The Society of Indian Automobile Manufacturers (SIAM) has trimmed its annual growth forecast for passenger cars from 16-18% to 14-16%. Automobile component manufacturers are raising the prices on account of high input costs, which in turn forces the automobile manufacturers further raise the prices to avoid a squeeze on margins. Increased borrowing rates and surging fuel prices would further drag the industry momentum.
With the global economy slowing down and OPEC mulling a production quota hike, crude oil prices would come down in the coming months. This would also bring down the prices of synthetic rubber and would replace natural rubber in a limited way curbing the natural rubber demand.
Rubber Board had projected domestic consumption of natural rubber to the tune of 9.77 lakh tonnes mainly on automobile demand. But with sluggish sales in the offing, it is highly unlikely that there would be such a huge demand. This means rubber inventories in India would climb.
Natural rubber prices have seen a steep decline in the past few weeks due to better production and rising imports. However, prices are expected to recover in the coming days as production is about to enter a lean phase with the onset of monsoon.
As on 6th June, the prices of natural rubber (RSS4 grade) closed at Rs 226.50 per kg and are likely to trade between Rs. 220 and Rs 238 per kg, till June end.
Read lot more in Rubber4U – 15th June 2011 issue
No comments:
Post a Comment