Rubber prices may go up to Rs 18,000 per quintal level

Surge in rubber prices in the international markets coupled with increased buying from tyre makers may push the prices of the commodity in the domestic market to Rs 18,000 per quintal level.

Rubber prices jumped by Rs 250 from Rs 16,450 per quintal to Rs 16,700 yesterday as on September 6, 2010.

"After the government's proposal to cap import duty at Rs 20 per kg, tyre makers postponed buying anticipating low prices. However, after seeing resistance from rubber growers, they have resumed buying, which has led to a jump in the prices of rubber," All-India Rubber Dealer Federation President George Valy told PTI.
    
He said, international rubber prices are now at more than Rs 16,300 level, however with the addition of import duty and freight cost, the landing cost of the rubber would be more than Rs 19,000 per quintal.
   
"Now, with this development, there is enough room for the increase in rubber prices in the domestic market and this could go up to Rs 18,000 per quintal level," Valy said.
    
Rubber prices in the domestic market declined from Rs 18,600 per quintal on August 6, to Rs 16,350 per quintal on September 2, and market experts had further predicted that it may further go down to Rs 15,000-level following which tyre makers had postponed their purchases.
    
However, with rubber growers showing firm resistance in selling their products at this level, tyre makers are resuming their buying here.
    
Before import duty was fixed, the prices of rubber in the international market stood at around Rs 15,000 per quintal, but following the proposal to cap import duty, they went up to Rs 16,000 per quintal, he said, adding that it may go up to Rs 18,000 per quintal.