Colombo rubber auction prices hit Rs.1000

Colombo rubber auctions continue to see good prices with the market fetching Rs.1000 per kg this week, Asia Siyaka Brokers stated.

On Tuesday the market went up to Rs.1000 mainly due to the drop in quantities of rubber stocks reaching the auctions and the currency fluctuation, it was stated.

There has been a slowdown in the arrivals to auctions due to the drought and since plantation companies are found to be carrying out their own sales, it was noted.

The RSS1 grade had moved up to Rs.675 per kilo but the lower grades have come down as local manufacturers are finding it difficult to import certain chemicals. However, it is expected that this problem is likely to be sorted out soon. The lower grades account for 15-20 per cent of the rubber that arrives at the auctions.

Brokers stated that they expect prices to rise further at next week’s sale as there is a higher demand for the limited rubber at the auctions.

Meanwhile, the industry is said to be trying to work out the prevalent pesta disease with the use of any chemicals already available in the country and carry out spraying using drones. (SD)