Severe rubber production decline in June

There has been a significant drop in rubber production in June in Sri Lanka due to disruptions caused as a result of the onset of rains accompanied by flash floods in rubber growing areas, the Forbes and Walkers broker report stated.

There was a decline of 142,461 kgs of rubber quantities offered at the public auction in comparison to the same period last year.

Demand for white crepe rubber remained firm whilst lack of quantity restricted exporters from trading activity during the period under review, the report stated.

The average price of No.1s moved up by Rs.35 per kilo. No.2s increased by Rs.43 whilst No. 3 rose by Rs.73/75 and No.4 improved by Rs.16/25 per kilo.

Scrap Crepe marked a price improvement during the period. 1X Brown monthly average price rose by Rs.26/50 whilst 2X Brown was unquoted. The price of the popular grade 3X Brown improved by Rs.19/13 and 4X Browns moved by Rs.20.

Poor volumes of RSS came into the market due to adverse weather experienced in most rubber planting districts and some smallholders diverting latex to centrifuged latex processing plants, creating a shortage. Price of RSS1 changed hands at Rs.675 whilst rest of the RSS grades were unquoted during the month. (SD)