Natural rubber hits record high of Rs 234 a kg on global cues

NEW DELHI: Prices of natural rubber in the domestic market touched a record high of Rs 234 per kg today, tracking global rates which hit a new high on supply concerns emanating from biggest producer Thailand.
Prices of natural rubber, a key component for making tyres, today closed at Rs 234 per kg in Kottayam and Kochi, which account for 90 per cent of the country's production.
The price of the commodity also shot up to a record high of Rs 261 per kg in Bangkok on concerns that supply from Thailand, the top exporter of the material, may decline, worsening a supply shortage after a flood warning in the nation.
"International prices are at a record high and are likely to remain at that level in the near future due to strong demand," said the Indian Rubber Dealers Federation .
Domestic prices are following the international trend, it added.
A surge in demand from the US on the back of better-than -expected growth in the automotive segment and a strong demand from China is pushing the global prices of the commodity and the impact is also felt on the domestic market, traders said.
Natural rubber prices have been on the rise for the past few months due to disruption of production in Kerala, which accounts for 90 per cent of the country's production, coupled with a rally in international prices of the commodity.
However, the present rally in the prices of commodity is due to global cues, Jalal said, adding that there is no supply crunch in the country.
India's production of natural rubber in 2010 is estimated at around 8.5 lakh tonnes, whereas the total demand for natural rubber in the country is nearly 10 lakh tonnes per annum.

(Source: http://economictimes.indiatimes.com/markets/commodities/natural-rubber-hits-record-high-of-rs-234-a-kg-on-global-cues/articleshow/7336463.cms)