Rubber prices hit by sluggish demand and unseasonal rains

Rubber prices have seen a lot of volatility and price movement like other commodities. CNBC-TV18’s Manisha Gupta spoke to Rajiv Budhraja, Director General at the Automotive Tire Manufacturers Association on rubber prices and demand prospects.

On rubber prices Budhraja said, “They should stay range-bound in the range that we are in at the moment and of course, a lot will depend upon how crude moves and then synthetic rubber and then the fallout on natural rubber. So I wouldn't frankly, hazard any guess there.”

He added, “The rubber side story looks fine for the time being but it's the OEM demand, which is sluggish now. So that may have a ripple effect and fallout on the rubber demand as a whole.”