Now get maximum output from your advertisement …Second Section - Rubber4U - 1st March 2020 NATI ONAL - Update 4 UUpdate 4 U 2 Maximum Reach at Lowest Tariff Now get maximum output

Second Section - Rubber4U - 1st March 2020

Vol. XI 016 1st MARCH 2020

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Domestic tyre industry is worriedover the continuing shortage ofnatural rubber in the market at atime when the automobile sectoris showing signs of revival. DespiteRubber Board data showing higherproduction this year.

Concerns are growing over the continuedshortage of natural rubber in India,despite Rubber Board estimates of 10%y-o-y increase in natural rubberproduction. Already, industry thinkrubber farmers are hoarding thecommodity, as the flow of rubber into themarket has not been steady; but JoschJoseph, secretary of the Indian RubberGrowers Association (IRGA), disagrees.

Instead, Joseph said delays in payment

under the main rubber-producing stateof Kerala’s price incentive schemeseem to have discouraged smallgrowers from tapping. Most havestayed away from tapping as they havenot received compensation for the last6-7 months. The shortage is expectedto get worse as the tapping season in

Kerala comes to a close.Meanwhile, rubber yield hasalready started falling with anincrease in temperature, pushing

prices up.

The benchmark RSS4 grade rubber closedat ̀ .134.50 a kg at Kottayam, while RSS3grade closed at ̀ .116.52 a kg at Bangkokand Malaysian SMR20 closed at ̀ .94.90a kg. On ICEX March 2020 futures closedat `.132.20 a kg, April at `.134.98, Mayat `.139.43, June at `.141.63, July at`.143.03 and August closed at `.144.46a kg. Tokyo Commodity Exchange March2020 futures series closed at ¥168.0 akg, April at ¥169.7, May at ¥171.1, Juneat ¥172.3, July at ¥171.6 and the contractfor delivery in August 2020 closed at¥172.2 a kg.

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With only two-thirds of the Indian rubberplantations actively tapped, there is a35% supply crunch in the domesticsector. Spot rubber continues to tradein price band of `.134.50 to `.137 perkg, even though it is the end of peakseason and the stock arrivals to themarket are at their lowest level.

As mercury is surging in the plantations,latex yield is falling. Usually, in the endof the peak season, as the latex flowbecomes a trickle, the spot rubber pricegoes up. This has not happened thistime, said Josekutty Antony, presidentof Rubber Nursery Owners Association.

Planters were expecting that the pricewould touch ̀ .150 per kg by February-end, as predicted earlier by marketanalysts. A worse blow for naturalrubber planters has been the price falltrend in rubber futures. IndianCommodity Exchange’s March contractof natural rubber touched a low of`.131.98 per kg.

The low prices do not excite the tyreindustry. Even the shortage in this keyraw material is not so much frightening,

Since December, the tyre industry hasbeen importing more rubber to bridge thedemand-supply gap, which they expect towiden further in the coming days with therevival in the automobile sector. Tyre

industry saw some positive signals inJanuary and the demand was better thanin the previous few months. Industry hopethe trend to continue in the coming months.Although consumption is generally subdued

in the last quarter of the fiscal year, tyreindustry will continue to import more rubberto bridge the demand-supply gap, which isexpected to widen further with the revival ofthe automobile sector.

because the offtake for natural rubberhas been low this year, in view of autoand economic slowdown. The peaknatural rubber season seems to havecompressed this year by one month on

each side. Instead of September, itgathered pace only in October andFebruary just ended, industry alreadyfeel the tightness in natural rubberavailability.

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On 29th February 2020- At 05.27 am CST

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Trade Date: 28th February 2020(Prices in `. / kg)India

Month Open High Low CloseMarch 2020 132.70 132.85 131.98 132.20April 2020 134.50 135.90 134.50 134.98May 2020 0.00 0.00 0.00 139.43June 2020 0.00 0.00 0.00 141.63July 2020 0.00 0.00 0.00 143.03August 2020 0.00 0.00 0.00 144.46

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ICEX trackingICEX trackingICEX trackingICEX trackingICEX trackingprices in Kprices in Kprices in Kprices in Kprices in KerererereralaalaalaalaalaPrices of natural rubber in Kerala fellafter a recent surge had denteddemand from domestic stockists. Themost-active March contract of rubberon the Indian Commodity Exchange hita two-week low of `.131.98 per kg,tracking a fall in prices in the keymarkets of Kerala. The contract endedat `.132.20 per kg.

The overall sentiment remains bullishdue to a persistent supply crunch in themarket amid expectations of a pickupin demand from tyre makers. The rubbertapping season usually begins inOctober and continues till March. Thisyear, however, it will end in Februaryitself due to high temperatures, whichcould further deepen the supply crunch.A decline in rubber imports is alsoexpected to weigh on the supply.

Delhi-based tyre manufacturer, JK Tyre &Industries Ltd’s Chief Financial Off icerSanjeev Aggarwal is not expecting any majorimpact of the Coronavirus outbreak on hisbusiness. The company’s OEM businessthough may come under pressure on accountof supply disruption; but that is not significantto its entire revenue mix, said the CFO.

The tyres industry is directly connected with theOriginal Equipment Manufacturers. But for ourbusiness we don’t see a significant impact sincethat segment only constitutes 20 per cent of the

top line and as not all OEMs may get affecteddue to the virus epidemic. We do play significantlyin the exports and aftermarket segment, whichdrives most of the company’s business.

Raw material prices have overall been benignof late. Rates of carbon black have also softenedrecently, but not seen any price movement inthe crude-based raw material supplies.

Government has not announced any majordecision in the budget, but industry is hopefulof decision to be taken in future. We will notstop. Industry will continue to raise its issueswith the relevant authorities. Many of Chinesemanufacturers have shifted to Thailand, and

de-route imports to India from there. TheFinance Minister should levy anti-dumpingduty on import of tyres from Thailand.

Growth prospects of tyre industry certainly lookbetter. The overall economy activity is expectedto pick up in the upcoming couple of quarters asthe government’s recent measures play out morecomprehensively. Its recent thrust on ruralinfrastructure development too augurs well for theindustry. The government has allocated heftyamounts to roads, highways and transport sector.While overall optimism also gains strength fromthe recent assurances made by Finance Ministertowards improving economic growth.

Auto-part firms canAuto-part firms canAuto-part firms canAuto-part firms canAuto-part firms canhang on till Marhang on till Marhang on till Marhang on till Marhang on till MarccccchhhhhAuto-component supply chain in India hasstocks only for a month. Given its indubitabledependence on Chinese imports, the impactcould be severe if factories in Hubei inCentral China keep their doors shut for toolong. While imports from other countries andraising domestic production could save theday, it’s easier said than done.

Deepak Jain, Chairman & Managing Director ofLumax Group and president of the AutomotiveComponent Manufacturers Association (ACMA)says while manufacturing of parts cannot beshifted from China to India in two-three weeks,in the long term, there is need to de-risk andhave multiple vendors globally for criticalcomponents instead of depending solely on oneregion. Every crisis comes with a lesson.

Don’t see any significant impactDon’t see any significant impact



The current slump in rubber prices hasprolonged challenging the sustainability ofrubber cultivation in terms of its economicand social impacts. Pursuit to improveproductivity, efficiency and competitivenesshas to be an essential component ofstrategies in all economic sectors.

Addressing the inaugural session of two-day event - India Rubber Meet 2020titled “Rubber Resurgence ThroughInnovation”, held at Mamallapuram inTamil Nadu, KM Mammen, chairman ofAutomotive Tyre ManufacturersAssociation, and chairman andmanaging director of MRF Ltd, saidavailability of natural rubber emerged asa big challenge as domestic industryproduced only half of its demand,resulting in large-scale import of rubberand suggested the creation of a strategicnatural rubber reserve, development ofalternative rubber-growing regions (non-traditional regions like North-East India),new rubber clones and experiments ingenetically-modified rubber. Thanks tothe efforts of the Rubber Board, therehas been an improvement in naturalrubber production. But, the gap is toowide to bridge within a very short time.Rising temperatures, drought or heavyrains were affecting rubber yields andcausing disease outbreaks in rubberplantations across the world. We needto develop new rubber clones which canwithstand harsher climate conditionsand also continue with experiments ofgenetically-modified rubber.

He felt the creation of natural rubberstrategic reserve in India, equivalent toat least one month’s consumption, wouldgo a long way in minimising marketuncertainties, stabilising price

fluctuationsand ensuringg availability,b e s i d e sr e d u c i n gr u b b e ri m p o r t ssignificantlyduring thep e a kproductionseason. It isw o r t hmentioninghere that China already maintains astrategic natural rubber reserve. Thestringent requirements of new ageproducts such as radial tyres demandedimprovements in the quality of naturalrubber and the quality of natural rubberas a key raw material needed to keeppace with the changing scenario inmanufacturing.

In his keynote address, Sawar Dhanania,Rubber Board chairman, said that naturalrubber prices had seen both low andcomfortable levels, on and off, over thedecades. The present slump in rubberprices has prolonged challenging thesustainability of rubber cultivation in termsof its economic and social impacts. Othersegments of rubber value chain were alsobeset with challenges arising from globalcompetitiveness, dumping, non-tariffbarriers, technological bottlenecks etc.Excessive imports of rubber and majorproducts such as tyres and syntheticrubber was a major concern, he advisedthe industry to focus on adopting theavailable state-of-the-art technology andcost measures to compact the slowdownchallenges.

Invention,innovationa n dtechnologicalmodernisationacross thevalue chainto enhancecompetitivenessof all thelinks in thec h a i nshould beone of the

critical areas of consultations andcooperation. India Rubber Meet shall bea forum for further consultations in thisregard and for stocktaking ofachievements, he said.

KN Raghavan, executive director ofRubber Board, said IRM has alreadybeen branded as one of the major rubberevents at international level, bringing allthe stakeholders of Indian rubber sectoron a single platform, along with world-renowned experts, for valuableinteractions and fruitful networking.

In the present liberalised and globalisedeconomic context, the feasibility ofprotectionist support measures islimited. There was a need to focus onimproving the productivity and bringingin cost-cutting were the best efforts tosustain the cultivation in the period of aprolonged slowdown. Therefore, thestrategies for resurgence should focuson innovation which involves continuingresearch, exploring new areas andfrontiers, pursuing new ideas, knowledgesharing and adoption of newtechnologies, said Raghavan.

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From L/R: KM Mammen, Chairman of ATMA, Vinod Simon,Vice-Chairman, IRM 2020 Organising Committee, Sawar

Dhanania, Chairman of Rubber Board, KN Raghavan,Executive Director of Rubber Board



[email protected]@rubber4u.com

India’s chemical and petrochemicalsector may have to look at alternategeographies to import raw material andintermediaries if coronavirus continuesto impact trade in China. As a result,the cost of imports could increase. Thesupply chains are drying up, impact inthe next few months could be visible.

Companies involved in the production ofrubber chemicals, graphite electrodes,carbon black, dyes and pigments maybenefit from the current situation as theymay see an uptick in demand becauseof a fall in imports from China.

A wide variety of raw material is importedfrom China and it is not possible toquickly switch around for alternativesources. Also, cost-wise China used tobe the most competitive. But a fewplayers also see this supply shortageas an opportunity to boostmanufacturing and increase prices.Some people are seeing cost increasesthat have to be absorbed and passeddown the chain.

India depends on China for chemicalsacross the value chain with the latter’sshare in imports for broad categoriesranging between 10 and 40%, accordingto officials at the Indian Chemical Council.

Petrochemicals are the largest categoryof India’s chemical imports by value at54%. Intermediaries constitute 60% ofpetrochemical imports. Intermediarieslike ethylene oxide, propylene oxide,polyols, phenol, acrylic acid and styreneare the primary feedstock for specialty

chemicals which in turn are used toproduce a vast majority of consumersand technology products.

India is largely self-sufficient in naphtha,the feedstock for petrochemical buildingblocks and bulk polymers. However, the

country has been facing significantdomestic supply shortfall in almost allpetrochemical intermediaries of up to52%. This has led to petrochemicalintermediaries imports rising at acompounded annual growth rate of 5%between 2014 and 2018.

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Members of the Rubber FootwearManufacturers Association had beenmeeting the authorities at the local levelas well as state-level, including the stateFinance Minister, on several occasionsbut to no avail. Non-refund of VAT andGST dues have jeopardised the future ofindustrialists as they were facing a hugeshortage of working capital. The majorproblem which has come with the GSTfor the manufacturers is the differencein the rate of the GST on various rawmaterial and finished goods.

“Manpreet Badal Jawab do, hamarapaisa vapis do”, “Punjab sarkar sunohamari hunkar, paisa vapis karo ek hibar” these were the slogans raised byrubber footwear manufacturers during acar rally held to mark their protest.

Many of the rubber footwearmanufacturers held posters and some hadpasted these on cars. They said theworking capital was lying with thegovernment and in the absence of money,how they could run their factories.

They also gave a memorandum to GSTofficials, addressed to Chief MinisterCapt Amarinder Singh, and demandedrelease of GST/VAT refunds.

President of the Rubber FootwearManufacturers Association Neeraj Arorasaid the industrialists had broughtproblems of the rubber footwearindustries pertaining to non-refund of theGST dues lying with the departmentconcerned. Delay in refund by the stateauthorities is creating chaos in trade

as our entire working capital is blocked.The industry is facing a shortage ofworking capital.

Now, the situation has arisen when wehave to pay interest also while ourmoney is lying pending with thegovernment. It had been over a yearsince the GST was implemented, butVAT refunds of the previous tax regimewas sti l l pending. Your speedyintervention in the matter will beappreciated for initiating the refundprocess at the earliest.

State’s rubber industry is concentratedin Jalandhar and according to theassociation members, earlier there wereover 300 rubber footwear units, which havenow been reduced to around 100.

Assam government has exhorted uponGerman manufacturing industries to invest inAssam having a huge market for Germany’sadvanced engineer ing mechanisms intransport and communication, health, energyand power, industries and human resourcedevelopment

Assam’s Minister for Industries and Commerce,Chandra Mohan Patowary told a GermanIndustry delegation that skill developmentinitiatives had received a tremendous impetusfrom the Government of Assam through theAssam Skill Development Mission (ASDM).

Assam is slowly but surely, making its presencefelt as a state with immense potentialities and isemerging as the manufacturing hub of North

East India. Sustained efforts over the last fewyears by the State Government to enhance andstrengthen the state’s infrastructure is payingdividends today and those aware of the state’smassive investment opportunities, are nowshowing a keen interest in setting up industrieshere, stated Patowary while attending asymposium on German technology at a cityhotel. Around 8 German companies and around70 senior representat ives f romthe manufacturing industries of Germanyparticipated in the day-long symposium.

In order to promote German technology in NorthEast in general and Assam inparticular, Verband Deutscher Maschinen-undAnlagenbau (VDMA) - German EngineeringFederation, organised a symposium for the first

time on ‘German Technology for the IndustrialDevelopment of Assam. The Minister informedthe German industry delegation that Assam canbe a natural choice for investors as the state isthe gateway to South East Asia and to open aGerman business chapter in Guwahati whichwould exclusively work with the state’sIndustries and Commerce department to takeforward and expand the initiatives at the nextlevel.

The total investment by Germany in India uptoSeptember 2017 is US$ 10.63 billion. Germanyis the 7th largest Foreign Direct Investment (FDI)in India. There have been over 1600 Indo-German collaborations and 600 Indo-GermanJoint Ventures. While total trade between Indiaand German is US$ 18.95 billion.

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Footwear manufacturers take out rally in protestFootwear manufacturers take out rally in protest



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Margins of tyre makers set to expandTyre manufacturers are likely to see an expansion in operatingmargin during January-March 2020 as the spread of coronavirushas led to fall in prices of crude oil and rubber chemicals, which areused as raw materials. Global spread of coronavirus, which originatedin China’s Hubei province, has led to a sharp fall in price of crudeoil, which is a key ingredient in making rubber chemicals.

Certain chemicals that are derived from crude oil make up to13% of input costs for tyre makers, whereas synthetic andnatural rubber account for another 46%. Lower price of crudederivatives and softening prices of natural rubber due to weakdemand to benefit Indian tyre companies. Not only lower rawmaterial costs, but fall in imports from China, which will reducecompetition, will boost margins of these companies.

Spread of coronavirus disease has affected travel and transportservices and economic activity in general worldwide. This hasadded to the weak trend in crude oil prices and is expected tofall further before they stabilise. The coronavirus definitely hashad an impact on the tyre industry. Even though the rubberprices have risen by ̀ .5-10 per kg in domestic as well as globalmarkets, the fall in crude oil price has helped the companymaintain the cost of production.


interNATIONALinterNATIONALUpdate4UUpdate4UUpdate4UUpdate4UUpdate4UUpdateUpdateUpdateUpdateUpdate44444UUUUU

Currency INR/1Unit INR/1Unit

Chinese (Yuan) 10.21 10.31Europe (Euro) 77.35 79.42Indonesian (Rupiah) 0.0052 0.0050Japanese (Yen) 0.65 0.66Malaysian (Ringgit) 17.24 17.09Singapore (Dollar) 51.28 51.72Sri Lanka (Rupee) 0.39 0.39Taiwan (Dollar) 2.37 2.38Thailand (Baht) 2.28 2.28US (Dollar) 71.42 72.18Vietnam (Dong) 0.0030 0.0030

On 17th Feb On 29th Feb

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Global oil production will increaseby 0.7 million barrels per day, toroughly 102.3 million barrels perday from fourth-quarter 2019 tofourth-quarter 2020, economists atthe Federal Reserve Bank ofDallas, Texas, report.

The International Energy Agency’sconsumption forecast indicates that, dueto the impact of the virus, first-quarter2020 global oil demand will decline byroughly 0.4 million barrels per day vs.first-quarter 2019. The coronaviruspresents a meaningful risk to demandgrowth globally as overall Chinese oilconsumption represented approximately14% of total global consumption.

Crude oil prices gave up early gains andslid for a fourth day as fears of acoronavirus pandemic deepened as the

outbreak spread in several countriesoutside China. Brent crude was down at$50.52 a barrel . The contract earlier fellto its lowestsince December 2018. WestTexas Intermediate (WTI) futures fell to$44.76 a barrel. The contract earlier fellto its lowest since December 2018.

The International Energy Agency’soutlook for global oil demandgrowth has fallen to its lowest levelin a decade and could be reducedfurther due to the outbreak. Thereality is that the coronavirus hasnot been contained and is nowspreading like wildfire across the

world. According to Oxford Economicsin its latest report, rapid spread ofcoronavirus is likely to drag global GDPgrowth to 2.3% in 2020.

Earlier, oil prices rose on short-covering and amid hopes for deeperoutput cuts by the Organization of thePetroleum Exporting Countries (Opec)and its allies including Russia. But theupside was limited as risk of thecoronavirus outbreak hi t t ing oi ldemand. Opec are due to meet inVienna during 5 - 6 March.

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The Malaysian Rubber ExportPromotion Council (MREPC) expectsa positive growth of rubber productsexports in 2020 due to the increasedcapacity and production from thecoronavirus outbreak as well as newinvestments in the dry rubber sector,including tyres, automotive parts andindustrial goods.

Despite the negative export trend toChina in 2019, where total exports ofrubber products fell 2.1% to MYR 21.2billion from MYR 21.6 billion recordedfor the same period in 2018. MREPCsaid the rubber products industry will

nevertheless capitalise on the growingdemand and intensify its promotionalactivities in the country to enhanceawareness of Malaysian products.

The MREPC Strategic Plan 2021-2025has identified key products to beprioritised by the council: the productsinclude rubber gloves, other medicaldevices such as condoms andcatheters, engineered rubber products,automotive products such as precuredtreads, and foam products. Aside fromfive core strategies listed to enhanceexports of rubber products, the MREPChas also predicted improvements in

economic performance in emergingmarkets in Latin America, the MiddleEast and Europe.

Concerning the automotive sector, theMREPC will facilitate joint ventures andpartnerships in automotive partsproduction; conduct an export pathfinderprogramme; increase domestic marketshare of small and medium enterprises’products; and assist new companies andstart-ups to grow/export. With thestrategies, the council is confident thatits set export target of MYR 34 billionby 2025 for Malaysian rubber productsis achievable.

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Malaysian rubber glove makers areestimated to chart strong improvementin their financial performance for financialyear 2019 and 2020, underpinned byhigher demand for rubber products andresolved labour issues, which enabledtheir factories to be fully operational atthe highest capacity.

There had not been many shake-ups inthe last quarter of 2019. Demand fornitrile and latex gloves, which are widelyused in the health industry is expected

to translate into the companies’earnings profits in the 1Q20.

The coronavirus outbreak in China hasincreased the demand for rubber gloveson the back of increased awarenessacross the region to prevent cross-contamination between virus carriers andcaregivers. According to gloveproducers, extra orders from China arestill in the enquiry stage and still havenot been placed as orders. It is believedthat Malaysian glove producers have

been the global preferred suppliersbecause they have the capacity to meetthe increased supply-demand.

Going forward, Malaysian gloveproducers could see improved marginsearly this year, driven by increasedproduction.

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Cambodia exported 27,445 tonnes ofrubber worth $40 million in the firstmonth of 2020, up by 17% comparedto the same period of 2019. Anincrease in global demand was themain driver of the industry’s growthlast month, China remains thelargest market for the Kingdom’srubber, said Khuon Phalla, who is thedirector of the General Directorate ofRubber ’s Depar tment o fAdministration and Legislation underMinistry of Agriculture, Forestry andFisheries.

Cambodia exported 282,071 tonnes ofrubber last year, a 30% increase from2018’s 217,501 tonnes. Thecommodity reeled in $377 million inrevenue last year, up 32% from 2018’s$286 million, a ministry report said.The average price during January 2020was $1,433 per tonne, up $207 fromDecember 2019. It is expected that theprice of rubber will continue to increaseover the next few months.

The data also showed that a total of406,142 hectare of rubber had beenplanted last year, with more than 247,113hectare having been harvested.

Meanwhile, rubber growers andexporters have expressed concern thatprices will continue to fall as Thailandseeks to boost its natural rubber exports.When all the major countries increasetheir sales of rubber products, it will bringdown the price of our rubber, as the costof production in Cambodia is higher thanin Thailand, Malaysia and Indonesia.

Earlier in February, Rubber DevelopmentDepartment deputy-director Kou Phallysaid the directorate announced a jointstudy on family-owned rubber plantationsin provinces to better understand howgrowers have responded to the sharpdrop in rubber prices over the past nineyears. The study will focus on theKingdom’s three dominant rubberproducing regions – Kampong Cham

province’s Stung Trang district, Kratieprovince’s Snuol district and Ratanakkiriprovince’s Bakeo district.

If one look at recent global demand andsupply of rubber, one can see that thesupply of natural rubber is increasingwhile demand has decreased from 1.5million tonnes to less than one milliontonnes on the global market.

RRRRRubububububber eber eber eber eber exporxporxporxporxports incrts incrts incrts incrts increase 17%ease 17%ease 17%ease 17%ease 17%RRRRRubububububber eber eber eber eber exporxporxporxporxports incrts incrts incrts incrts increase 17%ease 17%ease 17%ease 17%ease 17%

According to Zion Market Research,the global reclaim rubber marketwhich stood at 3,190.6 kilo tonnes interms of volume and US$ 2.09 billionin terms of revenue is expected toexpand to 5,651.2 kilo tonnes andUS$ 3.75 billion respectively in 2022.



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During his first discussion with theindustry representatives, PrabhashSubasinghe, chairman of Sri LankaExports Development Board (EDB),urged rubber industry leaders to strivetowards achieving greater heights inexports. The sector has the potential toincrease its export income substantiallyand pledged the EDB’s fullest supportto the initiatives of the rubber industry.

Sri Lanka Association of Manufacturersand Exporters of Rubber Products(SLAMERP) envisage increasing theturnover of the rubber industry to US$4.4 billion by 2025 as per the industrymaster plan 2017-26.

In this regard, Rohan Masakorala,Director General of SLAMERP,

highlighted the necessity of boostingnatural rubber production in Sri Lanka asthe current local production is sufficientto meet only 50% of the industry’srequirement. He explained theimportance of encouraging small holdersto follow proper fertilizer practices, userain guards, and adopt early tapping inaddition to carrying out replanting on time.

Industry representatives also proposedto expedite the process of issuinglicense and clearance certificates toease the restrictions enforced on importof friction core and tyre crumb used inthe solid tyre industry. They alsomentioned that it is imperative toupgrade the testing equipment in theRRI to facilitate local manufacturers tocompete in the international market.

Tyre industrytechnologicalachievementrecognitionTire Business’ sister publicationEuropean Rubber Journal plans torecognize technological achievement intyre industry automation anddigitalization this summer with a newaward, the Journey to Automation (J2A)award. The inaugural awards will bepresented on 11th June, during ERJ’sFuture Tire Conference, which is held inconjunction with The Tire Cologneinternational trade fair in Cologne,Germany. This show is the perfectbackdrop for the J2A Awards, which willshine a light on the innovation happeningtoday in the global tyre industry.

J2A Award nominations may besubmitted individually or jointly aspartners in a project for the followingcategories: Tyre manufacturers,distributors, retailers; Automationvendors and suppliers of IT services tothe tyre industry; Suppl iers ofequipment and/or materials to the tyreindustry; Suppliers of systems usedin handling and distribution of finishedt ires; and Service/supportorganisations involved in any of theabove activities.

Nominations, which should be madeonline at tire-conferences.com, are dueon 11th March.

The U.S. Tire Manufacturers Association(USTMA) has accepted Nokian TyresP.L.C. as its 13th member. Nokiancommissioned passenger/light truck tyreproduction at its first U.S. factory, inDayton, Tennessee, United States in2019. The plant, rated at 4 million tyresa year at full capacity, is the Finnishcompany’s third factory overall and firstoutside of Europe.

Nokian Tyres’ investment in the UnitedStates is a testament to the continuedopportunities for growth and prosperity

in the U.S. tyre manufacturing industry,USTMA President and CEO AnneForristall Luke said.

The other members of the USTMA are:Bridgestone Americas Inc.; ContinentalTire the Americas L.L.C.; Cooper Tire &Rubber Co.; Giti Tire (USA) Ltd.;Goodyear; Hankook Tire America Corp.;Kumho Tire U.S.A. Inc.; Michelin NorthAmerica Inc.; Pirelli Tire North America;Sumitomo Rubber Industries Inc.; ToyoTire Holdings of Americas Inc.; andYokohama Tire Corp.

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Nokian Tyres becomes 13th USTMA memberNokian Tyres becomes 13th USTMA member



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The Ministry of Plantation Industries andExport Agriculture launched theautomation of measuring lands throughGPS technology under the SmallholderTea and Rubber Revitalisation (STARR)Project funded by the International Fundfor Agriculture Development (IFAD). Thetotal project, which is being implementedover a six-year period (2016-2022), costwill be US$ 65.4 million of which IFADwill provide a loan equivalent to US$25.76 million.

The Government has set up theSmallholder Tea and RubberRevitalisation (STARR) Project incollaboration with the International Fundfor Agricultural Development (IFAD) toassist in improving the productivity of thetea smallholder sector, expand rubbercultivation into non-traditional rubbergrowing areas and to support small scalerubber processing.

Beneficiaries will make a substantialcontribution in terms of their own labourand capital for replanting of tea,cultivation of rubber, inter-cropping andtheir contribution to private nurseries,

access roads and rubber processingunits provided under the project.

Smallholders dominate Sri Lanka’s teaand rubber sectors, which have beenmaking a notable contribution to thenational economy for over a century.They account for 73% share of teaproduction and 63% share of rubberproduction. There are tremendousopportunities and challenges forsustainable smallholder tea and rubberdevelopment, particularly in terms ofproductivity and market linkages whichimpact directly on the smallholders’livelihood and poverty levels, accordingto a report by the STARR project.

GPS devices were presented to TeaInspectors of the Tea SmallholdersDevelopment Authority, who areresponsible for measuring the lands ofTea Smallholders. Plantation Industriesand Export Agriculture Minister Dr.Ramesh Pathirana, State Minister of TeaIndustry Development, KanchanaWijesekara and Country Director ofIFAD, Dr. Tarek Kotb were present onthe occasion.

LIGS launchesnew portalThe Sabah Rubber Industry Board (LIGS)launched a new portal. It replaces theofficial website, which it said is moresmallholder-friendly as it enables themto check and update their personalinformation in the Sabah Smallholders(PKNS) system without having to fill upany form.

Apart from that, they can also print theirsales statement, daily or monthly, wherethrough this statement they can find outthe actual rubber prices, as well aslooking at the whole prices, including theState Government assistance which is30 sen per kg. Also on the portal is theRubber Production Incentive (IPG)payment (according to current rate).

Agriculture and Food Industry Minister,Datuk Junz Wong, who officiated thelaunching of the new portal during theboard’s 70th anniversary celebration,hopes smallholders will make full use ofthe new portal. Congratulating the boardfor the new portal, he said it shows itscommitment to provide the best deliveryservices to all smallholders in the State,he urged the board management andstaff to continue striving to up the qualityand effectiveness of services for thetarget group.

LIGS need to think of other methods thatcan help smallholders, especially duringthis time when rubber prices are low. Inoted that LIGS is currentlyimplementing additional economicactivity (AET) projects like Kelulut honeybee, ginger, pepper and fruits farming. Iproposed that they expand it to a moresustainable ventures like pineapples andswiftlet farming. This year will be moresignificant and critical for LIGS as thisis the final year for the implementationof the 11th Malaysia Plan (11MP)projects, while requesting LIGS toensure all projects approved under the11MP to be completed, he said.

GPS technology to measureGPS technology to measureGPS technology to measureGPS technology to measureGPS technology to measuresmallholdersmallholdersmallholdersmallholdersmallholders lands lands lands lands land

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Rubber Outgrowers and AgentsAssociation (ROAA) has expresseddispleasure over the dictatorship styleand unfair trade practices of the GhanaRubber Estate Limited (GREL) to itsmembers. According to them, GREL hasrecently been very dictatorial in itsdecision-making and were implementingdecisions that were negatively affectingrubber outgrowers.

While speaking at a press conferenceat Agona Nkwanta in the Ahanta WestMunicipality of the Western Region, theNational Chairman of ROAA, IsaacCastro Bosomtwe, said the earliergovernment intervened, the better forthe rubber industry. On August 1, 2019,GREL went ahead to implement thereduction of the Dry Rubber Content

from 58% to 57.5% at the blind side ofthe association after a stalemate,adding that, such a component was partof the price mechanism agreedbetween GREL and ROAA through aMemorandum of Understanding (MoU)and that it should not be changedwithout the consent of one of theparties. Again, on 10th February 2020,GREL issued a letter stating theycannot pay suppliers of raw rubberwithin 24 hours. They will rather paywithin 60 days with immediate effect.

He said on February 13, 2020, ROAAwrote to GREL, asking the latter toconvene a meeting to discuss theimpact of its decisions on stakeholdersbut GREL has since not responded tothe letter.

Another painful thing the farmers aresubjected to is the payment of penalinterest on principal and interest by thebanks due to delayed payment notcaused by the farmers but GREL. Perthe Tripartite Agreement, GREL is todeduct 25% from farmers’ product sentto GREL for loan repayment. GRELdelays payment to the banks and thefarmers are penalised. The situationhas forced some farm owners to resortto side sellers at a reduced price. Weare therefore calling on the Governmentof Ghana (GoG) so that the rubberindustry does not collapse under thewatch of His Excellency Nana AkufoAddo. If the government does notintervene in this matter, the perceptionof the rubber farmer on the governmentcould affect, he said.

The recent emergency caused by theCoronavirus epidemic is a source of concernfor Italy’s exporting companies, above allthose with intense business relationshipswith China. China is an important exportmarket for Italian manufacturers ofmachinery, equipment and moulds forplastics and rubber processing.

There have already been many casesof delays in the delivery ofmachinery ready for dispatch orapproaching completion at themanufacturer’s factories, as a result ofthe halt in production imposed onChinese companies by nationalauthorities and the uncertainty regarding

the timescale of a return to normal workschedules.

The postponement in the installation ofnew plant, in addition to delays in neworders and investment decisions, couldrepresent a major difficulty for Italiancompanies who may find themselveshaving to deal with financial stressescaused by delays in payment. Inaddition, some companies that for anumber of years have been operatingmanufacturing units or trading offices inChina have been forced to temporarilyclose. However, at present there arereports of a progressive, though slow,return to normal operations.

Rubber farmers angryRubber farmers angryRubber farmers angryRubber farmers angryRubber farmers angryRubber farmers angryRubber farmers angryRubber farmers angryRubber farmers angryRubber farmers angry

Italian companies in difficulty due to CoronavirusItalian companies in difficulty due to Coronavirus World Rubber Summit tobe held at Ivory CoastWorld Rubber Summit 2020, co-organised by theInternational Rubber Study Group (IRSG),together with the Ministry of Agriculture and RuralDevelopment, Republic of Cote d’Ivoire asstrategic partner, to be held during 4 – 6 May2020 at Sofitel in Abidjan, Cote d’Ivoire titled“Unlocking the potential of the rubber economy:Pathways to growth in the next decade.”

The IRSG encourages participants to join theorganization in another exclusive opportunityto advance on current challenges to transformthe global rubber industry. The global economyis in a synchronized slowdown, a 3% growthin 2019, the lowest since the financial crisisbefore moving to the next decade.



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Global footwear powerhouse Skechersis building on the technology in itsfootwear through a new collaboration withGoodyear Tire & Rubber Company.Based in Manhattan Beach, California,Skechers designs, develops andmarkets a diverse range of lifestylefootwear for men, women and children,as well as performance footwear for menand women. Select styles acrossmultiple categories will utilise Goodyearrubber technology in custom Skechersoutsoles that will deliver increased grip,stability and durability.

This collaboration is an example of twotrusted brands coming together to createa high-tech product that will truly benefitour consumer. Through this effort, selectproducts will feature GoodyearPerformance Outsoles, offering that extra

edge where it’s needed most, said MichaelGreenberg, president of Skechers.

Goodyear has always worked to createinnovative products that provideconsumers with high-performance tyres,and now we’re using that same ingenuityto enable consumers to wear high-performance shoes, said ChristianJurado, Goodyear’s global director oflicensed products.

The shoes, featur ing GoodyearPerformance Outsoles, are designedfor durability with long-lasting wear,excellent grip on a variety of surfacesand weather cond i t ions andenhanced s tab i l i ty throughexceptional traction. This is madepossible with Goodyear-developedrubber technology that contains aspec ia l po lymer inc lud ingsustainable soybean oil.

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Breakthroughinnovation in NDCmasterbatchBirla Carbon and GranBio Technologiesannounce the introduction of their patent-pending Nanocellulose Dispersion Composite(NDC™) rubber masterbatch for qualificationby tyre and rubber companies. Thebreakthrough in NDC™ masterbatch is theresult of a three-year Joint DevelopmentProgram between the two companies designedto address growing sustainability demands fromthe tyre industry both in terms of improving tyrerolling resistance and vehicle fuel economythrough enabl ing the incorporat ion ofsustainable, bio-derived nanocellulose intocommercial rubber compounds.

The b reak th rough in nanoce l lu losetechnology for rubber compounds providesmany advantages and benefits for the rubbercompounder including easy dispersing,conven ien t , dus t - f ree hand l ing andintegration into formulations along withincreased use of renewable raw materialsand improvements in fuel economy.


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.

(Prices in yen / kilogram)

Day Session (08:45 - 15:15) As of 28th February 2020 16:03 JST

Trade Date: 28th February 2020

SCHEDULE

Exhibition

Conference

mber Last Setl. Price Open High Low Close Change Volume SettlementMarch 2020 175.7 173.0 173.0 165.3 168.0 -7.7 48 168.0April 2020 179.0 177.3 177.3 169.6 169.7 -9.3 174 169.7May 2020 180.3 177.7 177.7 170.8 171.1 -9.2 80 171.1June 2020 179.0 175.0 177.3 170.4 172.3 -6.7 409 172.3July 2020 179.8 176.5 177.6 171.2 171.6 -8.2 3,193 171.6August 2020 180.4 177.0 178.0 171.6 172.2 -8.2 4,310 172.2

Tyre & Rubber Indonesia18 - 20 March 2020At JIExpo Kemayoran,Jakarta, Indonesia.

IIBT 202018 - 20 March 2020At JIExpo Kemayoran,Jakarta, Indonesia.

INAPA 202018 - 20 March 2020At JIExpo Kemayoran,Jakarta, Indonesia.

Tyrexpo Africa24 - 26 March 2020At Sandton Convention Centre,Johannesburg, South Africa.

Europe Rubber Expo 20206 - 7 May 2020At Budapest, Hungary.

Asia Pacific Tyre & RetreadExhibition14 - 16 May 2020At MIECC, Seri Kembangan,Malaysia.

Rubber & Tyre Vietnam17 - 19 June 2020At Ho Chi Minh City,Vietnam.

GRTE 20208 - 10 July 2020BITEC, Bangkok, Thailand.

China International Tire& Wheel Fair23 - 25 July 2020At Qingdao International ConventionCenter, PR China.

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