homemarket Newscommodities NewsRubber prices touch 6 week high as Chinese demand improves and EU sees a gradual uptick
Rubber prices touch 6-week high as Chinese demand improves and EU sees a gradual uptick
Rubber prices over the past week has witnessed a nearly 3 percent upswing, propelling to six-week highs in the global markets. Increased Chinese demand is beginning to show signs of strength, paralleled by reports emanating from the European Union.
Rubber prices over the past week has witnessed a nearly 3 percent upswing, propelling to six-week highs in the global markets.
Increased Chinese demand is beginning to show signs of strength, paralleled by reports emanating from the European Union. The automotive and tyre sectors within the EU are displaying an uptick in demand, thereby boosting market sentiment and contributing to price escalation.
A latest report from the Association of Natural Rubber Producing Countries (ANRPC) reveals that July's year-on-year metrics depict a 2.1 percent rise in production and a more significant 3.2 percent surge in consumption.
The trajectory for the entire year appears promising as well, with anticipation of robust figures. For 2023, the year-on-year projections indicate an anticipated 14.6 percent increase in demand and a corresponding 14.7 million tonne rise in consumption.
Turning attention to India's rubber production, the latest report indicates an expected escalation to 8.4 lakh tonne, surpassing the previous year's 8 lakh tonne. However, given India's higher consumption compared to production, an import of 5 lakh tonne is also anticipated.
Imports primarily stem from rubber-producing countries like Thailand, Malaysia, Sri Lanka, and Vietnam, where prices are slightly elevated. This import-driven inflation factor is influencing the Indian market dynamics.
In today's trading, tyre stocks have shown no significant change so far.
(Edited by : C H Unnikrishnan)
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