KUALA LUMPUR, Sept 28 (Reuters) – Malaysia, the world’s third largest rubber producer, has imposed a new levy of 4 Malaysian cents a kg on imported rubber for re-export, as well as compound rubber, according to government documents seen by Reuters on Monday.
Previously, the two items were exempted from the levy, said dealers, suggesting the Southeast Asian country was now trying to curb its reliance on imports and support domestic production that has been on the decline as tapping areas have shrunk.
Malaysia also raised its current levy on natural rubber exports to 4 Malaysian cents a kg from 3.85 cents previously, the documents from the Malaysian Rubber Board show. All changes took effect from September 1.

Source: Reuters

[Dow Jones] Tocom RSS3 rubber futures settle lower on selling pressure due to weak demand in physical market, stronger yen, traders say. Japanese yen strengthens against U.S. dollar, hits 8-month high of Y88.23. “Many speculators thought it opportune to set up more short positions after taking note of the weakening U.S. dollar,” says trader in Tokyo. U.S. dollar trading around Y89.57 vs Y89.76 on Friday but analysts expect it to move towards Y82 in next six months. “Yen would have been of little consequence for rubber prices but for the lack of physical demand,” says exporter in Singapore. Benchmark Tocom March RSS3 rubber futures settle Y3.2 lower at Y194.4/kg, close to intraday low of Y193.8. (SAM)

Source: Dow Jones

Sept. 28 (Bloomberg) — Rubber declined for a fourth day after the Japanese currency climbed to the highest level in eight months against the dollar, reducing the appeal of yen- denominated contracts.

Futures in Tokyo fell as much as 1.9 percent to 193.8 yen a kilogram ($2,168 per metric ton). Japan’s currency rose on speculation Japan won’t intervene to stem gains in the currency and exporters repatriated profits before the fiscal first half ends this week.

“A stronger yen is the largest drag on the price of futures,” Kazuhiko Saito, chief analyst at Tokyo-based commodity broker Fumitomi Co., said today by phone. “Investors are concerned the yen may appreciate further as the Japanese government looks reluctant to intervene.”

March-delivery rubber closed at 194.4 yen a kilogram on the Tokyo Commodity Exchange, down from the previous settlement of 197.6 yen. It has become the most-active contract after being listed on Sept. 25.

The yen climbed to 89.34 per dollar as of 3:34 p.m. in Tokyo from 89.64 in New York on Sept. 25. Earlier, the Japanese currency reached 88.24, the strongest level since Jan. 23.

Japan’s currency gained on prospects the nation’s exporters are taking advantage of an April 1 rule change that waives taxes on repatriated profits. Under previous laws, companies had to pay a combined 40 percent tax on overseas earnings. The first half of Japan’s fiscal year ends Sept. 30.

Strong Yen

Since coming to office this month, Finance Minister Hirohisa Fujii has said he doesn’t support a “weak yen,” fueling speculation the government won’t resort to intervention to curb the currency’s 17 percent appreciation in the past year. A strong yen can hurt prices as rubber trades globally in dollars.

“Stable movements in currencies are desirable,” Fujii told reporters in Tokyo today. Fujii said he shouldn’t comment on currency intervention and that he was misunderstood as supporting a stronger yen. Central banks intervene in foreign- exchange markets by selling and buying currencies.

Rubber also declined as rising stockpiles in China stoked concern that demand in the world’s largest consumer may slow, Saito said.

Rubber inventories expanded by 6,584 tons to 98,253 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said on Sept. 25. The volume was the highest level since November 2007.

Natural rubber imports by China rose 2.4 percent from a year earlier to 1.15 million tons in the eight months ended Aug. 31, data from the Beijing-based Customs General Administration showed on Sept. 22. The rate of increase slowed from 3.2 percent in the first seven months of this year.

Rubber has gained 43 percent this year as surging car sales in China spurred investor buying. China’s passenger-car sales rose a record 90 percent last month, according to the China Association of Automobile Manufacturers.

January-delivery rubber on the Shanghai Futures Exchange lost 1.2 percent to close at 16,690 yuan ($2,445) a ton.

Source: Bloomberg

Sept. 25 (Bloomberg) — Rubber dropped for a third day to the lowest level in more than a week after crude oil slumped to a one-month low, reducing the commodity’s appeal as an alternative to synthetic products made from petroleum.

Futures in Tokyo fell as much as 3.1 percent and posted a second weekly loss. Investors also sold the commodity as an unexpected drop in U.S. home sales raised concern the economic recovery may falter, curbing demand for the raw material used to make tires.

“Worse-than-expected U.S. data stoked concern that the economy may resume a contraction,” said Takaki Shigemoto, a commodity analyst at Tokyo-based research company TOS. “Rising rubber inventories in China also capped the price of futures,” he said today by phone.

February-delivery rubber lost as much as 6.2 yen to 191.1 yen a kilogram ($2,106 a metric ton) before settling at 195.5 yen on the Tokyo Commodity Exchange. Prices fell 3.7 percent this week, extending last week’s 5.6 percent drop, the largest loss since the week ended Aug. 21.

March-delivery rubber, which listed on the Tokyo exchange today, rose to 197.6 yen from its opening price at 193.7 yen.

Crude oil for November delivery traded at $66.29 a barrel on the New York Mercantile Exchange as of 3:42 p.m. Tokyo time. The futures, which dropped 4.5 percent yesterday, are headed for the biggest decline since the week ended July 10.

Oil was sold as a stronger dollar reduced investor interest in the commodity as an inflation hedge. The dollar advanced as signs of a slow recovery from the recession reduced demand for higher-yielding assets funded in the greenback.

Goods Orders

Orders for U.S. durable goods, meant to last several years, increased 0.4 percent in August after rising 5.1 percent the previous month, according to the median forecast of 75 economists surveyed by Bloomberg News. The Commerce Department’s report is due for release at 8:30 a.m. in Washington.

Adding to signs of a slow recovery, the National Association of Realtors reported yesterday that purchases of existing U.S. homes decreased 2.7 percent in August to a 5.10 million annual pace.

Rubber also declined as rising stockpiles in China stoked concern that demand in the world’s largest consumer may slow.

Inventories increased 118 tons to 91,669 tons, the highest level since March 2008, the Shanghai Futures Exchange said on Sept. 18, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin.

Natural rubber imports by China rose 2.4 percent from a year earlier to 1.15 million tons in the eight months ended Aug. 31, data from the Beijing-based Customs General Administration showed Sept. 22. The rate of increase slowed from 3.2 percent in the first seven months of this year.

Rubber gained 44 percent this year as surging car sales in China, the world’s largest user, spurred investor buying. China’s passenger-car sales rose a record 90 percent last month, according to the China Association of Automobile Manufacturers.

January-delivery rubber on the Shanghai Futures Exchange added 0.5 percent to settle at 16,900 yuan ($2,475).

Source: Bloomberg

TOKYO, Sept 24 (Reuters) – The September rubber futures contract on the Tokyo Commodity Exchange expired on Thursday at 190 yen per kg, down 6 yen from Friday, with 124 lots or 620 tonnes of deliveries.
The Tokyo Commodity Exchange was closed from Monday to Wednesday due to a series of national holidays.
Last month, the August contract expired at 197.2 yen per kg with 164 lots or 820 tonnes of deliveries.
Since May, TOCOM introduced a new trading system and stopped disclosing the names of firms involved in deliveries and started providing just the total lots delivered and the price at which deliveries are made.

Source: Reuters