Natural rubber prices at record high on global cues

Continuing its gain for the third straight week, natural rubber prices today touched all time high of Rs 230 per kg on strong global cues.

Prices of natural rubber, a key component for making tyres, today closed at Rs 230 per kg in Kottayam and Kochi, which accounts for 90 per cent of the country's production. 

According to industry sources, the rally in natural rubber prices is due to the surge in prices of the commodity in the international market. 

Natural rubber prices in the global market touched a fresh high of Rs 250 per kg as strong demand from China and the US is fuelling the prices of the commodity.

"International prices are at record high level and are likely to remain at that level in near future due to strong demand," Indian Rubber Dealers Federation Treasurer Ibrahim Jalal has said.

Domestic prices are following the international trend, he added.

A surge in demand from the US on the back of better-than-expected growth in the automotive segment is further pushing the global prices of the commodity and the impact is also felt on the domestic market, said an expert. 

However, the present rally in the prices of commodity is due to the global cues as the supply situation in the country has improved, Jalal said.

India's production of natural rubber in 2010 is estimated at around 8.5 lakh tonnes, whereas the total demand for natural rubber in the country is nearly 10 lakh tonnes per annum.