Rubber prices at four-month highs, demand surging
Markets believe that there would be lower production in October and November because Kerala has received nearly 117 percent more rainfall in October till now. These unseasonal rains are impacting tapping and supplies.
Rubber prices are at four-month highs, increased by 12 percent in the past month. The demand for rubber has also been strengthening, especially from Southeast Asia and China.
China is looking at a large number of rubber imports. In India, the production for the month of September is seen as 67,000 tonnes, which is lower than August. Markets believe that there would be lower production in October and November because Kerala has received nearly 117 percent more rainfall in October till now. These unseasonal rains are impacting tapping and supplies.
On the demand side, both tyre and the non-tyre sector demand seems to be surging. India has imported 46,000 tonnes and 40,500 tonnes in September and August, respectively. Therefore, the month-on-month import numbers have increased.
Another interesting trend seen this year is that the natural rubber prices have gained nearly 12 to 15 percent, depending on what grade one is looking at.
The synthetic rubber prices have ended 30 percent higher in the past year and the industry is of the view that this type of big move for synthetic rubber prices has perhaps happened for the first time in a decade.
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