Tuesday, August 2, 2011

Can NR import rise?

In the current scenario, there are concerns that India’s natural rubber consumption growth could slow in 2011-12 as auto sales are falling, hitting tyre demand from original equipment manufacturers (OEMs), but there is demand from the tyre replacement segment which will drive growth.

When it is expected that domestic prices most of the year is likely to remain lower than international prices because of the change in duties, then how it is possible that there will be a major rise in import. If import has to increase, then the domestic prices has to go above the international prices that too with a minimum gap of Rs 20 per kg., then only import will be viable. One more important thing is the stock level, which is at 2,47,442 tonnes as of June, compared with 1,80,697 tonne a year ago.

The growers are holding stocks in the hope of higher prices in future, which in turn has created short supply in the market, hence imports are taking place and also due to concessional duty import.

It is expected that India’s 2011-12 natural rubber production will rise due to good monsoon in the southern state of Kerala.

Read lot more in Rubber4U – 1st August 2011 issue

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