According to Apollo Tyres, natural rubber imports are likely to match a record this year as prices fell into a bear market and the demand for tyres grew on rising car sales.
Mr Sunam Sarkar CFO of India’s second-biggest tyremaker by market value said that purchases in the year, that began on April 1st, are likely to be similar to the all-time high of 324,467 tonnes a year earlier. The Gurgaon based company imports 50% of its requirements.
Apollo, MRF and Ceat are among companies that have increased imports as futures in Tokyo trade near a 5 year low.
A recent survey said that prices have slumped 63% from the record high of 2011 and may extend losses as a global glut stretches into a 4th year.
Mr Sarkar said that “Tyremakers are benefiting from cheaper imports, helping them offset rising costs of raw materials made from crude oil.”
He said that natural rubber imports have surged to these levels due to the price difference in the domestic and international markets.
He added that “The trend is likely to continue for the next few months of the monsoon as the tapping of rubber is very low during the season, keeping prices higher in the domestic market.”
According to the state-run Rubber Board, overseas purchases jumped 65% YoY to 96,392 tonnes in the quarter ended June.
Board data said that production increased by 11% to 167,000 tonnes during the period, while consumption grew 2% to 251,000 tonnes.
Source – Exim News Service
Indian rubber imports surge as car sales climb – AP
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