Natural rubber prices in India jumped to a two-and-a-half-year high on Thursday on limited supplies and tracking gains in overseas markets due to supply disruptions in top producer Thailand, three dealers said.
A worker retreads a used rubber tyre at a workshop on the outskirts of Jammu October 29, 2013. REUTERS/Mukesh Gupta/Files
The spot price of the most-traded RSS-4 rubber (ribbed, smoked sheet) at the Kottayam market in the top producing southern state of Kerala rose by 200 rupees to 14,500 rupees ($213.24) per 100 kg, the highest since June 2014.
“Farmers are delaying selling expecting further rise in prices. The rally in overseas markets is also boosting sentiment,” said George Valy, a dealer based at Kottayam in Kerala.
Benchmark TOCOM rubber futures rallied to their highest in nearly four years, extending gains into a third session, boosted by supply concerns after flooding hit a major rubber-producing area in Thailand.
Thailand will lose around 10 percent of its rubber output in the 2016-2017 crop year due to flooding, a senior industry official said.
Shares of Indian tyre companies, including Apollo Tyres Ltd, JK Tyre & Industries Ltd, CEAT Ltd and MRF Ltd, were trading lower in a firm Mumbai market.
($1 = 67.9999 Indian rupees)
(Reporting by Rajendra Jadhav; Editing by Subhranshu Sahu)