News from Notch Consulting, Inc.

February 28, 2011

Natural rubber production forecast to grow 4.8% in 2011

Filed under: General — Notch @ 6:57 am

The Association of Natural Rubber Producing Countries is forecasting that output of natural rubber from key producing countries will grow 4.8% to 9.77 million metric tons in 2011, according to its most recent monthly bulletin. ANRPC’s members account for 92% of global natural rubber production.

The forecast was lower than a growth target set by member governments of 8 percent with an estimated output of 10 million tons, assuming favorable weather conditions and a continuation of high prices this year, the association said.

Demand for natural rubber in China, India and Malaysia, which account for 48 percent of global usage, is expected to increase this year, the bulletin said. Demand in China, the largest user, may gain 9.1 percent to 3.6 million tons; India’s usage may gain 5 percent to 991,000 tons and consumption in Malaysia may rise 7 percent to 490,000 tons.

India’s ATMA charges dumping of tires by China, South Korea and requests duty-free imports of raw materials

Filed under: Carbon Black, Rubber Chemicals, Tire Cord, Tires — Notch @ 6:43 am

The Automotive Tyre Manufacturers Association (ATMA) of India has charged China and South Korea with dumping tires on the Indian market, according to Commodity Online. The association also has asked for duty-free imports of key raw materials, including synthetic rubber, tire cord, and rubber chemicals.

It is estimated that Chinese and South Korean rubber imports account for 70% of India’s tyre imports with various bilateral agreements nullifying the import duty of 10% and coming over with a basic customs duty tag of 8.6%, reported Financial Express.

With respect to imports of truck and bus tyres for 2009-10, the rate of imports has gone up by 35% for 2010-11, when calculated on annualized basis. Import of passenger car tyres has gone up by 40% for the same period.

Also, the industry has asked for duty-free imports of 2 lakh tons of natural rubber which is a projected deficit for 2011-12. As the Union Budget approaches, the association has also demanded duty-free imports of almost all raw materials like butyl rubber, styrene butadiene rubber (SBR), ethylene propylene non-conjugated diene rubber (EPDM), PBR, steel tyre cord, polyester tyre cord, nylon tyre cord and rubber chemicals.

In fact, cost of raw material is responsible for 70% of the production cost and about 62% of tyre industry turnover.

SRF expanding beyond nylon tire cord

Filed under: Tire Cord — Notch @ 6:30 am

Indian-based technical textile maker SRF Ltd. plans to invest Rs 665 crore on expansion projects, including a new plant in South Africa and another in Gujarat, according the Economic Times.

“While we are determined to expand operations in all our businesses to achieve and retain global leadership, the expansion in the chemicals and the packaging films businesses is part of our overall strategy and ongoing efforts to reduce our dependence on nylon tyre cord,” SRF MD Ashish Bharat Ram said.

The plant in South Africa will be dedicated to biaxially oriented polypropylene (BOPP), while the Bangladeshi plant will be dedicated to biaxially oriented polyethylene terephthalate (BOPET).

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