Rubber price falls by 50 paise /kg on daily basis; trading 9.2% lower on a yoy basis- Positive for tyre players and Relaxo.
A slowing Chinese economy coupled with increasing instances of shipment rejection by the Chinese players has resulted in sharp correction in the rubber prices. For 20th March 2014, a sharp 0.3% day on day correction was witnessed in the prices.
Further the commodity is down 9.2% on a yoy basis. Soft rubber prices augur well for Tyre players (Apollo, CEAT) and Relaxo whose raw material is rubber, hence would be positive for these companies.
