3.3 C
New York
Sunday, December 5, 2021

India Rubber: Prices jump to 8-year high on tight supply, firm buys

Informist, Monday, Nov 22, 2021


By Rahul Dhuri


MUMBAI – Natural rubber prices in the key markets of Kerala jumped to an over eight-year-high today due to tight supply amid rising demand from bulk buyers, market participants said.


* Heavy rainfall in the state has severely affected tapping activity, resulting in a supply crunch. The peak tapping season in Kerala, the country’s largest rubber producer, begins in October and continues till January, said Joy Alencherry, owner of Kottayam-based Maria Rubber Links. 


* On Nov 12, Informist had reported that rubber prices were likely to rise to an eight-year-high due to supply constraints and firm demand. Traders had initially expected relief from higher prices with the onset of tapping. 


* However, the delay in tapping rubber has exacerbated supply woes and further supported prices, said Roy Kurian, the owner of Chenattumattom Traders based in Kottayam.


* Domestic and global supply of natural rubber has remained tight largely due to unseasonal torrential rainfall and floods that have affected major rubber-growing regions in Thailand, Malaysia, and India.


* Torrential rains in Kerala have devastated crops. Around 74,780 farmers in the state have been affected by landslides and flash floods, said Deepthi Varadan, a senior official at the state’s Department of Agriculture Development and Farmers’ Welfare. 


* On the Tokyo Commodity Exchange, the most active April contract of rubber erased early gains and ended lower today, tailing a fall in crude oil prices on the New York Mercantile Exchange. Natural rubber prices take cues from crude oil as the latter is used to manufacture synthetic rubber.


* Crude oil prices were lower in Asian trade on NYMEX today due to concerns over demand owing to the resurgence of COVID cases and reimposition of restrictions in Europe, said analysts.


* Rubber prices rose in early trade today on expectations of higher global demand amid supply concerns in the market, said analysts.


* The Association of Natural Rubber Producing Countries expects global consumption to rise 8.9% to 14.1 mln tn in 2021, outstripping supply, which is forecast to grow 1.4% to 13.8 mln tn.


* Following are the highlights of today’s trade:
–In the key markets of Kerala, the widely-traded RSS-4 variety was quoted at 189-190 rupees per kg, up 2-3 rupees from the previous close. On week, prices have risen by 4-5 rupees per kg, traders said.

–The April contract on TOCOM ended at 237.7 yen (about 155.08 rupees), down 0.7 yen from the previous close. End


Edited by Snigdha Kuttikat


Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.


Informist Media Tel +91 (11) 4220-1000

Send comments to [email protected]


© Informist Media Pvt. Ltd. 2021. All rights reserved.

Source: Cogencis

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected

- Advertisement -

Latest Articles

Popular Articles