Prices of natural rubber, key raw material for making tyres, rose further to a fresh all-time high of Rs 210.50 per kg in the domestic markets on fall in arrivals and firm global cues.
Yesterday, the prices of natural rubber in the markets of Kottayam and Kochi, key trading centres of the commodity, closed at Rs 209.50 a kg compared to Rs 207.50 a kg in previous day.
Today, the prices of natural further went high and set an all-time high of Rs 210.5 per kg.
According to industry experts, surge in demand from the US market on better expected growth in the automotive segment is pushing the global prices of the commodity and their effects are also felt in domestic markets.
"International prices of rubber are touching new highs and domestic prices are only following them," Indian Rubber Dealers Federation President George Vally said.
He said that prices are further expected to go up as there is still a huge difference between domestic and international prices.
International prices of natural rubber are ruling at around Rs 230 per kg, while in the domestic, it has only gone up to Rs 210 per kg, so naturally, farmers are expecting better returns and are reluctant to supply at lower prices, according to a Rubber Board official.
The Rubber Dealers Federation has earlier said that the commodity's prices in the domestic market can only decline in the event of cooling of international prices, which are also at record level.
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 rally in international prices of the commodity.
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.
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