After 10-day surge, Rubber prices drop below ₹200

Kottayam, Kerala: Rubber prices have declined sharply after a 10-day rally, with RSS IV (Ribbed Smoked Sheet grade 4) grade rubber falling from ₹204 on July 23 to ₹199 on July 31. Although some isolated trades saw prices briefly touch ₹214, raising hopes within the sector, the broader trend now points to a downturn.

The sharp drop in rubber prices comes as traders anticipate that the recent rains will subside, allowing for an increase in rubber supply. The limited availability of rubber earlier had driven up prices, with traders purchasing the small quantities that reached the market at higher rates. However, with expectations of more goods becoming available soon, the market price has dropped. Tyre companies are also showing caution and slowing down their purchasing.

International prices

International rubber prices are also low, with the price of RSS IV in Bangkok currently at Rs 179. This has raised concerns that imports could rise further, which might put more downward pressure on local prices. At present, imports into India stand at around 35,000-40,000 tonnes per month, with compound rubber shipments averaging 20,000 tonnes.

Latex prices also decline

In addition to rubber, the price of latex has also experienced a decline. Latex price has dropped by Rs 10-12 within the past week, falling to Rs 127 for 76 percent DRC. The decline is largely attributed to a reduction in purchases by crumb rubber users, who cut back on their buying due to the previously high domestic prices.