Natural rubber prices rallied for the third straight day to a fresh all-time high of Rs 214 per kg in the domestic market today due to a fall in arrivals and firm global cues, which could have an impact on tyre-makers? profit margins.
Prices of natural rubber closed at Rs 210.5 per kg in the Kottayam and Kochi market yesterday, compared to Rs 209.5/kg in the previous session.
Today, prices of natural rubber went up further to set an all-time record of Rs 214 per kg in these key trading centres of the commodity.
According to industry experts, a surge in demand from the US on the back of better-than-expected growth in the automotive segment is pushing up global prices of the commodity and the impact is also being felt in domestic markets.
International prices of rubber are touching new highs and domestic prices are only following them, Indian Rubber Dealers Federation President George Vally has said.
He said that prices are further expected to go up as there is still a huge difference between domestic and international prices.
Natural rubber prices have been on the rise for the past few months due to production disruptions in Kerala, which accounts for 90 per cent of the country?s output of the commodity, coupled with a rally in international markets.
India?s production of natural rubber in 2010 is pegged at around 8.5 lakh tonnes, whereas the total demand for natural rubber in the country is nearly 10 lakh tonnes per annum.
