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.
Showing posts with label NEWS. Show all posts
Showing posts with label NEWS. Show all posts
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.
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.
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
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.
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.
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