26 May 2022 01:11 am Views - 649
The prices at the Colombo Rubber Auction reached a new high this week, breaking the previous record price.
The top latex crepe 1xs and No. 1s broke the record price once again this week, with the prices increasing significantly by Rs.150 from a week ago.
The rubber quotation for the public sale that took place on May 24 showed top-grade rubber reaching Rs.1,250/kg, up from Rs.1,100/kg from a week ago. According to Forbes & Walker Commodity Brokers, an increasing trend in prices could be seen since of late.
Continuous rains had disrupted rubber tapping for almost 10 days in some rubber growing areas. Delays in transportation, due to limited availability of fuel, added further pressure on the suppliers, as the raw materials and finished goods could not reach the market on a regular basis.
Further, the rubber sector is gearing up to face a fresh challenge, which is the outbreak of a leaf disease.
Pestalotiopsis, a fungal leaf fall disease, has been detected in the rubber plantations. According to the industry stakeholders, the disease is fast-spreading, due to the current wet climatic conditions.
The disease is expected to result in a non-seasonal leaf fall, which will lead to a substantial drop in rubber production in the country.
Meanwhile, a market research study published by Facts and Factors revealed that the global rubber industry is expected to grow to US $ 37 billion by 2028. As of 2021, the industry is valued at around US $ 31.10 billion.
The report highlighted that the global rubber sector is expected to grow by approximately 3.18 percent (CAGR) between 2022 and 2028.
The study pointed out that the increasing demand from the automotive industry, rising scope of application, rapid industrialisation and increasing production of synthetic rubber, are prominent trends propelling the market growth. (SAA)