Rubber may hit record high of Rs 190 per kg

He said,there has been a surge in rubber prices in last one week and in the next one-two days it may touch Rs 190 per kg level.

Rubber prices in the domestic market had touched a high of Rs 186 per kg in August in the wake of increased demand from tyre manufacturers. Later in September,it declined to Rs 167 per kg following the government8217;s announcement to cap import duty on rubber at Rs 20.6 per kg.

However,since the beginning of this month,the rubber prices were continuously moving upward and had touched Rs 177.5 per kg level on Wednesday and experts are predicting that it can further go up to Rs 190 per kg level in next one-two days.

Rally in the domestic prices have also been fuelled by the surge in the international prices of the commodity.

Rubber prices hit a six-month high on the back of rising demand and limited supplies in the global market. Shanghai rubber advanced to the highest since 2002. Prices of natural rubber had already touched a record high of USD 4 per kg in various international markets such as Bangkok,Kualalampur and Sicom.

8220;Sudden increase in demand from China after the holiday and heavy rains in most parts of rubber producing areas has led to a surge in the prices of the commodity,8221; Valy said.