High demand from India and China has ensured high rubber prices despite the global recession and with domestic demand picking up, the price of rubber expanded beyond Rs. 600 this week.
Weather in most rubber planting countries have not been conducive for tapping operations through out and production came down drastically during 2010 due to continuous rains. Meanwhile, due to the recession in Europe and USA, many rubber based industries shifted their operations to India and
China, Damitha Perera, Director,Forbes & Walker Commodity Brokers (Pvt) Ltd said in a statement."The internal demand in both China and in India too was on the rise. Demand for cars in Asia grew ever than before during 2009/2010.
Sri Lanka too has a domestic consumption of well over 60% of its production, currently being one of the leading suppliers of Dipped products (Latex Gloves) and Solid Tyres to the world. As a result of all these reasons the current Rubber prices have reached the all time high price levels," Perera said.
At the public Auction dated 6th January 2011, Latex Crepe Ix reached Rs.605 whilst the price range for Latex Crepe No.01 was quoted between Rs.580 to 600 with an average Price of Rs.588 per kilo. Sheet Rubber (RSS) No.1 is currently selling over 560/- per kilo.
This upward trend may continue for some time as per industry experts, Forbes & Walker Commodity Brokers (Pvt.) Ltd said.
Sri Lanka saw the highest price for rubber ever to be recorded at the Colombo Rubber Auction last Thursday (6) held at the Ceylon Chamber of Commerce. It was a significant milestone as the price for Latex Crepe 1X reached the Rs 600.00 per Kg mark for the first time ever.
Shehan Meegama of John Keells PLC was able to make history when he obtained Rs 605.00 for a Latex Crepe 1X, manufactured by Eladuwa Estate managed by Namunukula Plantations Ltd. It was bought by Almar Trading Co. (Pvt) Ltd, one of the largest exporters of Rubber in Sri Lanka, a statement said.
Related Info:
• Sri Lanka Rubber Export Earnings Up on Increasing Demand from Emerging Markets
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