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India Rubber: Prices extend gains in Kerala on rising local demand

Informist, Friday, Oct 7, 2022

 

By Rahul Dhuri


MUMBAI – Prices of natural rubber rose further in the key markets of Kerala due to rising demand from domestic stockists. However, dwindling demand from tyre-making companies, amid expectation of a rise in arrivals, capped sharp gains in prices, traders said.

 

* Tyre-making companies are likely to refrain from buying domestically-produced rubber because a sharp fall in ocean freight will make imports cheaper, said Thaha Mohamed, owner of Kottayam-based Sara Traders.

 

* Futures contracts of natural rubber on Japan's Osaka Exchange rose due to gains in crude oil prices on the New York Mercantile Exchange, analysts said.

 

* Crude oil prices have risen sharply after the Organization of the Petroleum Exporting Countries and its allies agreed to cut production by 2 mln barrels per day for November. Oil is used to make synthetic rubber. 

 

* However, expectation of peak seasonal supply, amid weak demand prospects from tyre-making companies, capped the gains in rubber prices.

 

* The global supply of natural rubber is expected to rise as tapping is likely to gain pace and remain in full swing till January. Tyre companies may also go slow on purchases due to a likely downturn in the global economy, industry experts said.

 

Following are the highlights of today's trade:

–The widely-traded RSS-4 variety was sold at 152-153 rupees per kg, up 1 rupee from the previous day. Kerala accounts for nearly 70% of India's rubber production.

–The most active March contract of rubber on the Osaka Exchange was up 1.2 yen, at 235.7 yen (133.91 rupees) per kg.

 

End

 

Edited by Maheswaran Parameswaran

 

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Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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