Q4 Tough for Indian Tyremakers

Indian tyre manufacturers are expected to experience a difficult quarter in Q4 2007, the Business Standard has reported. According to the report “spot rubber prices in this quarter till date have averaged 95 rupees per kg levels as compared to an average price of 78.4 rupees per kg in same period last year.

” Higher rubber prices this year are attributed to unfavourable weather conditions in key South East Asian producing countries, coupled with buoyant demand conditions from China, say analysts. As a result tyre stocks are said to have under-performed since the beginning of the quarter. Apollo Tyres is said to have 25 per cent during this period compared to a 7.

6 per cent fall in the Sensex exchange. MRF also declined 24 per cent during this period. .