New Delhi, Mar 14 (PTI) Natural rubber (prices) today fell in the domestic spot markets by Rs 16 to Rs 185 per kg, the lowest for the current year due to the earthquake in Japan that has hit international rubber markets.
The prices of NR in the domestic market were ruling at Rs 201 per kg on March 12, according to the rubber board data.
"The earthquake in Japan has hit the international markets. Tokyo Commodity Exchange (TOCOM), which is the major international futures market for rubber was shut on March 12," Cochin Rubber Merchants Association Advisor N Radhakrishnan told PTI.
Radhakrishnan said shutting down of TOCOM hit the international markets both futures and spot inIndonesia, Malaysia and other places that resulted in a steep fall in the prices.
The rate of NR at the international spot market at Bangkok fell by almost Rs 18 to Rs 223.74 per kg today as against Rs 241.26 on March 11, rubber board data said.
"As the consumption of NR in Japan for automobiles and other items came to a complete halt, the prices further weakened. I expect the prices to go down further," he added.
Radhakrishnan opined that the prices can fall further as the total extent of the damage in Japan is not known and it could possibly take a week or more for that data to come out.
"A fall in the rubber consumption could be expected for 2011-12 year," he added.
According to experts, the rubber prices were going up on speculation and with TOCOM closing down after the earthquake, there was panic in the international markets. This panic can continue for a few more days.
The coming 2-3 days are crucial as the prices in the domestic markets can fall to Rs 160-175 per kg taking a cue from the global markets which are reeling under the tsunami effect, experts said.
The prices of NR in the domestic markets on March 12 fell by Rs 11 to Rs 201 per kg as against Rs 212 per kg on March 11.
Since March 11 the prices of NR have witnessed a fall of Rs 27.
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