SINGAPORE, Oct. 3, 2011 /PRNewswire/ -- Platts, a leading global provider of energy, petrochemicals and metals information and a foremost source of benchmark price assessments, today launched the Platts Natural Rubber Index (RBX), which is comprised of daily physical spot price assessments for two grades of natural rubber that are key to manufacturing tires and rubber products.
"Historically, rubber cargoes tended to change hands only once and were priced through long-term, bilateral deals, but traditional trade patterns are changing," said Shahrin Ismaiyatim, Platts global director of petrochemicals. "It's become clear that a need exists for transparent price information on a daily basis, and we believe that the Platts Natural Rubber Index will prove to be a useful benchmark reference for producers, manufacturers and market participants in the global rubber industry."
Platts RBX is the combination of daily price references for Technically Specified Rubber Grade 20 (TSR 20) and Ribbed Smoked Sheets Grade 3 (RSS 3) as assessed and published by Platts and reflects cargoes loaded free on board (FOB) Singapore for one and two months forward. The price assessments are based on all-day market monitoring and data collection of transactions, bids, offers and other information from market participants in the spot physical markets.
"We're pleased to bring Platts robust price assessment methodology to the burgeoning rubber market, which last year reported around $36 billion in sales," said Jorge Montepeque, Platts global director of market reporting.
TSR 20 and RSS 3 rubbers are used primarily to make tires, which account for 50% of total natural rubber use. These types of rubber are also used in the manufacturing of conveyor belts, hoses, sealing devices, gloves, footwear and inflatable devices, among other products.
More than 10.4 million metric tons of rubber was produced in 2010, most of which came from Thailand, the largest producer of rubber, followed by Indonesia and Malaysia. The biggest importers for rubber are China, the United States and Japan.
A mid-day Platts RBX is published at 12:00 p.m. Singapore time (0400 GMT) in addition to the end-of-day Platts RBX, which is available at the close of the physical market trading day at 4:30 p.m. local time Singapore (0830 GMT). Both are included in the real-time news and price delivery service Platts Petrochemical Alert and the weekly newsletter Platts Olefinscan. Platts also publishes a weekly and monthly average of its RBX.
The price assessment methodology used by Platts in rubber was developed in consultation with a cross section of key industry players and policymakers, draws upon Platts' century of experience in benchmark price reporting in the energy and is underpinned by published quality guidelines available at www.platts.com.
For more information on rubber or petrochemicals, visit www.platts.com.
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