KOCHI: Natural rubber prices climbed to a two-month high of Rs 143 per kg on Wednesday on tight supply.
Prices have increased by 12 % in June alone, as monsoon rains have led to reduced tapping.
“Supply is thin in the market. There are reports that a tyre company found problems in the imported rubber and had to find replacement from the local market, which added to the sentiment,” said CP Krishnan, whole-time director of Geofin Comtrade.
Meanwhile, natural rubber prices are showing an uptrend in the global market despite prediction of an oversupply in the top producing countries. On Wednesday, the international price of sheet rubber stood at Rs 117.88 per kg, an increase of 15% during the month, which is still Rs 26 less than the Indian price.
The world market for rubber has been impacted by the fluctuation in rubber futures inTokyo Commodity Exchange.
Tocom December futures jumped higher by 0.3 % to 153.9 yen per kg on Wednesday after the initial concern over Brexit waned.
