Kochi
With domestic prices of natural rubber surpassing international market rates by around ₹25 per kg, there are apprehensions that this could result in more imports due to the non-availability of the raw material in the domestic market.
Prices of natural rubber in the domestic market touched ₹205 on Thursday as per the statistics published by the Rubber Board, while the Bangkok rates are quoting at ₹178 for RSS IV. Imported block rubber is quoting at ₹140, while the domestic price is ruling at ₹176, George Valy, President of Indian Rubber Dealers Federation.
In such a scenario, he said imports cannot be ruled out due to the dropping of international prices coupled with the non-availability of the commodity in the domestic market. The domestic market is witnessing “extreme tight supplies” as continuous rains disrupted tapping and rain guarding of trees. The situation would be eased out only when the weather situation improves, he said.
However, PC. Cyriac, former Rubber Board Chairman, ruled out of any such concern on more imports saying that the landed cost of imported rubber would be much higher compared to domestic prices considering the taxes, shipping charges, freight rates etc.
Tyre makers’ woes
Official sources pointed out that natural rubber prices in the domestic market are expected to be bullish in 2024 on account of national and international factors. The growth of the Indian economy will have a reflection in the automobile sector which would push up demand.
Tyre manufacturing companies are facing some difficulties in procuring NR from South East Asian countries. This is mainly because Chinese traders are in a hurry to export their products to the US before Washington imposes a tariff hike starting August 1. This has resulted in container shortage and congestion at transshipment ports, leading to transit delays.
Officials at the Automotive Tyre Manufacturers Association (ATMA) said shipments especially from SE Asian nations are getting delayed by around 15-20 days due to disruptions in transhipment ports and shortage of containers. However, the situation has improved and may be over by August with China to complete its export commitments to the US markets by July-end before the tariff hike comes to effect from August 1.