Colombo rubber peaks at record levels

Colombo auction prices on Thursday peaked at the highest-ever on record due to rising global fuel and a worldwide shortage for rubber, brokers said. Upali Bandaranayake, Director at broker, Forbes & Walker Ltd, said crepe fetched Rs 400 a kg while RSS (sheet) 1 soared to Rs 370, per kg. Prices are likely to rise next week too.

“The surge is mainly due to the rising cost of fuel prices globally and a shortage of rubber in producing countries,” he said. The record sheet quantitites came from Kobowella Estate, Wilakoladeniya Estate and Kekunagoda Estate. Rubber buyers are shifting to natural rubber as prices of synthetic rubber which needs fuel injection is rising.

Rubber and tea prices are surging in world markets, helping Sri Lankan export revenues in these traditional commodities.