Sri Lanka’s export earnings from rubber and rubber-finished products fell 9.33 percent year-on-year to US $ 73.60 million in May, as sheet rubber exports slumped 40.91 percent, indicating the persistent pressure on the key product categories in international markets, commodity broker Forbes and Walker said in its June rubber market report.
The export revenue from rubber-based products in the first five months of 2025 amounted to US $ 386.03 million, a 7.25 percent decline compared to the same period in 2024. The broker said the drop was partly due to a 21.39 percent fall in exports of pneumatic and retreaded rubber tyres and tubes.
At the public auctions, the quantity of rubber offered improved to 285,550 kilogrammes, up from 241,610 kilogrammes in the corresponding period last year.
In the domestic market, premium-grade Latex Crepe Rubber (LCR) 1X recorded a notable price increase of Rs.75.00 per kilogramme, supported by robust demand and positive sentiment. The other Latex Crepe grades followed suit, with LCR No.1 increasing by Rs.121.66 and LCR No.2 gaining Rs.71.25 per kilogramme. LCR No.4 rose Rs.52.25, while No.3 posted a marginal decline of Rs.1.25.
The Scrap Crepe categories continued to display a steady uptrend. The 2X Brown grade increased by Rs.57.00, while 1X Brown advanced by Rs.22.83, 3X Brown by Rs.48.25 and 4X Brown by Rs.47.83 per kilogramme. The broad-based gains across the scrap category reflected sustained market demand.
However, the volumes of ribbed smoked sheet (RSS) rubber at the auctions remained low during the month, as continuous rainfall disrupted the tapping activities. As a result, all RSS grades remained unquoted at the auctions, reflecting the ongoing supply constraints and subdued auction activity.
In response to the local supply limitations and cost advantage offered by the foreign products, the manufacturers opted to import lower-grade RSS to meet the production needs during this period, the report said.
Source: Daily Mirror