According to a recent report of Association
of Natural Rubber Producing Countries (ANRPC), the natural Rubber demand is
expected to remain low for 2012, due to the deepening Euro debt crisis. Large
number of rubber based units are in crisis across the globe, find it difficult
to resist the situation. Growers and traders expect natural rubber prices to
hold firm in the first-half of 2012.
The economic slowdown and a flood of imported
rubber products hit the domestic rubber industry, while short supplies and high
prices of natural rubber affected the rubber based units, especially those in
the small and tiny sectors, said Vinod Simon, president of All India Rubber
Industries Association.
Tyre manufacturers and other rubber based
industries fear that the gap between production and consumption would widen
further in the New Year, as the industry has lined up large-scale investments
in the truck and bus radial segments, expects natural rubber demand to go up. Rubber
industry has reiterated its demand for duty free imports as a short-term
measure. Industry hope that the government would bring down the import duty on
latex to the level of natural rubber and raise import duty on finished rubber
products.
New Year has begun on a challenging note, the
gap between domestic production and consumption was likely to widen as efforts
to import natural rubber proved expensive on account of the depreciation in
rupee value, said Neeraj Kanwar, Chairman of Automotive Tyre Manufacturers'
Association.
Read
lot more in Rubber4U – 15th January 2012 issue
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