Rubber surges to record high
Rubber rose to a record as rain cut output, worsening a supply shortage, as demand for the commodity used in tyres expands, led by rising car sales in China and India. The cash price in Thailand also reached a record.
May-delivery rubber on the Tokyo Commodity Exchange climbed as much as 3.8 per cent to an all-time-high of ¥396.4 a kg (4,712 a tonne), exceeding the previous record of ¥388.9 reached on February 13, 1980, before settling at ¥395.5. The contract has gained 43 per cent this year.
Futures advanced after China’s central bank refrained from increasing interest rates and government reports showed China’s economy is gaining momentum, boosting speculation that demand from the largest user will keep expanding. China’s industrial-output growth accelerated to 13.3 per cent last month from a year earlier, surpassing economists’ median estimate of 13 per cent. (read on)
Latex hits record high price
HA NOI – The cost of latex has reached a record high, climbing to over VND90 million (US$4,300) per tonne due to short supply, said general secretary of Viet Nam Rubber Association (VRA) Tran Thi Thuy Hoa.
“This is the highest it’s ever been. It’s even higher than before the world recession,” Hoa said.
“While demand on the production industry has increased significantly thanks to the recovery of the world economy, supplies from main rubber export countries such as Thailand, Malaysia, Indonesia and Viet Nam have remained low,” Hoa said, explaining that rubber yields had been seriously affected by bad weather conditions.
“Due to this, global supply increased by only 5 per cent and the price is likely to continue to rise,” she added. (read on)
World’s largest rubber glove manufacturer ‘s margins impacted by higher latex prices
PETALING JAYA: The world’s largest rubber glove manufacturer, Top Glove Corp Bhd, saw margins take a hit as continued higher latex prices and a weak US dollar impacted the company’s net profit for the first quarter ended Nov 30.
Compared with a year ago, net profit fell 44.71% to RM36.05mil on revenue that was only marginally higher at RM491.5mil as average latex prices rose by 57% to RM7.20 per kg year-on-year while the greenback weakened against the ringgit by 9.3% to 3.11.
Top Glove chairman Tan Sri Lim Wee-Chai had in a briefing for analysts and the media in early October said it was more difficult to pass the higher costs to customers due to lower demand for gloves (which stood at 150 billion pieces for the year) compared with during the height of the H1N1 pandemic. (read on)
Rubber Prices Continue Upward Climb
Even as tiremakers pull the trigger on price hikes in an effort to not fall too far behind fast-rising raw material costs, more bad news comes from the natural rubber market.
Dec. 13-14 saw NR post record prices on the Tokyo Commodity Exchange, jumping 1.2% to 400.1 yen per kilogram for May delivery rubber.
All in all, NR prices have increased a whopping 44% this year. (read on)