1953-07-16 — Page 91

More Natural

Rubber Being

Used In

World

World production of natural rubber in the first half-year is estimated in London to have been about 825,000 tons, on the basis of reported figures. Consumption has risen to 790,000 tons, against 735,000 tons in the first half of 1952.

The production picture is more obscure than usual because of the ban imposed by the Indonesian Government carly this year on the export of rubber on consignment, principally to Malaya."

Tin for immediate delivery declined the day before yester- day at one fime on the Ex- Statistically it has always The world consumption change

to £380 per ton, the | been necessary to take In- figures allow for Chinese lowest price except for a fewdonesian smallholders' ex-45,000 tons into Kuala."

part of 32,500 tons, and some ports us equivalent to pro-

shilling since the sturt uf Korean Wur bi 1950.

Reports today from Singapore duction, but this year even said there is widespread talk this approximation cannot there that a tin pool should be

|be regarded as a reasonable formed in Malayn in on effort

guide. to raise prices, thereby avoiding further mines closing down and a cause of unemployment.

The leading newspaper in Singapore, the Straits Times, yesterday urged producers, smelters and the Federation Government to get together im- mediately to consider the sug- gestion, as prospects for an in- ternational agreement were not considered optimistic. - United Press.

SINGAPORE VIEWS

Singapore, July 15,

Straits to the the Singapore tin price

Both the U.S. and Britain are adjusting their wheat policies to their respective positions and this month attitudes on the International Wheat Agreement. million in June and $21 million is determined solely by

The dollar receipt trùm EPU w be only $2 $10 million, compared with

In May.

an in June, the last month of

AUTIL selfiement of

To relieve glutted markets and storage, Aid from the US, normally Washington is subsidising U.S. exports up to mid-run lower in July and August August 1954 just as if the still unratified new the US, financial year, which Agreement were already in force. Even though includes it is not yet certain that the U.S. itself will ratify At least one of the seasonal it, 24 importing countries can already have the U.S. subsidy on 90 per cent of their import quotas for the 12 months ending July, 1954, under a still non-existent Agreement.

rise

ane.

features, tourism, will be worse In June: that month may still have benefited from Coronation spending In Britain, and it bare- ly suffered the beginning of the British seasonal tourist spending abroad.

in July and August than it was

of

According 'Times,

factors:

1. The amount of stock and offered;

two

for

-tin

2. The amount of bids and quantities wanted by pur- chasers.

The paper sald an obvious solution to the downward trend 111 the price of lin would be to withhold from the market about half. of Malaya's production which could be made into a pool from which the could be

released at determined

Rutomatically prict:

uned by the Malayan producers themselves. The Singapore market cons!- dered the idea good but its in- plementation is dificult, but they were frenly convinced of action the head of immediate rather than to wait prolonged negotiations.

On the other band the Chiræse

R

In in-

in the

I allowance is made, there fore, for rubber which is be- loved to be stocked doncsin, world output first half-year may have been as great as In the first half of 1952, when it was 857,500 tons. Indonesia unquestionably pro- duced more rubber than Malays, and a significant factor is that is Beiling more to the On the basis of estate produc tion and smalzolders

reported exports, the first half-year's out- put in Indonesin is some 330,000 bons, but allowing for the stock- ing up the true production may have been of the same order as In the first half of 1952, when It reached 383,000 tons.

sho

U.S.

HALF-YEAR SURPLUS

Jme

These estimonies, excluding the Indonesian stocking up, would show au aparent surplus for the Half year of some 35,000 tons only, und the bulk of this is bo.. US. stockpile based on forward lleved to have been taken by the buying late in 1952.

the Study

In London it is thought that Group estlinate of

a 1053 naturaj rubber surplus of 103,000 tons lu some 50,000 tons too high, even allowing for the fact that the second half of any always brings year

higher yields for seisonal renson.

Whether the US. stockpilo, is sull acquiring new rubber, an distinct from that already con- Опо treted for, is unknown, of the two targets mentioned 1.1m, tons--has definitely been

not but it in pased,

clear whether the higher target some- MALAYAN YIELD

times quoted of 1,25m. tons is Malayan yield has changed

in fuct bejag worked to. Hittle from January-June, 1952,

Tentative estimates of dollar when 'output was 280,000 tons. carnings from rubber,

Inude Estate production hay risch more difficult to calculate by slightly and smallholder out-th Indk of full Indonesian put has fallen, but the turnover statistics, are that the sterling is probably less than 15,000 tons.

area reserves will benefit to the extent only of $50m.-$55m. This would compare with $125m. In the first half of 1052,

World consumption has risen in the Arst half of this year to about 790,000 tons, compared with 735,000 tons in

The total for 1952 was $180m., the com-

for 1981 (when rubber reached The parable period of 1952. U.S. has used some 70,000 tons its peak price) It was $400m,

more natural in the half-year and for 1050 $342m. at 285,000 tons against 217,500

100,000 100,000

În 1952, but UIC. consumption fell slightly to around tons, compared with inst year.

consumption of na-

DOLLAR INCOME

It would not surprise London trade and producing spokesmen I 1953 turned out to have the lowest dollar income from natural rubber sales of

any

tural is to reach the level pro- Jected by its spokesmen attend- year since the war, and brought ing the May meeting of tho in less than the $125m. earned

in 1049. Rubber Study Group in Copen- hagen it will have to continue at the first half-year rate, as

consumption for 1953

WA5 estimated at $75,000 tons.

I the Agreement is ratified by † wheat

above the new all the countries which signed it, maximuni, as may happen when

NON-RECURRING the only country excluded from the post-harvest put passes off, the U.S. subsidies will be Britain.} and the congestion of U.S. For the

Part of however, storage is relieved.,

the reduction in the pinning Washington

the A failure of the U.S. maize, EPU surplus la June as well as the 24 to subsition

countries crop, if Washington is favoured in May might have been a non- which have already ratified or with

would

also help to recurrent filing of the British which it expects to ratify by relieve the glut of wheat. There banks pipeline of EPU currencies miners, who form about 40 per 15. Besides Britain, the list is no particular reason to ex- under the currency arbitrage cent of the Malayan producers,

If U.S. opposed to the were generally excludes 17 other countries, in- pect such a failure (the weather scheme which started on May 18.

the non-recurrence

idea of a local buster pool be- If so, cluding such important ones as in July and August is decisive

and August Leving that there should be an Brazil, Indonesia, Mexico, New for the maize erop and is un-this factor in July

Peru, Zealand,

international pool or nothing. much Philippines, predictable) and nothing

may offset some, of the seasonal

Meanwhile, in Kuala Lumpur Sweden and Venezuela, flowever, can he expected on the demand detractions in other fields.

Trade Union Coun- the it Washington

Maloyan the side of about the side

feed grain. 15 right

If high

If, as has lately appeared, the

ell yesterday decided to request list of 24 countries that it ex-incomes maintain a high demand outflow of reserves from the U.S.

Jan- Beets to ratify, and always sup- for meat, far, ers will eventually is to continue, Britain's reserves the Government that

investigate. in co- posing that the U.S. itself also raise enough livestock to cicar are unlikely to come

to much mediately

operation with the werkers, the ratilles, the Agreement will come the glut of grain: but they can-horm. But it remains to be seen

possibly of nationalising the into force.. The 24 countries not do it in time for this year, whether they will come to much fin industry. Reports emphasised

Inflation of the have aggregate import quotas of and the worst

of the good.

that they did not ask for in- which exceed demand for meat seems to be 9,290,000 tons,

Britain seems In June,

mediate nationalisation but The U.S. pig the minimum of 8,104,000 tons of over.

crop is the have got less than her share of merely an investigation of the

the the outflow from the U.S. import quotas (50 per cent of smallest in several years:

possibilities United Pres. the totall needed for ratification. only effect of the looming glut There is some reason to be- They do not entrmand the 70 of grain, so for, is to make lleve that, even if the outflow

which it not cent of the total

quile

small 50 per would have

needed for farmers originally intended. been ratification before the rules were

ARGENTINE PURCHASE changed in April (after Britain hind refused to sign).

The British Food ministry's re-

to

as

continues, Germany and some other non-sterling countries Than miky be more in line Britain to get most of it.

FACTS BETTER

Washington is taking a chance ported purchase of 80,000

not only on the ratification of tons of Argentine wheat for To some extent the recent the Agreement as a whole but July/August September ship-thrinkage in Britain's

surplus also on ratification by every one of the listed 24 countries,

LONDON PRICES

London, July 16. Tin prices broke, "bolli bost and three months falling £101⁄2 to 2013 per ton

The market sicodied at this level Turnover twas 130 cm, of which 75 were for cash. Clos-

ing prices:

Spot, buyers

Spot in, sellers ..

tment at £29.10.0 per ton elf may be a temporary result of Three months tin, buyers

impress the seasonal factors. would be very awkward indeed it may not greatly

on turned out to have North Americans with Britain's

1941-1941% 19732 2012- 200- 218-

of the

of the

subsidy to some country wi 4ater proved to be secure

Benson

the

Was

155*

1467-54 1300 14472 147

per bushel In urgency of this

markets and

flow

132'

more

Jr

concern

But, part of it may be a con- wisdom in not signing the Agree tinuing

result of Britain's re- her ability to cent

relaxations relaxations bement and with

wheat from

non- not only of the restrictions on was in the Ineligible for it. It was in

Agreement countries. This is Continental imports and tourism that buyers might Britain's

first purchase of but also. and perhaps dilemm otherwise have held off, wailing

whent for several important, of the firmness of for the ratification and for the Argentine

years. It may be the British her money policy. subidles. The U. S. wheatars

Food Ministry's last purchase

June However, the facts in surplus is so big, and the politics from anywhere, since its existing

the rather better than werees whent states

realocks are regarded as excessive.

The surplus with the gures. cannot afford a sensitive, that

The purchase appears to be a dollar area was reduced by a 6177-02%

yellow, peritia 1 u s. U. S. Agriculture transfer to Britain of Argentine transfer Com-(No.

to the U.S., in the Secretary

which wheat

Palustan had closing days of the month, of 65-05 bushet in cents)

t: "The importance bought in barter against jute but more than $22 million, in pay- candid about 72-77

of maintaining a continuous Bow which, after the US. gift of one ment for the large holding 561-571% July United Press.

Supal.

of wheat and flour to our foreiks million tons, Pakistan no longer a

Industrial a British Starch G4

particular needs. If so, Britain's payment Associated Electrical Industries May

wheat will Limited) repatriated to Britain for the Argentine Ky--(price

the harvest for of exports 01 exp

be in sterling to from its former U.S. owners cunts)

season make it highly advisable presumably

which

need (The American General Electric does Jelty

to offer export payments on Pakistan,"

sterling Supl

Company). Britain does Oats-(prie per bustiel in wheat and flour under the terms

not particularly The EPU surplus was Agreement the renewed of cents)

need the Argenting wheat either. fortuitously reduced by the ratification by July

pending official

As a demonstration of British payment, on June 30, of about Sept.

it is rather un-50 million interest on Britain's Independence Soybeans(price per bushel the U.S."

convincing. The quantity is less debt to the EPU in cents).

USUAL EXCUSE -

thon one week of Britain's IWA Spot-

Writing back These two July

The illegitimacy, if any, is only quota. Argentina has not much amounts, the surplus with re 2130 nominat Sept.

2 small

(the traditional more lo scil to Britain. Allowing EPU

have been about would Nov. Jan. 1045

excise). The stop-gap subsidy for quality, the Argentine price $13 million, and with the rest March

shade below the new be fund

only $716 may

per —♬ Lotal of $43 million which Rarley-(price per burhel In million, and the initial subsidy IWA maximum, but no cheaper of the world about $30 million

American wheat would

actually have rates on the major export routes than North

been with No. 1 RSS, spot unchanged New York ar-200 1b, sack, $1320 may be around zero, since present/which can also, at present, be higher than in May and rather

shipment prices at the U.S. Gulr bought at below the now IWA better and Atlantic ports range down maximum.

New York, July 15. Rubber futures closed today 20

to 30 points higher with sales of

27

ราก

contracts. Dealers

C

qusted smoked

:bed

sheets at 24 cents per lb. Pilves

of Futures were as follows:

No. Iss, cents per 1.

July......

September

Docenter

March 1851

May

July

September

21.65 hid

24,45

0

Kay

23.03 1, 24.06 United Press. LONDON MARKET

London, July 15. The rubber market closed dull cents)

7

at 10-7/10 pence.

as follows:

Spot Na. 1 R9S

Busines

Settlement

General market. e..f.

bir, No. 1 RSS

265% Rom. 2004-

20%

20016 237

130-160 nom.

Sput

Prlees were nom.-United Press,

10-11 11-10

103

104-1072

London, July 15.

Japanese bonds

"A" (45. of 1890)

"B" (45. of 1910)

Estate erepn July thick..

213,

-United Press.

Estate crepe July thia 21 porn

London Foreign Exchange

New York

Montreal

Amrordeni

Brussels

odo

Zurich

Copenhagen

Paris Stockholm Deutsche Mark

Blocked Mark

London, July 13..

2.1012-2.79)

10 04-106024

139.03-140.05 10.5412-19.3432

12.101-12.1845 10.344-10.50 1180-100% 14.014-14.02 11.00-11.7052 1842-10,00 -United Press.

to

5

one

amounts

cchts

to

bolow

πειν

than

Neuler.

also

Three months tin, peliers Business done at Settlement

580

50211

58215 BOS-300 300

-United Press.

Sugar Prices

In N.Y.

New York, July 15. World Number Four sugar closed today one point lower to two points higher with mics of 390 contracts.

Domestic Number Six closed two points one point lower to higher with sales of 54 con- tracts.

in world Steadiness futures

was coupled with a better tone in the rawa market. Dealers also thought a now In- tornational

ngreement will bo renched to stabilise the world sugar market.

Some quarters noted.... that Cube now has less than 900,000 free quota lang tons world sugar still unsold. Domestic futures ruled quiet and steady, Futures closing prices were as follows:-

Contract No. 4. (world)

July

Eeptember

October January 1054

Was expected. May

March

July

J

3.50 bid

September Spot cents per, th.

3.80 fo.b. Cuba)******

Contract No. 6

JAPANESE BONDS the U.S. Pace Cable, since could have obtained for shipment Shipping Companies sus

123

*** (53. of 1007) "D" (0, of 1924) Consols

--United Press.

nominal

И

6.23 5,50 nominal 337 btd BAS

HONGKONG

SHARE MARKET

(From Our Correspondent)

The sterling area dollar In- has declined for two come

col- reasons-parily the. price Japse from the Os id a pound peak of 1051 to the present is 74d, but also because the U.S. is taking more from Indonesia and less from Malaya.

In 1952 America Imported only 234,000 tons from Malaya, as compared with 900,000 tons In-1951-On-the other hand she from took 300,000 tons direct Indonesia last year, against 183,- 000 tons in 1951, and this trend continues.

One

factor accounting for this is that Indonesian shippera

Currency

the Stock have to sell to hard Business done on

areas. Local shippers in effect,. Exchange this morning amount-

scheme, e'd to $ 290,200. Noon quotations get a dollar retention and the morning's

fransac-providing an incentive to them to route their rubber direct to dollar buyers.

tions:

SHARES BUYERS 'SELLERS SALES

150

BANKS

HK. Bank.. 1315 1530 East Asia

INSURANCES

Contoa..... Valon

78755 703 K. Fire ...

SHIPPING

Asla Nav. DOCKS ETC. K. Whart Provident Wheelock

In addition. Indonesia pro- cessed more of her own rubber In 1052 than in 1951, rather than ship it of Malaya for this purpose.

The pending sale of the U.S. Government-owned synthetic

plants to private Industry unlikely to have any effect

on the course

142

..1.40

43

200

63% this year

12 13.30

8.65 0.70 3000

400

880

8.66 London much Interest

1000

1.65

3000 o 1.55

100017

100 4 24.90

LAND, ETC,

K. Hotel. 7.90 HK. Land

811, ahal Land 1.4715 Humphreya

03 200 03

1000

UTILITIES

From.... 24.80 Peak Tran

((718) ..... Peak Tr

25

(New)....

40

23

Star Verty G. Light (0)

124

1500

000 o 12.30 1500 12.30

500 13.40

12.30

C. Light (N) 8.40 1.00 Electric ... 20.86 20.70 190 a 24

Telephone .. 20.00.

INDUSTRIALS

1000

26.0

natural rubber prices.

of But in

centres

on U.S. reaction to the present prico level.

At the Study Group meeting

in May Americon

spokesmen suld__ That~~"even a relatively in rela- modest price decline tion to the present prices may. be expected to provoko a con- siderable Increase In the use of natural rubber in the U.S."

When that statement WE made rubber was almost 1s d a pound. It is now is 71⁄20.

SYNTHETIC POLICY

World. production of synthette 490,000

Cement 15.20 16.40 500 19.30 rubber reached about

STOREJ, ETC.

Fiatry Watson

Lane,

Crawford

COTTONE

Fo

AUTO 23 DO 1200 @ 22.70

lens in the half-year against 472,500 tons in January-June, was .soma Consumption 400,000 tons, against 447.500

21 24.50 500 24.40 1952. 24 241 100 @ 24.30 tons.

240 2.00

Textile Corp. 3.70 1000 5000 0.74 nominal MISCELLANEOUS

Yangiaze *** 0.83 0.30 1000

.F

America, the world's leading 8.70 consumer of synthetic, had a .76 combined natural and synthetic

consumption for tyre manufac £7·6.70|| bare in 1952 of 843,000 tons out of a total use of 1,261,000 tone, or just under 70 per cent, accounted

wheat the

The Argentine maxima. For shipments from certainly dearer than the present which Britain IWA maximum, rates will be market prices

September there are all in at least the Brst half of the

November May Get Aid above the new IWA maximum. July/September period.

Maret 1954 8414 But even this may not be very bolter by buying IWA wheat on wise, Britain could have done

May will sulice to

Talpet, July 15.- important; it 71

July The Nationalist Government Beptember maintain some movement of U.S. the basis of the present lower

4.78 November Greece,

and shipping authorities are whent and four from the Pacific maximum price from 101

Spot (cents per ib. Pacific Italy and Mexico, which together considering ways and means to and to Aslan

cit. NY ex-dock} 5.92 60% Orio

asalat Chinese shipping com-

United Press, large have about 600,000 tons of un- nat but

for the panics which are now suffering wheat and filled import quelas movement if Canadian whe flour,

усаг from

Vancouver, remain present IWA bolow the new IWA inoximum. 31, 1953, Germany this season taxati

esaro bought

· New York, July 18, most of her IWA personnel, subsidies pro has The U.S.

export

third

Dow Jones closing averages on countries, Mr. O. A Pierson, Mutual

Business was done in the font ter 235,000 tons. went for tyros designed to bring US export wheat from

unomicial exchange market this out of'n total, use of 383,000 prices down to, but not below, paying soft or clearing currencies Security Agency shipping ex Wall Street were as follows:-

noda instead of dollars. Buying from pert, who is in Talwan,

has

200.175), mivalne at the following retenim tons, or some 65 per cent, The the WA maximum, eo Canada

10061 | UB. dollar (per $13 (12)

9016 | *** A new Italian-Pakistani com-

Jarger Eituation but The Italy and Greece, through, the studied under-sell stni

49,00 | sterling note (per " TUNISIA

increase in: 18.ss relatively mercial

replacing can agreement,

100.55 | Indoneilan guliders (per 1001 .. 23.85 | non-lyre consumption reflects the trade pact which expired subsidies will have Importance European Payments Union, would declined, when approached, to statement.---France-

94.74 Glam teale per 100)

31.00 In particular a larger use3- of The market have cost Britain only 60 per cent makė. been only if and when on, December 31, has

139.49 Presse. prices of U.S. and Canadian in dollars-Reuter.

New Trade Pact

Rome, July 15,

Blyned here-France-Presse,,

Tyres have

for

ending July from out-dated ships, excesive NY Stock Exchange Exchange Rates are, and in the first quar

eason everloading with

tho

..

30 Industrials

20

0s Stocks

18 Ute

40 Bonda Comm. Price Index:

United Pres

Bingapore (Batts) FIC plastres (per 100)

this In

1.09 foam rubbers,