeting will take the form of a conference call, and will happen before the
end of the week, although he noted that it is too early to assess the consequences of the Japanese crisis on the world
economy.
The G-20 meeting could happen before the one planned in Washington on April 14-15, though the schedule could be tight,
considering G-20 finance ministers and central bankers are also due to meet in Nanjing, China, soon, the official said.
Sarkozy took a strong stance in favor of nuclear energy. The country, he said, remains committed to nuclear power, on
which it depends for about two-thirds of its energy needs, and isn't planning to stop any of its 58 reactors, although
a thorough check will be carried out on all of the country's nuclear plants.
"France has made the choice of nuclear energy, which is key to its energy independence and in the fight against
greenhouse gases... I remain today convinced of the pertinence of this choice," Sarkozy said in a statement. "The
lessons from the Fukushima accident will be drawn with a complete review of security systems of our nuclear plants. This
work will be made public," he said.
Toyota Extends Car Assembly Production Halt But Some Plants Resume Works
TOKYO (Dow Jones)--Toyota Motor Corp. (7203.TO) and some other major Japanese auto makers extended halts on local
vehicle production through next week but some automotive plants began to slowly turn the engines back on after
suspending operations in the wake of last week's destructive earthquake.
Toyota said Wednesday it will continue to suspend all auto assembly production in Japan until Tuesday as it is working
to procure parts and while some employees were still unable to return to work.
But in a sign that operations could soon return to normal, Toyota said it would resume production of replacement parts
at seven plants in Japan to supply for the domestic market from Thursday.
These plants will also start production of parts to supply to Toyota's overseas factories from Monday.
The world's largest auto maker by sales had earlier suspended production at all its 12 factories in Japan through
Wednesday.
Most of Japan's auto makers halted domestic production after Friday's massive earthquake and ensuing tsunami as they
grappled with supply shortages, damaged facilities and rolling power outages. Uncertainties over the procurement of
supplies and continued disruptions wrought by the disaster and an ensuing nuclear crisis are still holding up some
manufacturers from resuming full production.
Suzuki Motor Corp. (7269.TO), which had halted operations through Wednesday, said it will continue to suspend
production until Monday joining Honda Motor Co. (7267.TO), Mazda Motor Corp. (7261.TO) and Isuzu Motor Ltd. which are
keeping their domestic plants closed through at least Sunday.
Meanwhile, Nissan Motor Co. (7201.TO) said Wednesday that it will resume part of its production in Japan Thursday and
Friday. The car maker said it will run output lines at two of its domestic auto assembly plants on those two days by
using remaining parts. But operations at the two plants from Saturday are yet to be decided, Nissan said.
Operations at three other vehicle assembly plants in Japan, including a damaged plant located in Tochigi close to the
quake-struck area, will be halted until Sunday, Nissan said.
The car maker expects to take even longer for an engine plant in the Fukushima Prefecture -- even closer to the
quake-hit area and the site of a troubled nuclear power plant -- to restore its operations.
Mitsubishi Motors Corp. (7211.TO), which had also suspended operations for Monday and Tuesday, resumed domestic
production Wednesday and planned to also operate its three plants Thursday.
Mitsubishi Motors has said it will decide whether to continue production from Friday, depending on its ability to
procure sufficient parts.
Toyota's auto part plants resuming operations are its Honsha, Kamigo and Hirose plants in Toyota city and Miyoshi,
Miyouchi,Shimoyama and Kinuura plants in Aichi Prefecture, central Japan.
These factories produce engines, hybrid system parts, transmission/engine-related parts, power train-related
suspension cast/machined parts, electric control devices among other parts.
Earlier, Bridgestone Corp. (5108.TO), one of the world's largest tire makers, said it would resume production at three
of its Japanese plants Wednesday and plans to use power generators to keep those factories running amid the country's
rolling blackouts.
The tire maker said its Tochigi, Nasu and Kuroiso factories will restart after a safety team determined that none of
the facilities were damaged. The plants produce a variety of car, truck, bus and motorcycle tires.
Bridgestone's Tokyo factory resumed production Tuesday, the company said in a statement. Tire shipments are also
expected to begin at all the plants on Friday. Bridgestone said production of bus and truck tires are a priority since
they will be in large demand in the devastated areas.
The global auto industry is closely monitoring what is happening in Japan since any major disruption in part
shipments, such as tires, has the potential of shutting down plants around the world.
The auto industry operates on just-in-time delivery, meaning parts arrive at plants hours before they are need on the
production line. The approach saves auto makers money by keeping inventory off their factory floors, but leaves them
vulnerable amid part flow disruptions.
Toyota dealerships in the U.S. have expressed concerns about the supply of Prius hybrids, which are made in Japan. The
recent surge in gasoline prices has driven demand for the car in the U.S., and some dealers were running out of stock.
The Automotive Components Manufacturers Association of India Wednesday said that India's auto parts makers usually
stock critical components for two to four weeks' requirements and that the industry body was hopeful of things
normalizing before that.
"There can be an indirect impact after four weeks. If auto makers don't get the components they buy directly from
Japan, then it can stall manufacturing operations and impact Indian parts makers as well," Vinnie Mehta, executive
director at the industry lobby group, told Dow Jones Newswires.
-By Yoshio Takahashi, Dow Jones Newswires; 813-6269-2791; yoshio.takahashi@dowjones.com
-Nikhil Gulati in New Delhi and Jeff Bennett of The Wall Street Journal contributed to this article.
vehicle production through next week but some automotive plants began to slowly turn the engines back on after
suspending operations in the wake of last week's destructive earthquake.
Toyota said Wednesday it will continue to suspend all auto assembly production in Japan until Tuesday as it is working
to procure parts and while some employees were still unable to return to work.
But in a sign that operations could soon return to normal, Toyota said it would resume production of replacement parts
at seven plants in Japan to supply for the domestic market from Thursday.
These plants will also start production of parts to supply to Toyota's overseas factories from Monday.
The world's largest auto maker by sales had earlier suspended production at all its 12 factories in Japan through
Wednesday.
Most of Japan's auto makers halted domestic production after Friday's massive earthquake and ensuing tsunami as they
grappled with supply shortages, damaged facilities and rolling power outages. Uncertainties over the procurement of
supplies and continued disruptions wrought by the disaster and an ensuing nuclear crisis are still holding up some
manufacturers from resuming full production.
Suzuki Motor Corp. (7269.TO), which had halted operations through Wednesday, said it will continue to suspend
production until Monday joining Honda Motor Co. (7267.TO), Mazda Motor Corp. (7261.TO) and Isuzu Motor Ltd. which are
keeping their domestic plants closed through at least Sunday.
Meanwhile, Nissan Motor Co. (7201.TO) said Wednesday that it will resume part of its production in Japan Thursday and
Friday. The car maker said it will run output lines at two of its domestic auto assembly plants on those two days by
using remaining parts. But operations at the two plants from Saturday are yet to be decided, Nissan said.
Operations at three other vehicle assembly plants in Japan, including a damaged plant located in Tochigi close to the
quake-struck area, will be halted until Sunday, Nissan said.
The car maker expects to take even longer for an engine plant in the Fukushima Prefecture -- even closer to the
quake-hit area and the site of a troubled nuclear power plant -- to restore its operations.
Mitsubishi Motors Corp. (7211.TO), which had also suspended operations for Monday and Tuesday, resumed domestic
production Wednesday and planned to also operate its three plants Thursday.
Mitsubishi Motors has said it will decide whether to continue production from Friday, depending on its ability to
procure sufficient parts.
Toyota's auto part plants resuming operations are its Honsha, Kamigo and Hirose plants in Toyota city and Miyoshi,
Miyouchi,Shimoyama and Kinuura plants in Aichi Prefecture, central Japan.
These factories produce engines, hybrid system parts, transmission/engine-related parts, power train-related
suspension cast/machined parts, electric control devices among other parts.
Earlier, Bridgestone Corp. (5108.TO), one of the world's largest tire makers, said it would resume production at three
of its Japanese plants Wednesday and plans to use power generators to keep those factories running amid the country's
rolling blackouts.
The tire maker said its Tochigi, Nasu and Kuroiso factories will restart after a safety team determined that none of
the facilities were damaged. The plants produce a variety of car, truck, bus and motorcycle tires.
Bridgestone's Tokyo factory resumed production Tuesday, the company said in a statement. Tire shipments are also
expected to begin at all the plants on Friday. Bridgestone said production of bus and truck tires are a priority since
they will be in large demand in the devastated areas.
The global auto industry is closely monitoring what is happening in Japan since any major disruption in part
shipments, such as tires, has the potential of shutting down plants around the world.
The auto industry operates on just-in-time delivery, meaning parts arrive at plants hours before they are need on the
production line. The approach saves auto makers money by keeping inventory off their factory floors, but leaves them
vulnerable amid part flow disruptions.
Toyota dealerships in the U.S. have expressed concerns about the supply of Prius hybrids, which are made in Japan. The
recent surge in gasoline prices has driven demand for the car in the U.S., and some dealers were running out of stock.
The Automotive Components Manufacturers Association of India Wednesday said that India's auto parts makers usually
stock critical components for two to four weeks' requirements and that the industry body was hopeful of things
normalizing before that.
"There can be an indirect impact after four weeks. If auto makers don't get the components they buy directly from
Japan, then it can stall manufacturing operations and impact Indian parts makers as well," Vinnie Mehta, executive
director at the industry lobby group, told Dow Jones Newswires.
-By Yoshio Takahashi, Dow Jones Newswires; 813-6269-2791; yoshio.takahashi@dowjones.com
-Nikhil Gulati in New Delhi and Jeff Bennett of The Wall Street Journal contributed to this article.
India Rubber Prices May Hit New High On Tight Supply, Firm Demand
MUMBAI (Dow Jones)--India's natural rubber prices, which fell 23% from its peak last month, have started recovering
and may touch a new high in coming months on expectations of a slowdown in supplies and firm demand from tire makers,
analysts and traders said Wednesday.
The most-traded RSS-4 (ribbed, smoked, sheets) grade rubber hit an all-time high of INR240.50 a kilogram in February,
but fell thereafter due to higher output. The price of RSS-4 variety declined to a five-month low of INR185/kg Monday
after prices crashed on the Tokyo Commodity Exchange following the earthquake and tsunami in Japan.
However, a rebound in Asian rubber futures is helping Indian prices rise again and the most-traded variety is now at
INR201/kg. The benchmark August Tocom rubber settled 4.5% higher at Y369/kg, as investors covered short positions and
hunted for bargains.
The Association of Natural Rubber Producing Countries said Tuesday global rubber demand won't be significantly
impacted by the earthquake in Japan last Friday.
In India, prices may hit a new high in the next three to six months, said Anand James, chief analyst with Geojit
Comtrade Ltd.
"We are moving into a dry season, where local production will be lower," he said.
In India, the world's fourth-largest producer of natural rubber, the peak tapping season is between October and
February. Normally, rubber tapping slows down during the summer season as excess heat prevents growers from tapping the
latex from rubber trees.
The country is the world's second-largest consumer of natural rubber and tire makers account for more than 60% of the
total consumption.
Traders said supply has declined significantly in the local market as growers aren't selling at after the sharp fall
in prices.
Daily arrivals have come down to about 100-150 tons, compared with 400-450 tons in January, said Biju John, a large
trader in Kottayam, a major trading hub in the southern Indian state of Kerala.
The state-run Rubber Board has also lowered India's output estimate in the marketing year through March to 851,000
tons from its earlier forecast of 893,000 tons.
and may touch a new high in coming months on expectations of a slowdown in supplies and firm demand from tire makers,
analysts and traders said Wednesday.
The most-traded RSS-4 (ribbed, smoked, sheets) grade rubber hit an all-time high of INR240.50 a kilogram in February,
but fell thereafter due to higher output. The price of RSS-4 variety declined to a five-month low of INR185/kg Monday
after prices crashed on the Tokyo Commodity Exchange following the earthquake and tsunami in Japan.
However, a rebound in Asian rubber futures is helping Indian prices rise again and the most-traded variety is now at
INR201/kg. The benchmark August Tocom rubber settled 4.5% higher at Y369/kg, as investors covered short positions and
hunted for bargains.
The Association of Natural Rubber Producing Countries said Tuesday global rubber demand won't be significantly
impacted by the earthquake in Japan last Friday.
In India, prices may hit a new high in the next three to six months, said Anand James, chief analyst with Geojit
Comtrade Ltd.
"We are moving into a dry season, where local production will be lower," he said.
In India, the world's fourth-largest producer of natural rubber, the peak tapping season is between October and
February. Normally, rubber tapping slows down during the summer season as excess heat prevents growers from tapping the
latex from rubber trees.
The country is the world's second-largest consumer of natural rubber and tire makers account for more than 60% of the
total consumption.
Traders said supply has declined significantly in the local market as growers aren't selling at after the sharp fall
in prices.
Daily arrivals have come down to about 100-150 tons, compared with 400-450 tons in January, said Biju John, a large
trader in Kottayam, a major trading hub in the southern Indian state of Kerala.
The state-run Rubber Board has also lowered India's output estimate in the marketing year through March to 851,000
tons from its earlier forecast of 893,000 tons.
RATE London Rubber Price - Mar 16
LONDON (Dow Jones)--Daily London rubber prices in euro cents a kilogram from the Rubber Trade Association of Europe,
or RTAE, with change on day.
Month Offer Change
No. 3 R.S.S. Apr-11 346.00 +21.50
Oct-11 344.50 +25.50
TSR 20 Apr-11 314.75 +17.25
Oct-11 316.75 +18.00
or RTAE, with change on day.
Month Offer Change
No. 3 R.S.S. Apr-11 346.00 +21.50
Oct-11 344.50 +25.50
TSR 20 Apr-11 314.75 +17.25
Oct-11 316.75 +18.00
Bridgestone: Fire At Japan Plant Extinguished, But May Delay Resuming Operations
TOKYO (Dow Jones)--Bridgestone Corp. (5108.TO) said Wednesday that a fire that broke out of its tire plant in Nasu in
northern Japan has been extinguished, but it may have to push back the planned restart of the plant operation there.
The plant has been damaged by the recent 9.0-magnitude earthquake but was planning to restart operations Wednesday
night. A fire broke out 0305 GMT and was extinguished around 0341 GMT, which may prompt a decision to delay the plant's
operation startup. The fire department is now checking the cause of the fire.
northern Japan has been extinguished, but it may have to push back the planned restart of the plant operation there.
The plant has been damaged by the recent 9.0-magnitude earthquake but was planning to restart operations Wednesday
night. A fire broke out 0305 GMT and was extinguished around 0341 GMT, which may prompt a decision to delay the plant's
operation startup. The fire department is now checking the cause of the fire.
Continental AG To Raise Commercial Vehicle Tire Prices May 1
Automotive supplier Continental AG (CON.XE) said Wednesday it will raise prices for commercial
vehicle tires in Europe from May 1 due to "dramatically increased" raw material costs.
Prices for Continental-brand tires will rise 6%, while the Uniroyal and Semperit brands will rise up to 10%. Prices of
Barum and Matador brands, mainly sold in eastern Europe, will rise by up to 12%.
From Jan. 2009 to Feb. 2011 the price of natural rubber has quadrupled, touching a high of than $5.60 a kilo, a
company spokeswoman said in an emailed statement.
Commercial vehicle tires are more strongly affected than car tires as the average truck tire contains 15 times more
natural rubber than the average car tire.
Continental estimates the higher price of natural rubber will cost it EUR700 million this year if rubber remains at
the current level of $5.50 a kilo.
vehicle tires in Europe from May 1 due to "dramatically increased" raw material costs.
Prices for Continental-brand tires will rise 6%, while the Uniroyal and Semperit brands will rise up to 10%. Prices of
Barum and Matador brands, mainly sold in eastern Europe, will rise by up to 12%.
From Jan. 2009 to Feb. 2011 the price of natural rubber has quadrupled, touching a high of than $5.60 a kilo, a
company spokeswoman said in an emailed statement.
Commercial vehicle tires are more strongly affected than car tires as the average truck tire contains 15 times more
natural rubber than the average car tire.
Continental estimates the higher price of natural rubber will cost it EUR700 million this year if rubber remains at
the current level of $5.50 a kilo.
Sicom Rubber Futures Closing Prices, March 16
Ribbed Smoked Sheet 3 (U.S. cents a kilogram)
Month Close Prev. Settle Change High Low Volume Open Int
Apr 11 458.7 430.0 28.70 456.0 440.0 37 349
May 11 460.0 439.0 21.00 455.0 445.0 7 149
Jun 11 464.3 439.0 25.30 468.0 466.0 20 396
Jul 11 458.0 439.0 19.00 458.0 448.0 16 166
Aug 11 454.3 439.0 15.30 - - - 44
Sep 11 454.3 435.0 19.30 - - - 186
Oct 11 454.3 435.0 19.30 - - - 40
Nov 11 454.3 435.0 19.30 - - - -
Dec 11 454.3 435.0 19.30 - - - -
Jan 12 454.3 435.0 19.30 - - - -
Feb 12 454.3 435.0 19.30 - - - -
Mar 12 454.3 435.0 19.30 - - - -
Total 80 1330
Technically Specified Rubber 20 FOB (U.S. cents a kilogram)
Month Close Prev. Settle Change High Low Volume Open Int
Apr 11 434.0 398.0 36.00 435.0 390.0 129 814
May 11 435.0 400.0 35.00 435.0 400.0 351 1,279
Jun 11 429.3 400.0 29.30 427.0 400.0 225 1,275
Jul 11 433.0 400.0 33.00 433.0 400.0 182 1,008
Aug 11 431.3 400.0 31.30 428.0 415.0 52 536
Sep 11 431.0 400.0 31.00 - - 12 738
Oct 11 431.0 400.0 31.00 420.0 407.0 35 638
Nov 11 432.0 400.0 32.00 431.5 431.0 10 822
Dec 11 432.0 400.0 32.00 - - - 578
Jan 12 432.0 400.0 32.00 - - 60 170
Feb 12 432.0 400.0 32.00 - - - 45
Mar 12 432.0 400.0 32.00 - - - -
Total 1056 7903
Volume and Open Interest are displayed in Lots
1 Lot = 5 metric tons
Month Close Prev. Settle Change High Low Volume Open Int
Apr 11 458.7 430.0 28.70 456.0 440.0 37 349
May 11 460.0 439.0 21.00 455.0 445.0 7 149
Jun 11 464.3 439.0 25.30 468.0 466.0 20 396
Jul 11 458.0 439.0 19.00 458.0 448.0 16 166
Aug 11 454.3 439.0 15.30 - - - 44
Sep 11 454.3 435.0 19.30 - - - 186
Oct 11 454.3 435.0 19.30 - - - 40
Nov 11 454.3 435.0 19.30 - - - -
Dec 11 454.3 435.0 19.30 - - - -
Jan 12 454.3 435.0 19.30 - - - -
Feb 12 454.3 435.0 19.30 - - - -
Mar 12 454.3 435.0 19.30 - - - -
Total 80 1330
Technically Specified Rubber 20 FOB (U.S. cents a kilogram)
Month Close Prev. Settle Change High Low Volume Open Int
Apr 11 434.0 398.0 36.00 435.0 390.0 129 814
May 11 435.0 400.0 35.00 435.0 400.0 351 1,279
Jun 11 429.3 400.0 29.30 427.0 400.0 225 1,275
Jul 11 433.0 400.0 33.00 433.0 400.0 182 1,008
Aug 11 431.3 400.0 31.30 428.0 415.0 52 536
Sep 11 431.0 400.0 31.00 - - 12 738
Oct 11 431.0 400.0 31.00 420.0 407.0 35 638
Nov 11 432.0 400.0 32.00 431.5 431.0 10 822
Dec 11 432.0 400.0 32.00 - - - 578
Jan 12 432.0 400.0 32.00 - - 60 170
Feb 12 432.0 400.0 32.00 - - - 45
Mar 12 432.0 400.0 32.00 - - - -
Total 1056 7903
Volume and Open Interest are displayed in Lots
1 Lot = 5 metric tons
Asian Rubber Settles Up; Toyota, Bridgestone Resume Japan Operations
Asian rubber rebounded Wednesday from the sharp previous losses that were triggered by the
aftermath of last week's earthquake in Japan, as a broad-based market recovery contributed to strong gains on the
bellwether Tokyo Commodity Exchange.
Benchmark August Tocom rubber settled Y16, or 4.5%, higher at Y369 a kilogram, as investors covered short positions
and hunted bargains.
Sentiment toward rubber futures was also boosted by producing countries' support for prices over the last two days and
the resumption of automotive plant operations in Japan.
Toyota Motor Corp. will resume operations at seven of its automotive parts plants in central Japan from Thursday, the
Yomiuri Shimbun reported. Meanwhile tire major Bridgestone Corp. said it would resume production at three of its
Japanese plants Wednesday. It plans to use power generators to keep those factories running during the country's rolling
blackouts.
A Tokyo-based commodities analyst said that although natural rubber's supply-demand fundamentals are firm, sentiment
remains fragile in Japanese markets due to the nuclear crisis, with several reactors still overheating and threatening
to release dangerous levels of radiation.
Benchmark Tocom rubber extended gains to close Y15, or 4.1%, higher at Y384/kg in the night session, which is
considered part of the next day's trading.
Shanghai and Thai rubber futures also rose, and physical rubber prices advanced on cues from the futures markets.
"Prices are still a little bit all over the place today (Wednesday). The market is still trying to settle down," a
Singapore-based dealer in the physical market said. "People are still a little confused about where fair price levels
are. There are genuine buyers, but there are also some just fishing around for prices."
Some major Thai exporters who didn't actively offer Monday and Tuesday started to offer on Wednesday as the market
showed signs of recovery.
The sharp slide in prices from Tocom's peak on Feb. 18 has resulted in some defaults by Chinese buyers, but the majors
haven't pulled out of deals yet, the Singapore-based dealer said. Even before Japan's massive quake on Friday, the
market was already abuzz with default concerns as prices have corrected down sharply.
The International Rubber Consortium, which represents the Southeast Asian countries that produce two thirds of the
world's natural rubber, will work with the China Rubber Industry Association to counter rubber price volatility, the
head of IRCo said Wednesday.
Bellwether Tokyo rubber futures hit a record high early last month, but have since fallen to multi-month lows due to
tensions in the Middle East, policy tightening in China and the destruction caused by the earthquake and tsunami that
struck Japan last week.
Meanwhile, data from Thailand showed new vehicle sales rose 42.5% in February from a year earlier, marking the 18th
straight month of expansion, the local unit of Toyota Motor Corp. (7203.TO) said Wednesday.
Asian Rubber Futures
March 16 Change from
previous settlement
Tocom Aug RSS3 Y369/kg Up Y16
Shanghai May SCR5 CNY33,500/ton Up CNY230
Thai Oct RSS3 THB132.5/kg Up THB7
Sicom Apr RSS3 458.7 U.S. cents/kg Up 28.7 cents
Sicom Apr TSR20 434 U.S. cents/kg Up 36 cents
Physical prices in Asia, quoted in U.S. cents/kg, free on board:
Grade Shipment March 16 March 15
Bids Offers Bids Offers
RSS3 Apr/May - 460-465 - 430-440
STR20 Apr/May - 415-420 - 410
SIR20 Apr/May - 420-430 - 400
SMR20 Apr/May - 425 - 400
USS3 Mar THB102.37-THB103.55/kg THB98-THB101.55/kg
aftermath of last week's earthquake in Japan, as a broad-based market recovery contributed to strong gains on the
bellwether Tokyo Commodity Exchange.
Benchmark August Tocom rubber settled Y16, or 4.5%, higher at Y369 a kilogram, as investors covered short positions
and hunted bargains.
Sentiment toward rubber futures was also boosted by producing countries' support for prices over the last two days and
the resumption of automotive plant operations in Japan.
Toyota Motor Corp. will resume operations at seven of its automotive parts plants in central Japan from Thursday, the
Yomiuri Shimbun reported. Meanwhile tire major Bridgestone Corp. said it would resume production at three of its
Japanese plants Wednesday. It plans to use power generators to keep those factories running during the country's rolling
blackouts.
A Tokyo-based commodities analyst said that although natural rubber's supply-demand fundamentals are firm, sentiment
remains fragile in Japanese markets due to the nuclear crisis, with several reactors still overheating and threatening
to release dangerous levels of radiation.
Benchmark Tocom rubber extended gains to close Y15, or 4.1%, higher at Y384/kg in the night session, which is
considered part of the next day's trading.
Shanghai and Thai rubber futures also rose, and physical rubber prices advanced on cues from the futures markets.
"Prices are still a little bit all over the place today (Wednesday). The market is still trying to settle down," a
Singapore-based dealer in the physical market said. "People are still a little confused about where fair price levels
are. There are genuine buyers, but there are also some just fishing around for prices."
Some major Thai exporters who didn't actively offer Monday and Tuesday started to offer on Wednesday as the market
showed signs of recovery.
The sharp slide in prices from Tocom's peak on Feb. 18 has resulted in some defaults by Chinese buyers, but the majors
haven't pulled out of deals yet, the Singapore-based dealer said. Even before Japan's massive quake on Friday, the
market was already abuzz with default concerns as prices have corrected down sharply.
The International Rubber Consortium, which represents the Southeast Asian countries that produce two thirds of the
world's natural rubber, will work with the China Rubber Industry Association to counter rubber price volatility, the
head of IRCo said Wednesday.
Bellwether Tokyo rubber futures hit a record high early last month, but have since fallen to multi-month lows due to
tensions in the Middle East, policy tightening in China and the destruction caused by the earthquake and tsunami that
struck Japan last week.
Meanwhile, data from Thailand showed new vehicle sales rose 42.5% in February from a year earlier, marking the 18th
straight month of expansion, the local unit of Toyota Motor Corp. (7203.TO) said Wednesday.
Asian Rubber Futures
March 16 Change from
previous settlement
Tocom Aug RSS3 Y369/kg Up Y16
Shanghai May SCR5 CNY33,500/ton Up CNY230
Thai Oct RSS3 THB132.5/kg Up THB7
Sicom Apr RSS3 458.7 U.S. cents/kg Up 28.7 cents
Sicom Apr TSR20 434 U.S. cents/kg Up 36 cents
Physical prices in Asia, quoted in U.S. cents/kg, free on board:
Grade Shipment March 16 March 15
Bids Offers Bids Offers
RSS3 Apr/May - 460-465 - 430-440
STR20 Apr/May - 415-420 - 410
SIR20 Apr/May - 420-430 - 400
SMR20 Apr/May - 425 - 400
USS3 Mar THB102.37-THB103.55/kg THB98-THB101.55/kg
Tocom Rubber Futures Night Session Closing Prices, March 16
Tokyo Commodity Exchange ribbed smoked sheet 3 grade rubber
futures prices in yen per kilogram (1 unit=5,000 kilograms)
Prev Settle Open High Low Close Change Volume
MAR11 381.7 397.0 397.0 395.0 395.0 +13.3 6
APR11 369.5 380.0 383.5 380.0 383.5 +14.0 2
MAY11 368.0 384.3 385.9 380.0 385.9 +17.9 13
JUN11 370.3 383.3 388.6 378.8 388.6 +18.3 32
JUL11 370.2 380.0 389.0 377.7 387.0 +16.8 402
AUG11 369.0 379.8 385.5 375.5 384.0 +15.0 4,434
Total Daily Volume: 4,889 Units
NOTE: Tocom's rubber futures night session is considered part
of the next trading day.
futures prices in yen per kilogram (1 unit=5,000 kilograms)
Prev Settle Open High Low Close Change Volume
MAR11 381.7 397.0 397.0 395.0 395.0 +13.3 6
APR11 369.5 380.0 383.5 380.0 383.5 +14.0 2
MAY11 368.0 384.3 385.9 380.0 385.9 +17.9 13
JUN11 370.3 383.3 388.6 378.8 388.6 +18.3 32
JUL11 370.2 380.0 389.0 377.7 387.0 +16.8 402
AUG11 369.0 379.8 385.5 375.5 384.0 +15.0 4,434
Total Daily Volume: 4,889 Units
NOTE: Tocom's rubber futures night session is considered part
of the next trading day.
Asian Physical Rubber Up; May Remain Volatile
Asian physical rubber prices rise as prices rebound across various exchanges Wednesday. "Prices
are still a little bit all over the place today (Wednesday); the market is still trying to settle down," says a
Singapore-based dealer. "People are still a little confused about where fair price levels are. There are genuine buyers,
but there are also some just fishing around for prices." He says prices may remain volatile this week. Some major Thai
exporters which haven't been actively offering Monday and Tuesday start offers Wednesday with the market showing signs
of recovery. A recent slide in prices from Tocom's peak on Feb. 18 has resulted in some defaults from Chinese buyers,
but the majors haven't pulled out of deals yet, says the Singapore-based dealer. Even before Japan's massive quake on
Friday, the market was already abuzz with default concerns as prices have started correcting sharply downward.
Thailand's STR20 for May shipment sold at $4,100/ton, FOB, to a trader. Indonesia's SIR20 was traded around $4,200/ton,
FOB, for nearby shipment earlier in the day. Thailand's RSS3 sold at $4,300/ton, FOB, for April shipment late Tuesday.
"We were not offering, but a reliable customer came with this price, which we could do," says a trading executive. For a
breakdown of cash prices for all rubber grades, keyword search ASIAN PHYSICAL RUBBER. (huileng.tan@dowjones.com)
are still a little bit all over the place today (Wednesday); the market is still trying to settle down," says a
Singapore-based dealer. "People are still a little confused about where fair price levels are. There are genuine buyers,
but there are also some just fishing around for prices." He says prices may remain volatile this week. Some major Thai
exporters which haven't been actively offering Monday and Tuesday start offers Wednesday with the market showing signs
of recovery. A recent slide in prices from Tocom's peak on Feb. 18 has resulted in some defaults from Chinese buyers,
but the majors haven't pulled out of deals yet, says the Singapore-based dealer. Even before Japan's massive quake on
Friday, the market was already abuzz with default concerns as prices have started correcting sharply downward.
Thailand's STR20 for May shipment sold at $4,100/ton, FOB, to a trader. Indonesia's SIR20 was traded around $4,200/ton,
FOB, for nearby shipment earlier in the day. Thailand's RSS3 sold at $4,300/ton, FOB, for April shipment late Tuesday.
"We were not offering, but a reliable customer came with this price, which we could do," says a trading executive. For a
breakdown of cash prices for all rubber grades, keyword search ASIAN PHYSICAL RUBBER. (huileng.tan@dowjones.com)
Asian Physical Rubber Prices
SINGAPORE (Dow Jones)--The following are Wednesday's prices in Asia, quoted in U.S. cents a kilogram, free on board,
for the prime rubber grades.
Grade Shipment March 16 March 15
Bids Offers Bids Offers
RSS3 Apr/May - 460-465 - 430-440
STR20 Apr/May - 415-420 - 410
SIR20 Apr/May - 420-430 - 400
SMR20 Apr/May - 425 - 400
Note:
RSS3 Ribbed Smoked Sheet 3
STR20 Standard Thai Rubber 20
SIR20 Standard Indonesian Rubber 20
SMR20 Standard Malaysian Rubber 20
for the prime rubber grades.
Grade Shipment March 16 March 15
Bids Offers Bids Offers
RSS3 Apr/May - 460-465 - 430-440
STR20 Apr/May - 415-420 - 410
SIR20 Apr/May - 420-430 - 400
SMR20 Apr/May - 425 - 400
Note:
RSS3 Ribbed Smoked Sheet 3
STR20 Standard Thai Rubber 20
SIR20 Standard Indonesian Rubber 20
SMR20 Standard Malaysian Rubber 20
Malaysian Rubber Board Daily Physical Prices - March 16
SINGAPORE (Dow Jones)--The following are Malaysian closing physical rubber Prices at 0900 GMT
Grade Sen/Kg US Cents/Kg
Buyers Sellers Buyers Sellers
SMR CV 1543.00 1558.50 510.60 515.70
SMR L 1488.50 1503.50 492.55 497.50
SMR 5 - 1220.00 - 403.70
SMR 10 1198.00 1210.00 396.45 400.40
SMR 20 1196.00 1208.00 395.75 399.75
Grade Sen/Kg US Cents/Kg
Buyers Sellers Buyers Sellers
SMR CV 1543.00 1558.50 510.60 515.70
SMR L 1488.50 1503.50 492.55 497.50
SMR 5 - 1220.00 - 403.70
SMR 10 1198.00 1210.00 396.45 400.40
SMR 20 1196.00 1208.00 395.75 399.75
Shanghai Rubber Futures Higher; Range Trade Ahead
[Dow Jones] Shanghai Futures Exchange natural rubber settles higher amid a broad improvement in regional
market sentiment with signs the Japanese government may be gaining control over its nuclear emergency; analysts say
dip-buying also contributes to today's gains; but they add rubber may still trade in its recent range for the next few
sessions with participants looking for fresh news on Japan's its nuclear crisis and rescue and recovery work. Benchmark
May rubber settles CNY230, or 0.7%, higher at CNY33,500/ton.
market sentiment with signs the Japanese government may be gaining control over its nuclear emergency; analysts say
dip-buying also contributes to today's gains; but they add rubber may still trade in its recent range for the next few
sessions with participants looking for fresh news on Japan's its nuclear crisis and rescue and recovery work. Benchmark
May rubber settles CNY230, or 0.7%, higher at CNY33,500/ton.
China Shanghai Rubber Futures Closing Prices, Volume
Wednesday, March 16 2011
Natural Rubber
Turnover: 929,836 lots
Open High Low Settle Prev. Ch.1 Vol Open
Settle Interest
Apr-11 34,380 34,380 33,470 33,810 33,770 40 210 332
May-11 33,450 34,445 33,020 33,500 33,270 230 496,334 89,758
Jun-11 32,900 33,735 32,535 33,080 32,780 300 802 1,772
Jul-11 33,205 33,800 32,575 33,050 32,745 305 804 3,878
Aug-11 33,600 33,800 33,000 33,255 32,740 515 108 884
Sep-11 33,505 34,380 33,000 33,610 33,120 490 431,114 127,066
Oct-11 33,310 34,360 33,000 33,530 32,480 1,050 262 186
Nov-11 33,020 33,860 33,000 33,345 32,740 605 114 724
Jan-12 33,885 34,500 33,470 33,975 33,060 915 82 170
Mar-12 34,405 34,405 34,405 34,405 0 6 6
Notes:
1) Unit is Chinese yuan a metric ton;
2) Ch.1 is day's settlement minus previous settlement, while
Ch.2 is day's open interest minus previous open interest;
3) Volume and open interest are in lots;
4) One lot is equivalent to 5 metric tons.
Natural Rubber
Turnover: 929,836 lots
Open High Low Settle Prev. Ch.1 Vol Open
Settle Interest
Apr-11 34,380 34,380 33,470 33,810 33,770 40 210 332
May-11 33,450 34,445 33,020 33,500 33,270 230 496,334 89,758
Jun-11 32,900 33,735 32,535 33,080 32,780 300 802 1,772
Jul-11 33,205 33,800 32,575 33,050 32,745 305 804 3,878
Aug-11 33,600 33,800 33,000 33,255 32,740 515 108 884
Sep-11 33,505 34,380 33,000 33,610 33,120 490 431,114 127,066
Oct-11 33,310 34,360 33,000 33,530 32,480 1,050 262 186
Nov-11 33,020 33,860 33,000 33,345 32,740 605 114 724
Jan-12 33,885 34,500 33,470 33,975 33,060 915 82 170
Mar-12 34,405 34,405 34,405 34,405 0 6 6
Notes:
1) Unit is Chinese yuan a metric ton;
2) Ch.1 is day's settlement minus previous settlement, while
Ch.2 is day's open interest minus previous open interest;
3) Volume and open interest are in lots;
4) One lot is equivalent to 5 metric tons.
Tocom Rubber Futures Closing Prices, March
Tokyo Commodity Exchange ribbed smoked sheet 3 grade rubber
futures prices in yen per kilogram (1 unit=5,000 kilograms)
Prev Settle Open High Low Close Change Volume Settlement
MAR11 361.0 371.0 385.0 361.0 383.5 +20.7 42 381.7
APR11 356.5 354.8 372.0 350.0 369.5 +13.0 51 369.5
MAY11 355.2 359.0 376.4 348.0 368.0 +12.8 203 368.0
JUN11 354.6 351.5 379.6 343.0 370.3 +15.7 572 370.3
JUL11 354.3 352.0 380.5 348.2 370.7 +15.9 1,913 370.2
AUG11 353.0 351.1 379.0 346.0 369.5 +16.0 20,089 369.0
Total Daily Volume: 22,870 Units
futures prices in yen per kilogram (1 unit=5,000 kilograms)
Prev Settle Open High Low Close Change Volume Settlement
MAR11 361.0 371.0 385.0 361.0 383.5 +20.7 42 381.7
APR11 356.5 354.8 372.0 350.0 369.5 +13.0 51 369.5
MAY11 355.2 359.0 376.4 348.0 368.0 +12.8 203 368.0
JUN11 354.6 351.5 379.6 343.0 370.3 +15.7 572 370.3
JUL11 354.3 352.0 380.5 348.2 370.7 +15.9 1,913 370.2
AUG11 353.0 351.1 379.0 346.0 369.5 +16.0 20,089 369.0
Total Daily Volume: 22,870 Units
Tocom Rubber Ends Up; May Test Y380 This Week
[Dow Jones] Tocom rubber futures settle 4.5% higher amid a broadbased market rebound in Japan as investors
cover shorts and buy on dip. Investor sentiment has been boosted by producing countries' support for prices over the
last two days, as well as the resumption of automotive plant operations in Japan. Toyota Motor Corp. will resume
operations at seven of its automotive parts plants in central Japan from Thursday, the Yomiuri Shimbun reports. Tire
major Bridgestone Corp. also says it will resume production at three of its Japanese plants Wednesday and plans to use
power generators to keep those factories running amid the country's rolling blackouts. A Tokyo-based commodities
brokerage analyst says Tocom may test Y380/kg this week if the upward correction continues. The benchmark August rubber
contract settles Y16 higher at Y369/kg, off the intraday high of Y379/kg. (huileng.tan@dowjones.com)
cover shorts and buy on dip. Investor sentiment has been boosted by producing countries' support for prices over the
last two days, as well as the resumption of automotive plant operations in Japan. Toyota Motor Corp. will resume
operations at seven of its automotive parts plants in central Japan from Thursday, the Yomiuri Shimbun reports. Tire
major Bridgestone Corp. also says it will resume production at three of its Japanese plants Wednesday and plans to use
power generators to keep those factories running amid the country's rolling blackouts. A Tokyo-based commodities
brokerage analyst says Tocom may test Y380/kg this week if the upward correction continues. The benchmark August rubber
contract settles Y16 higher at Y369/kg, off the intraday high of Y379/kg. (huileng.tan@dowjones.com)
IRCo, China Association To Seek To Stabilize Rubber Prices
SINGAPORE (Dow Jones)--The International Rubber Consortium, which represents the Southeast Asian countries that
produce two thirds of the world's natural rubber, will work with the China Rubber Industry Association to counter rubber
price volatility, the head of IRCo said Wednesday.
Bellwether Tokyo rubber futures hit a record high early last month, but have since fallen to multi-month lows due to
tensions in the Middle East and the earthquake and tsunami that struck Japan last week.
The two organizations decided on the collaboration during an industry conference in China Tuesday, IRCo acting Chief
Executive Yium Tavarolit said by phone.
"The CRIA made the request to work together so as to reduce price volatility. We will be coming up with a joint work
plan in the future. They said they were suffering due to record high rubber prices earlier," he said.
The associations will set up a working group this year to determine what actions can be taken to combat price
volatility, he said.
China is the world's largest natural rubber consumer and importer. IRCo is comprised of Thailand, Indonesia and
Malaysia, which together account for 70% of global natural rubber output.
The collaboration between IRCo and the CRIA comes after Yium said Tuesday that IRCo will likely convene a meeting this
week to discuss measures to support rubber prices.
Rubber futures on the Tokyo Commodity Exchange rose to a record high of Y535.7 a kilogram on Feb. 18, but have since
fallen sharply, reaching a four-month low of Y335/kg Tuesday. The benchmark August contract was trading at Y363.5/kg at
0607 GMT Wednesday.
The contract fell more than 10% in the first two days of this week due to worries over demand, but rebounded in
Tuesday's night session, which is considered part of the next day's trading.
IRCo Monitoring Market
Yium said that IRCo member countries are monitoring rubber prices and will convene an urgent meeting if prices resume
their sharp declines.
"We will be monitoring prices closely," he said.
He said that the recent falls in prices have been driven by bearish sentiment due to the Middle East and Japan, but
that fundamentals for rubber are currently firm.
Seasonal factors will reduce production in the first half of the year, while major consumers like China, India and the
U.S. reported positive auto sales figures in February, he said.
Yium said that although measures can be taken to support rubber prices when they fall below what fundamentals suggest,
that there is little producers can do when prices climb sharply as they did in an extended rally between December and
February, as the upward move was driven by speculation on the futures market.
produce two thirds of the world's natural rubber, will work with the China Rubber Industry Association to counter rubber
price volatility, the head of IRCo said Wednesday.
Bellwether Tokyo rubber futures hit a record high early last month, but have since fallen to multi-month lows due to
tensions in the Middle East and the earthquake and tsunami that struck Japan last week.
The two organizations decided on the collaboration during an industry conference in China Tuesday, IRCo acting Chief
Executive Yium Tavarolit said by phone.
"The CRIA made the request to work together so as to reduce price volatility. We will be coming up with a joint work
plan in the future. They said they were suffering due to record high rubber prices earlier," he said.
The associations will set up a working group this year to determine what actions can be taken to combat price
volatility, he said.
China is the world's largest natural rubber consumer and importer. IRCo is comprised of Thailand, Indonesia and
Malaysia, which together account for 70% of global natural rubber output.
The collaboration between IRCo and the CRIA comes after Yium said Tuesday that IRCo will likely convene a meeting this
week to discuss measures to support rubber prices.
Rubber futures on the Tokyo Commodity Exchange rose to a record high of Y535.7 a kilogram on Feb. 18, but have since
fallen sharply, reaching a four-month low of Y335/kg Tuesday. The benchmark August contract was trading at Y363.5/kg at
0607 GMT Wednesday.
The contract fell more than 10% in the first two days of this week due to worries over demand, but rebounded in
Tuesday's night session, which is considered part of the next day's trading.
IRCo Monitoring Market
Yium said that IRCo member countries are monitoring rubber prices and will convene an urgent meeting if prices resume
their sharp declines.
"We will be monitoring prices closely," he said.
He said that the recent falls in prices have been driven by bearish sentiment due to the Middle East and Japan, but
that fundamentals for rubber are currently firm.
Seasonal factors will reduce production in the first half of the year, while major consumers like China, India and the
U.S. reported positive auto sales figures in February, he said.
Yium said that although measures can be taken to support rubber prices when they fall below what fundamentals suggest,
that there is little producers can do when prices climb sharply as they did in an extended rally between December and
February, as the upward move was driven by speculation on the futures market.
Sicom Rubber Futures Higher; Fundamentals
[Dow Jones] Sicom rubber futures up midday as normalcy returns to the market after producers expressed
support for rubber prices and affirmed the commodity's firm supply-demand fundamentals on Monday and Tuesday. The
bellwether Tocom has also rebounded Wednesday. The benchmark Sicom April RSS3 contract trades 20 U.S. cents higher at
450 cents/kg. The April TSR20 contract is up 7.5 cents at 405.5 cents/kg. (huileng.tan@dowjones.com)
support for rubber prices and affirmed the commodity's firm supply-demand fundamentals on Monday and Tuesday. The
bellwether Tocom has also rebounded Wednesday. The benchmark Sicom April RSS3 contract trades 20 U.S. cents higher at
450 cents/kg. The April TSR20 contract is up 7.5 cents at 405.5 cents/kg. (huileng.tan@dowjones.com)
Thai USS3 Rubber Prices Rise; Some Calm Restored
[Dow Jones] Physical prices of Thai USS3 rubber rise to THB102.37-THB103.55/kg vs THB98-THB101.55/kg
Tuesday, as bellwether Tocom rebounds; some calm restored to the market after producers expressed support for natural
rubber prices on Monday and Tuesday; arrivals low amid the low-production season, some stockpiling may be taking place
after the Thai government pledged to maintain prices at no less than THB120/kg, says a trader. Outside the central
markets, factories are paying THB100-THB109/kg. Sales in Thailand's three central markets total around 9.22 tons
Wednesday versus 51.9 tons Tuesday: 6.3 tons in Hat Yai, 0.62 tons in Surat Thani, 2.3 tons in Chandee.
Tuesday, as bellwether Tocom rebounds; some calm restored to the market after producers expressed support for natural
rubber prices on Monday and Tuesday; arrivals low amid the low-production season, some stockpiling may be taking place
after the Thai government pledged to maintain prices at no less than THB120/kg, says a trader. Outside the central
markets, factories are paying THB100-THB109/kg. Sales in Thailand's three central markets total around 9.22 tons
Wednesday versus 51.9 tons Tuesday: 6.3 tons in Hat Yai, 0.62 tons in Surat Thani, 2.3 tons in Chandee.
IRCo, China Rubber Industry Association To Form Joint Working Group
("IRCo, China Rubber Industry Association To Form Joint Working Group," at 0341 GMT, misstated the month of Tocom's
benchmark contract in the seventh paragraph. The correct version follows:)
SINGAPORE (Dow Jones)--The International Rubber Consortium and the China Rubber Industry Association will form a joint
working group to counter price volatility in natural rubber, IRCo acting chief executive Yium Tavarolit said Wednesday.
The two organisations decided to form the group during a meeting at an industry conference in China Tuesday, Yium
said.
"The CRIA made the request to work together so as to reduce price volatility. We will be coming up with a joint work
plan in the future. They said they were suffering due to record high rubber prices earlier," he said.
The working group will be set up this year.
China is the world's largest natural rubber consumer and importer. IRCo members include Indonesia, Malaysia and
Thailand, the world's major producers.
Benchmark natural rubber futures on the bellwether Tokyo Commodity Exchange rose to a record high of Y535.7 a kilogram
on Feb. 18, but have since fallen sharply. The contract was trading at Y357.4/kg at 0320 GMT Wednesday.
The benchmark August Tocom rubber contract rebounded during the evening session Tuesday and is trading in positive
territory Wednesday, after falling more than 10% over the first two days of the week due to expectations that demand
from Japan will drop sharply in the near term because of the damage caused by Friday's earthquake and tsunami. Yium, who is returning to Bangkok on Wednesday, said IRCo member countries are monitoring current rubber prices and
will convene an urgent meeting if prices resumed their sharp declines.
"We will be monitoring prices closely," he said.
He said Tuesday that IRCo is likely to convene a meeting this week to discuss measures to support natural rubber
prices following the sharp drop in prices.
benchmark contract in the seventh paragraph. The correct version follows:)
SINGAPORE (Dow Jones)--The International Rubber Consortium and the China Rubber Industry Association will form a joint
working group to counter price volatility in natural rubber, IRCo acting chief executive Yium Tavarolit said Wednesday.
The two organisations decided to form the group during a meeting at an industry conference in China Tuesday, Yium
said.
"The CRIA made the request to work together so as to reduce price volatility. We will be coming up with a joint work
plan in the future. They said they were suffering due to record high rubber prices earlier," he said.
The working group will be set up this year.
China is the world's largest natural rubber consumer and importer. IRCo members include Indonesia, Malaysia and
Thailand, the world's major producers.
Benchmark natural rubber futures on the bellwether Tokyo Commodity Exchange rose to a record high of Y535.7 a kilogram
on Feb. 18, but have since fallen sharply. The contract was trading at Y357.4/kg at 0320 GMT Wednesday.
The benchmark August Tocom rubber contract rebounded during the evening session Tuesday and is trading in positive
territory Wednesday, after falling more than 10% over the first two days of the week due to expectations that demand
from Japan will drop sharply in the near term because of the damage caused by Friday's earthquake and tsunami. Yium, who is returning to Bangkok on Wednesday, said IRCo member countries are monitoring current rubber prices and
will convene an urgent meeting if prices resumed their sharp declines.
"We will be monitoring prices closely," he said.
He said Tuesday that IRCo is likely to convene a meeting this week to discuss measures to support natural rubber
prices following the sharp drop in prices.
Tuesday, March 15, 2011
London Rubber Prices - March 15
LONDON (Dow Jones)--Daily London rubber prices in euro cents a kilogram from the Rubber Trade Association of Europe,
or RTAE, with change on day.
Month Offer Change
No. 3 R.S.S. Apr-11 324.50 +1.75
Oct-11 319.00 +1.50
TSR 20 Apr-11 297.50 +8.75
Oct-11 298.75 +8.75
or RTAE, with change on day.
Month Offer Change
No. 3 R.S.S. Apr-11 324.50 +1.75
Oct-11 319.00 +1.50
TSR 20 Apr-11 297.50 +8.75
Oct-11 298.75 +8.75
Asian Rubber Futures Settle Mixed; Producers Seek To Calm Market
Asian rubber futures settled mixed Tuesday in a day of volatile trading that saw prices pick up
later in the trading day, as producers sought to calm the market.
Benchmark August natural rubber futures on the bellwether Tokyo Commodity Exchange settled 8.1% lower at Y353 a kilogram after falling by as much as 13% in the evening session Monday. Trade on Tocom was halted for most of Monday due
to the triggering of a series of circuit breakers.
"I think Tocom may have found a floor for now, and traders are looking for good news to push it up after prices fell
so much," a trader in Thailand said, referring to the Thai Deputy Prime Minister Suthep Thuagsuban's pledge late Monday
to maintain the price of local unsmoked sheet 3 rubber above THB120/kg.
This was followed by International Rubber Consortium acting Chief Executive Yium Tavarolit saying Tuesday that IRCo
will convene a meeting, likely this week, with public and private industry stakeholders to discuss measures to support
natural rubber prices.
"We will propose that exporters not export rubber at certain price levels that are below market fundamentals," Yium
said.
Later in the day, the Association of Natural Rubber Producing Countries said demand won't be significantly impacted by
the earthquake in Japan.
"Tire companies having plants in the country's northeast have already confirmed that there is no damage to their
buildings or facilities," ANRPC Secretary-General Djoko S. Damardjati said in a statement posted on the association's
website. ANRPC member countries account for around 92% of global natural rubber production. IRCo member countries
account for 70% of global natural rubber output.
Meanwhile, Thai Rubber Association Chairman Luckchai Kittipol said fundamentals point to Tocom rubber moving to
Y400/kg "soon."
The industry support sent Tocom rubber rebounding in the night session, with the benchmark August contract gaining as
much as 7.4% to Y379/kg. August Tocom rubber ended Y16.5 higher at Y369.5/kg in the session, which is considered part of
the next day's trading.
Overall market sentiment may stay poor in Japan, however, due to fears that the nuclear crisis will worsen.
"There was so much panic selling yesterday (Monday), so a technical rebound at this stage is possible," a Tokyo-based
broker said. "There is no point talking about fundamentals right now. These are very, very extraordinary circumstances
in Japan."
He added that any upside may be temporary, as Tocom rubber is well above the levels that sparked its previous rally
last year, and there's still plenty of bearish sentiment.
Benchmark Tocom rubber was trading near the Y250 level last July, less than half the Feb. 18 peak of Y535.7/kg.
Natural rubber futures on the Shanghai Futures Exchange and the Agricultural Futures Exchange of Thailand fell, taking
cues from the Tocom.
But rubber futures on the Singapore Commodity Exchange rebounded in early trade, and stayed in the positive territory
over the course of the trading day.
Sicom rubber is closely watched by physical rubber traders, and its prices are used as benchmarks in the spot market.
The volatile futures market kept physical traders on edge. "It's pretty quiet today still; I think buying may pick up
tomorrow if prices keep going up," a Singapore-based dealer said.
Physical Thai USS3 continued to trade below THB120 a kilogram Tuesday despite the deputy prime minister's pledge to
keep it above that level.
"The comments are meant to be a psychological boost; they don't take effect immediately," said a trader in southern
Thailand who sells USS3.
Asian Rubber Futures
March 15 Change from
previous settlement
Tocom Aug RSS3 Y353/kg Down Y31.1
Shanghai May SCR5 CNY33,270/ton Down CNY705
Thai Oct RSS3 THB125.5/kg Down THB4.4
Sicom Apr RSS3 430 U.S. cents/kg Up 10.2 cents
Sicom Apr TSR20 398 U.S. cents/kg Up 18 cents
Physical prices in Asia, quoted in U.S. cents/kg, free on board:
Grade Shipment March 15 March 14
Bids Offers Bids Offers
RSS3 Apr/May - 430-440 - -
STR20 Apr/May - 410 - -
SIR20 Apr/May - 400 - 385-390
SMR20 Apr/May - 400 - 410
USS3 Mar THB98-THB101.55/kg THB89.00-THB102.59/kg
Tocom Rubber Hits 4-Month Low; Support At Y315/Kg
[Dow Jones] Tocom rubber futures fall as much as 13% after a trading halt set the market at a standstill
for most of the day session Monday; the market's still down, but "I think Tocom may have found a floor for now and traders are looking for good news to push it up after prices fell so much," a trader in Thailand says; he tips support
at Y315/kg. Trade resumed in the night session Monday after Tocom expanded its circuit breaker trigger to Y50; the Thai
government late Monday pledged to maintain local rubber prices at THB120/kg or above and requested the private sector to
temporarily suspend rubber exports. The benchmark Tocom August contract is Y35 lower at Y349.1/kg, but off a four-month
intraday low of Y335/kg.
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