Natural rubber prices rise to 3-year high on supply constraints - The Hindu BusinessLine Congestion at South-East Asian ports may affect imports as prices reach ₹190/kg Natural rubber prices recorded its highest rates in the last three years, reaching ₹190 per kg in the Kottayam market during intra-day trading before closing at ₹189. It was in December 2021, the prices of the commodity breached the ₹190 mark, traders said. Due to the increasing scarcity of natural rubber (NR) on the international market, the recent surge in NR prices in India may cause it to reach its highest level in more than ten years. The current rally in Indian natural rubber (NR) prices may see it hit its highest mark in over a decade on the back of worsening shortage in the global market. As traders reckon that prices may reach Rs 200 per kg during April-June, tyre companies will feel the heat in the first quarter of FY24-25. The escalation in the price of this raw material will bump up the cost of production for tyre manufacturers, who account for around 70 percent of the NR consumption, forcing them to take countermeasures. The price of RSS 4 — the type of rubber mostly used by the automobile industry — already had touched Rs 180 per kg on Friday, 15th March 2024. “Increasing raw material prices will impact our cost of production. NR prices are soaring and synthetic rubber rates are also moving up, with the rise in crude oil prices. There is a limit up to which tyre companies can absorb losses. So, if the situation continues for a longer period, then we will have no option but to pass on the increased costs to the consumers,’’ said Ashish Pandey, Senior VP, Materials, J K Tyres. However, he feels the crisis may not last long and prices will ease. Lower production and the Red Sea imbroglio is prompting Western nations to buy more, which has added to the global price rally, he said. “As a result of the Red Sea problem, there is a two-week delay in Indian supplies to the West. They are building their inventory to prepare for a future shortage. This situation could be temporary and may change in a month or two,” Pandey added.
Don't forget OJ, copper and those cocoa prices. Yep ...commodities of all shapes and sizes touching new highs