Rubber shortfall affects tyre production

Rubber shortfall affects tyre production
Kochi: Expressing concern over the acute shortage of natural rubber, the Automotive Tyre Manufacturers Association (ATMA) has said that the acute shortage of rubber is seriously impacting the manufacturing schedules of tyre majors.

Mr Rajiv Budhraja, Director-General, ATMA, said that there has been a growing imbalance between production and consumption of natural rubber in the country since the beginning of this financial year. The industry had anticipated that with the onset of peak season in November, the situation will improve. However, it has gone from bad to worse. It is nothing short of a crisis, he said.

Production down
According to the latest Rubber Board data, rubber production dropped 6.5 per cent during April-November while the consumption increased by 3.5 per cent widening the gap between the production and consumption.

The production during the period stood at 5,38,125 tonnes and the consumption at 6,14,600 tonnes, a shortfall of 76,475 tonnes which is more than four times the gap of 18,000 tonnes during the corresponding period in the previous year. (BL)
http://www.thehindubusinessline.com/2009/12/08/stories/2009120851721600.htm
Spot rubber prices improve
Kottayam: The physical rubber market improved on Monday. The prices strengthened in the absence of sellers following the early gains on NMCE, but its late weakness failed to make any substantial impact on RSS 4.

The grade firmed up further to Rs 133 from Rs 132 a kg mainly on covering purchases.

According to market circles there were no enquiries from the tyre sector above Rs 123 a kg for sheet rubber. It is an unprecedented situation for the rubber sector as a whole, said Mr George Waly, President, Indian Rubber Dealers Federation (IRDF).

According to Rubber Board, there is a stock of 2.21 lakh tonnes of rubber and the stock being held by the growers alone comes to 1.75 lakh tonnes. But industry is facing acute shortage as a result of the poor inflow. As against Rs 59 a kg during the same period last year, the price has now shot up to Rs 135 while the international price is now ruling below at Rs 130 a kg. The peak production period has thus turned to be the hardest time quite unhealthy for the rubber sector, he added. (BL)
http://www.thehindubusinessline.com/2009/12/08/stories/2009120851621600.htm