Natural rubber price On Thursday breached the Rs 65 mark after a gap of 36 months as the benchmark grade RSS-4 plummeted further, thanks to weak buying interest from the tyre sector, and quoted at Rs 64. Within three days the rubber has shed Rs 12 per kg and the market is poised for a further heavy crash.
According to experts the price would touch Rs 60 within a few days and the next supporting level according to them is Rs 50. Leading Kottayam bound traders said Business Standard that the market is strongly poised for heavy crash in prices due to weak buying interest from the industrial sector thanks to the global economic turmoil.
A leading stockist said Business Standard the industries are aware that there is enough stock in domestic market and main production season is in full swing.
The current global economic situation hinders the possibility of large scale exports, though the global price is higher by Rs 22 per kg (Bangkok — Rs 87) than the price in the Indian market. So the movement of rubber to various states is limited for now and these parameters give no scope the scope for even a marginal increase in prices.
There is no hurry from the industry, especially tyre manufacturers to stock rubber heavily. The tyre industry strongly believe that the price would shed further and a tag of Rs 50 is within the reach.