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First Section - Rubber4U - 15th February 2021

Vol. XII 015 15th FEBRUARY 2021

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The Union Budget 2021-22 has thecredit of bringing, for the first timein many years, smiles to manyauto industry leaders withimportant announcements likevoluntary Scrappage Policy, `.20,000crore to procure buses for strengtheningpublic transport, tax holiday for startupsand allocation of `.50,000 crore forNational Research Foundation. It hasalso left a few of them unhappy andunsatisfied with the customs duty hikeon auto parts and the absence of anydirect benefit for the electric vehicle andits allied segments.

Finance Minister Nirmala Sitharamanannounced the commencement of thelong-pending scrappage scheme forobsolete vehicles. Owners will be

incentivised to scrap such vehicles.Sitharaman said that further notificationon the scheme will be shared by theministry concerned.

Automotive industry haswelcomed the new proposal of theold vehicle scrapping provision tobe included in the Union Budget2021-22. The government’s

scrappage policy, made voluntary, forvehicle age of 15 years for commercialvehicles and 20 years for personalvehicles. The scrappage policy isexpected to boost the demand for newvehicles after removing old unfit vehiclescurrently plying on roads. Additionally,it is expected to help in reduction of airpollution caused by older vehicles.

In a visionary budget, the governmenthas adopted an expansionary stance witha thrust on infrastructure building withmeasures for efficiency improvementand increasing competitiveness. Good

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macroeconomic growth will translate togood auto sector demand. Specifically,the vehicle scrappage scheme has agood intent and the auto industry wouldbe keen to work with the government onsuggestions for maximizing benefits toenvironment and society, said KenichiAyukawa, president of Society of IndianAutomobile Manufacturers.

Vinkesh Gulati, president of Federationof Automotive Dealers Association saidFADA is happy to note that FinanceMinister has finally announced themuch-awaited Scrappage Policy,though voluntary to phase out oldvehicles. If we take 1990 as the baseyear, there are approximately 37 lakhCVs and 52 lakh PVs eligible forvoluntary scrappage. As an estimate,10% of CV and 5% of PV may still beplying on road. We still need to see thefine prints to access the kind ofincentives which will be on offer andthus have a positive effect on retail.

Government’s reduction of customs dutyon steel products to 7.5% will benefitAuto OEMs. We hence expect thebenefit to trickle down to end customersthus helping in boosting demand. Whilewe expected disposable income forindividuals to increase with enhancementof IT slabs and depreciation benefit onvehicles for individuals, the same has notbeen taken into consideration.

A sharper focus on infrastructure,including road infrastructure, throughhigher budgetary allocations and settingup infrastructure financing institutionsaugur well for several sectors of theeconomy including those which havebeen affected by the pandemic-induceddisruption. Government’sreconsideration of customs duty policyaimed at promoting domesticmanufacturing is a highly welcomemove. Inverted duty structure in the tyreindustry has created an uneven playing

field and we look forward to the newcustoms duty structure which will be putin place by October 2021, said K MMammen, chairman of Automotive TyreManufacturers’ Association.

The Finance Minister has presented a‘pro-growth’ budget in theseunprecedented times, which will give aboost to the Indian economy which ison path to recovery. Rightly, there is ahuge emphasis on infrastructure, whichwill help revive economy as well as

On 12th February 2021- At End-of-Day

WTI CrWTI CrWTI CrWTI CrWTI Crude Oilude Oilude Oilude Oilude Oil

US$59.47

14 Jan 13 Feb

Prices



Trade Date: 12th February 2021(Prices in `. / kg)India

Month Open High Low CloseFebruary 2021 0.00 0.00 0.00 152.80March 2021 157.35 157.47 157.11 157.30April 2021 0.00 0.00 0.00 155.68May 2021 0.00 0.00 0.00 157.22June 2021 0.00 0.00 0.00 158.79July 2021 0.00 0.00 0.00 160.38

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generate employment. Finally the muchawaited scrappage policy has beenannounced, which is a welcome step.This will increase sale of new vehiclesand in turn boost tyre demand. The keyhowever is faster implementation of thevarious important measures announced,which will have a meaningful impact oneconomy, said Dr Raghupati Singhania,Vice-President JK Organisation, andChairman & Managing Director of JK Tyre& Industries Ltd.

Deepak Jain, president of AutoComponent Manufacturers Associationsaid, the vision of an Aatma-nirbharBharat enshrined in the Union Budget,coupled with the ‘Sankalp’ of ‘Nation-First’ will be the bedrock to propel usfurther as we redefine our economy in apost-pandemic world. Significant outlayfor vaccination in the country will add tothe confidence of a resurgent India.Announcements with regards increasedspend on road infrastructure, voluntaryscrappage policy, Research &Development and PLI among others,

augur well for the automotive sector.Further, continued focus on building ruraland agricultural infrastructure andprioritizing agriculture credit growth willhave long-term positive impact on ruraldemand for vehicles.

Increase in basic customs duty on selectauto components will encourage localmanufacturing of such items. It is alsoheartening that the budget outlay for theMSME sector has been doubledcompared to last year. The auto componentindustry is dominated by MSME and thiswill provide them the necessary succouras the industry recovers.

Sohinder gill, Director General of Societyof Manufacturers of Electric Vehiclessaid scrappage policy would help inencouraging the adoption of greenervehicles. Though we are awaiting moredetails on the policy but hope that itwould be designed in such a way thatwould automatically push the adoptionof electric vehicles. For Clean Air, settingaside an amount of `.2,217 crores for

42 urban centres with a million-pluspopulation is a good move. The fundcould be utilized to spread awarenessabout the benefits of using e-vehicles tothe environment and its contribution tomake the air clean. The government’splan for strengthening the publictransport sector under PPP models withan outlay of `.18000 crores for operating20000 buses is encouraging for the EVindustry. The scheme could strengthenthe EV industry if more number of e-buses could be supported through thescheme. We urge the government tomandate procurement of E-Buses underthe scheme which would help us fightthe issue of air pollution.

Buyers of new vehicles after opting forscrapping of their old and pollutingvehicles will be offered benefits under thenew policy to phase out old and pollutingvehicles. The voluntary vehicle scrappingpolicy announced in the Union Budgetfor 2021-22 is touted as a major step toboost the Indian automobile sector,reeling under the adverse impact of theCovid-19 pandemic.

Those going for scrapping of theirvehicles will get some benefits from themanufacturers. In fact, scrappingpolicy will prove to be a boon, not onlyi t wi l l boost economy, benefi tautomobile sector but also checkvehicular pollution, said Union ministerNitin Gadkari. The minister said verysoon the finer details of the policy willbe unveiled by him.

Scrapping of old vehicles to get benefitsScrapping of old vehicles to get benefits



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The area under natural rubber in thenortheastern States of Tripura andAssam is likely to grow around 20,000hectares this year with support from therubber industry, which will join handswith the Rubber Board in anunprecedented partnership thatultimately aims to bring around two lakhhectares under fresh cultivation.

Rubber Board sources said that a firm ideaabout the expansion of area under rubberwould evolve by April this year. However, itis expected that fresh planting will beginby July-August. Supply of plantingmaterials is one of the key issues that willbe addressed, even as details of theplantation programme are being finalised.

The total area under natural rubber in theseven northeastern States is around 1.89lakh hectares of which over 60,000hectares are accounted for by Tripura,which was the first non-traditional areain the country to experiment with rubbercultivation. Assam has around 58,000hectares under rubber, while Meghalayahave around 16,300 hectares, Nagalandhas around 15,000 hectares underrubber, while the other States have

around 5,000 hectares each under thecrop. The total production innortheastern States is around 1.12 lakhtonnes.

The rubber sector has not much to cheerabout, going by the budgetannouncements. However, board sourcessaid that a final shape of things wouldemerge only after the proposals submittedfor the 13th Plan are finalised.

Two lakh hectares under fresh cultivationTwo lakh hectares under fresh cultivationTwo lakh hectares under fresh cultivationTwo lakh hectares under fresh cultivationTwo lakh hectares under fresh cultivationTwo lakh hectares under fresh cultivationTwo lakh hectares under fresh cultivationTwo lakh hectares under fresh cultivationTwo lakh hectares under fresh cultivationTwo lakh hectares under fresh cultivation

Focus on molecularbiology & rubber productsdevelopment essentialWhile addressing at the inauguration of certificatecourses on ‘Molecular Biology & BiotechnologyTechniques’ and ‘Rubber Products Manufacture’,offered by the Rubber Board, Dr. K. N. Raghavan,chairman & executive director of Rubber Boardsaid Molecular Biology and rubber productsmanufacture are the thrust areas to which focusshould be given for development of the rubbersector. As we keep on improving forward, newchallenges will be coming out. For better rubberclones, better yield, disease resistance etc.,applied research in molecular field is essential.The Rubber Research institute of India has beenable to take things forward very successfully anddeveloped GM clones, which are ready for fieldtrials. Focus on rubber product development isalso very important as there are many areas withwhich natural rubber can come as a substitute forproducts that are harmful to nature.

For the conduct of the course, the infrastructureand expertise of the Advanced Centre forMolecular Biology and Biotechnology of theRubber Research Institute of India will be utilised.While the certificate course in Rubber ProductsManufacture will equip the participants foradvancing in their academic/industrial carriers andalso for entrepreneurship.



The world has started off with positivenote this year on the upward revisionforecasts released by InternationalMonetary Fund (IMF) recently for 2021at 5.5%. The stronger growth anticipatedby IMF may boost the marketconfidence over the post-pandemicrecovery. In addition to the positivesentiment in crude oil market may beadvantageous to the commoditiesmarket. The natural rubber markets havebeen volatile during January 2021 despitea strong upward trend observed in crudeoil market.

Strength in foreign markets kept the tonepositive in domestic futures markets. Theupside may be capped this week assupplies in major centres of South arequite adequate to offset theconsumption. For the current week theFebruary contract of ICEX Rubber has astrong support at `.152.80 per kg. Incase closes below `.150 per kg onany particular week-day session, thenfurther downside can be expected. Onthe other hand February contract may

find difficulty in holding above`.157.50 this week.

In another development, sources fromthe Rubber Board have pointed out thata firm idea about the expansion of areaunder rubber would evolve by April2021. There are expectations of freshplanting to begin by July-August as perRubber Board officials.

The market size for natural rubber in Indiain terms of production and imports ishuge. In context to the latest outlook bythe inter-governmental organisation of 13rubber producing countries, India’s rubberconsumption outlook for 2020 has beenrevised upwards to 10.18 lakh tonne withthe automotive sector in a recoverymode. Therefore, the overall demand-supply fundamentals of rubber indicategreater possibility of average prices toremain above last year’s in forthcomingmonths.

India’s natural rubber production for 2020is expected to be lower by 5.7% from

the previous year at 6.62 lakh tonne dueto excess number of rainy days and theresultant loss of harvesting days. Whileoutlook for world production of naturalrubber is estimated to decline by 7.7%,y-o-y, to 12.782 million tonnes for 2020.The improved outlook for 2020 is resultedfrom a better-than-expected productionestimated from Thailand, India andCambodia during the year. While theworld demand for natural rubber stoodat 12.827 million tonnes during 2020, acontract of 6.9%, y-o-y, according toAssociation of Natural Rubber ProducingCountries (ANRPC) report.

The average natural rubber prices ofSMR-20 improved in January 2021 ascompared to last month. In rubber sheetsmarket, prices of RSS-3 in Bangkok andRSS-4 Kottayam have registered a fallin price by 6.3% and 3.6% during thesame reference period. A moderatedecline in arrivals and the absence ofgenuine sellers have also encouragedcertain companies to procure the rawmaterial at the prevailing levels.

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During January to March 2021, the Indiansubsidiary of German Daimler AG expectsthe country’s truck market to grow by 50to 80% this year, as the economy recoversfrom the devastating impact of thecoronavirus crisis.

The world’s largest truck maker predictsthat sales of medium and heavy truck salesduring the first three months of 2021 will behigher than during the pre-pandemic levelsof 2019, as demand rebounds andcontinues to improve sequentially, quarterafter quarter. Last year, about 106,000medium and heavy trucks were sold in India,the lowest sales recorded in 20 years. Daimler India reports that demand is mainlyfrom segments like construction andecommerce, especially with from small

towns and rural India. The company hasdoubled its market share in the country sincethe transition to BS-VI emission standardsin April 2020. Daimler India is concerned thatthe shortage of components and supplychain disruption could impact output.

The worst is not over yet on the supply side.I believe in this quarter we will face somechallenges, but we also expect that by nextquarter, most of them will be resolved,Satyakam Arya, MD of Daimler IndiaCommercial Vehicles Pvt. Ltd., remarked.

While demand for truck is steadily risingand demand for buses continues to bea tenth of what it was pre-Covid-19.Demand for bus will rise in response toschools, colleges and offices resumingnormal operations.

Ceat Tyres launcheslabel-rated tyresCeat Ltd. said it is launching label-rated tyresin India in l ine with international ratingsystems prevalent in the tyre industry to helpcustomers take informed decisions beforebuying tyres for their vehicles.

Under the initiative, Ceat will introduceperformance indicator ratings for its premiumoffer ings –Fuelsmart and SecuraDriverange of tyres. The ratings are based onimportant tyre performance indicators likerolling resistance, wet grip and tyre noiselevel. Higher rating of rolling resistanceindicates better fuel saving while higher wetgrip ratings indicate solid braking capabilityof the tyre and a lower noise level connotesa more comfortable drive, the company saidin a statement.

Truck market to grow in 2021Truck market to grow in 2021Truck market to grow in 2021Truck market to grow in 2021Truck market to grow in 2021Truck market to grow in 2021Truck market to grow in 2021Truck market to grow in 2021Truck market to grow in 2021Truck market to grow in 2021



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MRF’s profit morethan doubleLeading tyre manufacturer MRF Ltd.has more than doubled its net profit at`.512 crore for the quarter ended 31stDecember 2020 compared to a netprofit of `.237 crore in a year-agoperiod, on account of strong operatingmargin, supported by robustreplacement demand.

Revenue from operations stood ̀ .4,567crore during the quarter when comparedwith ̀ .4,009 crore in the year-ago period,an increase of 14%.

MRF recorded all-time high levels ofrevenues and profits for a single quarterduring Q3 FY2021. For the quarter, theindustry revenues grew by over 20%aided by stable replacement demandand sharp recovery in the OE and exportsegments.

Revival in economic activities, improvingconsumer demand, contraction in tyreimports following the governmentrestrictions and stable rural outputsupported the demand and revenuesduring the quarter.

Oil prices rose after major producersshowed they were cutting crude outputin line with their commitments onrestraint, supporting a market thrown outof kilter by weak demand during theCovid-19 pandemic. International crudeprices fell sharply after the pandemic,as economic activity and fuelconsumption plummeted with lockdownsand travel restrictions across the globe.Oil prices have started regainingmomentum with vaccine roll-outs acrossthe world.

Price of India’s crude oil basket hasincreased by 26% to $54.79 per barrelbetween November 2020, when mostCovid-19 vaccines were approved, andJanuary 2021. It is this rise ininternational crude prices which hasbeen driving petrol-diesel prices in thepast few months.

Although, oil prices are still significantlylower than what they were before thepandemic and is expected to increase.If international crude prices continuetheir upward trajectory, base price ofpetrol and diesel will keep increasing,which will entail another source oftailwinds in addition to higher taxes.

As international crude prices increase,petrol-diesel prices will continue toincrease if tax rates do not change. IfCovid-19 infections in the advancedcountries drop sharply with vaccinations,oil demand and therefore prices couldincrease from their current levels.

It is estimated that Brent crude oil priceto reach $65 by middle of 2021 as

demand boosts from the roll-out ofCovid-19 vaccines and there is limitedincrease in supply from OPEC+countries. This will entail an upwardpressure on overall inflation numbers.Because fuel prices affect householdbudgets both directly and indirectly,they can have a significant cascadingeffect on all product prices.

HSCL announcespermanent closureof unit at VapiThe Board of Directors of HimadriSpeciality Chemical Ltd. (HSCL) at itsmeeting held on 9th February 2021 hasdecided to permanently close themanufacturing unit, taken on leasesituated at Vapi in G.I.D.C., Phase I,Vapi, Gujarat with effect from 10thFebruary 2021. The tenure of the saidlease expires on 26 February 2021.

The above unit shall be closed aftercompletion of necessary formalities, andthe machinery shall be either relocatedto Company’s existing facilities ordisposed off.

The increasing demand for gaskets andhoses will create lucrative opportunities

for global fluoroelastomers market,which is expected to reach US$1,794.1million by 2027, exhibiting a CAGR of

3.7% during 2020-27, according toFortune Business Insights.

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Apollo TApollo TApollo TApollo TApollo Tyryryryryres pres pres pres pres profofofofofit surit surit surit surit surgggggesesesesesTyre manufacturer Apollo Tyres Ltd. posted impressive numbersin the December quarter (Q3FY21) in line with peers. Thecompany’s consolidated net profit more-than-doubled to ̀ .443.8crore in December quarter of 2020-21 on the back of healthyoperational performance and other income. Total consolidatedoperating income rose 17.1% y-o-y to `.5,154 crore. Thecompany attributed the robust topline performance to strongdemand recovery across segments in India, which was drivenby strong growth in both replacement and OEM segments.

The sector has benefited from the government’s restriction ontyre imports, resulting in strong volume growth for key firms.The company said it has seen market share gains of about300 bps, 400 bps, and 500 bps in trucks, passenger cars andfarm segments, respectively. The outlook on volume growth isstrong, but the ongoing increase in raw material prices couldplay spoilsport. To mitigate its impact on margins, it has effecteda price hike of 2-3% across categories.

According to Data Bridge Market Research report,industrial rubber market will reach an estimated valuation ofUS$42.35 billion by 2027, while registering this growth at a

rate of 4.9% for the forecast period of 2020 to 2027.


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Currency INR/1Unit INR/1Unit

Chinese (Yuan) 11.28 11.30Europe (Euro) 88.43 88.00Indonesian (Rupiah) 0.0051 0.0051Japanese (Yen) 0.69 0.69Malaysian (Ringgit) 18.01 17.95Singapore (Dollar) 54.80 54.77Sri Lanka (Rupee) 0.37 0.37Taiwan (Dollar) 2.59 2.59Thailand (Baht) 2.43 2.42US (Dollar) 72.87 72.63Vietnam (Dong) 0.0031 0.0031

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The pandemic has had far-reachingramifications for all types ofindustries, including the rubberrecycling industry. As work fromhome initiatives continue to ruleand people are driving less,automotive tyres, as well as tyresfound on other vehicles, are beingreplaced less often. This, in turn, ishaving an impact on the tyre recyclingindustry as a whole.

At the very beginning of 2020, the U.S.Tire Manufacturers Association wasworking to intensify the development ofnew sustainable, circular end-use marketsfor scrap tyres. Their goal is to achieve a100% end-use rate for scrap tyres. Thescrap tyre industry in the U.S. remainsrobust even as Covid-19 continues to alterthe nature of travel throughout the U.S.,due to which tyre shipments decreased

in 2020, that generation numbers for scraptyres will decrease in 2021 and 2022.

According to USTMA’s 2019Scrap Tire Management summaryreport, in 2019, 76% of annuallygenerated scrap tyres entered end-use markets. USTMA sawsignificant growth in the use ofscrap tyres in rubber modifiedasphalt.

We see a lot of potential for the use ofscrap tyres in rubber modified asphalt,which can increase road durability,reduce noise and spray, as well as theuse of scrap tyres in storm waterinfiltration galleries which can clean andfilter storm water, said Sarah Amick,USTMA’s vice president for environment,health, safety and sustainability andsenior counsel.

Roughly 37% of all annually generatedscrap tyres are used as fuel in cement

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Malaysia’s NRproduction increasedMalaysia’s natural rubber productionincreased by 17.1% in December 2020to 49,825 tonnes, as compared to42,554 tonnes in the November 2020and y-o-y basis the production wasdown by 14.7%.

The domestic natural rubberconsumption during December 2020 fell4.5% at 42,356 tonnes, compared to theprevious month. The rubber gloveindustry continued to dominate thenatural rubber consuming industry, at74.4% of total domestic consumption,at 31,498 tonnes.

Malaysia’s natural rubber exportsincreased by 8.9% to 61,547 tonnescompared to 56,522 tonnes in November2020. China remains as the maindestination for natural rubber exportsfrom Malaysia, account for 53.8% of thecountry’s total exports, followed byGermany (10.2%), US (5.4%), Taiwan(2.7%) and Iran (2.5%).

Malaysia’s natural rubber stocks fell3.8% in December 2020 to 249,555tonnes, as compared to 259,443 tonnesin November 2020.

kilns, pulp and paper mills and electricutilities. USTMA is prioritising itsresearch into finding new ways to makeold tyres into valuable and reusablematerials. The focus on ‘green’ andsustainability is important. Of course,Covid-19 interrupted a lot of

development and biggest concern aboutCovid-19’s effects on the tyre recyclingmarketplace is that people will continueto be nervous to go out to the recyclingcenters and ensuring that the tyres aregoing to the right location and not justthe dump.

Malaysian plantation and commoditiesindustry may only be given theexemption to recruit foreign workers,after the government has brought theCovid-19 pandemic under control in thissector. Malaysian Plantation Industriesand Commodities Minister Datuk DrMohd Khairuddin Aman Razali saidcurrently, the government is still tryingto ensure plantation operators provideconductive accommodation for theirworkers, so as to comply with the Covid-19 standard operating procedures(SOPs). We are conducting campaignsfor the plantation sector such as palmoil, rubber and timber to implement strictSOPs to ensure there is no spread ofCovid-19 in the sector. If successful, thegovernment will consider providing anexemption.

The minister was commenting on therequest from industry players,especially in the plantation sector, foran exemption over a government’sfreeze on migrant worker recruitment.The request was made based on a labourshortage that the sectors were facing,affecting their business operations. Therecruitment freeze was implemented tosafeguard the people’s welfare, amid theCovid-19 pandemic. Several initiativeswere being implemented by thegovernment to fulfil the plantation sector’smanpower requirement such as byproviding a wage subsidy of RM36 millionto encourage the downstream rubberindustry players to recruit local workers.Through this initiative, the government isallocating RM600 a month per worker fora period of six months.

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Due to series of initiatives to boost SriLanka’s rubber sector by the governmentthe segment will soon overtake teasector earnings, said Minister ofPlantation Ramesh Pathirana at theopening of South Asia’s largest tyrefactory, Ferentino Tyre at Horana.

Minister said a kilo of RSS No 1 gradewhich was earlier sold at Rs. 230 perkilo is now fetching Rs. 400 which isencouraging more people to grow rubber.We observed that there was around US$1 billion export turnover from rubber-based products last year. These newventures, an increase of local valueaddition and more rubber-basedproducts for exports like PPE will soonresult in the rubber industry exportearnings overtaking the tea sector.

The government is gearing to setup a500-acre industrial zone for rubber-based products in Horana with an aimto double the country’s rubber andrubber based exports earnings. TheBoard of Investment (BOI) has alreadyearmarked three such potential landplots in the area including a land plotowned by Urban Development Authority(UDA). The government plans to open

up the zone for investors within thisyear while both local and foreigninvestors are welcomed to setup theirplants in the zone.

The Ferentino Tyre and other local tyremanufacturers investments will help toreduce the US$25 million annual tyreimport bill and then bring in more forexrevenue from tyre exports.

Putin orders to submitrubber producerssupport billThe Russian president Vladimir Putinordered to prepare amendments to fiscallaws providing for use of a ‘cushioning’mechanism for synthetic rubber sales,according to the list of assignmentsposted on the Kremlin’s website.

Taxation will depend on the exchangeprice of natural rubber on internationalmarkets, assuming the need of providingneutrality for the federal budget andsynthetic rubber producers in the longrun, the document says.

The President has also ordered to developmeasures for support of small andmedium chemical producers by 31st May2021, making it possible to increase theoutput of such products by 30% by 2025and by 70% by 2030 against the year of2020. Putin also ordered to approve thelist of priory small and medium-scalechemical production projects.

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The General Directorate of Rubber underthe Ministry of Agriculture, Forestry andFisheries and World Wide Fund forNature-Cambodia (WWF-Cambodia)have announced their cooperation tobuild a multilateral partnership fortransparent and sustainable naturalrubber supply chains in Cambodia.

Funded by the German government’sFederal Ministry for EconomicCooperation and Development (BMZ)through Welthungerhilfe, one ofGermany’s biggest nonprofitorganisations for global development andhumanitarian aid and German WorldHunger Aid, The MoU has opened a newchapter for WWF-Cambodia in its effortto work in partnership with relevanttechnical and responsible governmentagencies.

Seng Teak, country director of WWF-Cambodia, said promoting thesustainable and responsible smallholderrubber plantations through the applicationof best management practices inCambodia will not only create jobs andincomes for the local communities, but itwill also help to reduce pressures onnatural resources by optimal use ofexisting rubber plantation land and preventillegal forest land encroachment.

Pol Sopha, director-general of theGeneral Directorate of Rubber, saidbuilding capacity and providing technicalskills to smallholders and technicalofficials in the sector in addition to theactive participation of all keystakeholders in the rubber sector willcontribute to its sustainabledevelopment in Cambodia. Currently, 100

rubber smallholders from five communityprotected areas adjacent to the WWF’s-supported Srepok Wildlife Sanctuaryhave been engaged. Plans call forreaching an additional 300 rubbersmallholders by 2022.

Cambodia’s rubber plantations span401,914 hectare with industrialproduction accounting for 60% of thetotal at 240,811 hectare and family farmsat 161,103 hectare.

In 2020, the nation exported $482.76million of rubber and rubber trees. Thisbreaks down as 340,000 tonnes ofrubber and 158,400 cubic metres ofrubber tree, according to the report fromthe Ministry of Agriculture. The exportfigures represented an increase over the280,000 tonnes exported in 2019.

Malaysian Rubber Board (MRB)announced the activation of the RubberProduction Incentive (IPG) for January2021 in the peninsula, Sabah andSarawak. MRB advised, smallholdershave until the end of February 2021 tomake their claims.

Activation was due to the average farm-level rubber price in January 2021 for cuplump or scrap rubber being at RM2.45per kg in the peninsula, RM2.15/kg inSabah, and RM2.25/kg in Sarawak.

MRB said that the IPG is active forJanuary 2021 with payments in thepeninsula at 5 sen/kg, 35 sen/kg inSabah, and 25 sen/kg in Sarawak.

Michelin unveiled its all-new Agilis 3 tyre,designed specifically for light commercial vehiclesincluding light trucks, vans, and pickups. Duringthe online launch event, company executivesexplained how the need for “sustainable mobility”has been magnified by the Covid-19 pandemic,with logistics being a crucial cog of daily life.

Activation of the IPG provided by theFederal Government is meant to helprubber smallholders in the country, whenthe price of the commodity is low.

The Agil is 3 is avai lable at authorizedMiche l i n commerc ia l l i gh t t r uck t y redealers across the nation. Sizes rangefrom 13 to 17 inches diameter, and coverthe ent i re l igh t one- to- three- ton loadsegment of Phil ippines’ commercial l ighttruck tyre market.

Improved Michelin tyre availableImproved Michelin tyre available

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YMTC expandstyre moldproductioncapacityJapanese tyre manufacturer YokohamaRubber Company Ltd’s tyre moldproduction subsidiary Yokohama Mold(Thailand) Co. Ltd. (YMTC) is to expandproduction capacity at its Thailandproduction facilities. The companystates that the capacity expansion isaimed at strengthening the group’ssupply chain in the ASEAN region.Construction of the new facilities beganin January 2021, with completionplanned for the end of this year.

YMTC was established in 2018 in theThai province of Rayong. It suppliestyre molds used in passenger car tyresand light truck tyres to YokohamaRubber’s tyre manufacturing plants inJapan, Thailand, Philippines, India andother countries.

Michelin buildingtyre recycling plantMichelin is investing US$30 million inbuilding its first tyre recycling plant inthe world in Chile. The project is theresult of Michelin’s ongoing collaborationwith Enviro, a Swedish company thathas developed a patented technology torecover carbon black, oil, steel and gasfrom end-of-life tyres.

Located in Chile’s Antofagasta region,the plant will be able to recycle 30,000tonnes of earthmover tyres a year, ornearly 60% of such tyres scrapped everyyear nationwide. Work will begin thisyear, with production scheduled to getunderway in 2023.

Orion EngineeredOrion EngineeredOrion EngineeredOrion EngineeredOrion EngineeredCarbons toCarbons toCarbons toCarbons toCarbons toincreaseincreaseincreaseincreaseincreaseAcetylene BlackAcetylene BlackAcetylene BlackAcetylene BlackAcetylene BlackPricingPricingPricingPricingPricingOrion Engineered Carbons S.A., aworldwide supplier of specialty and high-performance carbon black, announcedthat it will increase pricing for acetyleneblack. Orion operate 14 production sitesworldwide.

Following the acquisition of its acetyleneblack plant in France, the companyadjusted the facility’s strategic focus,requiring new investments to better servethe growing market demand for acetyleneblack used in lithium-ion batteryproduction. In addition to these strategicinvestments, the company has also beenconfronted with rising costs forpackaging, transportation andenvironmental obligations. Against thisbackdrop Orion will raise its acetyleneblack prices by 20% globally on 1stMarch 2021, or as contracts allow.

Sulphur prices hitSulphur prices hitSulphur prices hitSulphur prices hitSulphur prices hittwo-year hightwo-year hightwo-year hightwo-year hightwo-year highThe sulphur prices for February liftingfrom Middle East suppliers haveincreased by $24-26/t compared withJanuary, with the Qatari price set lastweek at $125/t fob, followed by similarrises this week from UAE state ownedAdonc and Kuwaiti state owned producerKPC. The resulting tight sulphur supplycoupled with a recovering phosphatemarket, which supports sulphur demand,has led to a steep firming of spot sulphurpricing this year.

This puts monthly prices at their highestsince December 2018 and roughly onpar with January 2019, when the Qatarsulphur price stood at $126/t fob and theaverage of the three Middle East pricesat $126/t fob — equal to the February2021 average. Current price movementsare bucking the usual trend for thebeginning of the year, and no flatteningof curve is evident as yet. CCCCCooooorrierrierrierrierrie MacC MacC MacC MacC MacColl’s Cameoll’s Cameoll’s Cameoll’s Cameoll’s Cameroon roon roon roon roon plant opeplant opeplant opeplant opeplant operararararatititititionononononalalalalal

Construction is complete on the new $16 million factory at Corrie MacColl’s Sudcam plantation in southernCameroon. It is now fully operational, with production having started. According to the rubber plantationand processing giant, the factory will initially produce concentrated latex and steadily expand into CV andL grades. It is set to supply the European and North American dipping industry (gloves, condoms,balloons), as well as specialty product makers (automotive, household and industrial applications).



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Elkem acquiresplant in FranceElkem has signed an agreement toacquire a brand-new plant near Lyon inFrance, custom-designed for producinghighly specialised organo-functionalsilicones (OFS). The acquisitionunderpins Elkem’s strategy of growth andspecialisation. This acquisition reinforcesElkem’s solid footprint in France. Thepurchase price is in the low double-digitmillions of euros, and production isexpected by the end of the year.

Elkem already has a broad globaloffering of advanced silicone solutions,ranging from commodities tospecialties. The acquisition of this newOFS plant provides the technology andcapacity to further accelerate growth.The OFS plant is located near ElkemSilicones’ existing activities south ofLyon, including both the upstream plantin Roussillon as well as the productionsite and R&D center in Saint-Fons. Thenew production capacity is in line withour strong commitment to support ourdevelopment in the Auvergne-Rhône-Alpes region, says Bertrand Mollet,EMEA region director, ElkemSilicones.

Bridgestone has released the results ofits four year collaboration with genomicbig data solutions company NRGene,which aimed to further advance thecommercialisation of guayule, analternative to natural rubber, as part ofthe effort to diversify its sources of rawmaterials. The combined effort focusedon analysing DNA to allow more efficientuse of inherent genetic diversity to breedhighly productive varieties of guayule.The collaboration between Bridgestoneand NRGene will provide importantadvances for the future of the automotive

and rubber industries.

The native to the desert regions of thesouthwestern USA and northern Mexico,guayule is a shrub capable of producingnatural rubber and can grow on marginalfarmland with minimal fertilizer inputs. Ithas the physical and geneticcharacteristics of a desert plant,

successfully tolerating arid environmentsand making its demand for water lowerthan other commercial crops grown inthe region.

Utilising NRGene’s DeNovoMagic system,scientists at Bridgestone and NRGene saythey have successfully assembled aspecific guayule genome.

Bridgestone and NRGene announceBridgestone and NRGene announceBridgestone and NRGene announceBridgestone and NRGene announceBridgestone and NRGene announceNR genetic breakthroughNR genetic breakthroughNR genetic breakthroughNR genetic breakthroughNR genetic breakthrough

Bridgestone and NRGene announceBridgestone and NRGene announceBridgestone and NRGene announceBridgestone and NRGene announceBridgestone and NRGene announceNR genetic breakthroughNR genetic breakthroughNR genetic breakthroughNR genetic breakthroughNR genetic breakthrough


14Statistics-Update4U

Rubber 2020 2019

Production

Natural Rubber (NR)Ribbed Smoked Sheet 166615 212400Solid Block Rubber 51155 53040Latex Concentrates (drc) 30790 32555Others 7440 10005Total 256000 308000

Synthetic Rubber (SR)Styrene Butadiene 103176 125189Poly Butadiene(BR) 63064 64399Others 21595 3180Total 187835 192768Total NR & SR 443835 500768

Consumption*Natural Rubber (NR)Ribbed Smoked Sheet 203095 242555Solid Block Rubber 189605 269475Latex Concentrates (drc) 32260 42370Others 9950 12720Total 434910 567120

Synthetic Rubber (SR)Styrene Butadiene (SBR) 131285 182565Poly Butadiene(BR) 69380 93395Others 41475 56270Total 242140 332230

Total NR & SR 677050 899350*: indigenous and imported

Reclaimed Rubber (RR)Production @ 56730 69800Consumption 56270 70065Stock with Manufacturers 14665 13040(End of September)@: indigenous purchase by manufacturers

Import / ExportImport (p)Natural Rubber 183805 257943Synthetic Rubber 111948 162255Total NR & SR 295753 420198

Export (p)Natural Rubber 2129 3766p:provisional

(Metric Tonnes)

(Source: Rubber Board)

RUBBER POSITIONRUBBER POSITIONDuring April - September

I N D I A N

(In Lakh `.)

Export & Import of Rubber & Articlesthereof Under Chapter 40

(Source: Dept of Commerce)

HS Code Commodity Export Import4001 NATURAL RUBBER BALATA GUTTAPERCHA

ETC & SMLR NATURAL GUMS INPRMRY FORMS/IN PLTS SHTS/STRP 6,706.68 265,535.25

4002 SYNTHETIC RUBBER & FACTICE DERIVED FORMOILS, IN PRIMARY FORMS OR IN PLATES,SHEETS OR STRIP; MIXTURES OF ANY PRO 52,193.20 318,811.33

4003 RECLAIMED RUBBER IN PRIMARY FORMSOR IN PLATES, SHEETS OR STRIP 24,724.93 269.14

4004 WASTE, PARINGS AND SCRAP OF RUBBER(OTHER THAN HARD RUBBER) & POWDERS &GRANULES OBTAINED THEREFROM 473.12 6,253.56

4005 COMPDED RUBBER UNVULCNSD INPRMRY FORMS/IN PLATES SHEETS/STRIP 12,289.81 68,123.32

4006 OTHER FORMS (FOR EXAMPLE, RODS, TUBES& PROFILE SHAPES) & ARTICLES (FOREXAMPLE, DISCS & RINGS), OFUNVULCANISED RUBBER 1,853.34 729.84

4007 VULCANISED RUBBER THREAD & CORD 6,575.48 2,579.344008 PLATS,SHTS,STRP,RODS & PROFILE SHAPES

OF VULCNSD RUBBER OTHR THN HARD RUBBER 45,959.92 10,631.294009 TUBES, PIPES AND HOSES, OF VULCANISED

RUBBER OTHER THAN HARD RUBBER, WITHOR WITHOUT THEIR FITTINGS (FOR EXAMPLE, 59,706.94 57,886.33

4010 CNVYR TRNSMSSN BLTS/BLTNGOF VULCNSD RUBBER 56,911.94 34,409.19

4011 NEW PNEUMATIC TYRES, OF RUBBER 825,309.64 81,811.794012 RETREADED OR USED PNEUMATIC TYRES OF

RUBBER, SOLID OR CUSHION TYRES,TYRE TREADS & TYRE FLAPS, OF RUBBER 19,626.95 2,962.91

4013 INNER TUBES, OF RUBBER 33,721.48 679.734014 HYGNC/PHRMCTL ARTCLS (INCL TEATS) OF

VALCNSD RUBBER OTHER THAN HARD RUBBERWTH/WITHOUT FITTINGS OF HARD RUBBER 30,428.31 10,230.55

4015 ARTCL OF APARL AND CLOTHINGACCESSORIES (INCL. GLOVES, MITTENS& MITTS) FOR ALL PURPOSE OFVULCANISED RUBBER NOT HARD 40,559.38 111,315.13

4016 OTHER ARTICLES OF VULCANISEDRUBBER OTHER THAN HARD RUBBER 189,747.66 236,891.82

4017 HARD RUBBER (FOR EXAMPLE, EBONITE)IN ALL FORMS, INCLUDING WASTE & SCRAP;ARTICLES OF HARD RUBBER 671.39 1,870.94

Total 1407,460.17 1210,991.46

During April-November 2020


15EVENTS4U

Rubber4U, published by Caprint, exercise due care and caution in collecting the news / data before publication. In spite of this if any omission, inaccuracy or error occurwith regard to the news / data contained in this bulletin, Rubber4U / Caprint will not be held responsible or liabale.

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*****

* Afte

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(Prices in yen / kilogram)

Day Session As of 15th February 2021

Trade Date: 15th February 2021Month Open High Low Last Change% Volume SettlementFebruary 2021 249.4 252.9 247.0 248.8 +2.4 42 248.8March 2021 243.6 257.0 243.6 250.0 +9.2 65 249.4April 2021 245.6 261.1 245.0 253.0 +12.6 83 253.0May 2021 243.6 255.8 242.9 251.9 +13 597 251.9June 2021 240.1 258.5 240.1 251.7 +13.1 1,416 251.7July 2021 242.3 258.5 241.8 252.7 +14.2 2,876 252.7

RSS3 Rubber

TyreXpo Asia 202115 - 17 March 2021At Marina Bay Sands,Singapore.

GRTE 202117 - 19 March 2021At BITEC, Bangkok, Thailand.

INAPA 202124 - 26 March 2021At JIExpo Kemayoran,Jakarta, Indonesia.

Tyre & Rubber Indonesia24 - 26 March 2021At JIExpo Kemayoran,Jakarta, Indonesia.

ChinaPlas 202113 - 16 April 2021At Shenzhen WE&C Center,PR China.

ChemExpo India 202120 - 21 April 2021At Bombay Exhibition Centre,Goregaon, Mumbai, India.

ACMA Automechanika22 - 25 April 2021At Pragati Maidan,New Delhi, India.

Tire Cologne18 - 20 May 2021At Cologne, Germany.

Rubber & Tyre Vietnam 202116 – 18 June 2021At Saigon Exhn. & Convn. Center,Ho Chi Minh City, Vietnam.

Latin Tyre Expo & Latin Auto Parts Expo13 - 16 July 2021At Amador Convention Center,Panama City, Panama.

rubber4u - 15th august 2020 · 2020. 8. 15. · global automotive rubber molded components market...

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