India’s Dec rubber imports jump; trend seen continuing

Friday, 13 January 2012 00:01 - - {{hitsCtrl.values.hits}}

MUMBAI (Reuters): India imported 21,734 tonnes of natural rubber in December, up 57 per cent on year, State-run Rubber Board said, and traders expect the robust pace to continue as tyre makers resort to cheaper imports to make good a likely decline in domestic output.

India’s rubber production rose just 1 per cent to 104,000 tonnes in December, while consumption increased 4.39 per cent to stood at 84,000 tonnes, the board said in a statement.

“International prices were 20 per cent lower in November and December... a lot of imports took place in December despite paying 20 rupees per kg duty,” George Valy, President of the Indian Rubber Dealers Federation, told Reuters.

In January and February, rubber imports of Indian tyre makers such as Ceat Ltd. and MRF Ltd. will continue to be the same as in December, Valy said.

Imports in the first nine months to December fell to 133,693 tonnes, down 20 per cent on year, as international prices were ruling high compared with domestic prices till October.

India imports rubber from Indonesia and Thailand.

The Association of Natural Rubber Producing Companies (ANRPC), accounting for 92 per cent of global output, pegged its natural rubber production 10.4 million tonnes in 2012, a 3.1 per cent jump from 2011, as new plantations in Thailand ready for tapping.

Thailand, the world’s biggest rubber producer, expects output of around 3.15 million tonnes in 2012, about 5 per cent more than 2011.

Valy expects production to come down in February and March as farmers are likely to discontinue tapping due to high temperatures.