August 14th 2023, Singapore, Helixtap Technologies, the independent AI-driven price and market intelligence provider for the rubber industry, today announces the launch of its Farmgate price assessments for SIR20. Helixtap’s Farmgate Price Assessments offers independent point-of-origin pricing to increase transparency of the natural rubber supply chain, thereby empowering downstream users in contract negotiations.
Helixtap’s Farmgate Price Assessments provides pristine pricing data of raw, unprocessed cup lump Indonesian rubber from the very first point of the entire natural rubber supply chain, which is fundamental to fiscally optimise business decisions, namely:
- Calculate margins for SIR20 and other relevant grades for procurement planning
- Predict price trends of physical rubber prices and futures prices, complementing Helixtap’s Price Signals data suite and technical analysis
- Truly understand the cost at the top of the value chain, which effectively shapes downstream discussions and important data-driven sustainability metrics
Helixtap’s Farmgate price assessments will be published on Price Assessments every weekday (excluding public holidays) at 3PM Singapore time (SGT).
The strong correlation between Helixtap’s Farmgate Price Assessment and market price movements gives users an accurate, real-time price signal at 3pm for their spot contract negotiations at ~ 4pm – 5pm SGT. This time-sensitive market intelligence creates a window of visibility and live signals to empower buyers, suppliers, and traders to more accurately price and effectively navigate contract negotiations.
Helixtap’s Farmgate Price Assessment also includes data on climate conditions and health of rubber plantations and a sentiment index. This visibility of the notoriously opaque upstream provides Helixtap users with rare, primary data to more accurately price products and negotiate procurement.
The upstream of the rubber supply chain is densely populated with 6 million smallholders producing 85% of global supply. The midstream is perhaps even more convoluted with 100,000 intermediaries and over 500 processing plants1 adding their margins to rubber prices, further increasing the opacity of the price at origin.
“Tackling the opacity of physical rubber pricing is at the heart of Helixtap Technologies. Helixtap is proud to support transparency efforts and alleviation through the development of our Farmgate Price Assessments, which offers an independent data-oriented approach to more sustainable prices and contracts. After this successful initial effort in Indonesia, we look forward to similar future initiatives,” says Farah Miller, CEO and Co-Founder of Helixtap Technologies.
“Rubber prices have been unsustainably low in recent years. We are forced to sell 1kg of rubber at prices lower than the cost of 1kg of rice. We farmers hope that the rubber prices will increase to match the cost of basic necessities,” said Helixtap Ambassador, Amin Iqbal.
About Helixtap Technologies
Helixtap Technologies are pioneers of groundbreaking, AI-driven price and market intelligence for the rubber industry. Helixtap Technologies publishes a proprietary physical rubber price index (GRIP), price forecasting, and in-house market research daily. Fully independent since its inception, Helixtap Technologies takes no positions in the rubber market and has zero influence on pricing.
Helixtap Technologies GRIP – Assessments
Daily
SIR20 FOB BEL/SBY basis
STR20 FOB BKK/LCB basis
AFR10 CIF Hamburg/Rotterdam basis
Implied AFR10 FOB Abidjan
Indonesian Farmgate Price
Weekly
SMR20 FOB PNG/Klang basis
SVR10 FOB HCM basis
Bulk Latex FOB BKK basis
Indonesian raw material
Thai raw material
TSR20 Mixture CIF China Main Ports