Falling Rubber Prices Won’t Help Tyre Makers Much, CEAT Says

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CEAT Ltd. said falling prices are unlikely to lower raw material costs for makers as a weakening rupee and higher crude offset the gains. makers use mix of natural and —a derivative of crude oil.

Falling Rubber Prices Won’t Help Tyre Makers Much, CEAT Says

“Natural rubber forms nearly one-third of costs for tyres,” Subbiah Kumar, chief financial officer of the country’s fourth-largest tyre maker by market cap, told BloombergQuint in an interview. “ have remained range-bound in the domestic market.” There would be 2-3 percent impact of raw material costs in the coming quarters, he said.

SICOM block rubber prices, the benchmark for rubber prices globally, fell to $1,400-1,450 a tonne from $1,450-1,500 a tonne in . Natural rubber prices in India have been hovering around 125 a kg (ex-Kerala).

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CEAT manufacturers over 1.5 crore tyres a year for commercial vehicles, passenger and two-wheelers.

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