KOCHI (Commodity Online): Rubber demand across the
globe may remain subdued for rest of the year 2012 on weak global auto
markets. Rubber prices in India has dropped by around 22-23% to Rs185
per kg from peak of Rs 240 per kg nearly 15 months ago.
According to analysts, the automobile industry in major rubber
consuming nations like India, China is expected to remain subdued on
weak economic conditions.
In India, the auto sector is expected to slow down to single digit in the in the coming 12-15 months.
Rubber is mostly consumed by the tyre industry across the globe. With
the present situation, automobile sector is experiencing slowdown and
is hurting the rubber prices.
Meanwile, in Tokyo Commodity Exchange (TOCOM), rubber futures Friday
firmed after stimulus measures taken by three major central banks,
showing sign of improvement in Euro zone crisis.
Rubber for July delivery, in TOCOM, traded at 246 yen per Kg and in
India's National Multi Commodity Exchange (NMCE), the commodity traded
at Rs 18525 per ton on 6th July at 11:30 IST.