NR prices tumble; ANRPC says Japan disaster won’t affect demand

KUALA LUMPUR (March 15, 2011) — World natural rubber (NR) markets remained volatile in the face of the March 11 triple catastrophe — earthquake, tsunami and nuclear plant disaster — that struck northern Japan, even as the Association of Natural Rubber Producing Countries (ANRPC) said the tragedy wouldn’t appreciably affect NR demand from Japan or elsewhere.

“The disaster is unlikely to have a noticeable impact on global economy, as Japan has not been a driver of the global recovery from the economic meltdown in 2008,” the ANRPC said in a press release issued from its Kuala Lumpur headquarters. “Moreover, the tsunami-hit region is far from Japan’s economic hub, which is the area from Tokyo south to Osaka.”

Bridgestone Corp. said its five plants in northeast Japan were unaffected by the earthquake. Power supply and safety problems forced the Bridgestone facilities to stop production, but one has partially resumed operations, the ANRPC said. Toyo Tire & Rubber Co., Sumitomo Rubber Industries Ltd., Yokohama Rubber Co. Ltd. and Michelin likewise reported no damage to their facilities from the quake or tsunami, the association said.

“Japan accounts for 7 percent of the global demand for natural rubber,” the ANPRC said. “The closure of a handful of auto tire plants in the country’s northeast region for a few days cannot impact on the commodity’s global demand in a significant way.”

Meanwhile, NR prices have fallen by more than 20 percent on world markets in the past two weeks, though the latest market figures show them going up again.

March 15 prices on the Singapore Commodity Exchange (SICOM) show Technically Specified Rubber 20, or tire-grade rubber, at $4 per kilogram for June delivery, down from $5.18 per kilo March 2. Rubber Smoked Sheets 3 stood at $4.39 per kilo for June delivery today, compared with $6 per kilo March 2.

Nevertheless, RSS 3 traded 11 to 19 cents per kilo higher on March 15 than the previous trading day, according to the daily newsletter from RCMA Commodities Asia. TSR 20 traded 15 to 20 cents higher, RCMA said.

(Source: http://www.tirebusiness.com/subscriber/headlines2.phtml?cat=1205760421&headline=NR+prices+tumble%3B+ANRPC+says+Japan+disaster+won%92t+affect+demand&id=1300203509)