Tire demand boosts Indian rubber imports due to rain and epidemic affecting local supply

According to foreign media reports on July 13, Indian natural rubber demand has increased with the recovery of tire sales.
However, due to heavy rains in the country’s largest production area, Kerala, and restrictions on the new crown epidemic, the local rubber supply has not been able to keep up.
Growth in demand
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An industry executive in the country said that India's natural rubber imports are expected to increase again due to increased tire demand
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Tire demand has gradually picked up since June and is expected to increase further in the coming months
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Rajiv Budhraja, director of the Automotive Tyre Manufacturers Association of India, said that as demand continues to grow, supply challenges remain worrisome
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The industry may bridge the gap between supply and demand by importing natural rubber
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In the past two years, India's rubber imports have fallen due to improved domestic output
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As the epidemic has plunged the entire industry into chaos, imports in FY2021 fell by 10% to 410,000 tons, a six-year low
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In the 2018-19 fiscal year, India's rubber imports reached a record 582,000 tons
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After the second round of the epidemic broke out in India, many states implemented blockades, resulting in a sharp drop in tire demand from April to May
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Ashish Pandey, vice president of Indian tire company JK Tyres, said that the original equipment manufacturer (OEM) market has experienced a sharp decline due to the long-term suspension of passenger car manufacturers
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Starting in mid-June, the situation began to improve, and demand showed a positive growth momentum this month
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But the recovery in demand is more in the passenger car tire sector than in commercial vehicles
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Due to high international prices and weak tire demand, Indian natural rubber imports remain weak in the first quarter of fiscal year 2022
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  However, in the past two months, the international price of tire-grade RSS3 rubber has fallen by 22% to around 135 rupees per kilogram, while the price of RSS4 rubber in India has basically stabilized, falling slightly to 167 rupees per kilogram
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Obviously, with the rising demand for tires, imports seem to be a better choice
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  Pandey said that after the new crown epidemic, the pressure of localization has increased, and buyers and sellers have a better understanding
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Therefore, regardless of whether the global price is high or low, the industry may only import to meet the shortage
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  Budhraja predicts that India's rubber imports will reach about 450,000 tons in fiscal year 2022
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