Home Commodity Market News India Rubber: Prices in Kerala at 2-year low as bulk demand tepid

India Rubber: Prices in Kerala at 2-year low as bulk demand tepid

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Informist, Monday, Oct 31, 2022

 

By Rahul Dhuri

 

MUMBAI – Prices of natural rubber in the spot markets of Kerala, which accounts for nearly 70% of India’s natural rubber output, slipped to a two-year low today, due to tepid demand from domestic bulk buyers amid anticipation of a higher supply, market participants said.

 

* India is among the largest producers of rubber and the third-largest consumer of the commodity. Tapping has commenced in key growing areas of Kerala and will continue till January.

 

* Weak demand from tyre-making companies and domestic stockists also contributed to the fall in rubber prices, said Kurian Abraham, a Kerala-based rubber trader.

 

* Demand for the commodity has outstripped domestic supply and the gap is expected to increase going forward, industry experts said.

 

* Tyre companies may also go slow on purchases due to a likely downturn in the global economy. Natural rubber is a key raw material for the tyre industry.

 

* Weakness in the global market also weighed on rubber prices in the domestic market, said Raju Varghese, a trader based in Kottayam, Kerala.

 

* The futures contracts of natural rubber on Japan’s Osaka Exchange fell as the outlook for the commodity remains weak in the short term. Low demand from bulk buyers and expectation of rise in global supply weighed on sentiment, analysts said.

 

* The global supply of natural rubber is expected to rise as tapping is likely to gain pace and remain in full swing till January.

 

Following are the highlights of today’s trade:
 –In Kerala, the widely traded RSS-4 variety was sold at 146-147 rupees per kg, down 1 rupee from the previous day.
 –The most-active April contract of rubber on the Osaka Exchange was down 0.5 yen at 208.5 yen (116.42 rupees) per kg.  End

 

Edited by Ashish Shirke

 

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Source: Cogencis

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