9 May 2023 03:32 am Views - 312
The rubber sector woes persisted in the month of April, with the industry continuing to deal with low yields.
April saw a short supply of rubber as production remained low. According to the rubber brokers, a considerable loss in yields was reported in many rubber-cultivating areas, due to the adverse effects of leaf diseases (Pestalotiopsis) and wet weather experienced during the latter part of April.
However, improved demand was witnessed from exporters and local manufacturers.
The global rubber sector too shows similar conditions. Recent data indicated that Malaysia’s natural rubber production decreased 7.6 percent during the first quarter of 2023 compared to the same period in 2022.
Further, lower output is projected in the major producing countries, including Malaysia, Thailand and Indonesia, due to the spread of leaf disease and adverse weather conditions.
In Sri Lanka, the drop in supply resulted in rubber prices increasing throughout the month of April, Forbes & Walker Commodity Brokers said in its latest rubber market report.
The price of Latex Crepe 1x improved from Rs.525 to Rs.620, whilst No. 1s settled at around Rs.605 per kilo. The price of No. 2s gained ground by Rs.145 and settled at around Rs.580, while No. 3s improved from Rs.430 to Rs.535. Strong demand was seen for L.CR 4s, which went up from Rs.415 to Rs.505 during the month under review, while steady demand prevailed for scrap crepes.
The price of quality 3x browns increased from Rs.395 to Rs.473 per kilo, while the prices of other scrap crepe grades also improved in tandem. Sheet rubber (RSS) experienced a mixed demand.
The average price of RSS 1 was recorded at Rs.464 per kilo, whilst the lower grades had an easier interest throughout the month.