 "Double whammy for tyre firms: Rubber cost zooms, auto demand crawls")
Natural rubber prices have turned positive after a gap of two years in the domestic market during the first quarter of the current fiscal year. While this is a good news for farmers, tyre companies have been hit with a double whammy as demand for tyres is stagnant due to the slowdown in auto sales and raw material prices are only rising.
The price of natural rubber is up a staggering 23 per cent from a low of Rs 11,915 in January and is currently at Rs 14,579, according to Rubber Board data.
Mitul Shah, Research Analyst, Reliance Securities said,
