Rubber prices hit 4-month high; here are key driving factors
Rubber prices are trading at a four month high. This week itself, rubber has seen strong gains of 7 percent, while it has seen gains of 20 percent for the month.
Rubber prices are trading at a four-month high. This week itself, rubber has seen strong gains of 7 percent, while it has seen gains of 20 percent for the month.
The latest trigger clearly comes in from the global markets- one, Japan is the biggest trading hub when it comes to rubber and the constant decline in Japanese yen has been one of the reasons for the rubber prices strengthening. Also, strong export data coming in from Japan has been supportive.
Second, the strength in global equity markets, economies opening up, the rubber product demand is also picking up whether it’s tyre or non- tyre, it has been supportive as well.
The rise in crude oil prices has also found its way in case of rubber prices rising.
When you look at the Indian markets, unseasonal rains in various rubber producing areas, whether it is Kerala or Karnataka, has been keeping the prices on a premium.
As of now, the spot prices are trading at around Rs 172-173 per kg and the market participants tell us that there are strong offers coming in from the tyre and non- tyre makers when it comes to rubber and that clearly has been supportive.
The rubber glove industry is one that seems to be getting consolidated, the kind of surge that we saw for rubber gloves in the previous year seems to be declining.
So as far as the latex demand and prices are concerned, the forecast seems to be going down, but rubber as in that sense seems to be staying strong and the markets believe that as we get into peak season demand, that is the last quarter of this year, the rubber demand would perhaps continue to be higher.
Also Read: Constructive on core sectors; global commodities look set for a ‘significant run’: White Oak Capital
(Edited by : Dipikka Ghosh)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha elections 2024: 28% of candidates contesting in fourth phase are 'crorepatis'
May 9, 2024 4:29 PM
Free poha-jalebi to movie ticket discounts: How cities struggling with 'urban apathy' are luring voters to polling booths
May 9, 2024 3:17 PM