NR: Rebound and after

NR: Rebound and after

By Sharad Matade

A spurt in natural rubber prices in March, however short-lived it was, sent a shiver to tyre companies which have already been struggling to cope up with the growing penetration of Chinese tyres and anti-industry policies. The rebound in natural rubber prices was seen since March this year after hitting multi-year lows in both domestic as well as international market. In the Indian market, RSS4 in the spot market has tumbled towards Rs.91 a kg in February this year, its weakest level since April 2009.

“A slew of factors together acted up to prop up prices from the multi-year lows. Natural rubber market entering lean production phase in India as well as other major natural rubber producing countries like Thailand and Malaysia by the end of February along with International Rubber Tripartite Council implementing the Rubber Export Tonnage Scheme stoked worries over availability. Coupled with this, the rebound in crude oil inventories and other industrial metals, a jump in rubber imports by China in March and on weather concerns added fuel to the worries. Various meteorological agencies predicted the emergence of the La Nina weather phenomenon this summer after El Nino, which incited worries over output as the major rubber growing belt located in South East Asia,” explains Anu V Pai, Analyst at Geofin Comtrade.

 (Full text in TA, June/july)

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