MUMBAI, Aug 8 (Reuters) – Natural rubber prices in India,the world’s fifth-biggest producer, dropped to their lowestlevel in 4-1/2 years on Friday, following losses in overseasmarkets and on higher imports, three dealers said.
Lower prices would bring down raw material costs for tyremakers, thereby boosting their profitability, as natural rubbermakes up more than 40 percent of the cost of a tyre.
The spot price of the most-traded RSS-4 rubber (ribbed,smoked sheet) at the Kottayam market in the top producing Keralastate fell by 150 rupees to 13,500 rupees per 100 kg on Friday,the lowest since Feb. 12, 2010.
Benchmark Tokyo rubber futures were on course for theirfirst fall in four weeks, with prices dipping in early Fridaytrade, as lower Japanese equities and copper prices over theperiod weighed on sentiment.
“Demand is robust but higher imports are putting pressure onlocal prices,” said a Kottayam-based dealer.
India’s natural rubber imports in July rose 14.8 percentfrom a year ago to 36,997 tonnes, the state-run Rubber Boardsaid on Wednesday.
CEAT Ltd, JK Tyre and Industries Ltd,MRF Ltd, Balkrishna Industries Ltd and ApolloTyres Ltd are likely to benefit from the lower prices.
(Reporting by Rajendra Jadhav; Editing by Anupama Dwivedi)
