Local natural rubber prices pick up amid strict import controls

Amid the strict-import control regime on rubber, Sri Lanka’s natural rubber prices are stabilising with rubber import volumes halving in November, according to State Minister of Finance Ranjith Siyambalapitiya.

The Minister highlighted that rubber imports declined by 48 percent month-on-month (MoM) to 2126 MT in November with a 77 percent MoM decline in rubber imports up to 10th of this month.

He made these remarks attending in the second progress review of the ministry committee appointed to look into the sharp decline of local rubber prices and excessive rubber imports.

In late October, the government introduced import controls on types of rubber materials that are produced locally amid rubber growers’ struggle to sell their harvest due to dwindling rubber prices.

As of yesterday, natural latex rubber prices were up by around Rs.30 from a month ago.

Globally, natural rubber prices have been on a declining trend. Natural rubber prices, which declined 12 percent quarter-on-quarter in 3Q23 fell to a two year low of US$ 1.29/kg in November.  However, Natural rubber prices are expected to increase modestly in 2023, following a projected decline of 13 percent this year.

During the first 10 months of the year, Sri Lanka imported US$ 305 million worth rubber and exported US$ 838 million worth value-added rubber products.