Indian tire industry to import rubber to check prices

Moneycontrol.com reports that the concern over rubber prices ruling unusually high during December, has Indian tire manufacturers planning to import 30,000-40,000 metric tons in the next three months.
The first consignment is expected to arrive by the third week of this month, according to the New Delhi-based Automotive Tyre Manufacturers’ Association (ATMA). The association is a body that represents major tire manufacturers in the country. Also, the association has approached the Union Government to slash the customs duty on natural rubber imports to 10% from 20% to make the imports economical.

The move by the tire manufacturers is against the “unusually” high prices for rubber in December and now. Usually, October to February is the peak production for rubber and prices are seen softening. But this time, prices have tended to rise and market players see vested interests behind the rise. Besides, some growers are also reportedly holding on to stocks, expecting the prices to firm up further.
Source: rubberworld