Thailand Rubber growers plan rally over price drop

Rubber growers from the South plan to gather in the capital to pressure the military regime into propping up falling prices in all central rubber markets in the South, according to an informed source.

They are mulling a protest at the Agriculture Ministry, the source added.

At a recent meeting, rubber growers agreed the rubber price problem had reached a point where they have to do something.

Prime Minister Prayut Chan-o-cha offered no relief, but said the government remains concerned about the agricultural sector as some crops, particularly rubber, still have falling prices.

"Dropping rubber prices are primarily because of market fundamentals," he said. "Many buying countries have reduced their purchases of natural rubber while global oil prices are still as low as US$50 per barrel".

He said the government has been trying to increase domestic consumption for rubber, especially through campaigns calling for private tyre companies to raise their production.

Jatuporn Terachusong, president of the Yungthong rubber plantation fund cooperatives in Lan Saka district of Nakhon Si Thammarat, said rubber growers' incomes have slumped by more than half while the cost of living continues to rise.

The bidding prices for rubber in the South's three major central rubber markets continued to drop Tuesday, said another source.

The price of unsmoked rubber sheets offered by the winning bidder at the central rubber market in Hat Yai district of Songkhla dropped by 52 satang to 44.38 baht per kilogramme Tuesday.

A similar price for unsmoked rubber sheets was offered by the bid winner at Surat Thani central rubber market, down 63 satang to 44.58 baht per kg.

The price offered by the winning bidder at the Nakhon Si Thammart central rubber market was 63 satang per kg lower.

Wuth Rakthong, a representative of Phuang Phromkhon cooperatives in Surat Thani's Khian Sa district, said all rubber growers' cooperatives in the province have decided to boycott a workshop scheduled to be held today in Krabi, which is expected to be attended by leaders of about 40 agricultural institutions nationwide.

Mr Wuth criticised the establishment of a fund by five giant companies to purchase rubber at the southern central rubber markets, saying the fund, which is aimed at helping improve rubber prices, is instead causing volatility in its prices.

He also lashed out at the Rubber Authority of Thailand (RAT) and the government, saying the RAT never paid sufficient attention to ensuring price stability for rubber, while the government's move to spend more than 2 billion baht to support cooperatives to build rubber processing houses has proved to be a waste of taxpayers' money.

In Nakhon Si Thammarat, Nantachat Chaihao, president of a network of rubber growers in Tha Sala district, said while the average cost of growing and producing rubber stands at 62 baht per kg, it now sells for only 45 baht to 46 baht per kg.

On Monday, Sunthon Rakrong, president of an association of rubber growers in the 16 southern provinces and secretary-general of the network of rubber growers of Thailand, posted on his Facebook harsh criticism of the five experts who represent rubber growers nationwide on the RAT's board.

Although they occupy one-third of the seats on the RAT's board, they have done nothing to help rubber growers especially at a time when prices are falling, Mr Sunthon said.

He said the performance of the five board members over the past two years has dismayed rubber growers across the country

China's Beijing-Tianjin-Hebei to set up anti-pollution body

The smog-prone northern Chinese region of Beijing-Tianjin-Hebei will set up a joint environmental protection agency in an effort to coordinate the region's war on pollution, the official China Securities Journal reported on Wednesday.

The new agency, part of wider efforts to improve cross-regional environmental governance, will be in place by the end of the year, the paper said, citing Ministry of Environmental Protection officials.

The region, also known as Jing-Jin-Ji, was home to eight of China's 10 smoggiest cities in September and is involved in a winter campaign that will slash industrial output and restrict traffic in a bid to meet air quality targets.
Creating unified environmental standards across the region was a key element of a regional economic integration plan launched by President Xi Jinping in 2014.According to academic studies, around a third of the smog drifting across the capital, Beijing, originates in neighbouring Hebei, China's biggest steel-producing region and also a major producer of cement.

Regulators have already promised to establish a unified system of environmental governance that will create cross-regional emission standards and prevent non-compliant firms in Beijing from shifting operations to neighbouring Hebei.They have also vowed to implement coordinated emergency response plans during heavy smog outbreaks.

Demand-supply not sole factor in determining global rubber price

Global rubber prices are not only impacted by demand and supply but other factors including the performance of futures markets and crude oil prices, said Deputy Plantation Industries and Commodities Minister Datuk Datu Nasrun Datu Mansur.

Currency exchange rates and economic growth in major rubber consuming countries also affect rubber prices, he added.

Nasrun was responding to a parliamentary question by Beruas Member of Parliament Datuk Ngeh Koo Ham today, who asked why the International Tripartite Rubber Council (ITRC) — comprising the world's major rubber producers namely Malaysia, Indonesia and Thailand — has not been completely successful in strengthening rubber prices to satisfactory levels.

To this, Nasrun said the cooperation among ITRC members has been lukewarm due to the non-compliance between its two members namely Thailand and Indonesia in certain programmes under the council such as the Agreed Export Tonnage Scheme (AETS).

The AETS is a short-term measure to address the drop in natural rubber prices, which was mainly due to negative market sentiment caused by various factors including uncertainties in global economic growth.

"Whatever efforts or initiatives made by the ITRC can only control global natural rubber prices to a certain extent. The partnership among Malaysia, Thailand and Indonesia has not been that successful due to the non-compliance between Thailand and Indonesia in programmes under ITRC such as the AETS," Nasrun said.

"Despite this, the AETS, among other ITRC initiatives, is still able to control world rubber prices from tumbling further and stabilise it to higher levels, at least for the short term," he added.

Meanwhile, Nasrun said the inclusion of Vietnam into the ITRC as a strategic partner will increase the global rubber production share of 67% by the three initial member countries of the council to 76%, while the global rubber export share will rise from 76% to 89%.

Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong had welcomed Vietnam's agreement to join the ITRC fraternity during the ITRC's Ministerial Committee meeting in Bangkok, Thailand, on Sept 15 this year.
"Vietnam's participation in ITRC will further enhance the effectiveness of the council's role in stabilising rubber prices, hence ensuring the income of smallholders," Nasrun said.

ITRC, not very successful in stabilising rubber prices

International Tripartite Rubber Council (ITRC) collaboration has not been very successful in stabilising global natural rubber (NR) prices as two member countries, Thailand and Indonesia, failed to adhere to the programme set out.

Deputy Plantation Industries and Commodities Minister Datuk Datu Nasrun Datu Mansur said top rubber producing countries, Thailand, Indonesia and Malaysia who were also members of the ITRC, were supposed to comply with the Agreed Export Tonnage Scheme (AETS), aimed at stabilising natural rubber prices and develop sustainable production.

Nevertheless, he said other initiatives introduced by the ITRC managed to curb prices from eroding further and helped boost prices, at least in the short term.

"ITRC member countries currently account for about 67% of the total NR produced in the world. ' "Hence, initiatives introduced by the council have been able to influence NR prices to a certain extent only and not comprehensively," he said in reply to Datuk Hgeh Koo Ham (DAP-Beruas) who asked why the ITRC has not been able to stabilise NR prices at a satisfactory level.

ITRC was established after the Bali Declaration was signed by Thailand, Indonesia and Malaysia in Bali on Dec 12, 2001, with the objective to ensure remunerative and fair NR prices for rubber smallholders in all three member countries.

Datu Nasrun said apart from the role assumed by the ITRC, other factors that influenced global rubber prices included the performance of the rubber futures market, foreign exchange rate market, crude oil prices and economic growth of rubber importing countries.

He said to enhance ITRC's role in influencing global NR prices, Vietnam, currently, the world's third-largest producer of natural rubber after Thailand and Indonesia was accepted as a member of the council.

"Vietnam's participation resulted in rubber production increasing to 76% from 67% and exports rising to 89% from 76%," he said.

Responding to a supplementary question from Ngeh, who wanted to know what action would be taken against Thailand and Indonesia for non-compliance, Datu Nasrun said the ITRC did not mandate any member country to take action against another member country.

China Economic Data Below Expectations, Rubber Prices Weaker

Rubber prices weaker in trading today, Tuesday (31/10/2017), along with China's economic data is bellow expectation.

The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), was down 1.53% or 3 points to 192.60 yen per kilogram (kg) at 10:35 pm.

Previously, rubber prices opened at a stagnant level of 195.60 yen per kg after trading Monday (30/10) ended down 2.44% or 4.90 points at 195.60 level.

"Bearish Chinese data and a stronger Japanese yen weighed on rubber prices," said Kazuhiko Saito, a Fujitomi analyst, as quoted by Bloomberg.

China's Purchasing Managers' Index (PMI) index fell to 51.6 in October, according to government data. This figure is lower than the Bloomberg survey which reached 52 and the position of September at 52.4.

Meanwhile, PMI figures for non-manufacturing sector reached 54.3, lower than the previous month's position of 55.4.

"Stricter environmental oversight has affected PMI in October," said Gao Yuwei, researcher at Bank of China Ltd. Institute of International Finance.

"However, strong industrial earnings last month indicate that manufacturing is going well.As winter approaches, factories in the north may have to reduce production due to pollution restrictions, but the effect will not be so serious as the overall contribution of manufacturing to GDP growth has declined," he continued .

Also pressing the price of rubber, the Japanese yen appreciated by 0.02% or 0.02 point to 113.16 yen per US dollar at 11:07 pm.

China Rubber Stocks Continue to Rise, Rubber Prices End Down

Rubber prices tumbled more than two percent in late trading on Monday (30/10/2017), in line with continued increases in rubber inventories in China.

The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), ended down 2.44% or 4.90 points at 195.60 yen per kilogram (kg).

Previously, rubber prices opened down 0.15% or 0.30 points at 200.20 level after trading on Friday (27/10) ended down 0.89% at 200.50 level.

"The continued upturn in inventory numbers in China has been detrimental to rubber market sentiment," said Gu Jiong, an analyst at Yutaka Shoji in Tokyo, as quoted by Bloomberg.

Total rubber stocks monitored by the Shanghai Futures Exchange rose 3% to 478,168 tonnes on Oct. 26, an increase for the 20th consecutive week.

Also pressuring the price of this commodity, the yen appreciated by 0.01% or 0.01 point to 113.66 per dollar at 13.49 WIB, after Friday (27/10) ended appreciating 0.27% at 113 , 67.

In contrast to rubber, West Texas Intermediate oil price for December 2017 shipment was followed up 0.20% or 0.11 point to US $ 54.01 per barrel at 14.13 WIB, after opening with 0.48% strengthening at position 54, 16.

Brent oil futures for December delivery rose 0.12 percent to $ 60.51 a barrel after Friday's close of 1.92 percent at 60.44.

The rise in world crude oil prices has been supported by extension of production cuts by producers in a bid to tackle global supply surplus and the weakening of the US dollar.

TOCOM posts lowest close in nearly 2 weeks as Shanghai falls

Benchmark Tokyo rubber futures fell 2.4 percent to their lowest settlement in nearly two weeks on Monday, erasing early gains on weak Shanghai futures, brokers said.

The Tokyo Commodity Exchange rubber contract for April delivery finished down 4.9 yen at 195.6 yen ($1.72) per kg, the lowest close since Oct. 17.

Rubber prices have been hovering near multi-month lows hit earlier this month as robust supplies and worries over sluggish demand weighed.

Vietnam's estimated rubber exports rose 8.2 percent in January-October from a year earlier to 1,075,683 tonnes, the government said on Sunday.

Goodyear Tire & Rubber Co, the largest U.S. tyre maker, lowered its full-year forecast for the third time this year, amid weak demand and higher costs of raw materials such as rubber and oil.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 140 yuan to finish at 13,285 yuan ($1,999) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 140.20 U.S. cents per kg, down 0.8 cents.

TOCOM erases early gains as Shanghai dives

​Benchmark Tokyo rubber futures erased early gains on Friday as Shanghai futures dived to a two-week low amid worries over oversupply, brokers said.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, earlier hit a near two-week high as the yen hovered near a three-month low against the dollar and Brent crude jumped to a 27-month high on Thursday.

The Tokyo Commodity Exchange rubber contract for April delivery finished 1.8 yen lower at 200.5 yen ($1.76) per kg. For the week, it gained 1.7 percent, the first such gain in three weeks.

Crude rubber inventories at Japanese ports stood at 5,302 tonnes as of Oct. 10, down 3.2 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Friday.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 190 yuan to finish at 13,330 yuan ($2,003) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 141.70 U.S. cents per kg, down 1.6 cent.

TOCOM hits 10-day high, tracks Shanghai futures

Benchmark Tokyo rubber futures hit a 10-day high on Thursday, buoyed by a slight gain in Shanghai futures, brokers said.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, tend to align with Shanghai futures, which have been struggling to gain ground in recent years amid oversupply and despite firm rubber imports by the world's top consumer China.

The Tokyo Commodity Exchange rubber contract for new April delivery debuted on Thursday with an initial price of 199.8 yen (US$1.76) and finished the day up 2.5 cents at 202.3 yen. Earlier it hit an intraday high of 203 yen, the highest since Oct 16.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 50 yuan to finish at 13,555 yuan (US$2,043) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 142.50 US cents per kg, down 1.1 cent.

In market news, Indonesia's car sales in September fell 5.3 from a year earlier, data released by automotive industry association Gaikindo on Thursday showed.

TOCOM steady, in line with Shanghai futures

Benchmark TOCOM rubber futures held steady in early trade on Thursday, in line with Shanghai futures overnight.

FUNDAMENTALS

* The new key Tokyo Commodity Exchange rubber contract for April delivery debuted on Thursday morning with an open price of 199.8 yen. That was up from the previous benchmark contract for March delivery that settled at 199.5 yen on Wednesday.

* Key Shanghai futures ended overnight trading down 0.1 percent.

* A concept car covered by a soft, next-generation rubber that can absorb the impact of a collision has raised eyebrows at the Tokyo Motor Show.

MARKET NEWS

* U.S. oil prices slipped on Wednesday after a surprising increase in U.S. crude inventories, while U.S. gasoline futures rallied 1 percent on a sharp falloff in inventories.

* The U.S. dollar was quoted around 113.60 yen, compared with around 113.77 yen on Wednesday afternoon.

* Japan's benchmark Nikkei stock average was down 0.1 percent.

* Copper steadied on Wednesday after two days of gains as stock markets slid after a series of record highs, pointing to a more cautious mood among investors. But a retreat in the dollar lifted the broader metals sector.

Global NR production up 5.4% during Jan-Sept 2017: ANRPC

During the first nine months of 2017, world production of natural rubber (NR), including non- Association of Natural Rubber Producing Countries (ANRPC) member countries grew 5.4% to 9.240 million tonnes on a year-on-year basis. Cambodia has recorded the fastest growth in production among ANRPC member countries from January to September 2017 at 31.5% followed by India (23%) and Malaysia (14.8%), said the latest Natural Rubber Trends and Statistics report by ANRPC in September 2017.

“Thailand, the largest NR producer, recorded the production growth at 1.3% during the period. Production of NR in Vietnam has slowed down from 11.6% reported in August 2017 to 10.7%. The slowdown could be attributed to the recent damage reported in rubber plantations caused by typhoon Doksuri, particularly in Central Vietnam. The local media has cited that the provinces were affected by the typhoon in Central Vietnam were Quang Tri, Ha Tinh and
Thanh Hoa provinces. Among these provinces, Vinh Linh District in Quang Tri province was badly hit by the typhoon, in which approximately 37% of its total rubber planted area were damaged,” the report said.

Malaysia has revised its country’s provisional production upward by 30,000 tonnes of NR to 730,000 tonnes in 2017. As a result, the revised outlook of world supply is expected to grow at 5.1%, amounting to 12.883 million tonnes of NR during year 2017 on a year-on-year basis. This revision also inclusive with a marginal adjustment made to China’s production for the year 2017 by 3,000 tonnes.

Based on actual figures up to June 2017, preliminary estimates for July to September 2017 and anticipated figures for October 2017 onwards, the world output of NR is expected at 12.884 million tonnes in 2017.

RUBBER-TOCOM hits 1-week high on weaker yen, strong Shanghai

Benchmark Tokyo rubber futures hit a one-week high on Wednesday, helped by a weaker yen against the dollar and slight gains in Shanghai futures, brokers said.

The dollar held near a three-month high versus the yen on Wednesday, underpinned by reports of Republican senators' favouring John Taylor to become the next head of the U.S. Federal Reserve, who may put the Fed on a path of faster interest rate increases than current chair Janet Yellen. A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.

The Tokyo Commodity Exchange rubber contract for March delivery finished 1.2 yen higher at 199.5 yen ($1.75) per kg. Earlier in the session, it hit 202 yen, the highest since Oct. 16.

The front-month contract for October delivery expired on Wednesday, down 6.3 yen at 193 yen.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 45 yuan to finish at 13,535 yuan ($2,038) per tonne.

Natural rubber market struggles

The natural rubber market is anticipated to continue struggling due to plunging prices, according to the Association of Natural Rubber Producing Countries (ANRPC).

At its 10th annual meeting in HCM City on Monday, ARNPC said the global natural rubber market has been facing difficulties since 2012 when prices started to dip, affecting the lives of more than six million rubber growers.

The decline in prices was attributed to the imbalance in supply and demand, which originated from a typical cultivation cycle of perennial plants and weakening global industrial production.

Since the end of 2016, natural rubber prices have recovered slightly but continue to lack stability, the association said.

According to A.Ajith Kumar, ANRPC’s president, rubber prices will continue to hover at low levels.

He said solutions to support rubber growers were just temporary to overcome the period of low prices.

Tran Ngoc Thuan, president of the Viet Nam Rubber Association, said to cope with the period of low prices, which could prolong for several coming years, Viet Nam was striving to improve output and land use efficiency, cut costs and enhance quality, along with developing the rubber processing industry.

In addition, promoting the use of rubber wood was also important, Thuan said.
Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said the Government of Viet Nam had increased domestic consumption of rubber from 18 per cent to more than 30 per cent and developed rubber processing to support the industry towards sustainable development.

There were more than 13.5 million hectares of rubber in the world, of which the 12 member countries of ANRPC accounted for 90 per cent.

The global demand for rubber was forecast to increase by 1.2 per cent to reach 12.38 million tonnes this year, while the global supply would be some 12.88 million tonnes.

Thailand, Malaysia, Indonesia and Viet Nam are the world’s largest rubber producers with total output making up for nearly 80 per cent of the global output.

Statistics of the General Department of Customs showed that in the first nine months of this year, Viet Nam’s rubber exports reached more than 955,680 tonnes, worth $1.6 billion, representing increases of 10.6 per cent in volume and 49.2 per cent in value over the same period last year.

The country also spent $802.3 million in importing more than 392,455 tonnes of rubber in the nine-month period.

A report by the Ministry of Agriculture and Rural Development showed that in 2017, Viet Nam’s rubber output rose by 3.9 per cent.

Heavy Rain in Thailand, Rubber Price Higher More than 1%

Rubber prices managed to regain momentum in trading this morning, Wednesday (25/10/2017), with a gain of more than one percent in line with the continued weakening Japanese yen exchange rate.

The price of rubber for delivery in March 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.21% or 2.40 points to 200.70 yen per kilogram (kg) at 10,47 WIB.

Previously, rubber prices opened down 0.20% or 0.40 points at 197.90 level after trading on Tuesday (24/10) ended up 1.07% rebound at 198.30 level.
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, the strengthening of rubber prices is supported by a number of factors including the depreciation of the yen against the US dollar.

"The weakening Japanese yen as well as concerns over supply limitations in Thailand because of heavy rainning boosted TOCOM's stock," he said, as quoted by Bloomberg.

The yen was down 0.03% or 0.03 point to 113.93 per US dollar at 10:57 pm, after losing on Tuesday (24/10) to 0.41% at 113.90.

The yen's performance has weakened about 2.3% last week and has declined the second weekly. Throughout the year, the yen has weakened by 24%.

At the same time, more torrential rainfall is expected to hit southern Thailand along with an active rainy season across the region.

Tokyo futures gain on weaker yen, firm oil price

Benchmark TOCOM rubber futures extended gains on Wednesday, supported by a weaker yen and firm oil prices overnight.

FUNDAMENTALS

* The Tokyo Commodity Exchange rubber contract for March delivery had risen 0.6 yen to 198.9 yen ($1.75) per kg by 0016 GMT. The front-month contract for October delivery expires later in the day.

* Key Shanghai futures ended overnight trading down 0.2 percent.

MARKET NEWS

* Brent oil rose 1 percent on Tuesday after top exporter Saudi Arabia said it was determined to end a supply glut, while prices also drew support from forecasts of a further drop in U.S. crude inventories as well as nervousness over tensions in Iraqi Kurdistan.

* The U.S. dollar was quoted around 113.93 yen, compared with around 113.35 yen on Tuesday afternoon.

* Japan's benchmark Nikkei stock average was up 0.4 percent.

* The price of copper hit a one-week high on Tuesday, while other metals also gained as the dollar dipped and investors remained optimistic about global economic growth prospects, although risks of a slowdown remained, especially in top consumer China.

China launches new rubber guidelines to tackle land grabs

The new rubber industry guidelines introduced by China could play a key role in tackling land grabs and deforestation across the Mekong, says non-governmental group Global Witness. The guidelines were launched at an intergovernmental conference in Ho Chi Minh City, Vietnam. These are the most progressive in addressing the social and environmental risks for companies associated with large-scale rubber plantations around the world, commented Global Witness.

The Chinese Guidelines for Sustainable Development of Natural Rubber have been launched by the Chinese Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (CCCMC), which is supervised by the Ministry of Commerce. The guidelines were drafted in association with international and Chinese partners, including Global Witness, following a four year-long drafting process including a public consultation.

“The guidelines come at a crucial moment for the rubber industry. The last decade has seen unscrupulous companies rapidly forcing people from their land and destroying primary forests as they expand operations. But the industry needn’t become tainted by these risks. As one of the top consumers and producers of natural rubber, Chinese industry can demonstrate real leadership in recognising and reducing supply chain risks, protecting forests and the rights of indigenous communities, as set out in the new guidelines. These guidelines must be adopted by companies if they are to have any real impact. Unless they implement them, companies risk lagging behind strong emerging industry standards,” said Ali Hines, of the Global Witness Land team.

Global Witness investigations have exposed the considerable environmental, social and financial risks associated with the continued expansion in global demand for natural rubber. The rubber industry has seen key consumers of natural rubber introduce sourcing policies for sustainable rubber over the last two years marking a major shift in the largely unregulated industry. In addition, company executives could now be held criminally responsible under international law for crimes linked to land grabbing and environmental destruction, following developments under the International Criminal Court.

Key elements of the guidelines

Respecting and protecting local communities rights related to land and other natural resources. This includes Indigenous Peoples’ right to Free, Prior and Informed Consent.

Carrying out comprehensive Environmental and Social Impact Assessments to ensure that harmful impacts are mitigated.

Adopting of ‘Zero-Deforestation’ policy in order to protect biodiversity and intact forests.

Establishing community grievance mechanisms and ensuring that communities are fully compensated for loss of resources.

TOCOM ends higher as yen stands near recent low

Benchmark Tokyo rubber futures erased early falls and closed 1.1% higher on Tuesday as the Japanese yen stood close to a three-month low hit a day earlier, brokers said.

The Tokyo Commodity Exchange rubber contract for March delivery finished 2.1 yen higher at 198.3 yen (US$1.75) per kg after touching 199.2 yen earlier, the highest since last Thursday. The US dollar stood at 113.64 yen, not far from a three-month high of 114.10 yen hit in the wake of Sunday's general election in Japan.

A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies. The most-active rubber contract on the Shanghai futures exchange for January delivery fell 95 yuan to finish at 13,425 yuan (US$2,024) per tonne.

China's natural rubber imports rose 20.9% last month to 228,161 tonnes from a year earlier, government data showed on Tuesday, confirming robust demand for raw material by the world's top consumer so far this year.

The number of rubber tyre exported fell 4.7% last month to 35.85 million units, Chinese data also showed. China's top steelmaking city, Tangshan, has ordered more industrial plants, including rubber, plastics and paint producers, to make deep cuts in production, the China Securities Journal reported on Monday, citing a government notice. The curbs will last for four months, until March 2018, but the city is asking industrial plants to make temporary, steeper cuts in production over the next three days, when smog is expected to worsen.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 143.20 US cents per kg, up 0.5 cents. (US$1 = 113.5600 yen)

Rubber Price Choppy Morning 24 Oct 2017

Strengthening of observed rubber prices eroded in trading this morning, Tuesday (24/10/2017), in line with the appreciation of the exchange rate of the yen against the US dollar.

The price of rubber for delivery in March 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), rose 0.20% or 0.40 points to 196.60 yen per kilogram (kg) at 1032 GMT.

Earlier, the rubber price opened with a 0.56% rebound or 1.10 points at 197.30 level after trading on Monday (23/10) ended down 0.46% at 196.20 level.

According to Gu Jiong, Analyst Yutaka Shoji, the positive movement of rubber prices is sustained by the weakening performance of the yen.

"Investors are also monitoring the impact on rubber from every development of China's economic policy," he said, as quoted from Bloomberg.

The performance of the yen has weakened about 1.2% over the past month, though this morning is observed to strengthen. The yen rose 0.14% or 0.16 points to 113.28 per dollar at 1038 GMT, after Monday (23/10) ended up 0.07% thin rebound at 113.44.

Meanwhile, according to the Association of Natural Rubber Producing Countries (ANRPC), the world rubber supply of 2018 is expected to exceed demand levels by 2%.

Tokyo futures inch lower in line with Shanghai

Benchmark TOCOM rubber futures extended declines to inch lower on Tuesday, in line with an overnight drop in Shanghai futures.

FUNDAMENTALS
* The Tokyo Commodity Exchange rubber contract for March delivery was down 0.6 yen at 195.6 yen ($1.73) per kg, by 0009 GMT, staying about 1 percent above a three-month low of 193.5 yen hit a week ago.
* Key Shanghai futures ended overnight trading down 0.3 percent.
 * Oil prices were little changed on Monday as supply disruptions in Iraq dented exports by OPEC's second-largest producer and U.S. drilling rates showed a slowdown.
* The U.S. dollar was quoted around 113.41 yen , compared with around 113.79 yen on Monday afternoon.
* Japan's benchmark Nikkei stock average opened down 0.1 percent.
* Zinc prices rose on Monday after data showed output in China slipped in September, highlighting worries that winter production cuts are tightening supplies of metals

TOCOM hits 1-week low on weak Shanghai

Benchmark Tokyo rubber futures hit a near one-week low on Monday and closed 0.5 percent lower, reflecting sluggish Shanghai futures, brokers said.

Tokyo Commodity Exchange (TOCOM) futures fell as much as 1.6 percent to 193.9 yen, the lowest since Oct. 17, but erased falls by the close, with the yen hitting a three-month low against the dollar following the victory for Japan's ruling party.

A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.

The Tokyo Commodity Exchange rubber contract for March delivery finished 0.9 yen lower at 196.2 yen ($1.73) per kg.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 35 yuan to finish at 13,500 yuan ($2,035) per tonne.

China's economy is on track to meet its official growth target for 2017, the head of the state planning agency said on Saturday, despite a punishing war on pollution which is expected to slash industrial output over the winter months.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 141.80 U.S. cents per kg, down 2.1 cents.

Rubber Price Slumps More Than 1% This Morning 23 OCT 2017

Rubber prices failed to sustain its rebound and turned weaker by more than one percent on Monday morning, amid concerns over global rubber production.

The price of rubber for delivery in March 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), slid 1.12% or 2.20 points to 194.90 yen per kilogram (kg) at 10:22 pm.

Previously, the rubber price opened with a 0.05% rebound or 0.10 point at 197.20 level after trading on Friday (20/10) ended down 0.25% at 197.10 level.

According to Masayo Kondo, President of Commodity Intelligence research company, the weakening of rubber prices is affected by concerns about the growth of global rubber production.

"The growing supply raises concerns that global rubber production is growing at a faster pace than demand," Kondo said, as quoted by Bloomberg.

The amount of rubber stocks monitored by the Shanghai Futures Exchange reportedly rose 1% to 464,209 tons on Oct. 19, an increase for the 19th week.

The total rubber inventories in Qingdao increased 5.1% to 198,900 tonnes on October 13.

Rubber prices slump even as the yen's performance continues to weaken. The yen was down 0.22% or 0.25 points to 113.77 per US dollar at 10:28 pm, after Friday (20/10) ended down 0.87% at 113.52.

China Rubber Stocks Rise, Rubber Price Closes Down 0.25%

The movement of rubber prices ended correction in trading today, Friday (20/10/2017), amid expectations of increasing the amount of inventory.

The price of rubber for delivery in March 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.25% or 0.50 points at 197.10 yen per kilogram (kg).

Earlier, the price of rubber opened with a decline of 1.21% or 2.40 points at 195.20 after trading on Thursday (19/10) ended up 0.82% at 197.60 level.

"Investors are starting to take profits on expectations that the number of inventories in China will increase," said Kazuhiko Saito, an analyst at brokerage firm Fujitomi, as quoted by Bloomberg.

Total rubber stocks monitored by the Shanghai Futures Exchange reported up 3.6% on Oct. 12, an increase for the 18th week.

The total rubber inventories in Qingdao increased 5.1% to 198,900 tonnes on October 13.

On the other hand, the yen was down 0.59% or 0.66 points to 113.20 per US dollar at 13.49 WIB, after on Thursday (19/10) ended up appreciating 0.35% at position 112.54

US Nov BD contracts expected to fall on Asia weakness

With global butadiene (BD) and rubber prices tumbling, sources said on Thursday they expect US November BD contracts to settle lower as well.

Early projections for the November contract were heard down as much as 5 cents/lb ($22/tonne), with most expecting some sort of decline.

“It could be down anywhere from 0 to 5 cents/lb, but down 5 cents/lb seems most likely,” a US buyer said.

The October contract fully settled at 52 cents/lb on an FOB (free on board) basis.

“It will depend on how much the BD producers want to deal with the spot market,” the buyer said. “If they don’t lower the price enough, they could have extra volume they have to sell.”

Sources said that the US BD market is mostly balanced following disruptions caused by Hurricane Harvey, but supply is lengthening.

If US BD contracts are unattractive, sources said buyers could take contractual minimums, then look to domestic spot volumes at a discount to the contract or imports.

Driven by rapidly declining natural rubber (NR) prices, synthetic rubber prices in Asia have also fallen to keep pace and avoid losing market share.

Synthetic rubbers, such as styrene butadiene rubber (SBR), are a major downstream market for BD.

This has helped push Asian BD spot prices down around 18 cents/lb in the past four weeks.

“All the US producers are under pressure, especially at the end of the year, to keep imports to a minimum,” another US buyer said.

Market sources said that with demand levels for BD in the US starting to fall on seasonal factors, buyers can wait for a clearer floor to emerge, rather than needing to keep inventory levels higher.

Several sources also said US BD producers are about to start slowly gaining supply, on the start-up of several new crackers in the next several years.

"Producers will need to move that new BD, however minimal, which means contract terms could improve,” a source said. “Maybe we go from a situation with fees and adders to increased discounts.”

Major US BD producers include ExxonMobil, LyondellBasell, TPC Group and Shell Chemical.

TOCOM pares decline on weak yen, firm Shanghai

Benchmark Tokyo rubber futures pared declines at the close on Friday, getting support from a broad dollar gain against the yen and a recovery in Shanghai futures, brokers said.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, had earlier fallen as much as 1.7%, reflecting sluggish Shanghai futures.

The dollar rose 0.5% on the day to 113.14 yen, having gained to as much as 113.315 yen at one point, its strongest level since Oct 6, bolstered by increased optimism about the prospects for US tax reforms.

A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.

The Tokyo Commodity Exchange rubber contract for March delivery finished 0.5 yen lower at 197.1 yen (US$1.74) per kg, declining more than 2% for the second straight week.

The contract touched an intraday low of 194.3 yen, slightly off a 3½-month low of 193.5 yen hit on Tuesday.

The most-active rubber contract on the Shanghai Futures Exchange for January delivery rose 130 yuan to finish at 13,700 yuan (US$2,070) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 143 US cents per kg, up 0.8 cent.

NR demand continues to outstrip supply — ANRPC

World demand for natural rubber (NR) during the first nine months of 2017 exceeded world NR output by approximately 400,000 metric tons, according to the Association of Natural Rubber Producing Countries (ANRPC).

NR production stood at 9.24 million metric tons during the January-to-September period, compared with demand totaling 9.64 million tons, according to the September 2017 issue of Natural Rubber Trends & Statistics, the official monthly publication of the ANRPC.

Negative factors such as high rubber inventories, a strong Japanese yen and developments in the crude oil market dampened NR prices during the period despite the supply shortfall, ANRPC Secretary General Nguyen Ngoc Bich said in an editorial dated Oct. 10.

NR prices recovered in August but plunged again the last two weeks of September because of high inventories and a broad global commodity selloff, according to Mr. Nguyen.

Average NR production growth among ANRPC member countries was 5.4 percent, compared with the 8.77 million tons produced in January-September 2016, according to the ANRPC.

Cambodia had the highest growth rate, at 31.5 percent, while Thailand, the world's largest NR producer, had the lowest growth rate at only 1.3 percent, the association said.

The ANRPC anticipates total 2017 NR world supply of 12.9 million tons, up 5.1 percent from the 2016 total of 12.3 million tons. By comparison, world NR supply rose only 0.1 percent in 2016 from the 2015 figure of 12.3 million tons, the association said.

Yen Weaker, Rubber trade in thin range

The weakening of the price of rubber thinning in trading today, Friday (20/10/2017), following the weakening Japanese yen exchange rate.

The price of rubber for delivery in March 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), was stagnant at 197.60 yen per kilogram (kg) at 10:26 pm.

Earlier, the price of rubber opened with a decline of 1.21% or 2.40 points at 195.20 after trading on Thursday (19/10) closed up 0.82% to 197.60 yen per kg.

Throughout this week, rubber prices still posted a 3% decline.

Reported by Bloomberg, the weakening of rubber prices this week occurred following an increase in rubber reserves in China.

Kazuhiko Saito, an analyst at Fujitomi, said investors are starting to take for the sake of expectations that rubber stocks in China will increase.

Despite the weakness, rubber prices began to creep into gains as the yen exchange rate depressed against the US dollar.

The yen was down 0.53% or 0.6 points to 113.14 per US dollar at 10:54 pm.

TOCOM extends gains as yen weakens against US dollar

Benchmark Tokyo rubber futures ended higher for a second consecutive session on Thursday as the dollar hit its highest in about two weeks against the yen, supported by the rise in US bond yields this week, brokers said.

The dollar rose as high as 113.095 yen in early Asian trade, its strongest level since Oct 6. A weaker yen makes yen-denominated commodities cheaper for holders of other currencies.

The Tokyo Commodity Exchange rubber contract for March delivery finished 1.6 yen higher at 197.6 yen (US$1.75) per kg, up 2.1% from a 3½-month intraday low hit earlier this week.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 235 yuan to finish at 13,365 yuan (US$2,018) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 142 US cents per kg, down 1 cent.

China's Economy Optimistic Positive, Rubber Price Continue Strengthening

Rubber prices continued strengthening in trading this morning, Thursday (10/19/2017), sustained optimism on the Chinese economy.

The price of rubber for delivery in March 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), gained 1.58 percent or 3.10 points to 199.10 at 9:59 pm.

Earlier, the price of rubber opened with a weak 0.10% or 0.20 point at 195.80 after trading on Wednesday (18/10) closed rebound from a three-month low with 20 points to 196.10 yen per kg.

Gu Jiong, analyst Yutaka Shoji, said the recovery in economic conditions in China helped boost optimism that demand for rubber would increase.

"The strengthening of oil prices and weakening Japanese yen also gave positive sentiment," he continued, as quoted by Bloomberg, Thursday (17/10/2017).

Meanwhile, the yen today was down 0.04% or 0.04 points to 112.98 yen per US dollar at 10:53 pm.

TOCOM recovers from 3-1/2 month low on bargain-hunting

Benchmark Tokyo rubber futures inched higher on Wednesday, recovering from a 3-1/2-month low touched the previous day, as investors looked for bargains while higher Shanghai futures lent support.

An extended rally in Tokyo’s stock market also helped boost risk appetite, dealers said.

But trade was light as investors looked for announcements from China’s twice-a-decade Communist Party Congress, which started on Wednesday, to boost manufacturing and construction activity and fuel demand for industrial metals.
The Tokyo Commodity Exchange (TOCOM) rubber contract for March delivery finished 0.4 yen higher at 196.0 yen ($1.74) per kg, off the low since July 6 of 193.5 yen hit on Tuesday.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 120 yuan to finish at 13,570 yuan ($2,049) per tonne.

Japan’s Nikkei share average rose for a 12th consecutive day on Wednesday, getting a lift from hopes that this weekend’s election will produce political stability and continuation of loose monetary policy.

Japanese Prime Minister Shinzo Abe’s coalition is on track for a roughly two-thirds majority in the general election, a survey by Kyodo news agency showed, as its conservative rival led by Tokyo Governor Yuriko Koike appeared to lose momentum.

The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 142.7 U.S. cents per kg, down 1.7 cents. 

Tokyo futures edge up from 3-1/2-mth low as investors look for bargains

Benchmark TOCOM rubber futures rose on Wednesday, inching away from a 3-1/2-month low hit the previous day on an overnight gain in Shanghai futures and as investors looked for bargains.

FUNDAMENTALS

* The Tokyo Commodity Exchange (TOCOM) rubber contract for March delivery was up 0.8 yen, or 0.4 percent, at 196.4 yen ($1.75) per kg as of 0042 GMT. It touched its lowest since July 6 at 193.5 yen on Tuesday.

* The most-active rubber contract on the Shanghai futures exchange, for January delivery, rose 115 yuan to 13,565 yuan ($2,048) per tonne in overnight trade.

MARKET NEWS

* Japan's benchmark Nikkei stock average crept higher on Wednesday after rising for an 11th straight day and ending at the highest level since late-1996 the previous day.

* The U.S. dollar was steady on the yen at around 112.20 yen early on Wednesday.

* Oil prices ended little changed on Tuesday, steadying after earlier gains and losses, as expectations of high U.S. production and exports offset concerns that fighting between Iraqi and Kurdish forces could threaten the country's crude output

Rubber Price Ends Down More than 2%

​Rubber prices tumbled more than two percent in late trading today, Tuesday (17/10/2017), depressed by worries about excess supply.

The price of rubber for delivery in March 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 2.69% or 5.40 points at 195.60 yen per kilogram (kg).

Previously, rubber prices opened down 0.30% or 0.60 points at 200.40 level after on Monday (16/10) ended down 0.35% at 201 level.

According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, rubber prices weakened due to weighing concerns about rising supply in China.

"It triggers sales from investors," Saito said, as quoted by Bloomberg.

Total rubber stocks monitored by the Shanghai Futures Exchange rose 3.6% to 459,732 tonnes as of Oct. 12, the 18th consecutive weekly rise.

Meanwhile, according to data from the Ministry of Commerce, Thailand's rubber exports increased 24.6% (y-o-y) in August.

Rubber prices tumbled even at the same time the performance of the yen weakened for the second day in a row

The yen continued to weaken 0.04% or 0.05 point to 112.24 per dollar at 14.00 Western Indonesia Time, after Monday (16/10) ended down 0.30% at 112.19.

RUBBER-TOCOM hits 3-1/2-month low on weak Shanghai

Benchmark Tokyo rubber futures hit a 3-1/2-month low on Tuesday, taking a cue from weak Shanghai futures, which have been weighed down by rising output in major producers such as Thailand and Vietnam, brokers said.

The Tokyo Commodity Exchange rubber contract for March delivery finished 5.4 yen lower at 195.6 yen ($1.74) per kg after touching 193.5 yen earlier, the lowest since July 6.

Japan’s Bridgestone Corp said it would invest 266 million euros ($313 million) in three key production lines in Spain and Poland, with all upgrades being completed by early 2022.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 90 yuan to finish at 13,530 yuan ($2,046) per tonne, after touching a near one-week low and coming within 2 percent of a 2-1/2-month low hit in late September.

The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 141.90 U.S. cents per kg, down 2.5 cents. 

NR demand continues to outstrip supply

World demand for natural rubber during the first nine months of 2017 exceeded world NR output by approximately 400,000 metric tons, according to the Association of Natural Rubber Producing Countries.

NR production stood at 9.24 million tons between January and September 2017, compared with demand totaling 9.64 million tons, according to the September 2017 issue of Natural Rubber Trends & Statistics, the official monthly publication of the ANRPC.

Negative factors such as high rubber inventories, a strong Japanese yen and developments in the crude oil market dampened NR prices during the period despite the supply shortfall, said ANRPC Secretary General Nguyen Ngoc Bich in an editorial dated Oct. 10.

NR prices recovered in August, but plunged again the last two weeks of September because of high inventories and a broad global commodity selloff, according to Nguyen.

Average NR production growth among ANRPC member countries was 5.4 percent, compared with the 8.77 million tons produced in January-September 2016, according to the ANRPC. Cambodia had the highest growth rate, at 31.5 percent, while Thailand, the world's largest NR producer, had the lowest growth rate at only 1.3 percent, the association said.

The ANRPC anticipates total 2017 NR world supply of 12.88 million tons, up 5.1 percent from the 2016 total of 12.26 million tons. By comparison, world NR supply rose only 0.1 percent in 2016 from the 2015 figure of 12.25 million tons, the association said.

TOCOM falls 2 pct, tracks overnight drop in Shanghai market

Benchmark TOCOM rubber futures fell around 2 percent early on Tuesday, tracking a similar overnight decline in Shanghai futures.

FUNDAMENTALS
* The Tokyo Commodity Exchange rubber contract for March delivery had dropped 3.7 yen to 197.3 yen ($1.76) per kg by 0000 GMT, after falling as much as 2.4 percent earlier.

* Key Shanghai futures ended overnight trading down 2.2 percent.
* Crude rubber inventories at Japanese ports stood at 5,476 tonnes as of Sept. 30, down 5.3 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Tuesday.

MARKET NEWS
* Crude prices rose 1 percent on Monday as Iraqi forces entered the oil-rich city of Kirkuk, seizing territory from Kurdish fighters and briefly cutting some crude output from OPEC's second-largest producer.
* The U.S. dollar was quoted around 112.18 yen, compared with around 111.96 yen on Monday afternoon.
* Japan's benchmark Nikkei stock average was up 0.5 percent.
* Copper prices broke through the $7,000 a tonne mark for the first time in three years on Monday as a number of pieces of economic data, including from top consumer China, fuelled optimism about demand.

RUBBER-TOCOM sheds early gains to end down on stronger yen

Benchmark Tokyo rubber futures hit a one-week high on Monday but erased early gains to end lower by the close of the session, as the market came under pressure from a stronger yen against the dollar, brokers said.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, on Monday got support from firm Shanghai futures, that hit their highest in 2-1/2 weeks.

The U.S. dollar was quoted around 111.65 yen , compared with about 112.12 yen on Friday afternoon. A stronger yen makes Japanese currency-denominated assets more expensive when purchased in other currencies.

The Tokyo Commodity Exchange rubber contract for March delivery finished 0.7 yen lower at 201 yen ($1.80) per kg. Earlier in the session, it touched 204.2 yen, the highest since Oct. 10.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 75 yuan to finish at 13,580 yuan ($2,063) per tonne helped by a surprisingly strong central bank economic growth projection.

Central bank governor Zhou Xiaochuan said the economy was expected to grow 7 percent in the second-half of this year, accelerating from the first six months and defying widespread expectations for a slowdown. The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 144.70 U.S. cents per kg, down 1.4 cents.

Cambodia Rubber exports rise 33 percent

Cambodia’s rubber exports to the international market saw an increase of 33 percent in the first nine months of 2017, while the average price for the commodity went up 53 percent, compared with the same period last year.

From January to September 2017, Cambodia harvested 115,843 tonnes of rubber, of which 114,991 were exported, earning some $192 million.

Meanwhile, the average price of rubber reached $1,672 per tonne, an increase of $578, or 53 percent, compared with the same period last year, according to the latest report from the Ministry of Agriculture, Forestry and Fisheries.

The same report states 432,096 hectares in the kingdom are used as rubber plantations, of which 163,130, or 37.77 percent, are already harvestable.

Cambodia exports the commodity to China, Vietnam, Singapore and Malaysia. In 2016, Cambodia exported about 140,000 tonnes of rubber, earning nearly $180 million.

Pol Sopha, the director-general of the ministry’s general directorate of rubber, said plantations had been harvesting a large amount of rubber and he added he was optimistic about the expansion of the industry.

Lim Heng, the vice-president of An Mady Group Co, called on the government earlier this year to consider reducing tax on rubber exports to boost domestic investment.

“The rubber price is currently positive and stable because it is related to oil prices,” Mr Heng said. “But we want the government to consider reducing tax for rubber exports when the global price goes down, to help local investment and  local companies compete with others in the market.”

While trying to expand into international markets, especially China, which is the world’s biggest rubber importer, the government is also working to establish domestic factories for rubber products to create jobs, Mr Sopha added.

China wants to import 300,000 tonnes of rubber from Cambodia by early next year, as the government works on boosting the country’s rubber output.

Tocom weaker on Monday 16/10/2017

The price of rubber turned weaker on trading today, Monday (16/10/2017), although it had moved higher than 200 in the  morning.

The price of rubber for delivery in March 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), was down 0.35 percent or 0.70 points to 201 yen per dollar at 10:56 pm.

Previously, the rubber price opened with a gain of 0.1% or 0.20 point at 201.90 level after trading on Friday (13/10) ended down 2.28% to 201.70.
Despite weakening, rubber prices briefly rose to as low as 204.20 yen per kg, capped by the strengthening of crude oil prices.

According to Takaki Shigemoto, an analyst said that, the rally in crude oil prices increased speculation the cost of producing synthetic rubber will increase, thereby contributing to the demand for natural rubber.

"The increase in automotive sales and the optimism of global growth also boosted investor interest in this commodity," said Shigemoto, as quoted by Bloomberg.

Car sales in China reported up 3.3% in September, buoyed by demand for premium cars.

Meanwhile, today's yen exchange rate is down 0.11% or 0.12 points to 111.94 yen per US dollar at 11.38 WIB.