ERJ staff report (BC)
Kochi, India – With heavy rains disrupting rubber tapping in Kerala, the largest producer in the country, and growers holding on to the available stock, natural rubber prices have vaulted to a nine-month high, reports P K Krishnakumar for The Economic Times. This has raised worries for the tire industry which has demanded imports at a reduced duty.
The price of the RSS-4 variety used by the tire industry has risen 13 percent since 1 June to Rs 192 (€2.49) per kg on 9 July. During the period, the international price dropped 3.6 percent to Rs 159 (€2.06) per kg. It was in October 2012 that local rubber prices had touched Rs 192 (€2.49) per kg.
The July futures contract rose to Rs 198 (€2.57) per kg before closing at Rs 196 (€2.54). Dealers say prices may touch Rs 200 (€2.59) per kg if rains continue to disrupt tapping. Insufficient availability has upset the calculations of the tire industry.
"Of the 5,000 tonne of natural rubber needed by us from the domestic market in June, we could muster only about 3,000 tonnes. Imports contracted now will take a month or more to arrive," Swaranjit Singh, materials director for JK Tires is reported to have said.
This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.
Full report from The Economic Times