Prices of India rubber improve as arrivals continue to strengthen

By Sajeev Nair | 05 Sep 2003

Mumbai: The prices of rubber at the South Indian rubber bourse of Kottayam improved by a tad on a "slight increase" in off-take, even as arrivals continued to post a strengthening trend, say traders. The prices at the outcry bourse, which opened at INR 47.75, strengthened to post INR 0.50 gains and close at INR 48 during the close of the trading Thursday.

The slight improvement in off-take was due to the festival purchases of industrial rubber-makers, while the exporters also contributed their bit to strengthening of the prices. But tyre- and tube-makers stayed put from active buying, even though they claimed to have been active on need-based buying. The price rise, even though by a tad, helped in easing dull market conditions, which were prevailing at the bourse for the past two days, say analysts.

Kerala, which is to host its most important festival of Onam on 8 September, is expected to be a "bee-hive of activity." However, trade posted a lacklustre trend during the past three days, except Thursday. The industrial production in the state has also picked up, with many of the non-tyre manufacturing units posting increased output.

The state is receiving heavy rainfall, which might improve the quality of the natural rubber procured, especially that of the latex varieties. But analysts and market sources fear that the continuing rain might affect tapping and processing activities in the state.

The interest for sheet rubber RSS-4 waned during the day, believed to be due to a fear in quantum leap of prices, they add. The demand for block rubber and latex varieties posted an improved trend, compared with that of the previous day, while non-tyre and block varieties also posted an improved trend.