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 rubber—a derivative of crude oil.

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

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. “ prices 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.

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 April. 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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