Price of natural rubber has moved closer to their peak of Rs 135 per kilogram in the last one week because of stock holding by farmers, trade sources said. At present, price RSS-4 was quoted at Rs 128 per kilogram (kg), much higher than what they were a week back.
The ATMA (Automative Tyre Manufacturers Association) has been voicing apprehensions at the staggered availability of stocks. ?Farmers are also not forthcoming in parting with their stocks as international price of RSS-4 rubber is much higher than local prices, providing ample scope for further improvement in prices,? said N Radhakrishnan, a leading rubber dealer.
?At least Rs 6 per kg price margin can create export openings. International demand is up for both crumb and sheet rubber,? says Augustine Poompara, an exporter.
Market analyst feel that the price trends are bullish but moving in a narrow band. Domestic rubber prices have been rising despite a suspension of futures in May. Dealers said around 1,000 tonne of rubber changed hands last week.
In May, Rubber Board had estimated nearly 65,000 tonne production. Although this is an improvement on last year?s output, demand has also gone up.
The export advantage of the Indian rubber planters may end soon because competing rubber growers in Malaysia and Indonesia are expected to consolidate their produce by next month to capture the Chinese market.