Rubber prices take a dip in new year

6 February 2014 09:04 am - 0 - {{hitsCtrl.values.hits}}

A A A

Sri Lanka’s rubber prices have seen a considerable decline since the beginning of the new year, an analysis of the Colombo rubber auction prices by Mirror Business showed.

The average prices for the main categories of Latex Crepe (1, 2, 3 and 4) in the last auction of December 2013 were within the range of Rs.295-407, while the average prices for the main categories of Ribbed Smoked Sheets (RSS) (1, 2, 3, 4 and 5) were within the range of Rs.310-340.

However, the auction prices throughout January 2014 for both Latex Crepe and RSS had been on the decline with the average price at the January 30, 2014 auction for Latex Crepe being within the range of Rs.247-310 and RSS 1 and 3 at Rs.275 and Rs.305, respectively, while RSS 2, 4 and 5 went unquoted.

Further, at yesterday’s auction, Latex Crepe fetched an average price in the range of Rs.235310 while RSS 2, 4 and 5 were unquoted with RSS 1 and 3 prices respectively at Rs.280 and Rs.271.

“The market has been slowing down largely due to the Chinese New Year and the holidays that followed but we can expect some stabilization towards the end of this month,” Colombo Rubber Traders’ Association (CRTA) Chairman M.S. Rahim told Mirror Business.

He further stated that although the prices are expected to turn around, a recovery to the same levels before the decline cannot be expected.

Rahim also noted that during the past two to three months there had been an increased supply in the local market and this too was a contributory factor towards the declining prices.

“January and February are usually cropping months and there are large stocks in the market. But since world prices are down, we have a situation of excess supply, which has also led to the falling prices,” he said, adding that it would take more than two to three months to get rid of this stock.

Meanwhile, Damitha Perera of Forbes and Walker stated that the market fundamentals had been against Sri Lanka and the stabilization of prices would be subject to market fundamentals.

He noted the slowing down of the Chinese economy, excess stocks in both the Chinese and Japanese markets, currency fluctuations particularly the Japanese yen and also the excess supply in the local market as some of the market fundamentals.

“One consolation is that we are heading into wintering and there is leaf fall as well. So, with that supply should stabilize and the prices too by the end of February,” he noted.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Rubber prices take a dip in new year

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Oil and gas exploration halted by prolonged legal dispute

Not AirAsia bidding to acquire SriLankan: Capital A CEO clarifies

Sri Lanka weighs Open Skies amidst plans for national carrier privatization

Gota fires back at Cardinal, rebuts allegations

Attempt to send 17 year-old-boy to London on forged documents foiled

An Int’l summit avoids Sri Lanka due to beggar menace in Colombo

MIRROR CRICKET

Nepal put forward strong squad on T20 World Cup return

Sri Lanka continue unbeaten streak, Netherlands push for top spot in Group B

Wasim Akram to conduct training program for national players

Afghanistan announce T20 World Cup 2024 squad

TODAY'S HEADLINES

Int’l summit avoids Sri Lanka due to beggar menace in Colombo

Ranil invited me to take up position in the government: CBK

NPP accepts Daily Mirror invitation for political debate, Sajith’s confirmation awaited

Three underage girls in love become victims of statutory rape

Nepal put forward strong squad on T20 World Cup return

Sri Lanka continue unbeaten streak, Netherlands push for top spot in Group B

Wasim Akram to conduct training program for national players

Afghanistan announce T20 World Cup 2024 squad