Rubber RSS4

Please send across your views at [email protected]

Contract Specifications

Natural Rubber RSS4

Commodity Name Natural Rubber RSS4
Basis for price quote Ribbed Smoked Sheet 4 (RSS4) – Ex-warehouse Kochi exclusive of all taxes
Trading unit  1 MT
Delivery unit 1 MT and multiples thereof.
Quotation / Base value  Rs per 100 KG (0.1 MT)
Tick size (minimum price movement) Rs.10  per 100 KG (0.1MT)
Delivery Logic Compulsory delivery
Delivery Center Basis: Kochi (up to the radius of 100 Km from the corporation/municipal limits).
Additional delivery Center(s) Calicut, Iritti and Palakkad (up to the radius of 100 Km from the municipal limits).

Contract Specification January 2014 onwards

Natural Rubber also know as India rubber or caoutchouc, is an elastomer(an elastic hydrocarbon polymer)produced from latex or field coagulam obtained from rubber trees planted in plantations. Rubber is a polymer consisting of hydrogen and carbon and is elastic in nature. The rubber tree is a native of the Amazon River basin in South America. The basic property of rubber is that it comes back to its original shape if it is twisted or stretched but if heat is applied to the rubber, it won't return to its original shape easily.&nbsp; It can also be procured by synthetic method. Synthetic rubber is produced through the process of polymerization of various monomers.<br>
Crop Cycle:
The soils of main rubber tracts in India, confined to a narrow belt on the west of the Western Ghats, running parallel to it for about 400 km, are mostly laterite in nature. Well-drained alluvial and red loam soils are also suitable for rubber cultivation. Rubber plantations in India are mostly situated on sloppy and undulating lands. The latex is extracted from the plant by making a slanting cut in the bark of the trunk. It is called tapping of rubber. The economic life period of rubber trees is around 32 years in plantations. The phase is upto 7 years immature phase and about 25 years as productive phase. These plants produce rubber after 6 years and to reach the tapping stage it may take even about 12 years. High temperature and high humidity is suitable for Rubber growing.

Types of Rubber:
Major types of Natural Rubber :

  • RSS
  • Latex Concentrates (drc)
  • Solid Block Rubber
  • Pale Latex Crepes

India stands at 4th position and share 8% of the total Natural Rubber world production. India produces approx 831 thousand tonnes in 2009-10 increased by 37% from 605 thousand tonnes of Natural Rubber in 2001-02. RSS Rubber contributes around 70% or 578 thousand tonnes acquire no. 1 position, whereas Latex Concentrates (drc) shares 85 thousand tonnes, Solid Rubber Block 120 thousand tonnes and others Grades contributes 46 thousand tonnes of the total Rubber production. During 2009-10 the area under Rubber plantation increased by more than 250% over last ten years and reached approx 36 thousand hectares, out of which 25 thousand comes under New planted area and 11 thousand hectares under Replanted area.
Kerala is the largest producing state of Natural Rubber of approx 91% or 782 thousand tonnes in 2009-10. Tamil Nadu and Karnataka are the other producing states. The Rubber Industry is a key sector in the Indian economy. Total import of Natural Rubber increased by more than 100% in the last year and reached 176 thousand tonnes in 2009-10.
India production as well as consumption has been rising steadily over the years. The rubber growing regions in India are traditional and non-traditional on the basis of agro-climatic conditions.

India is the fourth largest consumer of natural rubber in the world and also the fifth largest consumer of natural rubber and synthetic rubber put together. During the year under review, the consumption of natural rubber increased by 6.75% only from 871720 tonnes to 930565 tonnes in 2009-10.
Going by share of Rubber Consumption, the rubber industry in India can be divided in two sector – 1. Tyre Sector and 2. Non-tyre Sector. The non-tyre sector comprises the medium-scale, smalls cale and tiny units, which produce high technology and sophisticated industrial products. The small-scale units account for over 50 per cent of rubber goods production in the non-tyre sector. The automotive tyre sector is the single largest sector(50%-52%) or the single-largest consumer of natural rubber, in the form of Auto tyres and tubes (37%), cycles tyre and tubes (8%), Footwears (7%), Belt and Hoses (4%), Camel Back and Latex Products(5%) and other products(4%-5%).
Per capita Consumption of Rubber in India is only 800 gram as compared to 12 to 14 Kg in Japan, USA and Europe.

World Scenario:
Global natural rubber production stood at 10,291 tonnes in 2010 and increased by 15.6% from  2005. Asia is the largest source of natural rubber, accounting for around 94 per cent of the total world output. The three largest rubber producing countries are Indonesia, Malaysia and Thailand, which together account for around 72% of all natural rubber production
Malaysia is the world largest producer and china consumes the largest portion of Natural Rubber produced is the world. USA and japan are the other major consumer of Natural Rubber.

Market Influencing Factors
  • The rubber production fluctuates between months and it is normally low during the rainy season.
  • Growth scenario of the automotive businesses. 
  • The ratio of utilization of domestic production and imported rubber by tyre manufacturers. 
  • Government policies have a profound influence on rubber prices. These include subsidies, restrictions on ports etc.
  • International rubber price movements, have a slow influence. 
  • Stockists and speculators also play a significant role in influencing prices.
  • Price movement in TOCOM and SICOM

Major websites: