Tire manufacturers are raising prices as a result of the rubber shortage in major markets. The price of RSS-4 grade rubber went up by Rs 200 to trade at 18,600 in a single day. Rubber exporting countries are getting ready to increase sheet prices in response to the expected rise in demand from the Asian tyre sector. Concerns are arising in the industrial sector about the potential shortage of sheet and latex due to heavy rains causing tapping interruptions in various rubber producing countries, including Thailand.
Rubber News For Today
27-04-2024
Farmers in India are facing uncertainty as the price of natural rubber has dropped in both the international and domestic markets. Despite hopes that the previous upward trend would continue due to tight supply, the price has taken a tumble. The domestic price of rubber had been steadily increasing since January of this year, but it has now fallen significantly.
On March 18, the Bangkok price of RSS-4 variety was ₹231 per kg, but it has now plummeted to ₹185 per kg, resulting in a loss of ₹46 per kg. Although the decline in the international market has been sharp, the drop in the domestic market appears to be less steep. In the Kottayam market, the price has fallen from ₹186 per kg in March to ₹180 per kg on Wednesday.
The international price decline can be attributed to various factors, including a shortage of purchases by China. However, recent rainfall in rubber-growing areas of southern and central Kerala has raised hopes of an improvement in the domestic supply situation. Additionally, there is a perception that rubber production may increase in other rubber-producing countries.
To support the rubber industry, the Rubber Board had introduced an incentive of ₹5 per kg for exported sheet rubber between March 15 and June 30. The Board had also established an Export Promotion Council to capitalize on the higher prices in the international market. However, the downward trend in the international market has posed challenges for these efforts. The majority of rubber produced in India is processed and sold as sheet RSS4.
In 2022-23, India produced a total of approximately 8.30 lakh tonnes of rubber, and production is expected to increase in 2023-24.
Rubber News For Today
24-04-2024
Japanese rubber futures fell for a second straight session today, tracking lower physical prices in top producer Thailand.
The Osaka Exchange October delivery was down 5.1 yen and The Shanghai Futures Exchange September delivery was down 155 yuan
Thailand’s benchmark export-grade smoked rubber sheet (RSS3) was quoted at 83.67 baht per kg on a free-on-board basis on Tuesday, 0.96% lower than Monday.
Oil prices rose in early trade today, adding to gains in the previous session, after industry data showed a surprise drop in U.S. crude stocks last week, a positive sign for demand.
Low demand, particularly from China, is currently dominating the natural rubber market, compounded by the weak currencies of major exporting countries and the geopolitical conflicts in the Middle East and Ukraine.
Limited supply remains, and farmers won’t be able to begin tapping earlier than usual this year because of the hot weather season in major rubber-producing countries.
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Rubber News For Today
27-03-2024
Japanese rubber futures edged up for a second straight session today amid weather concerns in top producer Thailand and a weaker yen, while strong manufacturing data in the U.S. also bolstered investor sentiment.
The Osaka September delivery was up 2.7 yen, while The SHFE May delivery was down 115 yuan.
Thailand’s meteorological agency warned of severe weather conditions in upper Thailand from March 26-27, potentially causing crop damage.
The Japanese yen weakened to a 34-year low 0.14% to 151.76 against the dollar and Nikkei average opened 0.29% higher.
The drop in rubber prices last week was mainly because the big dealers and traders were taking their profits,not because there was an increase in production.
With the industrial sector needing more sheet rubber, many countries that produce rubber are now converting latex into rubber sheets.
Experts say that The international market will still have a shortage of rubber until September, and prices will stay high.
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