MUMBAI, Aug 8 (Reuters): Natural rubber prices in India, the world's fifth-biggest producer, dropped to their lowest level in 4-1/2 years on Friday, following losses in overseas markets and on higher imports, three dealers said.
Lower prices would bring down raw material costs for tyre makers, thereby boosting their profitability, as natural rubber makes up more than 40 per cent of the cost of a tyre.
The spot price of the most-traded RSS-4 rubber (ribbed, smoked sheet) at the Kottayam market in the top producing Kerala state fell by 150 rupees to 13,500 rupees per 100 kg on Friday, the lowest since Feb. 12, 2010.
Benchmark Tokyo rubber futures were on course for their first fall in four weeks, with prices dipping in early Friday trade, as lower Japanese equities and copper prices over the period weighed on sentiment.
"Demand is robust but higher imports are putting pressure on local prices," said a Kottayam-based dealer.
India's natural rubber imports in July rose 14.8 per cent from a year ago to 36,997 tonnes, the state-run Rubber Board said on Wednesday. CEAT Ltd, JK Tyre and Industries Ltd, MRF Ltd, Balkrishna Industries Ltd and Apollo Tyres Ltd are likely to benefit from the lower prices.
India\\\'s natural rubber prices dip to 4-1/2 year low
FE Team | Published: August 09, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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