Tire manufacturers are reducing their inventories as the movement of goods accelerates. Domestic prices for natural rubber (NR) have fallen by more than 5% since the start of this month.

Due to irregular rains, moderate industrial demand, and a downward trend on the international market, domestic prices of natural rubber (NR) have fallen by more than 5 per cent since the beginning of this month. Over the past two months, the drop has been Rs. 23 per kilogram. On Friday, RSS-4 quality rubber prices were quoted at Rs. 161 per kg against Rs. 169 at the beginning of the month. Latex prices are falling to Rs. 130.90 from Rs. 148.21.

The fall was attributed in particular to a reduction in absorption by tire manufacturers, a drop in global prices (Rs. 130 compared to Rs. 170 last year) and a fall in world prices (Rs. 130 compared to Rs. 170 last year) and a fall in the demand for latex due to the absence of export orders and the flattening of domestic demand.