Natural Rubber

Homegrown tyre major CEAT Ltd expects easing of pressure from high raw material costs in the second half of the ongoing fiscal after being impacted by 15-year high domestic natural rubber prices, according to its Managing Director and CEO Arnab Banerjee. The company expects its aftermarket business to continue to grow in double digits and better performance of its international business, which was also affected by non-availability of containers and high freight cost in the second quarter. The domestic natural rubber prices went up to a 15-year high at about Rs 250 per kg in the first half of the fiscal, Banerjee told PTI. "We hope to see an improvement in Q4. I think the pressure is going to ease off in the second half of the year," he said when asked how long the impact of high natural rubber prices is expected to last. He further said, "Rubber prices have already come down to about Rs 200 per kg. While the increase Q2 over Q1 was six per cent, for Q3 over Q2 it is expected to be 1

Inflated natural rubber prices which are way above the trend in the past decade could impact the profitability of tyre manufacturers, according to CRISIL Market Intelligence & Analytics. Tyre makers are headed for a rough patch as the price of natural rubber has surged more than 33 per cent on-year in just the first five months of this fiscal amid strong demand and crunched supply, which could strain profitability, CRISIL said in a statement. The domestic prices of natural rubber closed in August at Rs 238 per kg on average, way above the trend in the past decade, it added. CRISIL Market Intelligence and Analytics, Director-Research Pushan Sharma said between fiscals 2011 and 2023, global rubber production grew 35 per cent while demand expanded 40 per cent resulting in a supply crunch thereby resulting in higher prices. "With further rise in demand and restricted supply, the prices of natural rubber are expected to remain elevated, impacting the margins of tyre manufacturers well .

Rubber Board Chairman has said that to meet the natural rubber requirement of 15 lakh tonnes by 2025-26, there is an urgent need to increase the area under rubber cultivation on a war footing

The official also said rubber futures contracts will be available for compulsory delivery for investors who are keen to trade in rubber quality of ''Ribbed Smoked Sheets4'' for a minimum lot size of 1

Plan to be ready for demand whenever lockdown ends, though manpower crunch is still an issue

Production of natural rubber (NR) during the month of May 2017 shows an increase of around 8.7 per cent as compared to that during the same period last year. Production during May 2017 is 50,000 tonnes whereas it was 46,000 tonnes in May 2016. According to Rubber Board data, production in the first two months of the current fiscal was around 98,000 tonnes against 85,000 tonnes, a year ago an increase of 15.3 percent.Board is anticipating production for the current year is around 8 lakh tonnes.Rubber Board is continuing its activities to make rubber cultivation remunerative by increasing production and productivity and reducing cost of cultivation and production. The Board has been implementing several activities at regional and field levels, with the active cooperation of Rubber Producer's Societies (RPSs).The annual mass contact programme of the Rubber Board this year was aimed at total excellence of the plantations.There were about 50,000 participants in 800 meetings conducted at ...

Officials attributed the increase to the improved market price, initiatives like mass contact programmes