Import of natural rubber is poised to rise again with a softening in global price of the commodity.
Natural rubber imports fell 14 per cent between April and July 2017 from a year ago to 130,543 tonnes on the back of a spurt in international prices and higher production in India.
Natural rubber imports fell 14 per cent between April and July 2017 from a year ago to 130,543 tonnes on the back of a spurt in international prices and higher production in India. In the same period, natural rubber output in India went up by 7.5 per cent to 201,000 tonnes, according to data from Rubber Board.
“Continuous rain has affected tapping, resulting in a supply crunch in the local market in the last few days. While local prices are hovering around Rs 130 per kg, crumb rubber prices have dropped below Rs 100 per kg in the international market, which could help imports,” said George Valy, president of Indian Rubber Dealers Federation. From June, international prices started dipping after a sustained rise for nearly seven months. In its report, the Association of Natural Rubber Producing Countries (ANRPC) attributed this to higher rubber inventories and stronger yen, as there was a deficit in world supply of 648,000 tonnes till July 2017.
Brokers said local prices, which are hovering at Rs 130 per kg, may fall further. “Though there is sufficient stock with buyers, there is a dearth of buyers. Prices could go down to. 125-120 per kg,” said Raju Kanatt, research analyst at Celebrus Commodities. As tapping enters the active phase from September, it is feared that more imports could lead to a slump in prices, which could discourage growers. “Around 35,000 tonnes are imported monthly by consumers, principally the tyre industry, and they mop up the rest of the requirement from the local market,” Valy said.
