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India Rubber: Prices down in Kerala market as outlook weak

Informist, Thursday, Nov 3, 2022


By Rahul Dhuri


MUMBAI – Prices of natural rubber were down in spot markets of Kerala today as the near-term outlook remains weak due to tepid demand from tyremakers amid anticipation of higher supply, traders said.


* Tapping in key growing areas of Kerala will continue till January. Tyre companies may also go slow on purchases due to a likely downturn in the global economy, said Joy Alencherry, owner of J&J Trade Links, based in Kerala. 


* India is among the world’s largest producers of rubber and the third-largest consumer of the commodity. 


* Natural rubber is a key raw material for the tyre industry. Nearly 65% of natural rubber is consumed by automobile industry. 


* Futures contracts of natural rubber extended Wednesday’s fall on Japan’s Osaka Exchange today as sentiment remains weak due to tepid demand from bulk buyers amid a likely rise in supply. Supply is seen higher as it is the peak tapping season globally, industry experts said.


* Also, rubber prices are likely to remain subdued in the long term as China has imposed strict restrictions to curb fresh COVID-19 cases. Frequent lockdowns have resulted in subdued economic activities. China accounts for 42% of the global demand for natural rubber.


Following are the highlights of today’s trade:

 –In Kerala, the widely traded RSS-4 variety was sold at 147-148 rupees per kg, down 1 rupee from the previous day. The state accounts for nearly 70% of India’s natural rubber output.
 –The most active April contract of rubber on the Osaka Exchange was down 3.9 yen at 208.7 yen (116.87 rupees) per kg.  End


Edited by Deepshikha Bhardwaj


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Cogencis news is now Informist news. 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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Source: Cogencis

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