Kochi: While the natural rubber (NR) farmers always complained about the local rubber prices, this time the domestic market had been strong, notes the report from a global agency .
“In sharp contrast to all the other NR markets, the RSS4 market in Kottayam (India) resisted the price fall during the first half of September. This is despite a reported improvement in the domestic production of NR in the country during the first half of September helped by improving weather conditions and lifting of the pandemic-related restrictions in the state of Kerala. RSS4 prices in Kottayam fell only by 0.3% during the first half of Sep (compared to the second half of Aug) as against 4% to 6% fall observed in other markets,” said the latest report from the Association of Natural Rubber Producing Countries (ANRPC).
“The first half of September has seen NR prices taking wide swings with the notable exception of Kottayam market in India. Within just 10 trading days, the prices tumbled by 4% to 6% and immediately returned to the previous level. Strikingly, the downswing as well as the recovery have not been caused by any development specific to the rubber industry,” ANRPC report noted.
“The period under review has unfolded the dominant influence on the NR prices by the factors which are external to the rubber sector. Although such factors apparently look external to the rubber sector, some of the factors hold a strong bearing in setting the demand outlook for NR. The pace of global economic recovery, developments in the auto sector, and crude oil trends are important factors from this perspective,” the report added.
According to ANRPC, the global supply of NR is expected to improve in the short term.
“The month of October usually produces more NR compared to the immediate previous months helped by favourable seasonal factors prevailing in major producing countries. Moreover, the supply constraints caused by Covid-19 have eased across producing countries as most of the governments have lifted the restriction to help the economy move ahead,” the report said.
Times of India
