Natural rubber prices in India rose to an all-time high as demand for tyres jumped on increasing auto sales in Asia's 3rd market. Prices of the most-traded RSS-4 grade hit a record Rs17,100/100 kg or $5,100/ton. May's NR output in India, the world's 4th largest producer, rose only 2% yoy while consumption rose about 11%. Tyre makers account for more than 60% of the total rubber demand in India where total auto sales jumped 33.5% to 2.7m units in the April-May period.
This spells good news fro GMG Global even though its main market is in China, the world’s biggest auto market. GMG’s stock price is strongly correlated to NR prices.
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