On account of the decent price advantage in the global market natural rubber import shot up a whopping 208% in September at 45,581 tones, according to the latest data of the Rubber Board. This is the highest ever monthly import to the country. Based on this, cumulative import during April – September period of the current financial year increased to 179,292 tones, as against 112,641 tones in the same period of last financial year, recording a growth of 59%.
The sharp rise in import is mainly because of the lower price tags in Bangkok market where the rate for RSS grade is lower by Rs 15-20/Kg throughout this year, than the Indian market. Standard Malaysian Rubber [SMR-20], which is almost at par in quality with the bench mark grade, RSS-4 in India, is available even at much lower prices. So import is rather a viable route for the struggling rubber based industries.
Meanwhile, the fall in production continued in September also, leading shortage to the commodity. But this is not reflected on the price front because of the import. Slow down in the economy also affects the off take by the industry, hence the local market is on a bearish mode now. Local market quoted Rs 166/Kg today, while at Bangkok spot trading the price is Rs 157/Kg.
During April – September period production dropped 13.3% at 343,000 tones as against 395,700 tones. During April – August period production dropped 15.5%. Monthly production in September dropped to 78,000 tones from 82,000 tones in September, 2012.
There is set back on consumption also as 2.7 % drop recorded during April – September. 489,015 tones were consumed during the period as against 502, 330 tones in the same period of last financial year.
Both Consumption and production are on dropping mode in the current financial year. The general economic slow down and set back to automobile manufacturing industry are the major reasons behind the fall in NR consumption.
Although there is serious fall in production, for the last six months, the Board says that the stock is on the increase. According to the Board at the end of September, the country is having a rubber stock of 230,000 tones as against 225,000 tones in September, 2012.
The Rubber Board data said that the country had a stock of 210,000 tones of at the end of August, indicating that stock had increased 20,000 tones in one month.
Source: Business Standard
