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Rubber prices rebound

Mar 25, 2011 6:35:10 AM - itnnews.lk

Sri Lankan rubber prices have recovered after a temporary slump. It looks set to stay strong on rising global tyre demand.

Natural rubber prices at the Colombo auctions hit record highs in February and then slumped sharply after increased supply from key East Asian producing nations and fears Japan’s disaster could disrupt automobile manufacture. However, with resumption of vehicle production by major auto manufacturers, demand for rubber recovered, as over 75 percent of natural rubber in the world is used for the tyre industry. Before the price slump, rubber prices remained high in recent months also because global production and cultivation were affected by last year’s adverse weather, which engulfed parts of key growing countries like Thailand, preventing tapping of trees.