The Association of Natural Rubber Producing Countries (ANRPC) is keeping tabs on the decling trends in prices of natural rubber (NR) internationally.
The association’s meeting from November 26 to 28 in Bangkok will discuss the price trends and supply-side measures in detail, according to Rubber Board chairman Sajen Peter.
In India, the fall in prices of NR has been in tandem with the downward play of international prices of the commodity, Peter said in a release, here.
The impact of external economy on automobile industry will spontaneously reflect in the rubber trade also. Major vehicle manufacturers like General Motors have had to tightbelt production following the world-wide recession.
Even the rubber offtake of consuming countries like China is tapering, signalling a major shrink in international demand this year. This could be temporary, he adds.
At the same time, the crude prices have fallen from $145 per barrell in July 1 to below $50 per barrel.
The price of synthetic rubber is dependent on crude price. Hence, the possibility of cheaper synthetic rubber substituting natural rubber in tyre industry is very high. This could further depress natural rubber prices.
The ANRC meet is expected to discuss all aspects of the demand shrink in natural rubber, so that alternatives can be worked out, Peter said.