Byline: Nidhi Sharma

MUMBAI: Rubber prices are heading northwards with rains affecting tapping in India and Thailand restricting supplies from these regions.

Rise in crude oil prices is also providing support to natural rubber prices. Rubber spot price at Kottayam, since last

On NMCE, the rubber November futures contract on Thursday traded above Rs 100 per kg levels from previous close at Rs 99.

The November contract in one week has moved up by Rs 8 per kg. Prices are also up in the international market as supplies from south Thailand have been affected due to heavy rains.

South Thailand produces around 90% of total rubber from the country that stands at 3 million tonne. In Thailand, the prices have moved up to Rs 92.66 per kg against the previous close of Rs 91.18.

Geojit Commodities' George Paul feels that prices will go up above Rs 105 per kg as even at levels of Rs 100, there are no buyers here.

Mr Paul, however, feels that imports demand will pick up only when the Thailand prices are down. Between April to October 13, the country has imported around 45,500 tonnes of rubber. India last year imported 88,000 tonnes of rubber.

Automotive Tyre Manufacturers Association director general D Ravindran said that imports between October to March will be around 40,000 tonnes. "Imports in this complete year will be around 90,000 which could rise considering the fall in production locally," Mr Ravindran said. He, however, feels that more imports will definitely depend on the price parity with international markets.

Locally, rubber production is projected to be low by over 60,000 tonnes this year from the previous year's production of 8.75 lakh tonnes, according to the Rubber Board. Meanwhile, the rising crude oil prices has created bullish sentiments as crude oil prices discourage the use of synthetic rubber and shifts the demand to natural rubber.

Crude oil for November delivery rose as much as 58 cents, or 0.7%, to $87.98 a barrel in electronic trading on the New York Mercantile Exchange.