Rubber demand-supply gap widens


Demand of natural rubber boosts 5.6% in the first half of the latest financial year whilst the supply boosts 1.1%. According to experts, this will put pressure on supplies and the prices of rubber on the local market.



The total demand from April-September stood at 5, 01,940 tonnes while the supply stood at 3, 95,700 tonnes showing that the gap between the demand and supply is rapidly increasing every month.



Experts are eyeing at the increase in the production of tyres as the reason behind the increase in demand. The good demand from the manufacturers and the replacement segment has helped the increase in the tyre production. The exports have boosted, too, despite slower global economic growth. (RJA)