SRI LANKA: Rubber prices seen rising

Sri Lankan rubber prices are seen rising this year, broker Forbes and Walker said.

It said the natural rubber market has been on an upward trend since early 2009, adding that weather in most rubber planting countries have not been  conducive for tapping operations throughout.

It said production came down drastically during 2010 due to continuous rains which saw prices rise due to the shortage. Meanwhile, due to the recession in Europe and USA, many rubber based industries shifted their operations to China. “The internal demand in China was on the rise. Demand for cars in Asia grew ever than before during 2009/2010,” the Colombo broker said.

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. At the public auction on January 6, Latex Crepe Ix reached Rs.605 while the price range for Latex Crepe No.01 was quoted between Rs.580 to 600 with an average price of Rs.588 per kilo.

Forbes said Sheet Rubber (RSS) No.1 is currently selling at over Rs 560 per kilo. “This upward trend may continue for some time as per industry experts,” it said.

(Syed Rashid Ali, Karachi, Pakistan)