Rubber dips 1.2% as overseas prices fall

A sharp fall in global prices, especially in Tocom futures, pushed down natural rubber prices. Price of benchmark RSS-4 grade has dropped 1.2 per cent to Rs 83 a kg.

Last week prices had touched an all-time high of Rs 84 a kg. Prices were bullish on account of increase in prices in global markets and shortage in supply of quality sheet rubber.

Tocom futures for RSS-3 grade for April contract dropped to Rs 91 a kg, Rs 3.50 lower than the closing rate of April 4, but regained to Rs 92.50. It closed Re 1 lower over Tuesday's close.

A leading Kochi-based trader told Business Standard there were no official quotations in almost all grades today as the market was very dull. He added that industrial users had withdrawn from the market expecting further drop in the coming days.

According to traders here the reason of the sudden dip in global market is yet to be known.

If the drop in prices continues the local market could be in trouble as supply of sheet rubber to terminal markets will increase.