Colombo Rubber auction sees price drop in January

Rubber prices had seen a drop at the Colombo Rubber auction in January this year on account of the relatively soft demand due to looming geopolitical tension, the long holiday season in Europe while the 18 per cent VAT levied on sales was also cited as the reason for the decline, Forbes and Walkers market report stated.

While the weather remained somewhat favourable for tapping operations during the month it had led to an improved production with the quantities offered at the auction totaling 563, 464 kg.

Somewhat flat market conditions prevailed for crepe rubber whilst the demand for top grade LCR.1X remained firm.

During the month prices of Latex Crepe 1’s eased off which settled at Rs.800 No. 2s slid from Rs.750 to Rs.650 and 3s eased off from Rs.695 to Rs.610 and No.4’s were sold between Rs.575 to Rs.660.

Scrap Crepe 1X Browns traded at Rs.550 to 580. 2X Brown eased off from Rs.525 to Rs.515 during the period and 3X Browns were trading at Rs.500 to Rs.520.

Price of RSS came down, RSS 1 traded at Rs.650 by the end of January 2024.

Sri Lanka’s national production of natural rubber during the year 2023 was recorded at 65,000 MT. (SD)