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OEM Update
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Rubber price crosses Rs 100 per kg mark as demand grows

By December 29, 2009 8:44 am IST

Over the past month the demand for rubber by tyre companies has increased, as the auto industry shows signs of recovery. This has led to 37 per cent increase in rubber prices to over Rs 100 per kg. Tyre firms have also stepped up rubber imports with local prices quoting at a premium to international prices. George Valy, President, Indian Rubber Dealers Federation, said, “Earlier, due to low demand, tyre companies were not keeping much of inventory and running at close to 75 per cent capacity. But now they are running at higher capacities with demand picking up — especially by original equipment manufacturers.”

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