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Covering purchases lift spot rubber - The Hindu BusinessLine
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Natural rubber markets fall as COVID-19 resurges
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ANRPC: Natural rubber prices to remain low in short term
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KUALA LUMPUR The resurgence of COVID-19, particularly in India, and the Thai government s reported move to sell natural rubber through local tenders impacted markets in April, according to a recent report by the Association of Natural Rubber Producing Countries.
Markets, both in futures and the physical markets, moved without exhibiting a clear trend during April 2021.
The prices did move down for a few days in the first half of April mainly due to the second wave of COVID-19 in India, ANRPC said in a May 7 market analysis report.
In addition, the government of Thailand reportedly sold 104,000 metric tons of NR from state inventories by inviting tenders from interested local buyers, a move which ANRPC said impacted prices.
Automakers struggling with pandemic-induced plant shutdowns and a global chip shortage are now confronting another supply chain headache: dwindling rubber supplies.
Snarled shipping lines are disrupting the movement of natural rubber, a key material used in tires as well as components under the hood. With the global supply already running short following stockpiling by China and a devastating leaf disease, rubber prices are on the rise and some U.S. auto suppliers are rushing to secure shipments before the market gets squeezed further.
As companies in virtually every market grapple with shortages, perhaps no industry is being hit harder than autos. Multiple plants have been idled by a semiconductor crisis thatâs costing tens of billions of dollars in lost revenue, while materials from seating foam to metal to plastic resin are also becoming harder to find. The industry, which has long relied on just-in-time manufacturing to reduce costs, is finding it has limited flexibility t