Rubber hits new peak of Rs 71/ kg

Prices have galloped in line with the global trends.

Natural rubber prices peaked to the highest level ever recorded in the history of domestic rubber trading here today.

Price of RSS-4, the benchmark sheet rubber touched the record level of Rs 71 a kg and price of ISNR-20 (crumb rubber) was pegged at Rs 68.50 a kg.

The previous high of RSS-4 was on July 25th, 2005, when its price touched Rs 70 mark, and peaked again to Rs 70.50 on December 19.

Since then RSS-4 had been traded at Rs 70 a kg, but today it has touched Rs 71 mark as a Christmas gift to the one million growers of Kerala.

Traders told Business Standard that there is shortage in supply of rubber and even at higher price levels good quality sheet rubber is not available in Kochi and Kottayam-rubber's terminal markets.

Though seasonal production is in full swing, it does not match with the demand in the market both domestic and overseas markets.

Prices have galloped in line with the global trends especially in Tokyo Commodity Exchange (Tocom) futures trading.

Unprecedented heavy rainfall during the last few weeks had affected rubber production world over though it is production season in most of the countries including Thailand, world's largest producer of natural rubber.

Due to this there is a serious supply crunch in the global market, but consumption level has been increasing at a much greater pace.

According to N Radhakrishnan, president, Cochin Rubber Merchants Association (CRMA), price might cross Rs 80 mark by February as production season will end by January.

Traders also said that major industrial houses are on a frantic buying mood now due to reports of price increase by February.

This has caused serious supply crunch in various markets.

This Christmas - New year period is a high time for rubber growers of Kerala as money flow has increased in all the nooks and corners of districts like Kottayam, Pathanamthitta and Thiruvananthapuram.