Report: Indian Tyre Firms ‘Demand Suspension of Rubber Futures’

Automotive Tyre Manufacturers’ Association (Atma) reportedly sought suspension of futures trading in natural rubber (NR) on 20 October. According to India’s Business Standard newspaper Rajiv Budhraja, director general, ATMA wrote to the Forward Markets Commission (FMC) and the Rubber Board after rubber futures went up by 5 rupees for the November contract in one day reaching 191 rupees/kg from 186/kg earlier. By 20 October NR futures are said to have risen to 200 rupees/kg.

“Traded volumes jumped to an average of 8,000 tonnes from 3,000-4,000 tonnes earlier, indicating heavy speculation. The open position is also successively declining, clearly showing that intra-day players are on the prowl. We fear a bubble is in the making and that action needs to be taken to keep the market under check. Otherwise, such speculation may affect genuine stakeholders in the NR value chain, that is, rubber growers, dealers as well as consumers, adversely,” Business Standard quoted him as saying.

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