Rubber boom breaks eight-year record: Demand for gloves rises in Corona era

- Demand for duty-free import of rubber started by tire manufacturers as prices skyrocketed

The De Shama rubber market and the industry have recently seen a rapid shift in the equations. Rubber prices have been on the rise recently. The country produces rubber mainly in South India. According to rubber market sources, market prices have been rising for the last three-four weeks recently.

In a span of about a month, the price of rubber futures has gone up by Rs 200, sources in the futures market said. In the rubber market, demand from the automobile and healthcare sectors has been good in the face of recent supply shortages. The new season's rubber revenue is still one to two months away.

Market analysts were predicting that overall market price fluctuations would remain stable until new arrivals begin. The recent rise in corona infestation has led to a significant increase in demand for rubber in the production of rubber gloves and packaging tapes. Rubber prices have gone up not only in the domestic market but also in the world market. The recent purchase of rubber by China in the world market has increased significantly. U.S. automakers have also recently reported overseas purchases of large quantities of rubber from overseas markets.

On the one hand demand has increased. On the other hand, the supply of rubber has not increased much and the market has remained bullish. According to sources in the Association of Rubber Gloves Manufacturers of Malaysia, global demand for rubber gloves has increased to an estimated 200 billion units. The supply of rubber gloves, on the other hand, is estimated at about 20 to 5 billion units. Given this, short supply is clearly being maintained. Market experts are counting on increasing consumption of rubber gloves as people have become more serious about maintaining health in the Corona era.

Experts in the field are predicting that the global supply of rubber gloves will continue for another year or two under such circumstances. Demand for rubber has also increased from vehicle manufacturers and tire manufacturers. According to veteran rubber traders, the rubber market has not seen such a boom in the last two to three years. According to rubber growers and traders in the Alauzha area of ​​the southern state of Kerala, it would not be a surprise if market prices go up further.

Rubber manufacturers have recently seen RLS-four types of rubber trading at around Rs 15-16 per kg. Earlier, in July 2016, the price of such rubber had reached a record high of Rs 12-13, which is considered a record. In the post-2014 period, rubber prices were under fluctuating pressure and now prices are picking up again. This time, experts were showing the possibility of further price hike from Rs 150 to Rs 15. The process of tapping rubber by manufacturing plants in rainy weather is also affected.

It also takes time for rubber sheets to reach the market. Amid hopes of further rise in prices, many rubber manufacturers have also been seen hoarding instead of selling goods. The government has also hiked the support price to Rs 150, so the fear of falling prices has gone out of the minds of rubber growers. Meanwhile, the price of latex type rubber has gone up to Rs 150 per kg. Bangkok is a key market for rubber prices and global trade. As rubber prices rise, tire manufacturers, especially those who consume rubber, have become concerned. Tire manufacturers have approached the government to allow import of rubber on a duty-free basis.

The annual demand for natural rubber is likely to increase to 1.5 million tonnes. According to sources in the Automotive Tire Manufacturers Association, the government should allow import of rubber on a duty-free basis in view of the short supply of rubber at home. The annual production of rubber in the country is estimated at about eight lakh tonnes. Due to high demand, short supply of about five lakh tonnes of rubber is being seen at present.

Out of the total demand for rubber in the country, about 40 per cent comes from the tire industry. Tire manufacturers are also claiming that the production is in fact lower than what is estimated by the Rubber Board. This was stated by the sources of the tire manufacturers. In the first quarter of the current financial year, the demand for rubber in the country has been recorded at more than three lakh tonnes. On the other hand, sources say that the production of rubber in this period is around 1 lakh 2 to 30 thousand tons.