SICOM rubber factors to watch for Monday, August 20

U.S. two-dollar billsPhoto by Leslie Shaffer
  • Investors are watching U.S.-China trade talks slated for this month to see if proposed tariffs by Beijing ranging from 23.1 percent to 75.5 percent on halogenated butyl rubber from the United States, the European Union and Singapore starting from August 20, Monday, are set aside.
  • China had imposed temporary anti-dumping duties on synthetic rubber from those countries in April, with the 75.5 percent tariff on rubber made by Exxon Mobil and other U.S. companies.
  • Heavy rains in the rubber-producing southwest Indian state of Kerala have hit production for the world’s sixth largest producer and second largest consumer. Output is expected to fall 13.5 percent from a year ago to 600,000 metric tons for the year ending March 31, 2019, according to the Cochin Rubber Merchants Association, citing the impact of earlier heavy rains in April.
  • Tire makers in India are expected to face higher costs and rely more on imports from neighbors such as Thailand, Malaysia, Indonesia and Vietnam.
  • TOCOM August rubber futures ended down 0.63 percent at 159 yen (US$1.44) per kg on Friday. The January delivery contract fell to 168.0 yen ($1.52) per kg, unchanged. The TOCOM contract, which sets the tone for rubber prices in Southeast Asia, fell 2.5 percent for the week.
  • The SICOM contract ended down 0.30 percent to US$1.45.

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