homemarket Newscommodities NewsRubber prices near 2 year low on the back of China COVID lockdowns, auto sales
Rubber prices near 2-year low on the back of China COVID lockdowns, auto sales
In global markets, rubber is trading at a two-year low after more reports of COVID-19 breakouts in China, this time in the big cities of Shanghai and Shenzhen.
Rubber prices have seen a constant decline this year and the decline has only gotten steeper in recent times. In global markets, rubber is trading at a two-year low after more reports of COVID-19 breakouts in China, this time in the big cities of Shanghai and Shenzhen.
The other data that the markets are reacting to is the automobile sales in China, which on a year-on-year basis have seen a gain but on a month-on-month basis have seen a decline.
In the Indian markets, production has increased as per the August data but consumption has risen too. The month of July saw rubber trading at around Rs 170 per kg but prices have declined since.
A higher consumption should ideally lend support to the prices but the weak global cues and peak tapping numbers in India seem to be weighing in. Moreover, the tyre manufacturing sector, which accounts for nearly 71 percent of overall rubber consumption, seems to be showing signs of demand slowdown.
In fact, rubber prices hit an all-time high of Rs 238 per kg way back in 2011 from where there has been a steady decline and October seems to be no different.
For more, watch the accompanying video
(Edited by : Abhishek Jha)
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