Natural rubber prices surge 33% YoY due to strong demand and limited supply; tyre manufacturers face profitability challenges.
Natural rubber prices have risen over 33% year-on-year in the first five months of the fiscal year, reaching an average of Rs 238 per kg. This surge is due to strong demand and limited supply, with a projected tripling of the market deficit in 2024. Tyre manufacturers may face profitability challenges as natural rubber constitutes 20-40% of tyre weight. The ongoing supply issues are prompting OEMs to consider alternative sourcing and cost-reduction strategies.
September 26, 2024
10 Articles