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*China's securities regulator said it had approved the registration of synthetic rubber futures and options at the Shanghai Futures Exchange. The China Securities Regulatory Commission will urge the Shanghai Futures Exchange to get well-prepared across the board, ensuring the smooth launch and sound operation of synthetic rubber futures and options, the regulator said in a statement on Friday.

*All India Rubber Industries Association (AIRIA) is set to host the largest rubber trade event in the Asia Pacific region, the India Rubber Expo (IRE) 2024. The expo, now in its 11th edition, will take place over three days starting from March 20 at the Bombay Exhibition Centre in Goregaon.

*Malaysia’s natural rubber (NR) production increased by 6.8 per cent to 25,062 tonnes in May 2023 from 23,460 tonnes in April 2023, said the Department of Statistics Malaysia (DoSM). Similarly, NR output grew by 20.2 per cent year-on-year as against 20,857 tonnes in May 2022, it said. "Production of NR in May 2023 for Malaysia was mainly contributed by the smallholders sector (86.3 per cent) as compared to the estates sector (13 per cent),” the agency said in a statement . However, it said total NR stocks in the month fell by 11.4 per cent to 172,263 tonnes versus 194,464 tonnes in the month before, with the rubber processing factories contributing 92.4 per cent of the stocks, followed by the rubber consuming factories (7.5 per cent) and rubber estates (0.1 per cent). As for exports, DoSM said Malaysia's NR amounted to 37,062 tonnes in May, a decrease of 1.8 per cent versus April’s 37,728 tonnes. China remained the main destination for NR exports which accounted for 41.9 per cent of total exports in May, followed by Germany (16.3 per cent) Pakistan (3.7 per cent), Turkiye (2.9 per cent) and Portugal (1.6 per cent).

*Vietnam exported approximately 766,000 tonnes of rubber worth US$1.05 billion in the first six months of 2023, down 2.6% in volume and down 22.9% in value against the same period last year, according to the General Department of Vietnam Customs. Despite this drop, rubber exports in June brought in US$239 million, up 53.7% in volume and up 51% in value from the previous month. Indeed, the average export price of rubber stood at US$1,327 per tonne, marking a fall of 1.8% compared to May and 19.6% lower than that of June 2022. During the opening five months of the year, the key rubber products for export included mixtures of natural rubber or similar gums with syntheti rubber coded HS 4002.80, SVR 10, SVR 3L, RSS3, Latex, SVR CV60, and SVR 20. The strongest growth was recorded in rubber coded HS 400280, which accounted for 66.93% of the country's total rubber exports. Most notably, exports to China made up 99.82% of the total amount of natural and synthetic rubber exports with 391,740 tonnes, worth US$357. million, up 11.7% in volume but down 11.5% in value against the same period last year. Experts anticipate that the world’s consumption demand for rubber is currently not high and rubber export prices will not bounce back this year du to factors such as the Russia-Ukraine conflict and high inflation globally.

*Rubber Board Regional Office Dimapur, under the ministry of Commerce & Industry flagged off NE-MITRA project 2023 in the state. A press release by Rubber Board Regional Office Dimapur informed that Rubber Board under the project would be distributing free rubber saplings for planting this season, where every individual beneficiary would be eligible for a maximum of 2.00 ha (900 saplings). The release stated that regional office would cover an area of 2500 ha under the current financial year. NE-MITRA is a five-year project started in 2021 proposed to cover an estimated area of 20,000 ha during the plan period, the release stated. The release also added that the department will be covering all districts under Nagaland state suitable for rubber cultivation, and therefor requested interested person to contact concerned Rubber Board Field Stations at Niuland, Sanis or Regional Office.

*According to ANRPC, the global NR production posted a much slower growth at 1.5%, year-to-year, amounting to 896,000 tons in April. While the global demand of NR witnessed a much rapid growth at 2.7%, year-to-year, amounting to 1.241 million tons. Due to the characteristics of NR market, which is relatively sensitive to the market sentiments, the positive market fundamentals were offset by elevated risks around global financial markets, high borrowing costs from interest rate hikes, impact from the prolonged conflicts between Russia and Ukraine, and stubborn inflation amid a projected slowdown recovery of global economy in 2023.

JAPAN OSAKA RUBBER DEC23 FUT

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