1. law, govt and politics
2. government

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Happy 2015
& Prosperous
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Vol. VI 13
For your requirement of
DENKA CHLOROPRENE
RUBBER
15th JANUARY 2015
MEMBER’S OF YOUR ASSOCIATION KNOWS
ABOUT YOUR BUSINESS
Give your product
the wings to fly & let
the visitors reach you
(from Denki Kagaku Kogyo K.K. Japan)
GRADES
M-30 / M-40 / S-40V / PS-40A,
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SPARTAN AGENCIES
Tel.: 022 - 2850 5115 / 5730 / 6512
Fax: 022 - 2852 1013
Email: [email protected]
H - ` 130.75
131
RSS4 PRICE
Indenting agents for
Western Region of India only
128
` 126.45
L - ` 126.45
125
122
119
116
RSS4 - Kottayam
RSS3 - Bangkok
113
H - ` 108.95
110
Commerce’s announcement is a
Union Commerce Minister
` 105.65
107
Nirmala Sitharaman announced
welcome step and will help
104
L - ` 105.38
stabilise sagging domestic rubber
the move of reducing the export
JAN 01 02 03 05 06 07 08 09 10 12 13 14 15
window from the current 18
prices in the country. A surge in
Visit: www.rubber4u.com /Statistic/Commodity Markets
imports, much above the gap in
months to six months in the case
of the Rubber Advance License Import
production and consumption, show that
importers had been taking an unfair
Scheme, in the interest of the domestic
advantage of the export window to
rubber growers. The Rubber Advance
License import scheme allows duty-free
hoard rubber amid low global prices,
which has depressed domestic prices
import against exports.
in India.
Various grower federations and United
Planters’ Association of Southern India
UPASI and other stakeholders have
urged the government to review
(UPASI) had been requesting for a
long time the need for structural
outdated norms of SION (Standard
changes in the import policy and have
Input Output Norm) and issues of
appreciated the Commerce Ministry’s
inverted duty structure in Rubber goods
latest decision.
industry to enable the robust growth of
the Rubber goods manufacturing sector
The UPASI, said that the Ministry of
in the country.
Rubber
planters
hail govt
move
Processing Additives
www.ber ub ber.com
Importer & Distributor
of Rubber Additives
Batch of Soaps/Anti Tack
Tackifier/Homogenizers Calcium Oxide
Activa Zinc
Masterbatch Sulphur (Predispersed)
Phone: 91 22 25092756 Fax: 91 22 25092752 E-mail: [email protected], [email protected]
First Section - Rubber4U - 15th January 2015
NATIONAL - Update 4 U
2
Duty cuts to boost Make in India
Import duty on components and raw
material pushes up costs of finished
goods, thereby reducing Indian
products’ competitiveness in the global
market. The issue of inverted duty
structure needs to be addressed to
Rubber sector
needs to be more
competitive
attract investments and provide a levelplaying field. To make ‘Make in India’ a
success, Indian government is looking
to remove as many barriers as possible.
The government plans to cut taxes
on imported components as part of
its
broad
strategy
to
aid
manufacturing revival through Prime
Minister Narendra Modi’s signature
‘Make in India’ campaign. An
announcement is likely to be made
In a meeting with senior representatives
of tyre companies recently, Kerala chief
minister Oommen Chandy expressed
serious apprehensions that if small
rubber growers are not supported at this
juncture, long-term natural rubber
availability prospects in the country
would turn bleak due to negative
sentiment that may prevail. The tyre
industry agreed to the proposal of the
Kerala government to lift RSS4 grade
rubber at 25% higher rates than current
international prices with a view to
supporting small rubber growers in the
state.
As there is a growing shortfall between
domestic production and consumption
of rubber and it is feared that the same
will widen in the future. Hence, it is
desirable that domestic natural rubber
production receives a fillip. Replantation activity needs to be taken up
on priority. Natural rubber plantation
sector needs to be strengthened through
an increase in plantation and replantation
subsidies.
The
competitiveness of Indian natural rubber
sector needs to be enhanced through
sharp focus on quality of produced.
The governments should take note of
the concerns of the industry in view of
surging imports of cheap finished
rubber goods from China and ASEAN
countries manufactured with cheaply
accessed rubber.
Fastest
growing
medium
in the upcoming budget.
The government is also looking to
address the concerns of the inverted
duty structure in the coming budget by
rationalising the special additional duty
(SAD). SAD is currently levied at 4% to
provide a level-playing field to
indigenous goods, which have to bear
the burden of sales tax. The central
sales tax is, however, currently much
lower than SAD.
Your Customers are
someone else prospects.
If you won’t take care of them,
then someone else will ...........
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For more details contact:
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Log on to: www.rubber4u.com
Maximium reach at the lowest tariff
First Section - Rubber4U - 15th January 2015
NATIONAL - Update 4 U
3
impor
ports
mayy soar
too 5
tonnes
NR im
ts ma
soar tto
5 lakh
lakh ttonnes
onnes
impor
ports
may
NR
Government intervention in convincing
major tyre companies to purchase from
local farmers in an attempt to stabilise
domestic rubber prices may prove to
be unsuccessful, as India’s natural
rubber imports are all set to reach a
record 5 lakh tonnes in 2014-15.
Stop rubber imports
immediately
T
h
e
Government
of
Kerala
asked Prime
Minister
Narendra Modi to take steps for
stopping rubber imports and include the
industry in the Make in India scheme.
Kerala Chief Minister Oommen Chandy
and state leader of Opposition V S
Achuthanandan, who jointly met the
Prime Minister, said that over 3.25 lakh
tonnes of natural rubber has been
imported though there is a stock of 1.8
lakh tonnes of natural rubber leading
to slashing of rubber prices.
In a memorandum submitted to prime
minister, it said that now rubber cultivation
is not remunerative at all and farmers are
forced to leave it. To arrest steep price
fall, the import of rubber should be
stopped with immediate effect.
WTI Cr
ude Oil
Crude
Prices
US$48.48
On 14th January 2015
- End-of-Day
To address the concerns of rubber
growers over losses due to low
international prices and rising imports,
around 17 tyre companies agreed last
month to buy natural rubber from within
the country at international prices plus
the prevalent import duty. The move,
mainly due to an appeal by the Kerala
Chief Minister, aimed to reduce imports,
and help farmers offload their stock and
continue tapping.
The decline in natural rubber production
in December is expected to fuel imports
in the remaining months of 2014-15.
Going by the latest statistics, India’s total
natural rubber imports may climb up to
5 lakh tonnes in 2014-15. Industry
representatives add that the Ministry of
Commerce’s Advanced Licensing Policy,
which allows imports against exports for
a limited period of six months, may help
contain import of natural rubber.
Where your executives don’t
REACH,
Reaches
over
136834
Readers
r
e
a
c
h
e
s
that too the Concerned Person
For more details contact:
Tel.: +91 – 251 - 2606134 / 9146095585 / 8087187855
E-mail: [email protected];
[email protected]
15 Dec
14 Jan
www.rubber4u.com
First Section - Rubber4U - 15th January 2015
NATIONAL - Update 4 U
Asia’s Largest
Rubber Show
The largest Rubber Expo in Asia –
“India Rubber Expo and Tyre Show”
(IRE’15), the flagship event of All India
Rubber Industries Association will be
held from 15th to 17th January 2015 at
Pragati Maidan, New Delhi-India. IRE’15
is spread over an area of 30000 sq
mtrs. Over 400 exhibitors and 30,000
business visitors are expected to
participate and attend the mega event.
A two and a half days conference on
We are fortunate, while we are celebrating the New Year “Opportunities
n
d
2015 with corrective initiative towards new heights and a
Challenges
to
looking forward a moderate platform to start the journey of
success, at the same time the 8th India Rubber Expo and meet unmet
in
Tyre Show (IRE-2015) will be held from 15-17th January needs
r
u
b
b
e
r
2015 at Pragati Maidan, New Delhi, India.
industry”
I would say that this is golden opportunity to entrepreneur of industry sector to during India
take advantage of this mega event which would cover the entire range of rubber Rubber Expo
and rubber products including Tyres, Chemicals, Machinery, Testing equipment & Tyre Show
etc. A three-day conference is being held concurrently with the show which shall 2015.
The
be addressed by over 18 technical experts and senior industry representatives inverted duty
from USA, UK, Germany, Italy, China, Singapore, Belgium and India etc. I structure and
am confident that IRE-2015 is a one-stop platform for international & domestic rising prices of
participant, business visitors & decision makers who are stakeholders in the natural rubber
rubber (tyre & non-tyre) sectors. Also Buyer-seller meets; Technical Seminars are likely to be
& Workshop will set the milestone for everyone in the event
the focus of the
event.
The
I request to all, let we come together to make our presence on this show
conference
‘IRE-2015’ so as to take its popularity beyond the expectation and take liberty
will include 20
to join the hands with global business community.
Mohinder Gupta
P l e n a r y
President, AIRIA & Chairman, IRE-2015
lectures from
K.M. Philip award to M.F Vohra
All India Rubber Industries
Association’s (AIRIA) K. M. Philip
Award Committee at its meeting
held on 17th December 2014 at
Mumbai has selected M F Vohra of Zenith
Industrial Rubber Products Pvt. Ltd. as the
recipient of the most prestigious K. M. Philip
Award for 2015 for his outstanding contributions
to the cause of Rubber Industry. The Award will
be presented during the inaugural function of
India Rubber Expo 2015 on 15th January 2015
at the hands of the Chief Guest of the function.
The Award carries a Citation, a gold medal and
a cash endowment of `.2.5 lakhs.
MF Vohra, aged 65, joined his father’s Small
Scale factory, Zenith Rubber & Plastic Works,
Dombivili-Thane, in 1971 after graduation in
Mathematics and is presently a member of AIRIA
- Managing Committee and currently elected
chairman of Capexil. He was the President of
AIRIA during 2007-09. During his tenure he has
initiated a number of activities to make the AIRIA
very visible and highlighted the issues and
problems of the rubber industry. He has also
been on the Governing Council of the Indian
Rubber Manufacturers Research Association for
seven years. He was also the president of the
Gulf Rubber Council, UAE.
Capexil has been awarded ISO 9001:2000 under
Vohra’s chairmanship, the first council in the
4
Eminent Speakers representing eight
countries in the world. One day
Workshop is also being organised on
16th January 2015 on “Reverse
Engineering of Rubber Products”
parallel during the conference to help
the delegates to enhance knowledge
on Quality and Productivity.
Import duties on rubber in India are one
of the highest in the world. The inverted
duty structure subjects rubber at 20%
while finished rubber goods can be
imported at less than half that level. A duty
of over 20% on import of natural rubber
is hurting the industry. Manufacture of
rubber products is shifting to Asia. India
is ready to play a central role in shaping
the growth of rubber and all associated
sectors. The sector which is worth around
`.60,000 crore, is dominated by lakhs of
small and medium enterprises which
require a major push from the ‘Make In
India’ campaign. IRE celebrates India’s
emergence on the rubber map of the
world. We are committed to propagate
the government’s ‘Make-in-India’ drive by
achieving excellence in rubber
manufacturing, said Mohinder Gupta,
President of AIRIA.
Rubber & chemical
trade meet - OPTIMA’ 15
The Rubber & Chemical Merchant’s
Association’s special innovation networking breakfast scheduled on 16th
January at Pragati Fine Dining, Opp. Hall
11 exit, between 8.15 am to 10.00 am
during the India Rubber Expo 2015, has
generated 150 responses.
country to receive such certification. He continues
as the elected chairman of the rubber products
panel and as chairman of the western region for
the last 24 years. Under Vohra’s chairmanship, he
has led over 30 delegations sponsored by Capexil,
AIRIA and the International Trade Center, Geneva
to various countries across the globe. During these
delegation visits, they have participated in many
exhibitions in USA and organized buyer-seller
meets to promote exports and create awareness
for the quality of Indian rubber products.
First Section - Rubber4U - 15th January 2015
NATIONAL - Update 4 U
5
2,400 tonnes lifted in a single day
Since two weeks after the crucial move
and announcement (on 18th
December) of the state government, by
eliciting a guarantee from tyre
companies to ensure a minimum price
of `.130 a kg for RSS-4 grade natural
rubber, tyre industries had lifted 2,400
tonnes of RSS-4 grade natural rubber
from the domestic market at `.130.45
a kg on 2nd January.
JK Industries and Bridgestone had lifted
around 1,000 tonnes and 200 tonnes
respectively in the past few days at
`.130 per kg from dealers. According
to Rubber Board, all the tyre companies
were active in the market. We’re also
in touch with major non-tyre sector
industries to ensure that maximum
stocks are lifted from the domestic
market.
Cut in tyre prices
Tyre manufacturers were resisting for
a price cut, despite the price of natural
rubber falling to half over the past year.
For the first time in over 1½ years, tyre
companies cut prices across segments
by as much as 4%. A majority of
companies have cut prices in the bias
(nylon) tyre segment.
As major input costs like rubber and
crude oil prices have declined, there
was mounting pressure from fleet
operators to bring down the prices of
our products. This played a pivotal role
in recent price correction, said Arnab
Banerjee,
executive
director
(operations) at Ceat Ltd.
For tyre companies, 85% of its
requirement is RSS-4 grade sheet
rubber and the rest comprises RSS-5
and lot rubber. For non-tyre sector
industries, it is the reverse with RSS-5
and lot rubber accounting for 65-75%
of their requirements.
Tyre companies were insisting on the
delivery of the pending consignments
of around 6,000 tonnes by domestic
natural rubber suppliers, based on
contracts entered with them on the days
prior to 18th December, at a price in
the `.112-114 range, before venturing
into the new scheme. MRF had a lion’s
share of around 4,000 tonnes to be
sourced from dealers.
Chief Minister Oommen Chandy was
monitoring the progress of the scheme
announced on a day-to-day basis and
instrumental in overcoming all
administrative and technical hurdles
including the mode of awarding the
waiver of 5% purchase tax for
companies till 31st March.
Tripura seeks restriction
on the import
Tripura, the second largest producer of
natural rubber after Kerala has sought
imposition of restriction on import of
synthetic rubber from China, Malaysia
and Indonesia to stabilize natural
rubber market and has sought policy
to encourage value addition in the
rubber sector. Rubber is spread in
61,000 hectares in the state. Tripura
government
has
asked
the
Parliamentary Standing Committee of
Industries and Commerce that this
restriction is necessary to pullout the
rubber growers from the setback that
they suffered following sharp fall in the
prices of rubber.
Tripura’s Industry’s Minister Tapan
Chakraborty said, Tripura’s per hectare
productivity is 1200 kg and annual
turnover from rubber cultivation is about
`.480 crore, but due to uncertain prices
of natural rubber, the producers have
faced a serious setback.
Due date chart for January 2015
Date Particulars
20
21
21
30
31
31
31
Payment of LBT for December 2014.
Payment of MVAT by the Monthly/Quarterly Return filers for the month/
Quarter ended on 31st December 2014.
Payment of WCT TDS under MVAT Act, 2002 for the month of Dec. 2014.
Issue of TDS Certificate for the Quarter 3 of 2014-15 to the Deductees
Issue of WCT TDS Certificate (form no. 402 under MVAT Act, 2002) to
the Deductees.
Furnish P.T. Return for the Month of January 2015.
E-Filing of MVAT Monthly/Quarterly Return (along with annexures J1 &
J2) for the month of or Quarter ended on December 2014.
Now is the time to be in touch
with the Commodity Market
So, be in touch with
www.rubber4u.com
(Single Window Website,
where Advertisement visibility is 100%)
Trade Date: 14th January 2015
at 20:40 IST
India
Month
January 2015
February 2015
March 2015
April 2015
High
120.60
121.69
122.67
122.00
First Section - Rubber4U - 15th January 2015
(Prices in `. / kg)
Low
117.00
118.61
118.29
121.34
LTP
117.23
119.50
120.50
121.34
Close
117.92
119.51
120.28
121.67
NATIONAL - Update 4 U
Parliamentary
panel to study
rubber sector
The parliamentary standing committee
on commerce (PSCoC) will tour West
Bengal, Tripura and Kerala during
January-February to analyse the
situation of the rubber and tyre industry
in the country. The standing committee
will thereafter submit its report to the
central government on the state of
rubber and tyre industry with
recommendations on boosting
production and market development.
West Bengal, Tripura and Kerala are
some of the fastest growing states in
the field of rubber and tyre. We have
sent meeting proposals to the
respective stakeholders of the industry,
Chandan Mitra, chairman of PSCoC
and a Bharatiya Janata Party Rajya
Sabha member.
An eleven member PSCoC is on a
study trip to Tripura to explore the
possibilities of wooing investors to set
up industries using rubber and bamboo.
The team visited the rubber park and
bamboo park at Bodhjung Nagar
Industrial Growth Centre near Agartala
to see the development in the sectors
in the state.
Elgi Rubber to acquire
two companies
6
Government steps to support
rubber growers
With around 10 lakh rubber growers in
Kerala, the state cannot afford to neglect
the situation, as it will have a devastating
effect in many ways. While addressing
a post-Cabinet briefing, Kerala Chief
Minister, Oommen Chandy said the
intervention made by the State
government to lighten the sufferings of
lakhs of rubber growers should be
subjected to a keen analysis, on how a
ruling dispensation is addressing a grave
issue. No govt has intervened in this
manner ever in the market. State
government had approached the Centre
many times to provide support to the
growers but didn’t yield the desired
results. So was the case of rubber
procurement by the State government.
Finally, the tyre companies were directly
contacted by the State government to
evolve a solution to the crisis.
We prevailed upon tyre companies to
lift stocks from the domestic market at
higher prices inclusive of the
international price and shipment costs.
The govt waived the 5% purchase tax
on natural sheet rubber till 31st March
2015, to make the off take of companies
from the market viable. The measure
would result in an enormous loss of
`.130 crore to state exchequer. But the
government made a commitment,
considering the heavy crisis through
which growers and the natural rubber
sector was passing through.
Chief secretary E K Bharat Bhushan
and Addl Chief secretary (Finance) K
M Abraham played a crucial role in
evolving a system, which was the first
of its kind in the history of the state and
without the support of the Centre, to
ensure a relief and backing to the
rubber growers. Chief Minister,
Oommen Chandy and finance minister
K M Mani had convinced tyre company
honchos that if the growers abandoned
tapping and shifted to other crops even
on a small level in the prevailing
scenario, with trends already indicating
it, the long-term negative impact would
grip the Indian consuming industries in
a big way, not to mention the loss in
purchase tax for the state and all round
economy. India has recorded a decline
in natural rubber production by two lakh
tonnes in the past one year alone. India Rubber Expo
& Tyre Show 2015 at New Delhi
At the board of directors meeting held on 13th
January, Elgi Rubber Company has approved
the acquisition of Parani Steels and American
Manufacturing and Equipment. The acquisitions
would be completed before 31st January 2015.
The board approved acquisition of the entire
share capital of Parani Steels, an ISO 9001:2008
medium scale heavy fabrication unit having its
Registered Office at Chennai and American
Manufacturing and Equipment, INC., USA by
company’s wholly owned subsidiary Elgi Rubber
Company LLC, USA.
First Section - Rubber4U - 15th January 2015
NATIONAL - Update 4 U
7
Government looking at ways to support small growers
While delivering a talk
on ‘Commerce policy
for
future
India’,
organised
by
Mangaluru Initiatives for
Nationalist Dialogue in
Mangaluru, the Union Minister of State
for Commerce, Nirmala Sitharaman
said that one of the major steps taken
by her Ministry is in terms of import of
natural rubber under the advance
licensing scheme.
When natural rubber import was made
under advance licensing scheme any
importer was allowed to import and use it
for 18 months and after that export it. With
the intention of ensuring that this import is
definitely exported, the government
reduced the period of this advance
licensing import from 18 months to six
months. That means that the rubber will
go out of the country within six months.
The government is also looking at how
to support the small farmers. On the longterm plans for rubber, the government is
looking at producing enough rubber
reducing the need to import. Non-traditional
rubber growing areas such as north-east
are being looked for growing rubber.
The Government wanted the new foreign
trade policy to be different from the earlier
ones and expected to be announced
sometime during the Union Budget. Vehicle Sales up in December
Auto industry produced a total of
1,850,616
vehicles
including
passenger vehicles, commercial
vehicles, three wheelers and two
wheelers in December 2014 as against
1,741,237 in December 2013,
registering a growth of 6.28% over the
same month last year.
The sales of passenger vehicles grew
by 3.67%; commercial vehicles segment
registered negative growth of 5.65%;
three wheelers sales grew by 14.10%;
and two wheelers sales registered
growth of 11.04% in April-December
2014 over April-December 2013.
In April-December 2014, overall
automobile exports grew by 20.75%
over the same period last year.
Passenger Vehicles, Commercial
Vehicles, Three Wheelers and Two
Wheelers grew by 6.21%, 14.58%,
20.56% and 25.26% respectively during
April-December 2014 over the same
period last year.
Rubber output drops while demand slows
Rubber production fell 36.36% to
63,000 tonnes in December 2014, while
consumption has increased 1.36% to
83,500 tonnes, compared to December
2013. The growth in imports has slowed
down 8.16% to 29,728 tonnes and
export has declined 98.85% to 8
tonnes, compared to December 2013.
Domestic rubber prices which vaulted
13% to `.130 per kg after an
understanding between the Kerala
government and tyre companies in
December to mop up rubber from the
local market to help growers have slid
to `.127.15 per kg. This is attributed to
the weak sentiment in the global market.
The declining crude oil price (six-year low
of $45 a barrel briefly on 13th January)
and the restrictions on rubber import by
China have led to a fall in international
rubber prices. China has taken a decision
to reduce the use of natural rubber in
rubber compounds from over 95% to
88% from 1st July 2015.
Rubber Scenario during April-November 2014
Figures in Tonnes & provisional
NR Available
Year
A
NR Utilised
NR
Production
NR
Imports
NR
Consumption
NR
Export
B
C
D
E
STOCK
Calculated
Stock
Rubber Board
Stock
F
G
H
(H+B+C-D-E) (G+B+C-D-E)
Opening Stock for 2014-15
April 2014
51,000
29,140
May
53,000
34,702
June
63,000
32,950
July
54,000
43,104
August
51,000
43,908
Sept.
60,000
41,848
October
58,000
36,865
Nov. 2014
64,000
33,156
Dec. 2014
63,000
29,728
81,500
83,800
85,285
88,400
86,300
85,500
83,000
85,000
83,500
28
31
60
36
0
8
8
26
8
Monthly
Difference
in Stock
I
(H-F)
Difference
in Stock
J
(H-G)
250,000
250,000
250,000
0
0
248,612
233,871
215,605
215,668
200,608
201,340
211,857
217,130
219,220
248,612
252,483
263,088
271,756
280,064
296,404
308,261
320,391
329,611
230,000
205,000
207,000
192,000
185,000
200,000
205,000
210,000
220,000
-18,612
-28,871
-8,605
-23,668
-15,608
-1,340
-6,857
-7,130
780
-18,612
-47,483
-56,088
-79,756
-95,064
-96,404
-103,261
-110,391
-109,611
If Rubber Board figures are to be belived, then the figures under colm. Calculated Stock should have been the actual stock.
First Section - Rubber4U - 15th January 2015
NATIONAL - Update 4 U
8
Revival not possible
Stock Market 4 You
The visiting team will submit a report to the concerned ministry
with suggestions on some alternative projects using the factory’s
prime land of 189 acres on the bank of Hooghly river along the
GT Road. Out of 189 acres of land, only 56 acres are being
occupied by the factory with the rest remaining unused.
After visiting the Sahagunj factory and talking to the
management officials and representatives of three trade
unions, I find the company management is not at all interested
to revive the factory. Once the Parliamentary committee’s
report on the rubber industry of India, which would also include
Dunlop’s case, is ready they will table it in the Parliament for
necessary action by the Centre, he told media persons. This page is refered by over
136834 readers of Rubber4U
www.rubber4u.com &
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GOA CARBON
GOODYEAR (I)
GOVIND RUBBER
GRP LTD.
HARRISON MALAYAL
HIMADRI CHEMICAL
INDAG RUBBER
JK TYRE INDS.
KESORAM INDS.
MAHA. POLYBUT
MAHALAXMI RUBTECH
MODI RUBBER
MRF LTD.
NOCIL LTD.
ORIENTAL CARBON
PHILIP CARBON
PIX TRANSMISSION
PTL LTD.
PUNEET RESIN
RELAXO FOOTWARE
RELIANCE INDS.
RISHIROOP RUBBER
RUBFILA INTERNAT.
SAH PETROLEUM
SOMI CONVEYOR
TTK HEALTHCARE
TVS SRICHAKR
VAMSHI RUBBER LTD.
30.6
1689.75
1382.95
479.35
223.65
39.5
615.65
1299.05
872.3
18.6
150.95
21.55
87.7
639.9
31.45
1176.15
54.5
24.65
894.1
132.2
103.65
4.31
3.5
22.25
37976.95
36.3
361.55
152.05
64.15
39.65
50
577.8
888.05
19.35
43.8
41.1
25.7
812.5
1672.55
25.65
(Source: BSE)
After visiting Dunlop’s Sahaganj unit in Hooghly district of West
Bengal, Parliamentary Standing Committee on Commerce,
headed by Rajya Sabha MP Chandan Mitra, said the Ruia
Group owned tyre company Dunlop is a fit case for takeover.
Revival is not possible. They (owners) have no will to run the
company. I presume that they do not want to run the industry
although I have no proof on this, other industries can also be
opened as an alternative on the Dunlop plot.
30.4
45.6
1704.45 1732.95
1391.9
1459.4
526.9
550.5
218.8
218.8
38.15
39.8
630.85
671
1285.95 1415.55
853
849.95
20.3
18.95
150.05
160.6
21.3
21.25
81.8
83.95
606.1
620.15
28.85
28.45
1150
1151
53.15
53.5
24.85
24.85
943
929.1
132.3
126.75
109.35
119.2
3.35
2.99
3.4
3.4
22.65
22.5
37387.2 38194.05
34
38.05
387.9
429.1
143.25
157.6
63.6
67.95
39.75
40.6
41.75
39.3
685.95
691.2
855.4
835.05
19.05
19
43
46.55
41.95
42.7
26.45
39.6
809.9
807.35
1600.55
1615.5
26.25
32.8
Call: +91 - 0251-2606134, 9146095585, 8087187855
THE RUBBER AND CHEMICAL
MERCHANTS ASSOCIATION
[email protected]; [email protected]
[email protected] www.rcma.org.in
Contact: Dharmaraj
First Section - Rubber4U - 15th January 2015
interNATIONAL
Update4U
CURRENCY
CURRENCY EXCHANGE
EXCHANGE RATE
RATE
Currency
Chinese (Yuan)
Europe (Euro)
Indonesian (Rupiah)
Japanese (Yen)
Malaysian (Ringgit)
Singapore (Dollar)
Sri Lanka (Rupee)
Taiwan (Dollar)
Thailand (Baht)
US (Dollar)
Vietnam (Dong)
The global demand for industrial
rubber products is estimated to
rise 6.6% annually to US$158
billion in 2018. Sales will be
fuelled by acceleration in fixed
investment expenditures and
expanding durable goods output
Visit:
as world economic conditions
improve. The competition from
alternative materials in some
applications will limit the overall pace
of market growth through 2018.
The robust economic growth due to
ongoing increases in business
investment,
strong
gains
in
manufacturing output, and healthy
levels of motor vehicle production and
sales. China will post the strongest
gains of any national market in value
terms, more than half of all additional
product demand through 2018 will be
On 1st Jan
INR/1Unit
On 14th Jan
INR/1Unit
10.3286
77.0204
0.005119
0.5305
18.1458
47.9801
0.4838
2.0038
1.9325
63.4268
0.003002
10.175
73.4684
0.004983
0.526
17.3613
46.6014
0.4732
1.9528
1.8964
62.205
0.002955
are expected to register healthy
sales advances as well.
Industrial rubber product demand
is projected to climb at more
moderate rates in the US and
Western Europe, supported by
www.rubber4u.com /Statistic/Notices/Currency Conversion
renewed strength in gross fixed
investment and growth in durable
goods output. Product sales in Japan
will rebound from recent declines, but
market gains will be well below the
world average, limited by sluggish
increases in durable goods activity and
further decreases in motor vehicle
output. Demand growth in Eastern
Europe will be stronger than during the
accounted by China. India will also 2008-2013 period but not as robust as
record large annual percentage market performance in other
increases, with demand forecast to rise developing areas because investment
11% annually through 2018. Indonesia, expenditures and durable goods
Thailand, Turkey, Malaysia and Brazil production will not rise as rapidly. Demand for
industrial
rubber products
to rise
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First Section - Rubber4U - 15th January 2015
interNATIONAL -
Update
Exports down while import up
Global economic uncertainties coupled
with a weaker ringgit, and depressing
crude oil prices weighed on the
Malaysian rubber market. The local
currency dipped to a 5½ year low of
RM3.55 against the US dollar while the
benchmark Brent crude oil tumbled to
under US$53 per barrel.
The market remained fundamentally
strong as production was expected to
be considerably reduced in the coming
months as a result of the ongoing
monsoon season. The shortage in
natural rubber production is a positive
indicator for the industry, as it would
lead to higher rubber prices later.
However, Malaysia’s natural rubber
production in November rose 11% from
October to 53,040 tonnes and down by
21.2% compared with 47,788 tonnes in
October 2014. The domestic consumption
of natural rubber went up by 4% to 38,712
tonnes in November 2014 from October
2014, while consumption rose 7.2%,
compared with November 2013.
While natural rubber exports fell 15.1%
to 46,425 tonnes in November, from
October 2014 and were down 37% yo-y. The exports was mainly to China
(53.4%) followed by Germany (9.5%),
US (7.2%), Iran (5.6%), South Korea
(2.6%), Brazil (1.8%), Mexico (1.8%),
Turkey (1.5%) and Taiwan (1.4%).
Imports of natural rubber in November
2014 increased 4.7% to 80,457 tonnes
compared to the preceding month and
declined by 14.4% y-o-y. Thailand was
the main supplier with 45%, followed
by Vietnam 30.8%.
Malaysia’s natural rubber stocks
remained almost unchanged from
October at 132,048 tonnes at the end
of November, while the stocks were
down 17.8% y-o-y basis.
Rubber production to rise 1.5%
The Indonesian Rubber Association said this year‘s natural rubber production is targeted
to reach 3.2 million tonnes, up 1.5% from 3.15 million tonnes in 2014. Rusdan
Dalimunthe, the association‘s executive director said the target is in line with the
agreement of three largest rubber producing countries in the world, Indonesia, Malaysia
and Thailand, signed in the International Tripartite, Rubber Council (ITRC). It was agreed
upon that Indonesia‘s rubber production in 2019 would be 3.44 million tonnes.
10
Five measures to tackle
falling rubber price
After the meeting with sixty nine
provincial administrative organizations
through video conference, the Thai
deputy minister of Agriculture and
Cooperatives (MOAC), Amnuay Patise
disclosed that all related units were
informed of the government’s policies
and accepted the implementation of five
measures to comprehensively tackle
the falling rubber price.
The first measure is the close
monitoring and analysis of the rubber
producing industry. Second is the
formulation of a rubber production
and purchasing plan for 2015-16 in
each of the provinces. Third is a
public relations plan to keep rubber
farmers informed about the
government’s policies and ways to
gain access to assistance. Fourth is
to make rubber farmers understand
the Rubber of Thailand Bill which will
lead to the establishment of a Rubber
Authority of Thailand, a central body
for the comprehensive management
of the rubber industry. The fifth
measure concerns the control of any
movement or protest by rubber
farmers in each area.
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For more information write to: [email protected]; [email protected] Website: www.rubber4u.com
For Daily updates visit: www.rubber4u.blogspot.com
First Section - Rubber4U - 15th January 2015
interNATIONAL Asian natural rubber
production falls
According to the preliminary estimates
released by the Association of Natural
Rubber Producing Countries, the natural
rubber production in Asia fell 3% y-o-y
to 10.8 million tonnes in 2014.
A fall in rubber prices overshadowed
2014. Producers across the region
were caught unprepared and eventually
lost considerable resilience to hold on
to rubber as the main source of income
hence opting for other agricultural
activities, Sheela Thomas, secretary
general of ANRPC, said in the report.
Of the nine member countries, six
expect production in 2014 to be lower
than in 2013. Thailand sees a fall of
4.1% y-o-y at about 4 million tonnes,
while Vietnam saw output rise 14.8%
y-o-y to 1.1 million tonnes in 2014. Rubber demand to
grow in 2015-16
According to the International Rubber
Study Group (IRSG), the total world
rubber demand will grow 1.8% to 29.1
million metric tonnes in 2015 and 4.1%
to 30.3 million tonnes in 2016.
The world natural rubber consumption
is forecasted to reach 12.3 million
tonnes in 2015, 12.9 million tonnes in
2016 and 16.5 million tonnes in 2023.
While global synthetic rubber
consumption will be 16.8 million tonnes
in 2015, 17.5 million tonnes in 2016 and
21.5 million tonnes in 2023.
Update
11
Timber
land ties Thailand’s
imberland
up wit
h Omni
with
rubber chemical
Tyre
makers
and
footwear consumption to
manufacturers are among the largest
users of rubber. Singapore-based tyre rise
distributor Omni United and United
States casual outdoor shoe and clothing
maker Timberland have launched a
new line of tyres, Branded Timberland
tyres for cars, trucks and vans will be
made in the United States from
domestic and imported materials and
will be marketed first in the US from
April 2015, to prove that the
complicated logistics of segregating
and taking back tyres works well and
to iron out the business model and plan
to expand into Asia-Pacific in the
coming years.
The used tyres will then be collected
and recycled into shoe outsoles by
Timberland. At the end of a tyre’s
lifespan, after 80,000 to 130,000 km, it
often goes straight to landfill if it is not
used for tyre-derived fuel or in
rubberised asphalt, a pavement
material, or other products. The retailers
will set aside the branded tyres to be
recycled into crumb rubber. The crumb
rubber will then be processed into sheet
rubber and used in shoe outsoles by
Timberland manufacturers.
In the United States alone, an estimated
two to three billion scrap tyres have
been stockpiled in scrap yards or
unregulated dumps over the years; if
not properly disposed of, they can be
breeding-grounds for pests.
Thailand accounts for one-third of the
global rubber production. Rubber
procured in raw latex form requires
chemical treatment to impart the
required physical properties such as
tensile strength, flexibility and
durability, which are achieved by
chemical processing of rubber by
fillers, plasticizers, activators,
vulcanizers and accelerators.
ASEAN region being an emerging
automobile production base coupled
with significant presence of tyre
companies in the country, Thailand
consumes majority of its rubber
produce for manufacturing tyres.
This, in turn, creates significant
demand for rubber processing
chemicals in the country.
The market for rubber chemicals in
Thailand is projected to register a
CAGR of over 4% during 2015-2020.
Due
to
lack
of
domestic
manufacturing of rubber chemicals,
Thailand heavily depend upon imports
from China, Japan and Germany.
Rubber fillers accounted for a majority
share in the country’s rubber
chemicals market in 2014, and the
segment’s dominance is expected to
continue through 2020.
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First Section - Rubber4U - 15th January 2015
interNATIONAL -
Update
12
Rubber growers struggle for survival
Recovery in
In a memorandum to the Prime As Bangladesh’s contribution to
rubber prices Minister, Bangladesh Rubber plantation global rubber trade is small, they can
Rubber has passed the most critical
phase and is entering the constant
recovery phase, which will depends on
the global economy, automobile
industry, and the oil price, which affects
the rubber price,
Thai Deputy Minister of Agriculture and
Cooperatives Amnuy Patisae has
stated the rubber price situation has
passed the critical point, while the
government is promoting domestic
rubber consumption and rubber market
management. The government is
gearing up its plans to help farmers,
especially the urgent issue of
establishing a balanced rubber price.
The price of rubber has fallen to 43.50
baht per kilogram. However, the current
price for smoked rubber sheet is now
at 60.75 baht per kilogram.
The government will continue to
encourage
domestic
rubber
consumption and market management
based on the economic mechanisms,
while the compensation and pricing
control measures from the government
will help farmers cope with costs during
these difficult times.
The Deputy Minister of Agriculture and
Cooperatives said further that in
January, there will be a meeting to
discuss the overall rubber control
measures, which will include issues of
rubber harvesters or farmers who farms
on lands with no title deeds.
owners have sought steps to protect the
country’s rubber sector through
subsidies to the growers. Stating that
they are in dire straits, the plantation
owners have called for exemption from
value added tax (VAT) and advance
income tax (AIT) like in the regional
rubber producing countries.
As they view it, the price of the product
in the international market has come
down alarmingly prompting a section of
the entrepreneurs to import it, bypassing
the local items. Against this grim
backdrop, huge volumes of rubber
remain unsold to the woes of producers.
weather the crisis by taking pragmatic
steps in favour of the growers. Around
60% of the 24,000 tonnes of rubber
being produced goes for its domestic
consumption and remainder is
exported.
Rubber cultivation in the country
h a s b e e n pa s s i n g t h r o u g h b a d
times as many producers are found
reluctant to remain engaged in this
sector. They cite insufficient agroinputs and low price of the product
for their unwillingness. Many
eventually have opted for profit
making crops.
For Daily LIVE update on Commodity Market
Visit: www.rubber4u.com
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Email: [email protected]; [email protected] Website: www.rubber4u.com
First Section - Rubber4U - 15th January 2015
interNATIONAL -
Update
13
Mitsui and MKH-G to restructure JCTPP
According to Rubber Trade Association
of Japan (RTAJ), the country imported
55,827 tonnes of natural rubber in
November, 12.9% lower than 64,075
tonnes in October. The total import
during January-November 2014 period
was at 633,420 tonnes, down 5.4%
from the 669,466 tonnes recorded in
the corresponding period of 2013.
Oversupply concerns continued to
weigh on prices and falling oil prices
influenced the Asia rubber market.
Natural rubber prices were lower than
synthetic rubber prices in some parts
of the world.
Technological
development
ContiTech, a division of Continental
A.G., said it has built new lightweight
oil and coolant hoses for hightemperature applications primarily used
in the engine peripherals for
turbocharger cooling and lubrication,
engine cooling or exhaust gas
recirculation. The coolant hoses are
designed for temperatures up to 190°C,
for a short time even up to 210°C, while
the oil hoses manage with a continuous
temperature exposure of up to 230°C,
even up to 250°C for a short time.
Bridgestone Corp. said it has developed
technology for estimating tyre wear and
tread depth using sensors attached to
the inside of tyres that monitor changes
in tread condition during normal driving.
The technology is based on the Contact
Area Information Sensing concept,
analyzes information from the sensors
to estimate tread wear conditions and
provide drivers with real-time
monitoring of tyre conditions.
Mitsui & Co., Ltd. and Mak Kim Hong
Group (MKH-G), a Cambodian based
company jointly established Japan
(Cambodia) Tropical Plantation
Partners Co., Ltd. (JCTPP) in April 2013
as a research company. Mitsui and
MKH-G have now agreed to restructure
JCTPP as a Cambodia based business
corporation specializing in rubber tree
planting and rubber block processing
and exporting.
Reaches
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Demand for rubber blocks is expected
to increase by around 4-5% annually,
reflecting increased demand for motor
vehicles in emerging markets, such as
China and India. Rubber block
production costs are expected to
increase in major rubber producing
countries, as its labour costs are going
to increase. This change in the business
environment is expected to result in the
emergence of Cambodia.
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First Section - Rubber4U - 15th January 2015
Statistics-Update4U
14
INDIAN
RUBBER POSITION
During April-August(Metric Tonnes)
Rubber
Rubber Production
Natural Rubber
Synthetic Rubber
Reclaim Rubber
Total
2011-12 2012-13 2013-14*
903700
913700
844000
110599
108692
112886
103565
115670
124325
1117864 1138062
1081211
Rubber Consumption
Natural Rubber
Synthetic Rubber
Reclaim Rubber
Total
(In Tonnes)
2011-12
964415
423350
102435
1490200
2012-13
972705
444160
114595
1531460
(In Tonnes)
2013-14*
981520
483575
123725
1588820
Rubber Consumption by
Tyre & Non-Tyre Sector (In Tonnes)
Tyre Sector
Non-Tyre Sector
Total Consumption
2011-12
981953
508247
1490200
2012-13
1004830
526630
1531460
2013-14*
1050994
537826
1588820
Rubber Consumption by
Tyre Manufacturers (In Tonnes)
Natural Rubber
Synthetic Rubber
Reclaim Rubber
Total
2011-12
631410
307365
43178
981953
2012-13
635539
323412
45879
1004830
2013-14*
652434
349001
49559
1050994
Consumption of Rubber
by Non-Tyre Manufacturers
(In Tonnes)
Natural Rubber
Synthetic Rubber
Reclaim Rubber
Total
* Provisional
2011-12
333005
115985
59257
508247
2012-13
337166
120748
68716
526630
2013-14*
329086
134574
74166
537826
2014
2013
Natural Rubber (NR)
Ribbed Smoked Sheet
Solid Block Rubber
Latex Concentrates (drc)
Others
198920
35810
23380
13890
187525
41355
21895
14225
Total
272000
265000
Synthetic Rubber (SR)
Styrene Butadiene (SBR)
Poly Butadiene(BR)
Others
13471
44935
4659
9325
32395
4313
Total
63065
46033
335065
311033
Natural Rubber (NR)
Ribbed Smoked Sheet
Solid Block Rubber
Latex Concentrates (drc)
Others
223780
158355
33910
9240
253515
117650
30765
9100
Total
425285
411030
88525
70455
61240
94965
64445
42020
Total
220220
201430
Total NR & SR
645505
612460
55050
54330
8475
49255
48865
7545
Production
Total NR & SR
Consumption*
Synthetic Rubber (SR)
Styrene Butadiene (SBR)
Poly Butadiene (BR)
Others
*: indigenous and imported
Reclaimed Rubber (RR)
Production @
Consumption
Stock with Manufacturers
(End of August)
@: indigenous purchase by manufacturers
Import / Export
Import (p)
Natural Rubber
Synthetic Rubber
183804
169531
133801
159057
Total NR & SR
353335
292858
155
2397
Export (p)
Natural Rubber
p:provisional
First Section - Rubber4U - 15th January 2015
(Source: Rubber Board)
EVENTS4U
15
Day Session (09:00 - 15:15) As of 15th January 2015 16:06 JST
Trade Date: 15th January 2015
Month
Last Setl. Price
January 2015
183.5
February 2015
188.5
March 2015
191.5
April 2015
193.4
May 2015
194.1
June 2015
195.1
Exhibition
Conference
SCHEDULE
Open
182.5
190.7
193.6
194.5
195.5
196.1
High
185.9
191.9
195.0
196.0
197.5
198.5
Low
182.5
189.5
192.5
193.7
194.8
195.3
Close
184.6
189.9
193.6
193.7
195.4
196.4
India Rubber Expo & Tyre Show 2015
15 - 17 January 2015
At Pragati Maidan, New Delhi, India.
Change
+1.1
+1.4
+2.1
+0.6
+1.1
+1.1
(Prices in yen / kilogram)
Volume
96
19
213
190
796
4,372
Settlement
184.6
189.9
193.6
194.0
195.2
196.2
Tire Technology Expo 2015
10 - 12 February 2015
At Cologne, Germany.
ACMA Automechanika
26 February – 1st March 2015
At New Delhi, India.
SULPHUR POWDER
Rubber Grade
“SAPPHIRE” BRAND
Tyre & Rubber Indonesia 2015
18 - 21 March 2015
At JIExpo, Jakarta, Indonesia
Manufactured by
Ulhas Oil & Chemical
Industries Pvt. Ltd.
through latest technology process to ensure
high quality product for rubber industry
Specification:
Sulphur Content: At least 99.5%
Ash: Not exceeding 0.10%
Acidity: Not exceeding 0.01%
Particle Size: 200/250 Mesh
Packing: Packed in laminated woven HDPE Bags
with 50kgs net material per bag.
Sir Vithaldas Chambers, 4th Floor, 16,
Bombay Samachar Marg, Fort,
Mumbai - 400 001, India.
Phone: + 91 - 22 - 2204 5863 / 7648
E-mail: [email protected]
World Rubber Summit 2015
24 - 25 March 2015
At MAX Atria, Singapore EXPO,
Singapore.
Tyrexpo Asia 2015
24 - 26 March 2015
At Singapore Expo Centre,
Singapore.
RTF China International Rubber
Technology Fair
9 - 11 April 2015
At Intnl. Convn. Center, Qingdao,
China.
Asian Tyre and Rubber
Conference 2015
5 - 6 June 2015
At Hyatt Regency, Chennai, India.
Rubber and Tyre Vietnam 2015
10 - 12 June 2015
At SECC, Ho Chi Minh City, Vietnam.
Today
15th January
2015
Rubber4U, published by Caprint, exercise due care and caution in collecting the news / data before publication. In spite of this if any omission, inaccuracy or error occur
with regard to the news / data contained in this bulletin, Rubber4U / Caprint will not be held responsible or liabale.
First Section - Rubber4U - 15th January 2015