MUMBAI, Jan 30 (Reuters) - Natural rubber prices in India, the world’s fourth-biggest producer, dropped to their lowest level in nearly four years on Thursday on ample supplies and a fall in overseas prices.
Lower prices would bring down raw material costs for tyre makers, thereby boosting their profitability, as natural rubber makes up more than 40 percent of the cost of a tyre.
The spot price of the most-traded RSS-4 rubber (ribbed, smoked sheet) at the Kottayam market in the top producing Kerala state fell by 200 rupees to 14,300 rupees ($230) per 100 kg on Thursday, the lowest level since March 1, 2010.
“The sharp drop in the international market is depressing local prices. Supplies are ample,” George Valy, president of the Indian Rubber Dealers’ Federation, told Reuters.
CEAT Ltd, JK Tyre and Industries Ltd, MRF Ltd, Balkrishna Industries Ltd and Apollo Tyres Ltd are likely to benefit from the lower prices. ($1 = 62.4600 Indian rupees) (Reporting by Rajendra Jadhav)