Indian Tread Rubber Producers Raise Prices

The All Kerala Small Scale Tread Rubber Manufacturers Association has decided to increase the price of tread rubber by 8 rupees (10 pence) per kilogram, India’s Business Standard reported. The association general secretary, George Varghese, said the increases were necessary to counter high raw material costs and protect tread rubber producers’ livelihoods.

The per kilo price of best quality tread rubber increased to 98 rupees. The newspaper reports that when rubber prices peaked last November (touching 65-67 rupees a kilo), tread rubber manufacturers increased their prices to 70-75 a kilo.

Varghese said that as the rising price of raw material has forced around 70 manufacturing units to shut down during the last five years. The remaining 200 odd units are said to be facing serious problems, with a large proportion of them on the verge of collapse.

The price of carbon black, another major ingredient for manufacturing tread rubber, has also increased. In just a few months the average price has risen from 41 rupees a kilo to 48 rupees. The price of Zinc oxide has also almost doubled rising from 70 rupees a kilo to 120 now.

“The market for tread rubber is shrinking on account of the advent of radial tyres,” the newspaper commented.