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RSS3 RUBBER
CONTRACT SPECIFICATION
| Trading Screen Product Name | OSE RSS3 Rubber | |
| Commodity Code | TRU | |
| Contract Size | 5 tons/ lot | |
| Price Quotation | JPY / kg | |
| Trading Hours | Monday - Friday Session 1: 07:00 A.M – 01:15 P.M Session 2: 02:30 P.M – 05:00 P.M |
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| Minimum Price Fluctuation | 0.1 JPY / kg | |
| Contract Series | Nearest 12 contract months | |
| Delivery Registration Day | The fifth business day prior to the First Notice Day | |
| First Notice Day | As MXV required | |
| Last Trading Day | The fourth business day preceding the last business day of the delivery month | |
| Margin | As MXV required | |
| Position Limit | As MXV required | |
| Price Limit |
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| Settlement Method | Deliverable | |
| Quality Standards | Standards are detailed below |
QUALITY STANDARDS
In accordance with the regulations of RSS3 (Ribbed Smoked Sheet No.3) Rubber traded on Tokyo Commodity Exchange (TOCOM), and the description on The Green Book-1969).
Product infomation
About Rss3 . Rubber
Rubber is an industrial plant of the genus Hevea Brasiliensis, native to the Brazilian Amazon. The tree has resin (latex) as the main raw material in the production of natural rubber. The rubber tree was once known as white gold in the first half of the 20th century because of its great benefits.
In Vietnam, rubber is grown on a large scale, covering the whole country. Rubber tree quickly became a key industrial tree and one of the three agricultural sectors that contributed the most to Vietnam's export turnover.
Natural rubber contracts are also frequently used for hedging or investment. RSS3 rubber is traded at the Tocom Commodity Exchange
Figure 1. Exploiting rubber trees for latex
Characteristics of rubber Rss3
Rubber trees grow well in the humid tropics, with an average temperature of 22°C to 30°C (best at 26°C to 28°C), needing a lot of rain (preferably 2,000 mm) but not Resistant to flooding and wind. Rubber trees can withstand drought for about 4 to 5 months, but latex yield will decrease.
All natural rubber products have good mechanical properties, especially durable, good tensile strength. The outstanding property of natural rubber compared to synthetic rubber is its bounce and good resilience. Natural rubber, after being stretched, recovers almost completely to its original size when released and then slowly recovers some residual deformation. Products made from natural rubber have very high fatigue resistance, used in continuous motion applications. According to the report of the International Rubber Research Organization (IRSG), about 60-65% of natural rubber production is used in the tire and pneumatic car industry; 8% is used for energy transmission belt products, conveyor belts, gaskets, seals, pipes; about 6% are used for medical glove products and the remaining 9% are for other needs.
Rss3 . rubber products
Natural rubber latex has two main types of products: water latex (latex) and dry latex (TSR). use. This product also includes groups such as latex smoked sheets (RSS), (Figure 2). Graded according to cleanliness, color and absence of defects such as air bubbles that can be seen with the naked eye, RSS is processed in block form according to the standards of each country.
Figure 2. Ribbed Smoke Sheet
Dry latex is rubber latex in the form of blocks, developed due to the demand for technical rubber. Mass rubber production is basically the conversion of wet raw rubber into granules by rapid and continuous processing techniques. Dried samples or granules are agglomerated into solid rubber blocks. Dried latex products are mainly used to produce tires, auto parts, conveyor belts, etc. (Figure 3).
Figure 3. Production of dried rubber latex at the factory
The group of the largest rubber producing countries in the world includes: Thailand, Indonesia, Malaysia, Vietnam, India, China, etc. In which, Thailand usually accounts for about one third of rubber production worldwide.
Southeast Asia is the region with the largest export volume in the world with leading countries such as: In 2018, Thailand was the world's largest exporter of natural rubber (about $4.6 billion, accounting for $4.6 billion). about 24.8% of export value followed by Indonesia, Vietnam, and Malaysia. (Figure 4)
Figure 4. Top 15 rubber exporting countries in 2018
Importing countries include the world's two largest economies, China (about 3.6 billion USD), accounting for about 25% of import value. Next is Mx with 1.7 billion USD, accounting for about 12% of the value. (Figure 5)
Figure 5. Top 15 rubber importing countries in 2018
Factors affecting the price of rubber
* Demand for cars:About 75% of the world's rubber is used to manufacture car tires. Not only car tires, car manufacturers also use rubber in many other parts of cars such as airbags, carpets. Therefore, the demand for automobiles is an important factor affecting the price of rubber. China is the market with the largest car sales in the world by 2015, this is also the market with the most growth in demand for cars in the world.
* Crude oil prices :
Rising crude oil prices make synthetic rubber more expensive than natural rubber. Therefore, information about politics or oil exploitation policy of OPEC is likely to affect the price of synthetic rubber.
* Commercial policies :
Rubber is concentrated in production throughout Asia. Therefore , major rubber producing countries in the world such as Thailand , Indonesia and Malaysia have established the Rubber Council to make policies in the rubber industry . Therefore , policy decisions from the above countries can affect the supply and price of rubber .
* Global supply and demand:
Rubber trees often have a long growth cycle, so growers have to predict when the demand for rubber is high in order to plant a crop. Strong economic growth can influence farmers' decisions to grow rubber. However , in the process of waiting for rubber trees to be harvested , economic conditions may have changed . Therefore, the changing economic situation may lead to a shortage of rubber supply.
* Dollar:
Most commodities are affected by the USD
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