Rubber meets the road and gallops

Bloomberg reports that India may become the world’s second largest consumer of natural rubber in seven years, overtaking the US and Japan, as demand rises from producers of automobile tyres and gloves.

Demand in the world’s second fastest growing major economy may reach 1.44 million tonnes by 2020, up from 899,000 tonnes forecast for the current year. Soaring demand for rubber in China and India may help sustain the rise in natural rubber prices. Rubber prices are hovering above Rs120 a kg in Kerala as record crude oil prices made synthetic rubber more expensive and China boosted purchases. Kerala accounts for more than 90% of the natural rubber produced in India, the world’s fourth biggest producer.

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