NEW DELHI: Natural rubber prices, which rose by about Rs 20 a kg during May, have remained stable since the beginning of this month on less offtake and global cues, a rubber association said on Sunday.
“Offtake has reduced as tyre companies are buying less nowadays and international prices have also come down recently,” Cochin Rubber Merchants Association President, Mr N Radhakrishnan said.
Meanwhile, the Rubber Dealers Association President, Mr George Valy thought availability of imported rubber in the market, along with lower global prices, had made rates for the commodity stable in domestic markets.
“There is a lot of imported rubber in the market. So we can’t say there is less availability. We are being guided by the global rates and they have come down, which will keep domestic prices low,” he said.
Prices of domestic natural rubber (RS-4 variety) stood at Rs 169.50 a kg in the Cochin and Kottayam markets on June 12 and have remained in the range of Rs 166.50-Rs 169.50 a kg since June 1.
When asked about the direction of natural rubber prices in the next couple of weeks, the experts gave divergent views.
“Though we move in tandem with global prices, I think prices could flare up in the next two weeks on low tapping,” Mr Radhakrishnan said. He attributed the lower production to the arrival of the monsoons in Kerala, the largest rubber producing state in I ndia.
However, Mr Valy believed that prices could fall in the next two weeks as adequate material was available in the market and tyre companies lowered their production during the monsoon season.
(thehindubusinessline.com)
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