Natural rubber price drop

Monster · 1 Natural rubber price drop Mon Nov 14, 2011 11:13 am

Monster

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Due to economy crisis in Greece, Italy and Spain, the natural rubber price has dropped significantly in the world market. Natural rubber price in India dropped below 20,000 rupees ($401.6) per 100 kg on Wednesday, for the first time since March 1.

http://www.reuters.com/article/2011/11/09/india-rubber-price-idUSL4E7M917520111109
http://www.indianexpress.com/news/tyre-makers-shares-up-on-low-rubber-prices/873259/

In the mean time tyre manufacturing companies are going to benefit from the natural rubber price drop. Prices of rubber constitutes nearly 40 percent of the tyre production cost.

Can anyone update the current local market situation please!

Kithsiri · 2 Re: Natural rubber price drop Mon Nov 14, 2011 11:15 am

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Here We Go Again Sad

Think9 · 3 Re: Natural rubber price drop Mon Nov 14, 2011 3:35 pm

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Check how the RSS (4-5)/kg has effected :

Jan/ Feb - Rs 735/ kg ( this s the time rubber started the rally )
March - Rs 680/ Kg
May/June - Rs 575 - 540/ Kg
July Rs. 500/kg
Aug /Sep Rs 480-435 Kg
Today Rs. 355 / kg

rubber losing it demand.. plantation stock should fall further..

Tea s worse than rubber.. I dont think Sri Lanka should continue with Tea further.. We should think of another agriculture field... [i]

wikum100 · 4 Re: Natural rubber price drop Mon Nov 14, 2011 3:45 pm

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Think9 wrote:Check how the RSS (4-5)/kg has effected :

Jan/ Feb - Rs 735/ kg ( this s the time rubber started the rally )
March - Rs 680/ Kg
May/June - Rs 575 - 540/ Kg
July Rs. 500/kg
Aug /Sep Rs 480-435 Kg
Today Rs. 355 / kg

rubber losing it demand.. plantation stock should fall further..

Tea s worse than rubber.. I dont think Sri Lanka should continue with Tea further.. We should think of another agriculture field... [i]

dont tell like that those who buy in those days will win in january when the rubber price goes up ....will see ......i am collecting ........for long term

Think9 · 5 Re: Natural rubber price drop Mon Nov 14, 2011 3:59 pm

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dont tell like that those who buy in those days will win in january when the rubber price goes up ....will see ......i am collecting ........for long term

what i meant was, we dnt ve to b hurry to buy plantation stocks.. we can buy them more cheaper levels or we can enter on those later on..

glwking · 6 Re: Natural rubber price drop Mon Nov 14, 2011 4:10 pm

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KGAL, NAMU and MASK interim reports are just released. KGAL and NAMU rubber segment has done pretty well while wages issue is in concern. On the other hand MASK, which is in to tea segment has on massive loss.

How they get massive (KGAL and NAMU) profit while rubber price is down. Have they increase the production? scratch

Think9, what is your comment on this.

Think9 · 7 Re: Natural rubber price drop Mon Nov 14, 2011 4:30 pm

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im just waiting til evening to call ma uncle n bug him ( he s a planter in the MASK area ). I told him last yr that SL should think of another rather than growin tea..

World s changin, subsitutional goods are increasin, competition growin up, war in mid countries, weather changes... Tea s no longer a wise investment.

Anyway KGAL :

reports looks good but remember this s 30th sep end. from July- sep prices were movin around 450-460 where now its 340-350 ( big possibility to fall further coz buyer have collected alot around 370-400 levels thinkin dats da best price but now there re no buyer though the prices re much cheaper. ..)

u called it " labai but ganna salli nehe " Smile

NAMU : oil had done the change. rubber compare to 2010 it has come down. so in 2011 dec we will see the revenue falls further compare to 2010 dec.

anyway in overall rubber has a future , it just global impacts have made things bad.

and TEA !!! wel.. no point of talkin abt it ! everyone can get a clear idea of if they study MASK.N report carefully..

we just ve to be patients and buy at the right time. for me this s not the time.

lokuayya · 8 Re: Natural rubber price drop Mon Nov 14, 2011 4:31 pm

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Both NAMU and KGAL has deducted non recurring gratuity provision and wage arrears .Still they have posted very good results.I didnt expect it to this much good due to anxiety of wage issue.
apparently NAMu is very successful and sustainable because of mix of rubber palm oil and tea.Palm oil segment profit is par with rubber profit.
I do not think rubber price weakness would continue because of rising oil price and increase of demand for motor vehicles in expanding economies of India and China etc.

Think9 · 9 Re: Natural rubber price drop Mon Nov 14, 2011 4:55 pm

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increase of demand for motor vehicles in expanding economies of India and China etc.

what i feel production vs natural disasters. well... i think disasters gonna weaken the economies than the production efficiency. ( this is just my personal opinion).