Automobile industry is the only consumer of
tyres. The automobile industry has slumped with passenger car sales grinding to
low single digit growth in 2012 due to hike in excise duty, increase in fuel
prices, hardening interest rates and sluggishness in the economic environment. Car
companies have, in recent times, announced production cuts to battle the demand
slump and discounts and promotional packages are ruling the market to attract
consumers into buying new cars.
The debt crisis in Europe and slowing growth
in China are clouding market sentiment and has raised concerns that demand for
rubber may slow. Dealers expect rubber consumption from tyre makers to drop in
the coming months on lower demand from auto sector. Natural rubber prices in
India are likely to weaken due to lack of demand and rising supplies and on the
other hand Thailand’s plan to intervene in the market is seen limiting the
downside in the international market. For the past few months tyre makers are
buying less than normal from domestic market due to availability of rubber from
imports. India's natural rubber imports in May rose to 18,419 tonnes from
16,293 tonnes a year ago. Now local supplies are improving due to rainfall in
Kerala. Rubber experts expect the soft prices to continue globally for a while
so tyre companies can look forward to some relief in their main raw material.
Today, in Kottayam, RSS-4 grade prices have closed
at `.186.50 per kg. and RSS3 grade closed at `.185.93
a kg at Bangkok.
Read
lot more in Rubber4U – 1st July 2012 issue
No comments:
Post a Comment