Wild weather to roil rubber demand and price

The arrival of El Nino and its potential to bring hotter, drier weather to Southeast Asia will be a crucial test for the rubber industry, posing a high risk to the tapping and production. However, given the overall bearishness in the demand situation, how much of that would translate into elevated prices would be under question.

01 Jun 2023

Helixtap Analysis: Prices still under bearish signals even after trending downwards by US$100/mt

Over the past 3 months, most prices in the physical rubber market registered a decline of US$100/mt or more. As signalled in the previous article covering these prices, most short term signals then for the 20 and 50 day moving averages (MA) were bearish. Then, in early March 2023, AFR10 (CIF assessments) registered a bearish 20/50MA cross.

01 Jun 2023

Indian tire majors dash onto sustainability highway

Spurred by the global thrust on sustainability values, Indian tire makers have moved over to the responsible track in a cogent way to make a lasting impact on the supply chain and the planet.

31 May 2023

Indian RPSs get a breather as Rubber Board removes twin blocks

The Rubber Producers Societies (RPSs) that support the smallholders in India have heaved a partial sigh of relief with the Indian Rubber Board deciding to release INR 4000 (US$ 48) each per hectare of rubber plantations for rain guarding and disease control.

30 May 2023

Tire trade war in full swing with China at the center stage

It is a tit-for-tat import duty trade-off in the tire segment, with China on one side and the EU, Japan, the UK, and the US on the other, taking punitive measures to different stages of their process.

26 May 2023

Indian tire makers mint profit as NR prices keep low

Easing raw material prices led by natural rubber and good domestic demand have enabled the Indian tire majors to post splendid results in Q4 of FY 2023 ending March 31, 2023, turning the figures for the whole of Financial Year 2023 into remarkably rosier than expected.

24 May 2023

Lankan exports improve as March arrests slide

Export of Sri Lankan rubber and rubber finished products improved for the first time in March this year, year-on-year and month-on-month, arresting the fall in performance for the past few months.

24 May 2023

Helixtap Analysis: Shrinking plantation area could lead to market overconsumption as early as 2027

Over the past 20 years, yearly average prices have had a strong linear correlation with newly planted areas at 0.83. New planting activities depend heavily and are greatly influenced by the price trends at each point of time in the past. As prices after 2011 trended downward from the highs, new planting in major producing countries followed suit. However, the price relationship was weak with replanting or total area under plantation, registering 0.13 and 0.14 respectively.

22 May 2023

Elevated input costs a bane for producer, margins under pressure

Elevated input costs owing to some shortages in some of the key Asian rubber-producing nations have become a bane for producers as finished product prices have failed to catch up, casting a shadow on the margins.

22 May 2023

Indian rubber prices upward further, but farmers not stirred

Indian sheet rubber prices are continuing their uptrend, crossing the psychological barrier of INR 160/kg on Tuesday (May 16, 2023) to hit INR 161/kg on Wednesday opening (May 17, 2023), but the majority of smallholders are not enthused, having exhausted most of their stocks and not being able to start full-fledged tapping now.

18 May 2023

Malaysia betters position in March, but climate raises concern

Malaysia's attempts to arrest the slide in rubber production seem to bear fruit, with the month-on-month decline in March 2023 showing remarkable improvement compared to the first two months of the year.

17 May 2023

Helixtap Scenario Analysis: Rubber market likely to be overconsumed by earliest 2033

In the last 16 years, Thailand and Indonesia have remained the top 2 producers for NR worldwide. Countries such as Vietnam, the Ivory Coast, Cambodia, Myanmar and Laos have risen in production rank. Production in other countries such as Malaysia has reduced, likely due to high costs of production domestically. In 2022, Malaysian production stood at 377 kt, about a third of the 1,200 kt produced in 2007. India registered little growth since 2007, producing 843 kt in 2022 compared to 811 kt.

16 May 2023

Indian rubber production in decade high; consumption a record

Buoyed by the increase in production in the North-Eastern states and the revival of idled plantations in Kerala, the NR production in India has crossed the 800,000-ton figure for the first time in a decade in the Financial Year 2022-23 (April 2022-March 2023).

15 May 2023

Vietnam in bid to conquer non-China export markets

Amid the swelling thrust on sustainability worldwide, leading NR producer Vietnam deflects from its China-centric export strategy to train guns on markets like the European Union, the US, and Japan.

11 May 2023

Indian rubber prices on upward spiral amid supply deficit

Indian rubber prices are staging an intelligent rally from March through April to hit the highest figure of INR 156/kg (US$ 1.90) for RSS-4 in the past nine months on May 8, with producers flexing muscles to a certain extent amid the off-season lean production through March and April.

10 May 2023

Prices unlikely to hit historic high above US$5,000/mt until oversupply clears

The global production-consumption cycle has a strong cyclical pattern, due to the cyclical nature of NR production being affected by wintering. The NR market runs a surplus on most months of the year, with March till June the months in which a monthly NR deficit is observed. This aligns with the annual wintering season, where supply falls as trees shed leaves and stop producing latex. In a balanced market where there is no oversupply, prices would rise from a shortage from March till June. Howev

09 May 2023

Low rubber prices, farmer debt too in focus in Thai polls

1.7 million rubber smallholders from an overall adult population of 54.1 million and 14 million farmers in Thailand are among the focus constituencies in the May 14, 2023, Thai general elections to 400 constituent seats in the House of Representatives.

09 May 2023

Helixtap China report: China set for lower rubber influx as arbitrage closes

Widening spread between Chinese warehouse and overseas TSR prices has ruled out the arbitrage of international rubber into China. While the February imports figures have been strong, there is a widespread reluctance among Chinese buyers to book international cargoes, given the rising inventory level.

09 May 2023

Asia remains a stronghold for NR demand for the foreseeable future

Since 2007, the top 10 Natural Rubber (NR) consuming countries in the world have varied widely, with certain countries emerging as major consumers for NR. Consumption in developing countries such as India, Thailand, Brazil and Vietnam have risen, overtaking more developed counterparts in the EU 27 + UK, United States, Japan, Malaysia and Republic of Korea. This may be due to factory processing functions also being carried out in each of these countries due to lower processing costs, before proce

08 May 2023

Rubber producers face margin headwinds over lagging demand recovery

Rubber producers are facing further downward pressure on margins in the near term as disproportionate change in cost and prices coupled with sluggish demand created a disbalance in the rubber economy.

08 May 2023

After Top Glove, Smart Glove breathes easy on US sanctions

Ending a 17-month-long ban, the United States has now allowed the import of products from Malaysian glove maker Smart Glove, clearing it of charges of exploitative labor practices.

04 May 2023

Brazil leads S. American SR market, but others are not so bullish

South America's synthetic rubber market, which drives various downstream sectors such as automobile, construction, packaging, and industrial manufacturing, is estimated to have clocked US$1367.47 in value in 2022, while it is expected to hit a value of US$1898.52 million by 2031 at a CAGR of 4.19%.

02 May 2023

SICOM TSR20 premiums over INE takes an average 3 days to return to a discount

INE TSR20 contracts were listed on the Shanghai International Energy Exchange in August 2019. Over time, the first contract position for SICOM TSR20 and INE TSR20 contracts are compared against the first contract position of the SHFE SCR/RSS contracts. Both spreads show that SCR/RSS have a similar premium over TSR20 prices across both exchanges, but this premium changes over time. By definition, SCR/RSS are higher grade rubber than TSR and are processed from latex directly. TSR20 is instead proc

28 Apr 2023

Cambodia in bid to hit sustainability highway amid not-so-rosy Q1

Cambodia is making a concerted bid to join the sustainability wagon even as the depressed global rubber prices have led to a decline in its export earnings while the volume rose in the first quarter of 2023.

27 Apr 2023

Bastar bets on rubber to vault region into lustrous future

Hard on the heels of the Automotive Tyre Manufacturing Association (ATMA) launching an exhaustive rubber cultivation program in the North-Eastern states in tandem with the Rubber Board of India, the Bastar region in Chattisgarh State of India has come on the radar of the Rubber Board for the same.

26 Apr 2023

Indian SR prices downward amid falling global demand

Reflecting the price movements in crude oil and the derivative raw material butadiene, the prices of Synthetic Rubber in the Indian market increased in the first half of March this year and then moved downward in April.

24 Apr 2023

Vietnam in a rubber trade deficit, increased reliance on African rubber could be more detrimental

Vietnam’s growth decelerated more than expected in March as exports shrank, reflecting the risks that global and domestic challenges pose to the rubber industry.

21 Apr 2023

Smallholders left high and dry as key figures skip milestone event

The 13 lakh rubber smallholders in India who hoped for a milestone event at the Rubber Board headquarters in Kottayam in Kerala on Tuesday (April 18, 2023) to yield tangible results have turned out a disappointed lot.

20 Apr 2023

Rubber production downhill again, but shows moderation

The decline in Malaysian rubber production continued in February, riding on the negative market sentiment due to the slight decrease in crude oil prices, less encouraging China auto sales data, and growing concerns regarding further interest rate hikes in the US.

19 Apr 2023

mRube makes impressive debut, but rubber exports lag

The India Rubber Board's new online trading platform mRube has achieved a turnover of INR 105.55 crore (US$ 12.92 million) in its first year of operation in the 2022-23 financial year. The feat was achieved in just 160 days since inception. mRube traded 8,11,700 kg of rubber during the last FY under 594 trade contracts, making remarkable interventions in strengthening the existing value chain for rubber.

18 Apr 2023

African producers target India as they lower prices to compete

From March till 11 April 2023, Helixtap STR20 has seen a falling trend in the price spread over SIR20. STR20 prices declined US$13/mt against US$53/mt for SIR20. This difference amounts to a US$40/mt reduction in the price spread over 23 trading days. This was the first time STR20 was cheaper than SIR20 since mid-September 2022, or after a 140 day period. SIR20 historically trades at a premium over STR20 68% of the time on a daily basis since 2015. Up till March 2023, the monthly average price s

14 Apr 2023

Myanmar betters rubber export performance in 2022-23

Myanmar is understood to have clocked US$ 500 million in rubber exports in 2022-23 fiscal (April 1-March 31), shipping over 300,000 tons of rubber to different countries.

13 Apr 2023

Malaysia mulls new rubber sector moves amid dipping returns

Faced with a shortage of workforce amid a decline in rubber production, the Malaysian Government is exploring the possibility of allowing refugees and asylum workers in Malaysia to work temporarily in the plantation sector.

12 Apr 2023

Market oversupply shows early signs of easing

Physical rubber and rubber futures prices fell by around $500/t in 2022. Helixtap SIR20, Helixtap STR20 and SICOM TSR20 prices fell by $433/t, $503/t and $476/t respectively last year. Such a downward price trend is the steepest price drop since 2018. Market intelligence attributed the drop in prices to a lack of demand in the market. Buying sentiment was sporadic and cautious for the most part of last year with any buying mostly small volume purchases. Many producers were reported to have diffi

11 Apr 2023

Sri Lankan rubber sector reels under crisis; exports in dire straits

Into the second month of 2023, the Sri Lankan rubber and rubber products sector is digging deep into a crisis, with exports plummeting due to global headwinds arising from the Russia-Ukraine war and Central banks' continued interest rates hikes to battle inflation.

10 Apr 2023

Indo processors face poorer margins as the Rupiah continues climb over USD

For this analysis, the monthly APROMAC prices for African cup lump are assumed to be the same over different weeks in each month. Spreads between regional cup lump prices have been on an upward trend since the year began. Over March, a Thai producer reported production levels being at 25% of the usual level as trees experienced annual wintering and hot weather in the South. The producer also expects Thai supply to be low along with an extended wintering season. Indonesian supplies are also expec

06 Apr 2023

Kerala priest's price salvo has rubber pot boiling

The Indian rubber production scene, especially the one centred around the main hub of Kerala, is witnessing heightened activity over the past fortnight. Prices were slowly rising on the one hand and farmers asserting their right to have a fair price for their produce on the other.

04 Apr 2023

Indian tyre exports upbeat in 2022 despite global tumult

The Indian tyre sector has once again proved its resilience against global headwinds by registering an 18% growth in export value year on year to reach INR 23,488 crore (US$ 2.86 billion) in the 2022 Calendar Year (CY) against INR 19,920 crore (US$ 2.42 billion) in 2021.

03 Apr 2023

Opportunistic buying changing rubber buying patterns

Global demand concerns, despite weather concerns, are unlikely to support rubber exports. Some of the key rubber-producing countries saw a drop in exports in 2022, which is likely to continue in the first half of 2023.

31 Mar 2023

Cambodia’s milestone moment as tire plant starts functioning

China is giving a significant push to Cambodia's aspiration to bolster its downstream of rubber so that its producers get better prices in the domestic market rather than dancing to the tune of global volatility.

30 Mar 2023

Indian NR prices north-bound amid acute supply deficit

Natural rubber prices are staging a smart recovery in the Indian market owing to the lull in production during the current off-season, while traders and downstream operators are actively buying to meet their demand.

29 Mar 2023

Banking sector fallout impact physical rubber differentials to SICOM TSR20 differently

Price differentials since the previous article registered an increase over the third position (P3) SICOM futures across all comparisons listed above. Over the specified time periods, all prices were observed to decline with the SICOM TSR20 P3 futures declining by a larger value. Hence, the differential between physical rubber grades and the SICOM futures increased. For prices previously trading at a premium over SICOM such as STR20 and SMR20, the differential widened by at least US$21/mt. For th

29 Mar 2023

Quantum leap in Bangladesh rubber production but price a concern

Rubber production in Bangladesh is making giant strides, helping the domestic downstream industries meet their demand from the domestic rubber supply.

27 Mar 2023

Indian Rubber Board sets ball rolling for realising carbon credits

Upping its sustainability ante, the Indian Rubber Board has invited Expressions of Interest (EoIs) from agencies in the private/public sector to prepare project proposals for generating carbon credits from rubber smallholdings following internationally accepted standards.

23 Mar 2023

Malaysia struggling with NR production in New Year too

Malaysian NR production continues to be downhill, with the first month in the New Year witnessing a drop of 39.3% YoY, while month-on-month, there is a much lesser fall of 3.6%, whereas the imports are uphill.

23 Mar 2023

Prices more volatile before Fed interest rate decisions

The table above compares the average daily price change (ignoring direction) for SICOM TSR20 P3 in the 14 calendar days up to the Federal interest rate decision and in the following 14 calendar days. The SICOM contracts tend to observe daily price changes being more volatile leading up to the decision as compared to after.

22 Mar 2023

Cambodia rubber exports up despite price falls

Cambodian rubber producers strive to be resilient in the face of adverse price conditions, raising their rubber and rubber wood exports in the first two months of the new year. Still, more enthusiasm must be encouraged to extend tapping or expand the cultivation area.

21 Mar 2023

Rubber faces headwind amid volatile financial market

On the pretext of the ongoing bank crisis in the western economies, the rubber industry needs to revisit its expectation of a rebound in the short term, especially with an apparent oversupply in the market. While the Association of Natural Rubber Producing Countries (ANRPC) still expects to see a supply deficit in 2023, the ground realities are different.

17 Mar 2023

Thailand floats floor price scheme worth US$ 215 million

With a free fall in the rubber price and demand, Thai rubber raw material prices are seeing a different direction compared to 2022 despite March being the peak of wintering.

16 Mar 2023

Lukewarm tire producers keep Indian prices low

Indian domestic sheet rubber prices remained in a range of INR 140-145/kg (US$ 1.70-1.76) for the three weeks ending March 13, refusing to make any significant upswing. The range-bound price trend is attributed to limited buying by tire manufacturers who maintain normal production in their units.

15 Mar 2023

Forex and interest rates a double whammy to determine differential against Chinese futures

Over the month of February this year, rubber prices mostly trended sideways in both the physical and futures markets. For the rubber futures, the lower-priced TSR20 futures rose while the higher-priced NR futures fell. This also reflects a similar trend as within the physical market with the spread narrowing between higher and lower priced grades in the futures.

14 Mar 2023

Asian rubber producers buckle up for EU deforestation law

It's a race against time for the leading rubber-producing nations in South-East Asia and the Indian sub-continent to adhere to the ESG framework as Europe sets out to enforce a ban on deforestation-related goods. No major wonder producers have started to hit the sustainability trail, though China, the primary consumer, is yet to ring any alarm bells.

14 Mar 2023

Physical rubber prices back on bearish trend as growth expected to slow

Over the month of February this year, rubber prices mostly trended sideways in both the physical and futures markets. Within the physical rubber market, all 7 grades saw a small percentage change of below 2%, disregarding direction. The average of all these price changes amounts to a 0.2% increase in physical rubber prices. Just the month before from January up till February, the average percentage change across all 7 physical grades was 5%, with prices increasing across the board.

13 Mar 2023

China jamming breaks on spot rubber buying

China's interest in overseas cargoes is likely curtailed by a lack of pick up in domestic demand and rising stock level, posing a challenge to rubber demand recovery. In addition, the widening spread between prices for TSR 20 from the primary rubber sources and domestic rubber has reduced the price parity for overseas cargoes.

10 Mar 2023

Kerala rubber nurseries resurrect riding on Northeast boom

Kerala, the top rubber-producing state in India, where rubber-producing smallholders lament the steep fall in rubber prices, is witnessing a rubber flourish. Spurred by the Rubber Board and the Automotive Tyre Manufacturers Association (ATMA), rubber production is expected to increase in the short term.

09 Mar 2023

Ripple effect of rising Federal Funds Rates detrimental to rubber market prices

The spot rubber market sentiment remains passive, with scant buying interest from rubber manufacturers. Market intelligence indicates there being weak demand despite plenty offers in the market. A producer source repeated the sentiment that buyer demand was very few and far between. Another market contact also echoed this sentiment as no physical sales were done for the past week. A trader source offered African rubber at par value to SICOM, yet no interest was seen. Such trends further imply th

09 Mar 2023

Sri Lankan rubber export earnings see double digit contraction in January 2023

The island nation of Sri Lanka is battling an unprecedented economic crisis, relying on the International Monetary Fund (IMF) and friendly countries like India and China to bail it out. The government also faces difficulties with setting its rubber and allied sectors in order.

08 Mar 2023

Boom in Indian rubber sectors in 2022

Indian natural rubber production, consumption, and import have improved in the year 2022 compared to 2021, pointing to the robust growth of rubber and its downstream sectors but smallholders are a harried lot due to the steep price falls since July last year.

06 Mar 2023

New year jitters for Vietnam; exports plunge

Vietnam's rubber exports have hit the new year on a plummeting note, unable to retain the bullish trend it commanded last year, fetching a record US$ 3.31 bn in 12 months of 2022 by exporting 2.14 million tons of rubber.

03 Mar 2023

Rubber Board moots its NOC for compound rubber import

Close on the heels of the Indian Government raising the import duty of Compound Rubber (CR) from 10% to 25%, on par with the import duty on Natural Rubber (NR), the Indian Rubber Board has written to the Indian Commerce Ministry requesting the latter to make the Board's No-Objection Certificate (NOC) mandatory for the import of compound rubber.

01 Mar 2023

Well-set rubber park pilots rubber industry growth in Kerala

The Rubber Park India, at Irapuram in Ernakulam district of Kerala, the first rubber park set up in the country to facilitate the growth of the rubber-based industries, is into its 26th year of existence this year, hosting over 45 rubber-based industries on 107 acres. In the new year, it's branching out to a 20-acre campus in the Kollam district with a new unit as part of the State Government policy to have a cluster of rubber-based parks in Kerala, the major rubber-producing state of India. The

27 Feb 2023

Indian synthetic rubber market improves

Bucking the trend prevailing towards the end of last year, synthetic rubber prices are on an upward trajectory in the Indian market. This is largely due to a rebound in demand from OEM auto and tire manufacturers as well as the no-tire non-auto sector in the first two months of this year. External factors like the world’s largest SR consumer China removing its zero Covid-19 policy and dispensing with lockdowns have driven up global demand, equally contributing to the domestic price rise.

23 Feb 2023

Futures lean bearish as prices trade sideways with high open interest

The monthly SICOM TSR20 Futures forward curve saw a reversal in the downward trend over December and January. As shared in the previous Futures article, a positive upturn in the Futures market was observed due to open interest, volume and prices increasing simultaneously. Since then, prices across all 12 positions registered an average increase of US$87/mt or 6.8% over last December. In the following month of January, prices further trended upward by US$72/mt or 5.3% across all positions. Compar

22 Feb 2023

Malaysia rubber production growth outlook in 2023 dims amid falling prices, smallholders drifting

Falling yield and smallholder transitioning away from rubber could mean slower-than-expected growth in Malaysian rubber production this year as producers adapt to a weaker market outlook in 2023.

22 Feb 2023

Leaf disease unleashes mayhem; production may fall by 30%

The specter of fungal leaf disease is threatening the rubber sector in South East Asian nations, with the Philippines, Indonesia, and Malaysia bearing the brunt, but it's less severe in Thailand, while Vietnam is largely insulated for the time being.

21 Feb 2023

Relative strength in Asian currencies cause a squeeze in producer margins

Recent price spreads between Helixtap STR20 and cup lump in Thailand have recently been on an upward trend since the year began. For the three weeks from end-December last year up till mid–January this year, this spread narrowed below US$200/mt for an average of US$151/mt. For those weeks, Helixtap estimated Thai producers were facing negative margins after factoring in processing costs. More recently from mid-January onwards, the spread rose above US$200/mt and registered US$257/mt as of the se

16 Feb 2023

Crisis-hit India rubber producers default on loans

With rubber production losing its sheen in recent months amid prices hitting rock bottom, the smallholders in the rubber hub of Kerala in India are finding it difficult to service their debt with cooperative banks which primarily lend to them.

16 Feb 2023

Indian tire makers cool in FY Q3 despite global gusts

The Indian tire majors are on a roll while the domestic natural rubber producers struggle to find their way forward amid rock-bottom prices.

16 Feb 2023

Physical rubber prices likely impacted by changes in Chinese inventory data

This article seeks to examine the relationship between physical rubber prices and warehouse inventory data from China. Most market participants in the rubber supply chain do not publicly disclose their inventory levels for competitive reasons. As such, warehouse inventory data from China, specifically the Chinese Shanghai Futures Exchange (SHFE) and Shanghai International Energy Exchange (INE), might be the only publicly available data on inventory levels in the global rubber market. Inventory l

14 Feb 2023

Post-rubber production season, India rubber prices yet to lift off

Lack of buying interest from downstream tire and non-tire manufacturers kept the Indian rubber prices southbound as India nears the end of the peak production season.

10 Feb 2023

ASEAN FTA hurdle in bid to rein in CR imports to India

India’s Free Trade Agreement (FTA) with ASEAN countries has come into sharp focus with the Indian Government raising the import duty on compound rubber (CR) from 10% to 25% in the Union Budget for fiscal 2023-2024. The FTA currently provides a preferential duty ranging from 0%-5% to compound rubber imported from ASEAN nations. However, the new import duty of 25% on CR does not automatically apply to ASEAN nations.

10 Feb 2023

Global headwinds dampened Sri Lankan export stride

Sri Lanka has ended the year 2022 with a drop in earnings from rubber, and rubber finished products exports, even as pneumatic and re-treaded rubber tires and tubes have managed to hold ground.

07 Feb 2023

India Rubber - Kerala Budget 2023

The rubber farmers in Kerala, who produce 75% of the nearly 775,000 tons of rubber that India produces a year, have been deeply disappointed by the State Budget presented by the State Finance Minister in the State Assembly on Friday with no specific announcement to raise the floor price of rubber.

06 Feb 2023

Natural Rubber Jan 2023 Helixtap Analysis: Physical rubber prices to stay firm on lower LTC volume booking

The return of some of the major tire makers in the market owing to lower-than-expected long-term contract volume booking kept the physical prices firm, which traditionally takes a dip.

03 Feb 2023

Feb 2023: Tire company results preview

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03 Feb 2023

Helixtap Physical rubber and Futures Differential Analysis: Fundamental changes in price dynamics across physical rubber and rubber futures may lead to possible continued reduction in price differentials

When comparing the physical rubber market price alongside the SICOM TSR20 second position futures, all prices registered an increase since last October. Since the recent Price analysis article in mid January this year, prices in both the physical and futures rubber markets have increased further. This was largely in line with our expectation of a firmer market, particularly for the first two months of the year. Mainly, futures prices for the SICOM TSR20 second position increased the most by 28.

03 Feb 2023

Indian Rubber Union Budget 2023

Brightening up the face of downcast natural rubber farmers who are reeling under price crashes in recent times, the Indian Finance Minister has met their long pending demand to raise the import duty on compound rubber on par with imported NR. Such a move is expected to provide support to domestic rubber prices.

02 Feb 2023

Vietnam fetches record US$ 3.31 bn from rubber exports in 2022

Despite the sharp downturn in global prices, an industrious Vietnam has wound up the Year 2022, scripting its best-ever export figures of US$ 3.31 billion for the 12 months.

01 Feb 2023

China brings iron-based SBR to spin a new course for SR

Sinopec's Baling Petrochemical has joined hands with the Qingdao Institute of Energy in China for the industrial-scale production of 'iron-based' solution-polymerized styrene butadiene rubber (SBR).

31 Jan 2023

Cambodian rubber volume up but value down on bear international market

Despite a sluggish 2022, Cambodian rubber exports clocked a marginal rise of 1.08% in volume in 2022 for being an economical option. However, the earnings declined with the overall decline in international prices.

30 Jan 2023

Producers apprehensive ahead of the China return

The spot market rally paused during the day owing to apprehension amid producers ahead of China’s return next week, despite some support over the week due to some buying from the tire majors.

30 Jan 2023

Indian tire industry poised for US$ 12.26 billion turnover by 2026

The Indian tire industry is poised to notch a turnover of Rs 1 lakh crore (US$ 12.26 billion) in the next three years from the current annual turnover of Rs 75,000 crore (US$ 9.19 billion).

27 Jan 2023

Helixtap JPX report summary: Price dynamics see possible return to positive margin territory for producers

Last week, rubber prices in both futures and the physical rubber market saw an increment heading into the Lunar New Year. Since the last article, significant policy changes were observed from China. Border restrictions and zero-Covid policies were removed, resulting in positive market sentiment on rubber demand from the world’s largest rubber consumer. Due to holiday celebrations, trading across the exchanges is expected to be muted and resume from 30th January onward.

26 Jan 2023

Helixtap Physical Rubber and Futures Price Analysis: Prices on an upward trend, increasing by more than 13% since last October

Since end-October 2022, prices across the rubber grades above recorded increments by at least 13% up till mid-January this year. Across physical grade rubbers, prices increased in a range of 15% for African rubber to 17% for Thai Rubber. Following the analysis in the previous article indicating a small difference for AFR10 between MAs, prices returned toward an upward trend as the 20MA moved above the 50MA. As physical rubber grades generally trade in the same direction, the same upward price tr

19 Jan 2023

Reprieve for Indian tire majors in anti-cartelization case

National Company Law Appellate Tribunal (NCLAT) order to re-examine the penalty fine charged by the Competition Commission of India (CCI) under anti-cartelization investigation has come as a breather for the Indian tire majors.

19 Jan 2023

Vast rubber estate to give way to new airport in Kerala

The Government of Kerala is proposing to construct a greenfield airport over a vast rubber estate in the region which is the rubber production hub of India. With the country's North-East region gaining focus on rubber production and continued weakness in rubber prices, such a move could be set back for the Indian rubber industry.

18 Jan 2023

Spot rallied on upbeat tire makers outlook & China restocking

Spot market rallied with the return of some of the major tire makers and some last moment restocking from China, driven by some positive global cues. However, while the producers tried to book profits, there was some caution amid the market.

18 Jan 2023

Possible opportunistic Chinese buying post Lunar New Year could support physical market

The rubber producers are reeling from the recent price rebound, mainly driven by China’s reopening and restocking. However, skepticism is undoubtedly prevalent among the market participants as they try to assess the situation post the Lunar New Year holidays. While there are some positive global cues, various other factors could tip the scale either way.

17 Jan 2023

Indian Rubber prices slide continues

The sheet rubber prices in the Indian market have failed to cap their free fall even in the New Year, squeezing the margins for the rubber producers battling lower prices since August 2022. In addition, the lukewarm interest by tire producers, who of late have reduced production due to weak demand for tires in both domestic and export markets, is bringing down the rubber prices.

13 Jan 2023

Indian SR prices down; production lags consumption growth

The key synthetic rubber (SR) variants are witnessing price drops in the Indian market in light of weak demand from OEM tire manufacturers and the replacement segment for commercial vehicles, whereas the final quarter of the financial year (FY23-Jan to March) is viewed with optimism to reverse the trend.

10 Jan 2023

Cambodia fails to make headway in Oct, Nov

Cambodian rubber and rubber wood export sector crawled to close 2022 with a revenue-losing streak, weighed down by the prolonged decline in global prices on account of global headwinds, including the resurgence in Covid-19 in China, Russia-Ukraine conflict and anti-inflationary measures by Central banks in the West.

09 Jan 2023

Early optimism on futures dampened, market being supported by China

Earlier gains in futures tapered off today, as physical prices continued to trade at a discount for several grades.

06 Jan 2023

Helixtap Physical Rubber margins and intra regional spreads analysis: Regional physical rubber price spreads over cup lump estimated to have fallen by more than 55% over 2022

On a monthly basis, the lowest physical - raw material spreads since September 2021 were observed over last December. On average, Helixtap STR20 price spreads over Thai Raw Material recorded US$213/mt for the month. This monthly average was the lowest in 16 months. The average monthly STR20 price spread over Thai Raw Materials registered US$296/mt. For last December, Helixtap SIR20 - Indo Raw Material price spreads averaged US$64/mt. Likewise, it was the lowest monthly value observed for the fir

05 Jan 2023

Legislation in the tire industry is increasing

Now, legislators are starting to look into the composition of tires, through the EU de-forestation rules and possible restrictions on 6PPD in California; the EU is introducing requirements on making products that can be more easily recycled and also seeking self-sufficiency in its list of critical raw materials. Natural rubber is included in this list.

05 Jan 2023

What’s next for rubber – Bearish prices on supply glut or possible overconsumption

Following on from all the global economic turmoil seen in 2022, amid the recent surge in Covid-cases in China, 2023 is likely to present a fresh set of challenges for the rubber market. Amid the bearish demand cues amplified by the expectation of a slow tire market recovery, rubber prices will likely remain bearish in 2023. As a result, rubber production in some of the major producing countries like Indonesia may take a hit.

30 Dec 2022

Tripura’s impressive latex export as Northeast ups rubber profile in Indian domestic production

The India Rubber Board has mooted an INR 500 crore (US$ 60.63 million) development plan for the rubber processing sector in the second-largest rubber-producing state of Tripura, which is making impressive strides in the sector by exporting latex valued at INR 1.24 million (US$15,245) to neighboring Nepal in November 2022.

29 Dec 2022

Vietnam exports set to cross US$ 3 billion mark in 2022

Vietnam will likely cross the US$ 3 billion mark in export value in 2022 amid sustained sturdy performance in rubber production despite price plunges and inclement weather.

29 Dec 2022

Indian Govt think tank suggest disbanding Rubber Board; sparks unrest

The Indian rubber sector is amid an upheaval, with the Indian Government exploring the possibility of repealing the rubber law and disbanding the Rubber Board while bringing a Rubber Promotion and Development Agency through an executive order.

28 Dec 2022

Protest for a decent floor price intensifies in India

Amid consistent bearish rubber prices, the Opposition Member of Parliament (MP) raised the issue within the Indian Parliament seeking a reasonable floor price for the cash crop.

28 Dec 2022

Prices remain steady but downward pressure lingers

Physical rubber prices across all grades are assessed to remain steady. Trading activities were largely muted as many market participants have started their year-end holidays.

23 Dec 2022

Helixtap Physical rubber and Futures Differential Analysis: Likely differing directional changes for regional physical rubber SICOM price differentials

For the physical rubber SICOM price differential analysis in this article, each differential now compares the assessed physical price against the second and third position (P2 & P3) SICOM TSR20 Futures (i.e. February and March 2023 contract as of December 2022). Previously, the first position SICOM TSR20 contract was compared against physical assessments with prices valid for cargo shipments due in about 2 to 3 months in the future. As the same time period is now being compared, each differentia

23 Dec 2022

Fall in Malaysian NR output for third month in a row

The volatile global NR prices amid weakened Chinese demand and global headwinds have had a depressing effect on Malaysian rubber production for the third consecutive month in October, with NR output falling by 10.3% month-on-month. As a  result, the NR production in October was 31,795 tons, down from 35,460 tons in September, and dropped 26.3% on a year-on-year basis.

22 Dec 2022

Rubber poised for more spot volume in 2023 as LTC volume takes a hit

The rubber market is poised to see more spot volume in 2023 as several long-term contracts are yet to settle amid apprehensive buyers, which traditionally wraps up by the end of November or early December.

21 Dec 2022

Sri Lanka market downcast; Michelin steps in to aid smallholders

Despite lower output owing to widespread rains, the Sri Lankan rubber and rubber finished goods market didn't trend upwards due to less demand. As a result, rubber product manufacturers and exporters indicated a lesser interest in Colombo auctions.

19 Dec 2022

Futures curve flat across till June 2023 - what’s the next play?

The futures prices converged to the lowest possible denominator - currently Indonesian grade - and interestingly, was flat across the curve for most of 2023 at around 1,370 USD/MT. This represents the very mixed trend in the market with 2 opposing forces.

16 Dec 2022

Helixtap Rubber Futures Market Analysis: Bullish momentum for prices observed over November

In the earlier edition of the Futures Market Analysis article in early October, prices registered at least a US$400/mt decrease across the 12 contract months from March till September. Since then, there was no change in the direction of prices, continuing to move south over October and November. As of November, the price difference between the 12 contracts since March ranges from US$475/mt to US$498/mt, a reduction of about 27%.

15 Dec 2022

India RSS prices at a two-year low, latex rallying

Two-and-a-half months after the Indian Rubber Board convinced and cajoled the tiremakers into returning to the market to make purchases to arrest the rubber price slide, the sheet rubber prices are again tumbling, hitting the lowest in over two years amid bearish buying interest.

15 Dec 2022

Desperate Rubber Board in bid to lure youths to rubber production

Ringing alarm bells over the aging population in the Indian rubber sector, the Indian Rubber Board has hit on a campaign to lure the young generation to rubber production, citing the opportunities it offers even as sliding prices linger as a dampener. The Rubber Board has carved extra roles for the youth in carbon trading that it proposes to bring in ESG goals and digital trading.

13 Dec 2022

Pressure on Govts as Indian parties back producers’ stirs

The agitations by Indian rubber farmers over declining prices are generating responses with mainstream political parties taking up the cause bringing pressure on the governments to increase the support price for rubber and support farmers.

09 Dec 2022

2023 term negotiations to slow as consumer look to spot market

Term negotiations for 2023 Thai rubber might take a challenging turn for buyers and sellers following the uptick in demand from China, which eased the prices amid a short-supplied market despite the bearish cues for next year's demand.

09 Dec 2022

Vietnam feels the heat from Indonesia

Competitive Indonesian physical prices might weigh on Vietnam's rubber demand in China. China's relaxing its Covid restrictions and a widening spread between Vietnam and Indo rubber might reopen the arbitrage economics between Indonesia and China, especially amid expectations of heavy rains in Vietnam.

07 Dec 2022

China continues to lag global tire markets

The tire industry continues to be dogged by uncertainty and lack of visibility for the future. China is the biggest drag on tire volumes around the world.

07 Dec 2022

Helixtap Physical Rubber and Futures Price Analysis: Rubber prices likely to see recovery once the supply overhang clears

In line with worsening rubber demand, prices in the market were seen to fall across the board so far this year. Amongst the rubber grades, Indonesian rubber registered the largest decline of 30% while African rubber decreased least by 24%. In the SICOM Futures, a similar price decrease to the physical market was recorded at 27%. On the whole, rubber prices in the physical and futures markets followed a consistent pattern since the end of March this year. Short term moving averages indicated a fa

05 Dec 2022

Rubfarm pioneers smallholder value addition in India rubber chain

Smallholders in the rubber hub of Kerala in India have upped their efforts to make their presence felt downstream of the rubber value chain so that they don't have to be at the mercy of tire makers and other players down the lane to make a decent earning.

02 Dec 2022

Indonesian Grade Rubber Cheapest - Indicator of support level or weak global rubber demand?

Prices continued to remain supported despite China protests, but the market remains uncertain of global demand going forward.

01 Dec 2022

Helixtap JPX report summary: Chinese inventories drawn down from highest weekly levels due to weak Yuan

Rubber prices in the physical and futures markets declined in the past week ended 25 November this year. Chinese Covid policies were last eased in mid-November, changing quarantine measures. With a recent rise in cases, cities like Beijing implemented new testing requirements while Shanghai imposed movement restrictions for new arrivals into the city. In Chengdu, mass testing was also announced, mandating a compulsory test each day for five consecutive days. Consequently, protests emerged over l

28 Nov 2022

Revenue lift for Indian tire majors, but Apollo alone ups profit in H1

The Indian tire majors remained resilient, bettering their revenue in the first half of the current fiscal (April-Sept 2022) compared to the previous fiscal’s first half. Still, augmented costs amid soaring inflation have eaten into their profits, except for Apollo Tyres.

25 Nov 2022

Malaysian production, smallholders moving away

Bearish rubber prices and diminishing contributions from the smallholders weighed heavily on Malaysian rubber production as output dropped for a second consecutive month in September. Amid drastic correction in the rubber prices, the contribution of smallholders fell 21% year-on-year from January to September 2022.

24 Nov 2022

India rejects plea for SBR ADD on EU, Korea, Thai suppliers

The Indian Government has rejected the recommendation of the Director General of Trade Remedies (DGTR) under the Indian Department of Commerce to extend the anti-dumping duty on Styrene Butadiene Rubber (SBR) imports from Europe, South Korea, and Thailand for the next three years from 2022.

22 Nov 2022

Changing dynamics – Hainan, Halcyon deal

With the profitability of the Indonesian producers under duress owing to bearish physical prices, Hainan rubber acquired a 36% stake in Halcyon Agri (HAC), looking at securing long-term supply as most tire producers expect more volatility in 2023.

21 Nov 2022

Africa to carve out larger share in rubber market in 2023

Africa is positioning itself to supply more rubber to Europe and Asia as traditional producers grapple with price volatility and revise their production to maintain cash flow. The buyers, too, looked to diversify amid a plethora of black swan events, and analysis suggests the trend could become more pronounced in 2023.

18 Nov 2022

Indo rubber diverted to China as arbitrage window widens

The widening spread between Thai and Indo rubber has reopened the arbitrage economics between Indonesia and China. As a result, despite the limited movement of Indonesian rubber into the Chinese market traditionally, a few delayed cargoes have been diverted to China, leading to a 13% rise in exports in September 2022 compared to August.

17 Nov 2022

Farmer stirs pick up pace in rubber hotbed of Kerala

Fresh bouts of farmer protests have erupted in India's rubber capital of Kerala, demanding the Central and State Governments step in to revive low rubber prices and bring succor to the rubber-reliant eight lakh households in the state.

16 Nov 2022

Cambodian export earnings down 9% amid global headwinds

The slump in global rubber prices continues to have its domino effect on Cambodian rubber, with the earnings from rubber latex and wood exports dropping 9% in the first nine months of 2022 year-on-year, sharper than the 6.7% drop in the first eight months.

15 Nov 2022

Helixtap JPX report Summary: Indonesian rubber seeing less interest from Chinese buyers compared to Thai rubber

Most major stock indexes listed within the JPX report as well as rubber futures showed an increase in the preceding week ended 11 November this year. Indicators such as a weaker-than-expected US CPI for October and China announcing some relaxation of Covid-19 measures may have contributed to this positive move. The previous Helixtap summary two weeks ago was observed to have prices falling across the board. In comparison, most futures across the exchanges now indicate some price recovery, other

14 Nov 2022

Helixtap Rubber Market Outlook Report 2023: Historical oversupply likely to start easing from 2023

In the 9 years from 2013 to 2021, a surplus in rubber production was observed in most years. Before that, production and consumption were at parity from 2010 to 2012. The highest recorded surplus within this period was an 840,000 tons surplus in 2013 while the largest deficit of 200,000 tons was seen last year. Without taking account of actual inventory levels in the market during the same period, an oversupplied market will likely put downward pressure on prices. In theory, high consumption lev

11 Nov 2022

Rubber producers at a crossroads of a rising cost & lull demand

2022, a year of black swan events, has brought the global economies under the scanner. While the tire industry has been struggling with raw material sourcing, supply chain disruption, and bearish demand, rubber producers witnessed an added set of challenges – unpredictable weather and unwarranted imports.

10 Nov 2022

Rubber Board incentive fails to pep up latex producers

Close on the heels of Indian latex producers and processors expressing their keenness to export latex to the international market with a narrowing gap between domestic and global prices, the Rubber Board has announced an incentive of INR 2000 (US$ 24.46) per ton of latex export. Still, the Indian producers are not overly enthused.

08 Nov 2022

Market rallied up from 2-year low, unlikely to sustain

Spot rubber market rallied this week amid market participants' speculation about China relaxing its stringent Covid policy. However, the market fundamentals, which remained weak, questioned the sustainability of the northbound movement.

04 Nov 2022

Vietnam exports up despite lower prices

Vietnam has posted healthy rubber export figures, volume and value-wise, in the first nine months of 2022, with some support from Chinese demand. However, a marginal month-on-month rise in volume while the drop in value painted a grim picture.

04 Nov 2022

India looks to export latex as gap narrows with international prices

Piqued by the rock-bottom prices for latex in the domestic market, the Indian producers are seeking ways to venture into the international market, given the narrowing spread between global and Indian latex prices.

04 Nov 2022

Global tire industry in October 2022 - a review

The total global market for tires in 2022 is likely to end up slightly ahead of 2021, but below the total in 2019.

02 Nov 2022

Helixtap Rubber Market Outlook Report 2023: Global rubber prices to remain steady or trend up slightly

In our analysis, global nominal GDP is used as a proxy for demand in the rubber market. Apart from the year 2018, prices in the physical rubber market, as represented by Helixtap STR20 and SIR20 and the SICOM TSR20 Position 1 Futures were observed to move in the same direction as global GDP. Based on historical data, it is likely that global GDP growth will indicate the price direction for global rubber prices.

01 Nov 2022

Helixtap JPX report Summary: Accelerated fall in prices amidst reimposed Chinese lockdowns

Rubber Futures continued on a decline throughout the month of October, where prices across exchanges saw a third week-on-week fall since end-September. A major reason attributing to the decline are newly announced lockdowns in China and new Omicron variants BF.7 and BA.5. Weaker indicators were also seen in Japan along with a 75bps rate hike by the ECB. Although Chinese GDP growth at 3.9% for the third quarter was higher than the market expectation by 0.4%, overall market sentiment was weak. As

31 Oct 2022

Defaults by China, market flooded

There were reports of defaults from China as the country doubled down on COVID-19 curbs flooding the market with offers and increasing the desperation among the sellers. The panic in the market outweighed the hopes of a dovish stance of the Fed and ECB and the possibility of the U.S. economy not being in a recession yet.

28 Oct 2022

Nigeria steps on the gas for rubber turnaround

Nigeria aims to rediscover the potential of its rubber sector and has set up an eleven-member technical committee to prepare a roadmap to revive the industry in line with the best global practices.

28 Oct 2022

Indian farmers back to agitation to arrest decline

The rubber producers in Kerala, who account for nearly 75% of India’s NR production, have hit the agitation trail demanding government intervention to sustain rubber production amid the plunge in NR prices.

27 Oct 2022

50% drop in premiums for LTC, changing dynamics increase anticipation

The annual long-term contract (LTC) premium for rubber is expected to see a 50% drop amid the bearish global market cues. Meanwhile, due to the volatility of spot markets, buyers are showing some preference for non-traditional sources. However, whether there will be a reduction or increase in contract volume is yet to be seen, especially with prices at a 2-years low.

27 Oct 2022

Bearish end to the week, with SHFE stockpiles reaching a year long high

Spot rubber broke the support level of 1,300 USD/MT whilst futures markets also creeped under 1,250 USD/MT with backwardation observed for December, January and February contracts.

21 Oct 2022

Production decline prompts Malaysian government intervention

Malaysian natural rubber production has declined by 3.8% month on month to around 36,410 tons in August from around 37,840 tonnes in July 2022. The year-on-year drop was around 15.2% from 42,942 tons in August 2021. With smallholders accounting for 87.5% of total production, the Malaysian Government has stepped in to reverse the trend and protect the livelihood of farmers.

21 Oct 2022

Indian rubber prices unchanged, smallholders cut production

The Indian rubber prices remain almost stable, successfully resisting the free fall since July this year. However, the producers’ wish for higher prices has not borne fruit, with tire makers flush with imported inventory, making guarded purchases amid limited tire production.

19 Oct 2022

India imports upstage production, consumption growth

Indian rubber production and consumption have registered single-digit growth in the five months of this fiscal (Apr 22 to Mar 23) leading to August 2022, while imports have gone up by double digits, signaling a revival in the market activity, including the downstream tire and automobile sectors that emerge from the pandemic.

17 Oct 2022

Helixtap JPX report Summary: A slide in rubber prices contrary to expectations post-Chinese Golden Week

An increase in speculative selling was observed in the futures market for rubber in the past week, with prices across the board falling throughout the exchanges. The price behaviour in the past week is shown to be in contrast to the slight bump in prices after the Chinese holidays in previous years. Prices retraced most of the gains made in OSE over the last week, and fell lower than the fortnight before in SHFE/INE and in SGX. Reports of heavy rain and floods in rubber-producing regions did not

17 Oct 2022

Market slumps post Golden week, anticipation around China congress meeting

The market, largely driven by weak macroeconomic indicators, failed to keep the optimism post-Golden week holidays contrary to the market expectations. The spot market saw a drop of around 2-3% across the board while the market awaits the outcome of the China congress meeting.

14 Oct 2022

India to extend ADD on China tire for another three years

The Indian Government is set to extend the antidumping duty (ADD) on importing new tires from China for another three years, with the Director General of Trade Remedies (DGTR) under the Department of Commerce recommending the same to the Government in a sunset review last month.

14 Oct 2022

IRCO aims to boost prices below 7-year average, success questionable

International Rubber Consortium Ltd (IRCO) is poised to conduct discussions to steady the outflow of rubber supplies in the international market amid concerns more downward movement in the prices could be on the cards. Following OPEC’s production cut and focusing on a shorter to mid-term strategy, IRCO is planning to restrict exports.

14 Oct 2022

Golden Week - the turning point or just a pause

The return of Chinese buyers into the spot market has brought in a much-needed breather for the spot rubber prices. The market hoped this would finally be the turning point for the rubber market. However, the ground realities might be slightly different, indicating a slower market, at least in the short-midterm period.

11 Oct 2022

Vietnam rubber exports hit US$2bn in first eight months of 2022

Despite a slump in global rubber prices, Vietnam seems to have insulated itself from major losses by exporting a mixture of natural and synthetic rubber even as the country upped NR production volumes.

10 Oct 2022

Prices likely to rebound when Chinese Golden Week ends

Physical rubber prices across the board remained steady or trended upwards slightly this week. There were limited trades done in the market due to the Chinese Golden Week holidays. But, prices received a boost near the end of the week due to an expected spike in oil prices and an increase in offers and trade in the market.

07 Oct 2022

Rubber prices marginally up in India market

Indian Rubber Board’s bid to arrest the slide in rubber prices seems to be effective with the price of the cash crop registering a marginal uptick from the lowest prices two weeks ago to INR152 (US$1.86) a kg on October 5.

07 Oct 2022

Should rubber market be worried about lack of spare output capacity?

Spare rubber production capacity is possibly running thin, given more shutdowns of Indonesian factories, and market participants expect more to join by the end of 2022. The situation might be a wrinkle in the end users' plan who have been reducing their reliance on long-term contracts once the Chinese demand rebound once China winds down its zero-COVID policy.

07 Oct 2022

Helixtap Rubber Futures Market Analysis: Daily open interest rise accelerates the downward trend in prices

The article aims to provide insight on the rubber market Futures through an analysis of the SGX SICOM TSR20 rubber Futures. As the SICOM Futures are used by most rubber market participants for a variety of uses, this analysis will serve as an indication of the rubber market outlook as represented by futures market participants. The analysis attempts to track the forward price curve and to observe their dynamics in relation to similar contract positions over time. For example by tracking the Futu

06 Oct 2022

Weak global prices sap Cambodia earnings

Cambodian rubber latex, which relies on exports, smarts under lower global rubber prices even as the country’s efforts to crystallize its downstream facilities toil towards fruition.

05 Oct 2022

Pneumatic & retreated tires buck Sri Lankan negative trend

The Sri Lankan rubber and rubber product export market showcased a mixed trend, with surgical gloves facing a decline, unlike pneumatic & retreated rubber tires which saw some growth. Even though exports of rubber and rubber products recovered in August, the demand for rubber remained weak from local shippers and foreign buyers.

04 Oct 2022

Helixtap JPX report Summary: Chinese traders on a buying frenzy, processors overbooked till next year

In the previous week, Futures saw an overall decrease in open interest across the exchanges. Trading activity is expected to shrink heading into the Chinese Golden Week holidays, leading to the reduction in open positions. China reported a slight growth in manufacturing activity, with PMI at 50.1. This marks the first expansion in three months since June this year. Major central banks are likely to follow suit with key interest rate increments since the Fed announcement. European Central Bank of

03 Oct 2022

Heavy rain forecasts in Thailand drive raw material prices north

Reports of heavy rains in Thailand have driven the raw material prices up during the week as the market experts see some more support amid the expectation of weather to worsen. The situation amped up the spot rubber prices as the Chinese buyers continued to remain bullish, expecting a supply shortage.

30 Sep 2022

India producers lock horns with downstream over cup lump imports

India witnesses a bid by block rubber and tire manufacturers to import cup lump and scrap rubber at cheaper rates than domestically produced latex and is seeing some resistance from the rubber-producing community in the country.

29 Sep 2022

Indian tire exports up 25% YoY in H1, demand for sustainable rubber pose threat

The revenue from Indian tire exports has made an uptick of 25% in the first half of 2022 compared to the same period the previous year, riding on the Atma Nirhabr (self-sufficient) policy of the Indian Government. However, overall bearish cues and demand for sustainable rubber could pose a threat to the industry in the mid-term period.

28 Sep 2022

Bridgestone pitches for a sustainable supply chain

Bridgestone is bent on achieving carbon neutrality in the rubber supply chain by making tires from 100% renewable materials by 2050. And its latest initiatives in this direction come in the Far East and the U.S.

28 Sep 2022

Spot activity moves forward, prices close to floor

The shift in the buying pattern during the week despite underscored expectations for tighter monetary policy and a slowing global economy could indicate that the spot prices are finally nearing the floor. The market, however, remained divided on the rationale behind the shift in the buying pattern, with some attributing it to possible positives in the upcoming China congress while others feel the prices have very little room for correction.

23 Sep 2022

India tire producers to resume domestic rubber purchases

The Indian Rubber Board has initiated steps to rein in the downswing in the domestic rubber prices by holding a meeting this week with the Automotive Tyre Manufacturers Association (ATMA) members, and the latter has agreed to return to revive the market.

22 Sep 2022

Porsche IPO stirs excitement in auto industry, limited impact for tire and rubber

After two years of struggle, the auto industry hopes to see some fervor with Porsche's initial public offering (IPO). Listing IPO when inflation is peaking across the globe and the monetary tightening seen in the Western Hemisphere tipping the economies to recession doesn’t seem the best strategy. However, with weak consumer demand, supply chain debacle, and chip shortage, some improvement in the cash flow could be the possible reason for Volkswagen’s move. However, how much of this would transl

21 Sep 2022

Malaysian spot prices under pressure on higher production & sluggish exports

Malaysian rubber spot prices remained under pressure amid bearish domestic demand, sluggish exports owing to zero Covid-19 policy, and a surge in production. According to Helixtap data, Standard Malaysian Rubber (SMR) 20 prices dropped by around 5.7% in July and around 5.5% from July 2021.

20 Sep 2022

Helixtap JPX report Summary: Inventory and physical rubber prices share inverse relationship

Futures prices saw an increase over the past week after weeks of consistent selling since the start of August. Some positive economic data was seen from China with the lockdown in Chengdu being lifted along with better-than-expected Industrial Production and an increase in Retail Sales in August. These factors may have prompted some short covering behaviour especially in SHFE/INE as a net fall in volume and open interest was seen. The CPI from the US for August was higher than market expectation

19 Sep 2022

No intervention from Rubber board yet, Indian prices still downcast

The Indian rubber prices are at the 19-month low at INR 151 (US$ 1.90) per kg with no signs of a Rubber Board or Government intervention to take the prices to a robust level with the international prices keeping lower than the domestic prices.

16 Sep 2022

EU deforestation legislation – trade barrier for Indo and African rubber

Concerns have emerged in the rubber market about the impact of the Council's agreement on new rules to driving down deforestation and forest degradation globally, with natural rubber on the list.

16 Sep 2022

Key market indicators - Bear market in short-mid term

The key factors impacting the physical market in the short-mid term

15 Sep 2022

Investments into Indian rubber production gathering steam

The INR 1100 crore (US$ 143.77 million) ATMA-Rubber Board project to boost rubber production in the north-eastern states of India is making sturdy progress. At the same time, the second largest rubber-producing state, Tripura is emerging with a new rubber policy to bolster the project.

13 Sep 2022

Sellers heave a sigh of relief with prices stable today

Delayed price assessment and commentary

09 Sep 2022

Bangladesh rubber exports soar to new highs

South Asian nation Bangladesh is forging ahead in rubber production scripting over decade-high gains in exports in the FY 2021-22, taking the commodity mainly to India, Malaysia, Turkey and Spain.

09 Sep 2022

Tyre majors steadfast on sustainability, strongly behind Indonesian Rubber

While Indonesia may be smarting from the free fall of rubber prices in the international market due to weak Chinese demand, tyre majors seem to be betting big on the superior Indonesian rubber in the long run. This is despite Vietnam and Ivory Coast lower grades rattling the Indonesian rubber economy recently.

09 Sep 2022

Helixtap Physical Rubber margins and intra regional spreads analysis: Thai producers selling at prices close to negative margins due to competition with Indo rubber

The past two months from mid-July to early September this year saw the Helixtap STR20 price spread over Thai Raw Materials decline towards US$219/mt in late August. Earlier in June, the same spread was at the highest weekly value of US$491/mt since September last year. With that drop, Thai producers have been approaching margins that are close to incurring losses despite a stronger US dollar cushioning some of this impact. As of early September, the average factory costs are 7-8THB/kg for proces

08 Sep 2022

Rubber prices fall further as tire-makers rest on imports

The rubber prices are trending downwards in the Indian domestic market due to lukewarm demand from the downstream tire sector that thrives on ample inventory arising from an import glut. Consequently, the smallholders are piling up stocks, refusing to incur losses while anticipating price rises in the future.

08 Sep 2022

Helixtap JPX report summary: Higher energy prices likely to cause further decline in European demand for rubber

The preceding week saw an increase in volume amidst a continued downward spiral in prices across the exchanges. Bearish sentiment across the markets remains due to increased expectations of future rate hikes and recessionary fears. China reported PMI for August this year at 49.4, below the neutral level of 50.0, signalling a slight contraction in manufacturing activity. Within China, additional cities have also imposed fresh lockdown measures due to its zero-covid policy. Major cities such as Ch

06 Sep 2022

A new 2022 low for rubber prices, bear China annihilates spot market

As China struggles to shake off the impact of Covid-19 while embroiled in a deepening real-estate downturn and a heat wave, the country’s economic low has shackled the rubber market, taking the spot rubber prices to a new low for 2022. While the producers struggled to find a floor, spot rubber prices dropped below US$1400/mt, with the market once again failing to find support.

05 Sep 2022

Navigating the rubber market: Today & Tomorrow

Summary of the key points discussed at Helixtap Technologies Flash webinar on 30 August 2022.

02 Sep 2022

SBR ADD extension worries for Indian importers

Both tire and non-tire sectors in India are peeved over the new recommendation of the Director General of Trade Remedies (DGTR)-India to the Indian Government to extend the anti-dumping duty on Emulsion Styrene Butadiene Rubber (ESBR) imported from the European Union, South Korea, and Thailand.

01 Sep 2022

Imports push prices further down; farmers agitated

The rise of imports into India amid southbound prices has started to impact the Indian rubber producers as they lower production to curtail losses.

31 Aug 2022

ANRPC optimistic on NR despite geopolitical issues

The Association of Natural Rubber Producing Countries (ANRPC) has sought to paint an optimistic NR outlook despite sliding global prices amid tepid demand from a weakened China and the tense geopolitical scenario.

29 Aug 2022

Indian rubber prices in one year low; latex worst hit

Rubber prices hit the lowest in a year this week, with supply improving in fair weather since August 12, while the international prices kept low.

26 Aug 2022

When will the prices bottom out - market cues indicate a longer haul

The price pressure has proved to be anything but transient as the spot rubber prices slide back to the 2020 level. While all the rubber-producing nations are in the line of fire and struggling to find a bottom to the prices, it seems the Indonesian market is least insulated from the uncertainties.

26 Aug 2022

Helixtap Physical rubber and Futures Differential Analysis: Physical rubber prices may soon trade at a differential discount to SICOM TSR20 Futures

Over the past month, the Helixtap Physical Rubber Price Index showed an overall decrease in physical rubber prices with respect to SICOM TSR20 Futures, reaching a differential lower than US$50/mt for the first time since end-February this year. The Helixtap Rubber Index is a weighted average price of all Helixtap physical rubber price assessments as per their respective regional production share. This index can hence be compared directly to the non-region-specific SICOM TSR20 Futures prices. Fol

25 Aug 2022

Export-centric Cambodia feels the heat of weak rubber prices

The lingering geopolitical uncertainties have cast a shadow over Cambodia’s ambitions to mint money by shipping NR latex.

24 Aug 2022

Helixtap JPX report summary: Weak China demand causing fall in physical and futures prices

In the past week, additional short positions were initiated by speculators, pushing futures prices to the lowest level in a year. Bearish news was also observed, with sluggish China’s July Industrial production at 3.8%. In the exchanges, OSE RSS3 futures fell by 1.2%, SHFE SCR/RSS and INE TSR by 2.4% and 2.5%, respectively, and SICOM TSR20 by 3.7%. This downward move is largely attributed to reinstated lockdowns in the largest demand driver for rubber, China.

23 Aug 2022

Glut in spot market, producers struggle to find floor

Spot rubber market sentiments rapidly turned sour after a tire major's pullback from the long-term contract flooding the market with offers. Meanwhile, producers struggled to find a floor to the prices as they liquidated volume even at a loss.

19 Aug 2022

Vietnam might lose its edge in China

Vietnam rubber could lose the pricing advantage in the Chinese market amid the continued correction in the Thai rubber prices despite strong H1 exports data.

19 Aug 2022

Helixtap Physical Rubber and Futures Price Analysis: Lack of buying interest causing rubber prices to lose key support levels

A fall in prices was observed across physical rubber grades prices and SICOM TSR20 prices over July till mid-August this year. Helixtap STR20 prices in mid-August 2022 reached a new daily low in the past year of US$1,550/mt, below the previous support level of US$1,650/mt. Prices last moved under US$1,600/mt in February 2021, about one and a half years ago. Historically, the lowest daily price recorded is US$837/mt at the start of April 2020, straight after the onset of Covid-19. Over July 2022,

18 Aug 2022

Malaysia on comeback trail in gloves, fight in NR production

The Malaysian glove market has recouped with exports registering a quantum leap of 100% in June 2022 over the previous month, even as rubber production slid this quarter over the last quarter.

17 Aug 2022

Tire major pulls back, spot rubber hits 20-month low

Continued supply chain disruption, soaring raw material prices, and labour shortages have pushed a major tire maker to pull back from their long-term contracts (LTC), shaking the rubber market confidence as the spot prices hit a 20-month low.

16 Aug 2022

Cash flow issues plague market; buyers & sellers struggle

While the global economies are struggling to walk the fine line to clamp inflation and tipping towards recession, the anticipation of further monetary policy tightening has taken a toll on the rubber demand, with prices taking a hit. Meanwhile, southbound prices with diminishing demand have tightened the cash flow for some of the small to mid-sized producers, especially in Indonesia and Africa.

12 Aug 2022

India rubber sector on an upswing in H1 2022

India's natural rubber sector has registered growth on all fronts in the first half of this year compared to H1 2021, with natural rubber production up by 9% and imports up 13% despite a 5% rise in consumption. The market participants attributed the growth to better prices and improved downstream demand. However, India continued to rely on imports in H1 2022.

12 Aug 2022

Sri Lanka paints hale H2

After a sluggish start for the Sri Lankan rubber industry, the country is hoping for a revival in the second half of the year owing to a domestic supply shortage and an improved supply of fertilizers. However, the continued energy crisis in the country could pose a considerable deterrent.

10 Aug 2022

Geo-political tensions back at the driver's seat, prices take a hit again

Geo-political tensions have been a key driver of commodity prices in 2022. With China conducting its 3-day military drills near Taiwan following the from US House Speaker Nancy Pelosi to Taiwan, the spot prices have already a drop by 6-7% across the board this week.

05 Aug 2022

Helixtap Physical Rubber Margins and intra regional spreads Analysis: Feasible for Indonesian producers to import Thai raw mat

Historical Helixtap data shows that Thai Raw materials traded at a premium over Thai Latex prices 60% of the time. However, Thai Raw materials prices were observed to trade at a discount to Thai Latex for 15 consecutive weeks from mid-March 2022. This trend was broken in July, returning to the norm of trading at a premium over the past 4 weeks.

04 Aug 2022

Heavy rains and leaves disease to cap Indian rubber prices descent

Rubber prices were southbound in the second half of July. However, continued heavy rains from July 31 might and leaves disease could cap the correction as impeded tapping would impact production.

04 Aug 2022

Shortage of skilled tappers propped India into automatization

An acute shortage of skilled tappers and underutilized potential tapping areas has propped Indian rubber producers to look for an automized alternative to take Indian rubber production to its full potential. As a result, the emergence of a new tapping machine in the country will be the first of its kind.

02 Aug 2022

Post-pandemic, natural rubber gloves get a push in India

By promoting export-oriented units on the strength of an anticipated rise in rubber production and increasing interest in natural rubber gloves, the Indian glove industry plans to take off from where Covid-19 opened up an enormous opportunity.

01 Aug 2022

CFR China price saw support on restocking

Some restocking in China lent some support to CFR China prices this week, despite the overall bearishness in the market. However, the CFR China prices dropped around 3.7% over July as China continued to struggle with a plethora of issues leading to an economic slowdown.

29 Jul 2022

Low cost opens arbitrage for African rubber into Asia

Rising raw material costs and bearish market sentiments open the arbitrage window for the African rubber into the Asian market. However, continued distressed supply chains and increasing freight costs might be a major deterrent for the African rubber.

29 Jul 2022

Helixtap Physical Rubber and Futures Differential Analysis: Helixtap STR20 price differential over SICOM TSR20 trended downwards by 31% as per our prediction in June

The Helixtap Physical Rubber Price Index continued to trade at a premium over the SICOM TSR20 Futures. The Helixtap Physical Rubber Price index is a weighted average of all Helixtap physical rubber price assessments as per their respective regional production share. Such an index allows for a more appropriate and direct comparison with the non-region-specific SICOM TSR20 Futures prices.

28 Jul 2022

Spot price forecasts under pressure, negative margins hit confidence and activity

With spot prices under pressure from growing concerns of a global recession, while continued negative margin threats hang over the supply-side, the near-term price forecasts for rubber have become bearish as market participants second guess.

26 Jul 2022

Indian Rubber Board moves to scale up production

Aiming to extend rubber cultivation to sparse regions, the Indian Rubber Board is tying up with research institutes, Krishi Vigyan Kendras (Agriculture Knowledge Centres), and state universities to explore and identify potential regions to promote cultivation.

25 Jul 2022

Global slowdown fears dim outlook, spot prices likely to slide further

Despite a largely muted market amid building recessionary fears and global monetary tightening, spot rubber prices held steady over the week. Meanwhile, a continued drop in the buying expectation and some low prompt offers indicate a bearish upcoming week; sources said to Helixtap on Friday.

22 Jul 2022

Cambodia’s H1 rubber export revenue drops on weak rubber prices

Cambodia's rubber export revenue was hit in the first half of 2022, despite a rise in export volume, owing to southbound international prices.

20 Jul 2022

Vietnam’s boost to domestic tire sector unlikely to support farmer

Vietnam is chugging to make a giant leap in domestic rubber use with the major tire maker DRC launching a new project to increase tire production, while others like Maxam and Kumho have already set the ball rolling. However, the market experts are not sure this would support the local rubber farmers owing to the country's semi-administrative price mechanism.

18 Jul 2022

Low Thai prices lure Chinese buying back, futures weaken

A drop of 4% in Thai spot prices over the week resulted in some rebound in Chinese bulk buying during the Asian trade day. Meanwhile, the SICOM futures hit a six-month low amid global bearish cues and a grim short-term outlook, sources said to Helixtap on Friday.

16 Jul 2022

Helixtap Physical Rubber and Futures Price Analysis: SIR20 prices weaker than usual when compared to previous time periods

The prior month saw a general decline in Helixtap STR20 prices, continuing a downward trend. Prices stayed beneath US$1,700/mt towards the end of June 2022 and were unable to move above this price level. Prices have fallen by US$55/mt over the month of June as a result of this downward trend. This was largely in line with our expectation last month that STR20 prices will likely stay at a lower range in the months ahead.

14 Jul 2022

Supply chain snag prompts US to boost domestic glove production

Even as glove manufacturers across the globe weather post-pandemic oversupply scenario, the United States chugs forward with over a dozen glove-making projects due to domestic requirements, supply chain disruptions, and the long-term in mind.

13 Jul 2022

India rubber prices stay high

Indian rubber prices continue to climb north amid weakened supply, with the southwest monsoon gathering strength and impacting production, while demand remained robust in the past fortnight.

13 Jul 2022

Apprehension kept spot prices range-bound, producers unwilling to balk

Spot rubber market participants are repositioning the possibility of further southbound movement in the spot prices as China’s consideration of pumping stimulus into the market failed to rev up the market. However, producers held on to their offers after a week of downward adjustment in an attempt to stay green; sources said Helixtap on Friday.

08 Jul 2022

Buyers opt for economical Vietnam rubber,  export spikes in May

Vietnam rubber saw a surge in exports in May 2022 and is likely to continue in June, triggered by the widening gap between Vietnam rubber prices compared to the other Asian sources, even though the overall demand cues remained bearish.

06 Jul 2022

FSC-certification concerns stir Viet rubber sector

Vietnam's rubber sector needs to undergo structural changes to embark on the opportunity to cater to the global brands, and developed nations prioritize sourcing rubber from producers with Forest Stewardship Council (FSC) certifications, the industry's gold standard for meeting the legal and environmental norms.

05 Jul 2022

Helixtap Physical Rubber and Futures Monthly Differential Historical Analysis: Helixtap STR20 price differential over SICOM TSR20 tends to increase from February to May each year

According to seasonality analysis from 2016 to 2022, the Helixtap STR20 - SICOM TSR20 monthly differential has the tendency to trend upwards in annual wintering months from February to May each year. Across the years from February to May, this differential was observed to increase around 77% of the time.

05 Jul 2022

Indo producers under margin pressure, Thailand faces supply glut

A surge in the raw material prices and bearish demand continued to break into Indonesian producers' confidence while Thailand market struggled with a supply glut situation; sources said Helixtap on Friday.

01 Jul 2022

Soil maps and fertilizer tackle system for Indian rubber

The Indian Rubber Board has prepared soil fertility maps for the rubber growing areas in the country after holding an eight-year-long study to help producers understand the fertility status of their holdings and plan sustainable soil management for better production. The plan includes a fertilizer management system, which refines the discriminatory fertilizer recommendation based on soil testing.

01 Jul 2022

NR domestic prices high, but under CR import threat

The Indian rubber prices continue to hover high in the second fortnight of June, with the southwest monsoon keeping a weak profile over Kerala creating a positive environment for rubber production and rain guarding amid good demand.

29 Jun 2022

Margin pressure propels Indo factories to shutdown

The building pressure on the margins amid bearish demand and surge in the raw material prices is leading to a shutdown of two processing factories of Pt Prasidha Aneka Niaga in Palembang while few others continued to struggle even with 50% capacity utilization, sources said Helixtap.

29 Jun 2022

Rubber supply from Thailand and Indonesia likely to increase in the coming months

Physical rubber supply from Thailand and Indonesia is likely to increase in the coming months, after taking into consideration their weather forecast from their respective national meteorological agencies. Such an analysis was computed by also referencing a research study published in the IOP conference series on earth and environmental science. It must be noted that our calculations exclude the impact on rubber supply brought upon by unavailability of workers or any other man made events.

24 Jun 2022

Rubber hub Kerala floats rubber products venture

Kerala state, which contributes over 70 percent of the 775,000 tons of rubber produced in a year in India, is making a serious bid to be a rubber products hub by 2030. Their plan is to attract investments to the tune of INR 1000 crore (US$ 128 million) in three phases.

23 Jun 2022

Global NR supply up, profit outlook bleak

The global natural rubber supply has made a marked improvement to 991,000 tons in May 2022 from 941,000 tons in April 2022. Such a figure was 954,000 tons in March this year. A shortfall of 198,000 tons was recorded in May against an estimated demand of 1.19 million tons. While several NR producing countries are entering the off-tapping season, the market is optimistic about supply improving moving forward.

22 Jun 2022

Helixtap Physical Rubber margins and intra regional spreads analysis: STR20 prices tend to fall less than SIR20 prices during wintering months

This article will offer readers analysis on Technically Specified Rubber (TSR) and raw material spreads and price spreads between various regional rubber prices. The price spread between TSR and their respective raw material will be a good proxy for manufacturer margins.

21 Jun 2022

Rubber prices rising but producers hinge on climate

Rubber prices are steadily increasing in the Indian domestic market amid some shortages despite a fortnight of weak monsoon.

17 Jun 2022

Booming Indian SR imports propel non-tire exports

A surge in the Indian non-tire exports boosted the demand for imported synthetic rubber as the country clocked an annual rise of 36.6% to 577,410 tons in imports in fiscal 2021-2022. The year-on-year rise was significantly higher in value at US$1.258 million, up 73.85% during fiscal 2021, riding on increased production in the downstream sectors that emerged robust from the pandemic setback.

15 Jun 2022

Power short Sri Lanka fails to tap into rubber demand rebound

Plagued by power shortage and leaf disease, Sri Lanka fails to tap into the rebound in global demand posting a marginal rise of 1.3% in exports from January to April 2022 compared to exports in the same period last year.

14 Jun 2022

Helixtap Physical Rubber and Futures Differential Analysis: physical rubber market trading at historically high differential premium over rubber futures

This article aims to provide analysis on the price differential between physical rubber and rubber futures prices across different periods of time. Such a differential is widely used by many market participants in long term contracts as they attempt to bridge the gap between physical and futures rubber prices.

14 Jun 2022

Indo & Vietnam spot prices find raw material support

Indonesian and Vietnamese spot rubber prices saw some support from the raw material prices compared to the Thai and African rubber prices, even though Standard Indonesia Rubber (SIR) 20 saw a marginal drop of 1%, according to Helixtap data. Meanwhile, the Thai rubber market is witnessing a supply glut situation, sources said on Friday.

10 Jun 2022

Rubber Board to launch e-trading platform

The Indian Rubber Board is set to launch an e-trading platform 'mRube' in June 2022 to help Indian rubber producers and traders augment their reach and returns. The board intends the platform to boost the marketing efficacy of supply chain participants in natural rubber, helping them clock more business by reaching out to new sellers and buyers even in far-off places.

10 Jun 2022

ChemChina to set up US$97m aviation tires production facility

In a bid to ease China's heavy reliance on the imports of civil aviation tires, state-owned ChemChina's aircraft tire subsidiary arm, Shuguang Rubber Industry Research & Design Institute, is tying up with an engineering firm Haohua Chemical Science & Technology, to produce 100,000 high-performance aircraft tires.

08 Jun 2022

Helixtap Physical Rubber and Futures Price Analysis: SICOM TSR20 traded at lowest monthly average in the past 12 months

This article attempts to provide insights on price and trading dynamics of physical rubber and futures by analysing daily rubber prices at different time ranges. The respective time ranges are for the past year, the past month and the past week. The rubber grades covered are Helixtap SIR20, Helixtap STR20, Helixtap AFR10 and SICOM TSR 20 Futures.

07 Jun 2022

Vietnamese rubber banking on Chinese return

Vietnamese rubber producers are expecting some support for Standard Vietnamese Rubber (SVR) 20 prices with China slowly opening up from June 1, 2022, and the recent Chinese government's announcement of stimulus measures to boost the economy.

06 Jun 2022

Indian rubber imports make record surge

The Indian rubber imports have clocked a record rise of 33.3% to 546,369 tons in fiscal 2022 (April 2021 - March 2022), although the Indian natural rubber production hit a decade high in fiscal 2022.

02 Jun 2022

India may extend ADD on Chinese tires

India may extend ADD on Chinese tiresThe Indian Government is likely to continue with the anti-dumping duty (ADD) on imports of new/unused pneumatic radial tires from China. The tires that attract ADD are with or without tubes and/or flaps of rubber (including tubeless tires) having a nominal rim diameter code above 16 inches used in buses and lorries/trucks.

30 May 2022

Widespread Indo-Thai spread props Thai spot market

Thai physical prices post gains on Asian trade day amid widespread between Indo and Thai rubber after a week of muted activities buying; sources said Helixtap on Friday. However, the overall sentiment continued to remain bearish amid weak global cues while market participants await China’s lockdown relaxation from June 01, 2022.

27 May 2022

Rains push Indian rubber prices up

Indian rubber prices are surging forward with incessant unseasonal rains caused by depressions off the west coast of India and in the Bay of Bengal, disrupting tapping in Kerala and the North-Eastern states.

25 May 2022

Indian passenger vehicle sales drop

The Indian domestic passenger vehicle sales have slumped in April 2021, due to supply-side challenges including semiconductor shortage. A slowdown in demand amid inflationary trends due to oil and commodity price hikes also had an impact on vehicle sales.

23 May 2022

Goodyear posts highest Q1 revenue in a decade

The Goodyear Tire and Rubber Company’s net sales have grown by 40pc in the first quarter of this year compared to the first quarter of 2021 driven by the Cooper Tire merger, improvements in price/mix, higher volume, and increased sales from other tire-related businesses.

19 May 2022

Malaysian border reopening providing support to rubber industry

Standard Malaysian Rubber (SMR) 20 prices trended downwards by approximately 7.6pc for the first two weeks in May 2022, as per Helixtap data. Market intelligence data collected by Helixtap suggests that the SMR 20 price in the middle of the month was around USD$1,675/t, the lowest since the start of this year. Such a trend was largely due to a drop in demand from China after lockdowns were announced in Shanghai due to their zero Covid policy.

18 May 2022

More natural rubber production to come from Africa

In Africa’s quest for a greater share in global natural rubber production, Ghana has launched an 826-acre rubber cultivation project, its biggest initiative so far.

17 May 2022

Indian natural rubber prices post good recovery with production costs increasing

The rubber and rubber latex prices have made a good recovery from the fall last month-end, in view of a shortage of both commodities amid better demand.

10 May 2022

India rubber production hits a decade high

Provisional Indian natural rubber production reached a decade high at 775,000 tons in fiscal 2022 (April 2021 to March 2022), while the consumption rose to a record of 1.23 million tons, necessitating more imports.

10 May 2022

Tire retreading gaining traction

Major tire makers are pushing for tire retreading with improvisations like customized retreading rather than rolling out more new tires in an attempt to lower cost and dependency on natural rubber.

06 May 2022

Indian tire exports script phenomenal leap

Indian tire exports have made an impressive surge of 55% in the ten months leading to January 2022 compared to the same period last year due to a slowdown in the domestic tire replacement market and favorable global market conditions pre-Ukraine war.

06 May 2022

Cambodia rubber exports on an uptick

Cambodia's export of rubber and rubber products has zoomed past US$117 million in Q1 2022, up 6.9% year on year, owing to a surge in international rubber latex demand. Despite sluggish domestic demand and spiraling production, rubber latex exports clocked a growth of 10.9% to US$103 million in Q1 2022.

29 Apr 2022

Bearish demand dominates Malaysian rubber outlook

Already plagued by months of extreme volatility, the Malaysian rubber market is likely to witness further weakness amid the daily turmoil brought on by rising Covid cases in China and the conflict in Ukraine as Standard Malaysian Rubber (SMR) 20 prices saw a drop of around 2.7% over April, as per Helixtap data.

28 Apr 2022

ANRPC floats SPM yet again, experts not optimistic

The Association of Natural Rubber Producing Countries (ANRPC) is yet again bidding to establish a Sustainable Price Mechanism (SPM) for natural rubber among member countries to insulate producers from price falls. However, some market experts are doubtful if all the market players would be willing to accept a set pricing mechanism for spot trading.

26 Apr 2022

India eyes doubling rubber production by 2030

India has hit on two projects to double its rubber production area from the current 800,000 hectares by 2030 in a bid to cut its rubber import bill of INR 5000 crore (US$ 653 million) and be self-reliant.

22 Apr 2022

China lockdown cuts deeper into rubber prices than Russia-Ukraine conflict

The rubber market is witnessing a larger fallout in the spot prices and demand, with China on lockdown for almost a month compared to the demand challenges posed by Russia’s invasion of Ukraine, leading to a cut back in some auto production in Europe.

21 Apr 2022

Indian natural rubber prices slide

Indian natural rubber prices are on a downward spiral with a bevy of factors working against the producers. Meanwhile, a positive production outlook with an uptick in tire production could fuel some optimism for the Indian rubber prices in the coming weeks.

19 Apr 2022

China lockdown-induced chip shortage hits auto industry hard

The latest Covid surge and stringent lockdowns in China had aggravated the semiconductor shortage, hitting the global automotive sector hard when the demand remained robust. China, the leading producer of semiconductor chips globally, produced 359.4 billion Integrated Circuits (ICs) in 2021, up 33.3% year on year, but now struggles to keep the ball rolling in the wake of the supply-chain disruptions.

14 Apr 2022

ELT promises to replace sand in constructions

The US$ 4.5 billion end-of-life tire (ELT) management market is in for a giant leap along with the over US$12 trillion global construction industry as the tire industry finds an alternative in shredded rubber particles using ELT to replace sand in concrete to close the sustainability loop.

14 Apr 2022

Rubber supply chain jitters grow with China’s “Zero-Covid” policy

As extended lockdowns in China show no sign of abating soon, the inland-logistics jitters continue to grow, gridlocking the transportation in the country with a ripple effect on the spot rubber demand and prices.

12 Apr 2022

Passenger car sales boom boosts Indian tire demand

The passenger car segment is leading the Indian tire production surge, banking on the post-pandemic rebound in economic activities and augmented auto sales, pandemic setback.

07 Apr 2022

Climate change unsettles Indian rubber farmers

Climate change, in the form of an extended southwest monsoon, disrupted Indian rubber production. However, as the small farmers made a late comeback, the big producers were seen grappling with poor yield.

05 Apr 2022

African rubber might gain ground in western market with Suez Canal surcharge hike

African rubber is likely to gain traction in the US, and the European market over Asian rubber as Suez Canal Authority (SCA) increased the canal tolls from May 01, 2022, for "Containerships" transiting in the northbound direction. The move came as a blow, especially for the Asian rubber industry, adding to the cost while China's COVID-19 lockdown and tire manufacturers' closure of Eastern Europe factories weighed on demand and supply chain.

04 Apr 2022

Yokohama beefs up commercial tire segment with acquisition

To widen its presence in the commercial tire segment, Japanese Yokohama Rubber Co. Ltd. announced the acquisition of Sweden-based Trelleborg Wheel Systems (TWS) for about US$ 2.31 billion, on March 25, 2022.

04 Apr 2022

FLASH - Suez Canal surcharge hike a blow for Asian rubber

A hike in the Suez Canal surcharge from May 01, 2022, announced by the Suez Canal Authority, came as a blow to the rubber industry. The announcement added another layer of complexity as the cost of moving goods including rubber which relies on container ships would see a jump further weighing on the demand which is under duress due to China’s COVID-19 lockdown and tire manufacturers' closure of Eastern Europe factories and a disrupted supply chain.

01 Apr 2022

Renewed risks on global supply chain as China locks down

An extensive lockdown in Shanghai reignited the concerns in the rubber industry for a renewed disruption to global supply chains, which is already under duress by the pandemic and the Russia-Ukraine conflict.

31 Mar 2022

Supply chain woes plague US tire makers

ASEAN reliant US rubber buyers are witnessing a setback as an aftermath of the ongoing Russia and Ukraine conflict. The supply chain disruptions, compounded by shipping container shortages, have thrown the end-users of natural rubber, especially the tire manufacturers, into a tailspin.

29 Mar 2022

Supply chain snags seen stretching through 2022 – Is rubber in trouble?

A multitude of shocks caused by disruptive events ranging from the Covid-19 pandemic to geopolitics, with the ongoing war in Ukraine, has put the global supply chain in a fragile spot. Moreover, given ASEAN-dominated rubber production, the supply chain snags have caused backups in the outflows weighing demand and prices.

28 Mar 2022

New Indian rubber Bill triggers apprehension, might weigh on producers

The Indian government's move to introduce new rubber legislation to update the functioning of the domestic rubber industry and the rubber board triggered apprehensions among market participants and experts as it might undermine the position of the farmers and the Rubber Board.

25 Mar 2022

Malaysian rubber production & exports rebound in Jan

The Malaysian rubber market rebounded in January 2022, supported by an uptick in global manufacturing activities, some global rubber supply shortage, surging crude prices, and a weak ringgit against the US dollar.

24 Mar 2022

The impact of the Russian invasion of Ukraine on rubber prices

The impact of the Russian invasion of Ukraine on rubber prices

22 Mar 2022

Indian NR prices get the oil push

The rally in crude oil prices rippled across the Indian natural rubber market as prices rose around 3% in March despite the elevated inventory levels owing to higher imports in November and December 2022.

21 Mar 2022

Malaysian rubber glove demand set to see a boost

The rubber glove market witnessed an uptick in demand amid the recent Covid-19 outbreak in China, close on the heels of the Russia-Ukraine conflict and endemic globally, which drove down the demand.

18 Mar 2022

Synthetic rubber market in wait and watch mode

Uncertainty looms large over the synthetic rubber market amid highly volatile global crude oil prices in the wake of the Ukrainian war. As a result, stakeholders in the synthetic rubber and downstream tire markets kept their fingers crossed on the supply-demand equation and the prices of their products amid rising inflationary pressures across economies triggered by oil price hikes.

16 Mar 2022

Rough waters for rubber producers amid tire plant shutdowns and sanctions

The magnitude of the impact of the recent production cutback announcements by some tire majors on spot rubber demand and prices rattled the producers as they struggled to balance the cash flow and production amid tightening sanctions resulting from the Russia-Ukraine conflict.

15 Mar 2022

Indian tire firms face a hostile turf

Major players in the Indian tire industry are in for tough times with a host of factors, including a hefty fine from the Competition Commission of India (CCI) for alleged cartelization and higher input cost along with weak demand, throwing a spanner in their works.

08 Mar 2022

UPDATE: Asian rubber sees limited impact of Singapore’s sanction on Russia

Recent unprecedented Singapore sanction on Russia which does not include rubber or rubber-related items is likely to have a limited impact on the Asian rubber industry. However, the recent extension of sanctions on Belarus has cautioned the sellers as they sought more clarity on the situation and the way forward, sources said Helixtap.

04 Mar 2022

Thai rubber producers caught in the mix of new world order

Pandemic, climate changes, floods, and geopolitics have taken over the baton from market fundamentals to be the key price drivers since 2020, and 2022 seems to be following the trend. Disrupted supply chains, sanctions on Russia, and unpredictable weather have put Thai rubber producers and buyers in a spot lately.

03 Mar 2022

Weather and pandemic cap Indian rubber production growth for 2021

India is set to witness a marginal rise in rubber production in the financial year of 2021 (April 2021- March 2022) over 2020 owing to unpredictable weather and Omicron-driven demand slowdown.

01 Mar 2022

India buyers might opt for alternative sources

25 Feb 2022 India Domestic Market

25 Feb 2022

What Happens to Rubber Prices when Russia fully invades Ukraine?

Geopolitical developments and position jostling have resulted in a tense military situation between Russia, Ukraine, and the Western World.

24 Feb 2022

India Market Local Auction Update

RSS5 India Origin

23 Feb 2022

Week's Roundup of Price Range [Indonesia]

100% DRC Rubber against finished SIR20 product

22 Feb 2022

Podcast - Are we really at the brink of a rubber supercycle? [16 Mins]

Chairman and Co-Founder of Helixtap Technologies, Brian Miller, discusses the factors driving physical rubber prices higher - inflation, rising freight costs, labour shortages, and so on. Tune in to find out if we really are at the brink of a rubber supercycle!

21 Feb 2022

Thai producers struggle to keep heads above water

The recent spurt in the raw material prices came as a bane for the Thai rubber producers as they struggle to endure squeezing margins amid flailing demand leaving little room to play around with spot prices.

21 Feb 2022

Malaysian production drop, hotter weather promises tighter supply

Standard Malaysian Rubber (SMR) 20 prices may be edging back toward the $1900 level by later this month as 2021 domestic rubber production drop and hot weather over the days ahead could tighten supply. Over the past week, SMR 20 prices in the physical market rose by around 4%, with offers reaching briefly at US$1880/mt FOB Klang/, data from Helixtap shows.

14 Feb 2022

Is rubber entering a supercycle?

With inflation surging at a record-breaking pace worldwide, it's no surprise that commodities have turned out as one of the hottest assets of 2022, with rubber as no exception. However, the situation has sparked a debate on the sustainability of the hike in rubber prices and how it will affect the physical market.

10 Feb 2022

High premium prices weigh on LTC volume for Indo rubber

Low long-term contract volume booking for Indonesian rubber due to higher offers led to a supply glut compelling the Indo producers to match buyers’ expectations reversing the premium for spot prices with Thai rubber, sources said Helixtap.

27 Jan 2022

Thai rubber exports rebound in October

Thailand clocked around 9.4% month-on-month rise in natural rubber exports (including compound rubber) in October 2021 to 421,221.37, up from 385,087.09 tons in September 2021, primarily driven by the demand from some major international tire manufacturers, as per the data published by the Thai Rubber Association.

24 Jan 2022

Drop-in smallholders’ contribution impacts Malaysia’s November rubber production

Malaysian rubber industry took a massive hit on production, posting a yearly drop of 26.8 % in November amid a decline in the contribution of smallholders owing to rain driven supply disruptions, as per the data published by the Department of Statistics Malaysia (DOSM) on January 14, 2022.

17 Jan 2022

Early wintering or shipment delays – what’s driving STR prices

Reports of early wintering and some shipment delays nudged the Thai processed rubber prices, narrowing the spread between Indonesian processed rubber by around 70% in the first week of January 2022.

12 Jan 2022

Consumer vs Supplier: race to rubber sustainability

Over the last decade, the natural rubber industry has come under increasing pressure to be environmentally responsible since the 2015 Paris Agreement, which was again underscored after COP 26. The pressure is mounting on all sides, be it the consumers or the suppliers.

17 Dec 2021

Out-of-kilter futures put LTC benchmark in question

The widening spread between the long-term contract price level and the physical market price, underscores the delink between the benchmark used in the negotiations and the actual market level, a factor that will influence the costs for both buyers and sellers in 2022.

26 Nov 2021

Malaysian rubber struggles: Labour shortage, production drop, import bans

Labour shortage struck Malaysian rubber industry takes a hit on production posting a yearly drop of 10% in September after some of the major glove producers faced import bans in the US over poor labour practices.

16 Nov 2021

Expectation vs. reality: Is rubber industry moving towards a supply deficit in long term?

For much of the past 5 years, the rubber economy has struggled with overproduction. With the global economy reviving from the pandemic-driven slowdown, the Association of Natural Rubber Producing Countries (ANRPC) is anticipating a rubber supply deficit in the next couple of years. However, slower than expected revival of the automotive sector due to chip shortage could disrupt the market dynamics.

12 Nov 2021

Inflation Risks Triggers Anxiety as Supply Constraints Persist

Higher commodity prices fanned global inflation following the surge in demand post easing of Covid-19 has jeopardized the rubber market as it continued to confront supply bottlenecks and rising energy prices.

12 Nov 2021

Thai-rubber exports continue to grow in August

Thailand clocked a 15.5% month on month rise in natural rubber exports (including compound rubber), in August 2021 to 394,264.92 tons, up from 354,740.51 tons in July 2021, primarily driven by the demand from India and some major international tire manufacturers, as per the data published by the Thai Rubber Association.

21 Oct 2021

China's speculative buying sends rubber market reeling

Some speculative buying from China muddled up the rubber market dynamics as the market nears the long-term contract negotiation ensuing spike in the rubber spot prices, promoting the sellers to up their offers by around $70/mt despite limited demand.

20 Oct 2021

Malaysian August rubber production drops despite increased demand

Malaysian rubber production dropped 11.7% in August, 42,942 tons from 48,610 tons in July owing to persistent rains and pandemic-driven production disruption, as per the data published by the Department of Statistics, Malaysia. Meanwhile, both domestic consumption and exports saw a surge during the month.

19 Oct 2021

Tires companies opt for alternative freight options

In an attempt to dodge massive delays in shipments, a few tire companies opted for alternative freight options to ship in rubber to keep the supply chain undisrupted. Meanwhile, it’s a double whammy for the producers and processors as they struggled to find containers for ready-made shipments while dealing with problems in cash flow.

08 Oct 2021

Rubber industry grapples with aftershock of China’s crackdown

The crackdown on power consumption coupled with the crisis of Evergrande Group looms large over the demand for natural rubber in China as the industrial manufacturing sector of the country faces a setback.

07 Oct 2021

Indonesian processors seek answers in Thai rubber, but supplies limited

Thai rubber demand and prices are booming as the Indonesian processors join the buyers’ queue, but heavy rains have completely disrupted the supply chain limiting availability.

04 Oct 2021

Malaysia clocks marginal increase in rubber exports in July

Malaysian rubber exports posted a marginal month-on-month rise of 0.1% in July to 48,645 tons in July 2021 against 48,589 tons in June 2021, owing to a slowdown in imports from China, as per the data published by the Department of Statistics, Malaysia.

23 Sep 2021

ANRPC ups demand forecast but challenges from external factors remain

Association of Natural Rubber Producing Countries (ANRPC) revised its demand forecast to 14.1 million tons, up from 13.7 million tons for 2021 anticipating better demand from the Asian market lead by China and India. However, a combination of increasing global Covid cases and a disrupted supply chain could dampen the market confidence.

22 Sep 2021

Wipolimex buys Bangkinang’s factory at US$3.5 million

PT Wipolimex Raya, a mid-sized rubber producer in Indonesia, acquires the New Fountain factory of P&P Bangkinang(SCQ) at US$3.5 million, on September 15, 2021.

20 Sep 2021

Setting ground for African rubber industry to grow

With the growing demand for African rubber in the Asian market, the Ivory Coast government has set up a new law this week to process all rubber produced from the country before exports, as per the industry reports.

17 Sep 2021

Rubber Industry Struggles with Disrupted Supply Chain

The rubber supply chain seems to be grappling under the pressure of regular disruption in production coupled with soaring freight rates as both buyers are sellers struggle to maintain the status quo.

15 Sep 2021

SIR vs STR: pandemic-driven supply disruption fuels rivalry

Indonesian natural rubber sees a surge in buying interest compared to Thai natural rubber for the same Technically Specified Rubber (TSR) 20 grade despite higher price as Thailand struggled with

10 Sep 2021

Coaltrans: Asia prices to head south in H2 2017 on supply overhang, weak demand - Noble

Bali — Asia seaborne thermal coal prices are likely to continue to trek south in the second half of this year, as the market works through a supply overhang and bearish Chinese import demand, according to Noble Group.

09 Sep 2021

Taiwan Taipower's move to buy more Indonesian thermal coal hits suppliers amid tightness

Taiwanese utility Taiwan Power Company, or Taipower, has exercised its option to procure additional thermal coal cargoes this year under existing contracts, leaving Indonesian suppliers gasping amid supply tightness and a significant rise in prices in recent months, sources said this week.

09 Sep 2021