[06 Feb] Japan's 2009 Natural Rubber Imports Down 30% on Year

Japan's natural rubber imports fell last year, which traders mainly attributed to sluggish purchases during the first half amid the global economic recession and large inventories.

Imports in 2009 fell 30% on year to 596,771 metric tons, according to the latest estimates from the Rubber Trade Association of Japan, which didn't give any reasons for the sharp fall. More than half of the imports were of Indonesia's TSR grade.

Imports in December were down 9.1% on month at 51,645 tons after two successive months of rises. Imports rose 19% on month in October and 2.8% in November.

Japan's natural rubber stocks declined to historically low levels of 3,902 tons as of Nov. 10 but have recovered in the last three months and were estimated at 6,877 tons as of Jan. 20. This may have led to a marginal slowdown in imports in December.

But traders expect imports to be higher this year due to a recovery in new auto sales and strong demand from China.

Japan's domestic sales of new cars, trucks and buses rose 36.8% on year in January on buying incentives from the government, marking the sixth consecutive month of increased sales.

Traders also import rubber from Malaysia, Indonesia and Thailand for sale to tire makers inChina, to take advantage of rising prices.

Tocom rubber futures have declined to around Y267 a kilogram from a 16-month high of Y306/kg in the last few weeks, but early December imports by traders in Japan can still be exported for a profit to China.

RSS rubber imports, mostly from Thailand, fell to 13,056 tons in December from 15,015 tons in November.

The bulk of the imports were of the TSR grade, at 36,271 tons, down from 39,369 tons.

TSR imports in December included 27,154 tons from Indonesia, down from 27,779 tons.

(Source: irco.biz)