|
| Tyre companies raise prices on rubber shortage |
| George Joseph / Kochi Jan 07, 2010, 00:30 IST |
|
Leading tyre companies have increased prices due to the sharp rise in the prices of natural rubber (NR) and scarcity of the commodity in the market. Apollo Tyres and JK Tyres have already raised their prices and other companies are expected to follow suit.
This price rise, across all brands, is expected to come in effect by the month-end.
Apollo tyres had increased the price of non-truck tyres by 5 per cent from December 26 and they extended the hike to truck tyres from January 1. “The average price of truck tyres had gone up by 7 per cent,” said Satish Sharma, chief, marketing and manufacturing, Apollo Tyres. He added that the market was anticipating an increase because of media reports on the sharp rise in NR prices and the shortage of the commodity.
JK Tyres increased the prices across all segments by 2-5 per cent, except the light truck tyres, from the last week of December.
Automotive Tyre Manufacturers Association (ATMA) Director General Rajiv Budhiraja said that all companies are expected to increase the prices by the end of this month. He added that the industry is facing a tough time due to the sharp appreciation in NR prices. And the scarcity of rubber adds to the woes.
The industry consumed 356,400 tonnes of NR (58 per cent of the total domestic consumption) during April-November of the current financial year.
Meanwhile, NR prices remained high today as the benchmark grade RSS-4 was quoted at Rs 138 a kg. Leading Kochi-based traders said that the supply of rubber to terminal markets was limited and the market was facing a serious supply crunch.
N Radhakrishnan, former president, Cochin Rubber Merchants Association (CRMA) said that the shortage is mainly due to stocking of rubber by growers anticipating much higher prices in the future.
There are widespread reports that the RSS-4 price may cross Rs 150 a kg soon as in futures trading it was even quoted at Rs 160 a kg. So there is heavy stocking by growers and small and medium stockists in major growing areas. International prices also moved at par with the local prices, with RSS-3, quoting at Rs 138.28 a kg and RSS-4 at Rs 137.20 a kg today.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
Content Guide
