Natural rubber prices rise after 3 years on global factors

After a threeyear gap, natural rubber prices have started moving north in the domestic market recording ₹182 a kg for RSS4 grades. The prices reached its peak in 2021 at ₹191.

The price surge in the domestic market is in tandem with the international market and the sources cited the factors to floods in Thailand, one of the major producing countries and wintering.

This has resulted in the nonavailability of the raw material and rising global demand coupled with a growing concern on the widening shortage during April and May.

The rates in the Bangkok market for RSS3 grades on March 18 were recorded at ₹231, which declined to ₹211 after a couple of days. The rise in prices in the international market has forced tyre manufacturing companies to source natural rubber from the domestic market, resulting in an increased demand. However, global prices showed a declining trend in the last couple of days.

TIGHT SUPPLY

George Valy, President of Indian Rubber Dealers Federation, said prices in the domestic market are unlikely to drop further because of off season and supply tightness. Currently, the production is on the lower side due to extreme temperature being experienced in the State and the figure is expected to touch 8,50,000 tonnes by the end of the current fiscal.

According to official sources, the drop may not sustain in the long term due to raw materials shortage in the domestic market and it can be attributed to the factors prevailing in the global markets. Even though the Bangkok prices reached ₹211, such proportional rise was not reflected in the domestic market.