In the domestic market natural rubber prices fell by Rs 5 to Rs 222 per kg on the back of declining rates in the international markets. The rubber prices slumped to the lowest level in almost two months after data showed car sales in China fell for the first time since September 2009, after fuel prices rose and the government ended incentives supporting vehicle sales. Chinese car sales may not grow as much as earlier expected, given rising fuel costs and the nation’s monetary tightening. China raised the sales tax rate on small cars this year to 10% from 7.5%. It is believed that market sentiment is changing due to rising gas prices, higher borrowing costs and overall tightening in the economy. This situation has created concern about the demand for tyres.
The price of NR (RSS4 grade) in the domestic market was at Rs 230 per kg on 5th March and in the international market at Bangkok the price of RSS3 grade closed at Rs 263.39 per kg today as against Rs 270.10 per kg on 4th March 2011.
Chinese buyers have delayed purchases, waiting for prices to fall further.
Read lot more in Rubber4U – 15th March 2011 issue
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