Kottayam: After a five-month gap, rubber prices have once again crossed the Rs 200 mark. Recently, RSS-4 grade sheet rubber was sold at up to ₹205 in Kottayam, while the Rubber Board set the price at ₹204. Traders, on the other hand, had notified the price of ₹196. In the international market, rubber prices in the Bangkok market have surpassed ₹207.

The market had witnessed a sharp decline after reaching an all-time record price of ₹255 on August 9, 2024. Following a brief period where rubber was traded at₹200 in October, the price dropped and remained around₹170 before recovering to₹190. One of the key reasons behind the recent price surge is the decline in production due to the intense heat in Kerala during February.

Financially sound rubber traders held back their stock, anticipating the price to reach ₹200, which further contributed to the rise in prices.

On the global front, the uncertainty in trade caused by US President Donald Trump’s candidacy has somewhat stabilised, while an surge in the rubber production in China has also played a role in the revival of the international market. Tyre companies have indicated that the situation in the market has improved.

With the onset of summer rains in March, tapping activities are expected to improve. If tyre companies continue to procure rubber consistently, prices may rise beyond ₹210. However, if supply is expected to decline, imports may surge, which could lead to a drop in prices. Currently, the average monthly import stands at 35,000 tonnes.

According to George Valy, President of the Indian Rubber Dealers Federation, the market is likely to maintain its upward trend beyond March as well.