The Colombo Rubber Auction saw the Latex Crepe No. 1 hitting new highs as the prices reached Rs.685, up from Rs.25 from the last auction with RSS No. 1 hitting Rs.638.5
Unsettled weather in the region with persistent wet weather has effected production in most rubber planting countries including Sri Lanka, whilst trees in most areas have started shedding leaves indicating signs of wintering.
In Japan, Tocom RSS3 rubber futures rose as much as 1.8% to a fresh record of Yen 513.2/kg. Tocom is supported by fundamentals due to supply concerns, as major producers are set to enter low-production season, mainly in Thailand the world's largest exporter.
Production is expected to drop in March and April due to wintering .Rubber trees in some parts of Thailand are starting to shed their leaves, marking the beginning of low-production "wintering" season, with traders expecting the reduced output to further support of natural rubber prices, which have hit all-time highs across all major grades.
Meanwhile, demand for rubber rose sharply last year, with China, the world's largest consumer and importer, registering 8.6% consumption growth in natural rubber. India, the world's second-largest consumer, saw a 4.1% increase in natural rubber consumption and an 18% rise in imports. Leading tyre manufacturer-Bridgestone announced on Wednesday it will raise average prices for passenger car, light truck and motorcycle tyres by 8% in Japan from June 1 due to higher prices for natural rubber and other raw materials.
source - www.dailymirror.lk
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