SIPH reports “stable” trading conditions in NR markets

Courbevoie, France - Société Internationale de Plantations d’Hévéas (SIPH) achieved sales from rubber of €96.6 million for the first half of 2015, the French producer and manufacturer of natural rubber for industrial uses reported 14 Aug.

Over the first half of 2015, total production at the company amounted to 72.2 kilotonnes (kt): SIPH reaffirming its annual production target of 190kt – 20 percent above the 2014 level.

SIPH, meanwhile reported that the average price of rubber for the second quarter of 2015 increased 8.7 percent to €1.37/kg compared to the prior-year second quarter – due to the dollar’s appreciation against the Euro. Rubber prices, it said, currently stand at around €1.25/kg.

In dollars, however, the average price in the second quarter stood at $1.52/kg, 12.1-percent lower than in the second quarter of 2014, the SIPH statement showed.

External purchases of rubber by SIPH rose during the half to total 43.2kt against 32.2kt in 2014, whilst own production was virtually stable – 29kt against 28.3kt in the first half of 2014.

The proportion of rubber purchased increased to 60 percent of total production against 53 percent in the first half of 2014.

In the second half of 2015, the group sold 38.4kt of rubber against 36kt in the same period last year, an increase that is explained by the resumption of foreign purchases this quarter. In the first half of 2015, tonnages sold amounted to almost 78kt.

SIPH’s rubber turnover for the first half of 2015 amounted to €96.6 million, against €115.5 million for the 1st half of 2014 – reflecting the 18-percent decline in the sales price.

“Production conditions are good across all the plantations, and purchases from the planters will increase significantly over the next half year,” said SIPH.

The company added that work to increase capacity at the factories was progressing according to plan.

“The rubber market is stable and the bottom-of-cycle continues,” SIPH further noted, adding, “Cost-control measures remain in place”.

“SIPH is maintaining its strategic investments (crop development, factory capacity and infrastructure) while adapting them to the context created by the price level.”

SIPH operates more than 40,000 hectares of mature rubber plantations, and is today aiming for a production capacity of 161kt spread over Ivory Coast, Ghana, Nigeria and Liberia.

The treated latex comes either from SIPH’s own rubber plantations or is bought from independent growers. SIPH markets its products, which are mainly reserved for the tire business, on the international market.