Tyre cos yet to raise local rubber buy

KOCHI: Tyre companies are not likely to step up rubber purchases from the local market even as international natural rubber prices have edged up higher than domestic prices after three years, a result of the hit their sales have taken amid mounting influx of Chinese tyres. On Tuesday, RSS-4 rubber consumed by the tyre industry was . 117 per kg in the local priced at ` market while the equivalent grade of rubber in the international market stood at `. 118.38 per kg. On Monday, price in both markets . 116 per kg. Block rubber priwas ` ce in the international market has touched ` .8 . 106 per kg, up ` from a month ago. Tyre manufactures have been importing block rubber, which they say is of the same quality as the sheet rubber produced in India.
With the harvest season on in Kerala, the situation should have prompted tyre companies to increase purchases from local markets. “In the last three years, import of Chinese tyres has gone up two-and-a-half times. This has impacted truck and bus segments, which brings the bulk of revenue for tyre makers, more.Tyre companies' ability to purchase from the market is reduced,'' said Rajiv Budhraja, director general of Automotive Tyre Manufacturers' Association.

Tyre traders said that despite lower prices in the domestic market, tyre companies are not buying.