Business Standard

Natural rubber production could rise 4.9% in FY13

George Joseph  |  Kochi 

Production from the Producing Countries (ANRPC) region might rise 4.9 per cent to 10.9 million tonnes (mt) for 2012-13.

The rise in production is on the back of increased output from Indonesia, the world’s second-largest producer, likely to go up to 3.26 mt, Malaysia’s to one mt and Vietnam’s to 915,000 tonnes.

ANRPC has 11 members — Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam. These account for 92 per cent of the global production of natural rubber.

According to the initial trends from various countries, ANRPC earlier scaled down its production estimate for 2012 to 10 mt from 10.42 mt. This was based on the output in the first quarter (January-March) which fell 9.5 per cent, as farmers in Thailand and Malaysia trimmed tapping on a steep drop in prices.

According to latest reports from these countries, production is likely to go up this financial year.

Meanwhile, the biggest concern over global production is dropping prices. International have shown a continuous fall for the past few weeks and the Bangkok market today quoted Rs 176 a kg for the commodity. This was Rs 180 a kg last Wednesday. The Indian counters are also on a decreasing mode and RSS-4 quoted at Rs 187 a kg. Experts feel that prices are likely to pick up in the coming months, as despite a slowdown in top consumers, China and India, the demand will be almost steady this year.

Demand from emerging markets, such as West Asia, Brazil and Russia will also support prices.

On the supply side, erratic rain in Thailand — the largest producer — has been disrupting tapping and slowing supplies after the low-output winter season.

RECOMMENDED FOR YOU

Natural rubber production could rise 4.9% in FY13

The rise in production is on the back of increased output from Indonesia, the world’s second-largest producer, likely to go up to 3.26 mt, Malaysia’s to one mt and Vietnam’s to 915,000 tonnes.

Production from the Producing Countries (ANRPC) region might rise 4.9 per cent to 10.9 million tonnes (mt) for 2012-13.

The rise in production is on the back of increased output from Indonesia, the world’s second-largest producer, likely to go up to 3.26 mt, Malaysia’s to one mt and Vietnam’s to 915,000 tonnes.

ANRPC has 11 members — Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam. These account for 92 per cent of the global production of natural rubber.

According to the initial trends from various countries, ANRPC earlier scaled down its production estimate for 2012 to 10 mt from 10.42 mt. This was based on the output in the first quarter (January-March) which fell 9.5 per cent, as farmers in Thailand and Malaysia trimmed tapping on a steep drop in prices.

According to latest reports from these countries, production is likely to go up this financial year.

Meanwhile, the biggest concern over global production is dropping prices. International have shown a continuous fall for the past few weeks and the Bangkok market today quoted Rs 176 a kg for the commodity. This was Rs 180 a kg last Wednesday. The Indian counters are also on a decreasing mode and RSS-4 quoted at Rs 187 a kg. Experts feel that prices are likely to pick up in the coming months, as despite a slowdown in top consumers, China and India, the demand will be almost steady this year.

Demand from emerging markets, such as West Asia, Brazil and Russia will also support prices.

On the supply side, erratic rain in Thailand — the largest producer — has been disrupting tapping and slowing supplies after the low-output winter season.

image

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

Widgets Magazine

More News

STOCK WATCH

Company Price() Chg(%)
Indbull.RealEst. 67.55 6.46
Bata India 586.05 5.75
Suzlon Energy 14.99 5.27
Castex Tech 7.19 4.96
GMR Infra. 12.61 4.91
> More on BSE Gainers
Company Price() Chg(%)
Indbull.RealEst. 67.65 6.54
Suzlon Energy 14.95 5.28
Bombay Rayon 144.95 5.04
Bata India 584.20 5.02
GMR Infra. 12.60 5.00
> More on NSE Gainers
Company Price() Chg(%)
Titagarh Wagons 91.60 -7.33
Idea Cellular 118.30 -6.52
Jindal Steel 69.90 -6.49
HCL Technologies 750.45 -6.19
CEAT 1097.70 -5.88
> More on BSE Gainers
Company Price() Chg(%)
Jindal Steel 69.80 -6.56
CEAT 1098.60 -6.39
Idea Cellular 118.55 -6.28
HCL Technologies 750.30 -6.20
JMT Auto 53.25 -5.67
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard