Rubber Price Plummets Despite Global Demand Surge
Rubber prices are on a downward spiral despite a surge in global demand and limited availability. The RSS4 grade sheet, priced at Rs 179 just a week prior, has plummeted by Rs 5 within a short span, now standing at Rs 174.
Even with escalating global prices, tire companies are opting for imports over domestic purchases. In February and March, when local supply fell short, prices peaked at Rs. 190, leading many farmers and distributors to withhold their stock. Despite this, tire companies refrained from cancelling contracts due to the scarcity.
To prevent plant closures, imports were encouraged, though the impact of stagnant international prices has not been factored in. Additionally, recent summer rains prompted farmers to commence tapping, resulting in limited supply entering the market, albeit being quickly released without hoarding, further contributing to the price decline.
Meanwhile, despite the Rubber Board’s efforts to boost exports and stabilize domestic prices at Rs 200, exports have not witnessed substantial growth, exacerbating market challenges.
