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India Rubber: Prices fall in Kerala on tepid buys from tyre makers

Informist, Wednesday, Apr 13, 2022

 

By Rahul Dhuri

 

MUMBAI – Prices of natural rubber fell in the key market of Kerala due to tepid demand from tyre makers. However, a persistent supply crunch in the market due to the lean production season cushioned a sharp fall in prices, traders said.

 

* Automobile sales in India are unlikely to claw back to pre-COVID levels this financial year as low demand and purchasing capacity have hit sales of two-wheelers, the biggest volume drivers in the industry, said Vinkesh Gulati, president, Federation of Automobile Dealers Associations. 

 

* The association said it remains “extremely cautious” about the Russia-Ukraine conflict and lockdowns in China, as both have a bearing on the availability of key inputs for the automobile sector. The uncertainty around the automotive parts is likely to limit production in the current financial year.  

 

* Rubber tapping in Kerala, the largest producer of the commodity in the country, has slowed due to rising temperatures, said A.M.George, the owner of Ernakulam-based St.George Rubbers. 

 

* Futures contracts of natural rubber on the Osaka Exchange erased early gains and ended lower today due to concerns over weakening demand amid rising COVID cases in China, one of the largest consumers. According to media reports, 23 Chinese cities have implemented either full or partial lockdowns due to a surge in cases, which have hit industrial operations. 

 

* Rubber prices on the Osaka Exchange rose in early trade due to concerns over global supply and weakness in the yen against the dollar. Gains in crude oil contracts on the New York Mercantile Exchange also supported prices, analysts said.

 

* Natural rubber prices take cues from crude oil as the latter is used to make synthetic rubber. 

 

Following are the highlights of today’s trade:

–In the key markets of Kerala, the widely-traded RSS-4 variety of rubber was sold at 174-175 rupees per kg, down 1 rupee from the previous day. 

–The most-active September contract of rubber on the Japanese bourse ended 0.2 yen lower at 259.5 yen (157.25 rupees) per kg.

 

End 

 

Edited by Maheswaran Parameswaran

 

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.

 

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© Informist Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

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