Sri Lanka’s CSE-listed rubber manufacturing companies are poised to reap the benefits of the supply constraints in India owing to the torrential rains.
Heavy rains have disrupted the peak rubber tapping season of September – January in the world’s fourth-largest rubber producer, India, as heavy rains have been reported in Kerala. This has resulted in the yield dropping by over 50%.
The lower production volume in India, rising demand for rubber, and the depreciation of the Sri Lankan rupee have reflected on the price of local rubber as ‘Latex 1X’ recorded a six-month high of LKR 725, a 60% YoY growth.
The recovery of the world’s economy was reflected by the increase in overall demand for tire & non-tire rubber in South Asia and China. As a temporary measure, both India and China plan to import rubber to make up for the domestic shortfall.
No.820, Mount Cresent,Malabe,Sri Lanka