Top Glove chairman mops up 1.74m shares, raises direct stake to 26.6%

 

KUALA LUMPUR (March 22): Top Glove Corp Bhd executive chairman Tan Sri Dr Lim Wee Chai has bought another 1.74 million shares of the group at RM5.27 a share, raising his shareholding in the glovemaker to 2.13 billion shares or 26.59%. 

Lim also has an indirect stake of 692.19 million shares or 8.651% in the group, Top Glove said in a stock exchange filing.  

Lim has continued to accumulate Top Glove’s shares in recent weeks.   On March 16, he purchased 4.399 million shares at RM5.20 each, raising his holdings in the group to 26.57%.

Shares of Top Glove traded one sen or 0.18% lower at RM5.40 today, valuing the glove manufacturer at RM44.30 billion. 

 Source: The Edge Markets

Exports of natural rubber fell 33.6% year-on-year and 5.9% month-on-month to 65,778 tonnes in April

The production of natural rubber in April fell by 4,569 tonnes (7% year-on-year) to 60,888 tonnes.

Compared with March, production fell by 6,488 tonnes (9.6% month-on-month).

According to the Statistics Department, the level of stocks in April was 118,214 tonnes, which meant a decrease of 6.4% year-on-year and 17.2% month-on-month.

Meanwhile, exports of natural rubber fell 33.6% year-on-year and 5.9% month-on-month to 65,778 tonnes in April.

The main export destinations were China (40.2%), followed by Germany (13.6%), South Korea (4.5%), Brazil (3.9%), Portugal (3.4%), the United States (2.9%), Netherlands (2.8%), Finland (2.3%) and UK (2.0%).

However, imports of natural rubber in April increased by 15,066 tonnes (32.6%) year-on-year to 61,245 tonnes.

In terms of month-on-month comparison, there was a decrease in imports by 3,596 tonnes (5.5%). Almost half of the total imports comprised latex concentrate (43.6%).

Natural rubber was imported mainly from Thailand (65.8%), followed by Vietnam (8.3%), the Philippines (5.4%) and Myanmar (3.5%).

As for the domestic consumption of natural rubber in April, this increased 11.8% or 3,799 tonnes year-on-year to 35,979 tonnes.

However, month-on-month, domestic consumption of natural rubber dropped 3,224 tonnes (8.2%) in April.

In April, the overall average monthly price of natural rubber showed a decrease.

The average price of latex concentrate was recorded at 751.87 sen, and had dropped 31.04 sen (4.0%) from the previous month,

whereas year-on-year, the average price of latex concentrate was reduced by 292.73 sen (28%).

The average price of Standard Malaysian Rubber 20 that was recorded at 1,100.47 sen, also dropped 19.78 sen (1.8%) and 389.91 sen (26.2%) when compared with the previous month and year.

Source: www.thestar.com.my

Global natural rubber output is seen at 10.475 million tonnes in 2012 as compared to last year's 10.325 million tonnes- Association of Natural Rubber Producing Countries (ANRPC)

Global natural rubber output is seen at 10.475 million tonnes in 2012, nearly 2 percent above an April estimate of 10.297 million tonnes, on higher first-quarter Thai production, the Association of Natural Rubber Producing Countries said on Wednesday.

While total consumption by members of the ANRPC was likely to rise this year, the debt crisis in Europe and its possible impact on Asia cast a shadow over the demand prospect for natural rubber, the group said in a statement.

"The crisis in the euro-zone and worrisome economic trends world over seem to have damaged the demand prospects for natural rubber," said the group.

"(The) global economy has become much more fragile with a further deepening of debt crisis in the euro zone. Its impact on Asian economies has been in multiple ways such as weak trade, volatile markets and a cautious investment climate."

Consumption of member countries was estimated at 6.477 million tonnes in 2012, higher than 6.266 million tonnes last year but the growth rate was revised down to 3.4 percent from 4.5 percent anticipated in April.

"Given a sluggish economic outlook, the import-demand is likely to slow down during the third and the fourth quarters, especially from China, unless the country launches a new round of major investments," said the group, referring to the world's top consumer.

ANRPC's member countries, which include Thailand, Indonesia, Malaysia, Vietnam and India, currently account for about 57 percent of the global consumption of natural rubber and more than 90 percent of global output and exports.

Total production was estimated to rise around 1.5 percent to 10.475 million tonnes compared to last year's 10.325 million tonnes.

"The upward revision for this year is mainly contributed by Thailand. The country is reported to have produced 896,000 tons in the first quarter, far exceeding the preliminarily-estimated 739,000 tons," said the report, referring to the top producer.

"It is now anticipated that Thailand's production during this year would touch 3.625 million tonnes, up 1.6 percent from the previous year, as against a 1.1 percent annual fall to 3.531 million tonnes expected a month ago."

Tokyo rubber futures, which set the tone for physical prices, sank to their weakest in more than two years as Europe's debt woes heightened worries about the global economy and the outlook for demand.

The market has ignored a plan by Thailand to seek concerted action with fellow producers Indonesia and Malaysia to stabilise falling rubber prices. - Reuters

Source: www.thestar.com.my

Thailand rubber exporters have started purchasing on the Tokyo and Shanghai Rubber exchanges to shore up prices of the Rubber commodity - Thai Rubber Association

Rubber exporters from Thailand, the world's largest producer, have started purchases on the Tokyo and Shanghai exchanges to shore up prices of the commodity used in tyres and gloves, according to the Thai Rubber Association.

"Exporters have bought the rubber on the exchanges as it is cheap," president Prapas Euanontat said by phone from the southern province of Nakhon Si Thammarat. He declined to specify the amount. Shippers will continue buying on overseas bourses "until local prices climb to 120 baht (US$3.80) a kilogramme, the level the government would like to see."

Futures have plunged 51 per cent from a record in February 2011, cutting costs for tyre makers such as Bridgestone Corp, Goodyear Tire & Rubber Co and Michelin & Cie.

Prices slumped as China, the biggest user, expanded last quarter at its slowest pace in almost three years and Europe struggled to contain its debt crisis. Chinese vehicle sales dropped 1.3 per cent in the first four months, the worst performance since 1998, according to the China Association of Automobile Manufacturers.

Thailand announced plans last week to buy more than 10,000 metric tonnes in Tokyo and Shanghai and to continue purchases from local farmers at above-market rates to drive prices higher. The country will also work with Indonesia and Malaysia to tackle the slump, according to Deputy Farm Minister Nattawut Saikuar. The three nations represent about 70 per cent of global supply.

"At current prices, producers in Malaysia and Indonesia don't want to plant new trees," said Pongsak Kerdvongbundit, the group's honorary president. "Currently there is no shortage. But when the world economy recovers there won't be extra supply to fill any gap," he said on Wednesday on the sidelines of the 2012 World Rubber Summit here.

Rubber for delivery in October lost as much as 3.9 per cent to 259.1 yen a kilogramme (US$3,261 a tonne), the lowest for the most active contract since January 5, on the Tokyo Commodity Exchange.

Global natural rubber consumption is set to expand 3.4 per cent to 11.3 million tonnes this year, while production climbs 3.2 per cent also to 11.3 million tonnes, the International Rubber Study Group said. Bloomberg

Source: www.btimes.com.my

Natural Rubber surplus expected to widen to 469,000 tons this year from 50,000 tons in 2011 due to slowing demand from Europe and China - The Rubber Economist

Supplies of rubber, used in tires and gloves, are set to exceed demand in the second half, reversing a shortage and pressuring prices as growth slows in Europe and China. Futures fell the most in two weeks.

Output may top consumption by 400,000 metric tons in the six months to December after a seasonal deficit of 150,000 tons in the first half, said Chris Pardey, chief executive officer of RCMA Commodities Asia, a Singapore-based trading company. A surplus will persist through 2014, said Prachaya Jumpasut, managing director of industry adviser The Rubber Economist.

A drop of raw latex falls from a rubber tree. Natural rubber consumption is set to expand 3.4 percent to 11.3 million tons this year, while production climbs 3.2 percent also to 11.3 million tons, according to Lekshmi Nair, senior economist at the International Rubber Study Group.

Raw rubber latex is collected in bowls. The surplus of rubber will probably widen to 469,000 tons this year and to 566,000 tons in 2013 from 50,000 tons in 2011, before falling to 194,000 tons in 2014 as price declines curb growth in supplies, said Prachaya from the London-based The Rubber Economist, who has studied the commodity for more than 30 years. Photographer: Brent Lewin/Bloomberg

Futures have plunged 50 percent from a record in February 2011 as Europe struggled with its debt crisis and China expanded last quarter at its slowest pace in almost three years. Chinese vehicle sales dropped 1.3 percent in the first four months, the worst performance since 1998, according to industry data. Price declines will cut costs for tire makers such as Bridgestone Corp. (5108) and Michelin & Cie. and threaten farmer incomes in Thailand, the biggest producer and exporter.

“The market is still bearish because of Europe’s problems and as China’s economy slows,” said Kazunori Kokubo, managing director at Yutaka Shoji Singapore Pte., a commodities broker. The contract for October fell 3.9 percent today to 269.60 yen a kilogram ($3,395 a ton) on the Tokyo Commodity Exchange. That was the biggest drop for the most active contract since May 9.

Chinese Demand

The Chinese economy will expand 7.9 percent this quarter from a year earlier, according to a Bloomberg survey. That would be the sixth quarterly deceleration after an 8.1 percent expansion in the first three months. The drop in vehicle sales boosted inventories at automakers to the highest level in at least 16 months at the end of April, according to the China Association of Automobile Manufacturers.

“Prices will react negatively to lower demand,” said Pardey who has traded commodities since 1985. Demand from China may be unchanged from last year at 3.8 million tons, he said, lowering an earlier forecast for 2 percent to 3 percent growth.

Futures rebounded 3.9 percent in the first two days of this week after Premier Wen Jiabao said China will focus more on boosting growth. Goldman Sachs Group Inc. and Morgan Stanley predict interest rates will be cut to counter the slowdown. Germany will consider all ideas to spur Europe’s growth, Finance Minister Wolfgang Schaeuble said May 21.

Thai Support

Prices were also supported after Thailand, which represents 33 percent of world output, said on May 18 it plans to buy more than 10,000 tons on the Tokyo and Shanghai exchanges to boost prices. The country reaffirmed a plan to drive prices to 120 baht ($3.82) a kilogram by buying from farmers, while saying it intends to push rates to 180 baht next year, deputy farm minister Nattawut Saikuar said last month.

The country will work with Indonesia and Malaysia to tackle the slump, Nattawut said last week, without giving details. The three nations represent about 70 percent of global supply.

“The Thai policy will continue supporting prices, probably until the end of the year,” said Chaiwat Muenmee, analyst at Bangkok-based broker DS Futures Co. “It may take a bit of time for the government to implement the plans but it sounds serious in taking action.”

Natural rubber consumption is set to expand 3.4 percent to 11.3 million tons this year, while production climbs 3.2 percent also to 11.3 million tons, the International Rubber Study Group said at a conference in Singapore today. Output may increase to 11.9 million tons in 2013, with demand rising to 11.8 million tons, the organization said last month.

The surplus will probably widen to 469,000 tons this year and to 566,000 tons in 2013 from 50,000 tons in 2011, before falling to 194,000 tons in 2014 as price declines curb growth in supplies, said Prachaya from the London-based The Rubber Economist, who has studied the commodity for more than 30 years.

Source: www.bloomberg.com