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Natural rubber prices in India have reached a record high of ₹290 per kg

ICICIdirect Research 23 Oct 2026 DISCLAIMER

News: According to media sources, Natural rubber prices in India have reached a record high of ₹290 per kg for RSS-IV grade, driven by strong demand from tyre manufacturers, tight domestic supplies and weather-related disruptions to production. Prices in Bangkok stood at around ₹270/kg, while Indian prices for block rubber reached ₹273/kg, compared with international prices of approximately ₹245/kg. This price rally is attributed partly to hot weather in traditional rubber-growing regions, uncertainty over production, elevated crude oil prices and geopolitical tensions that have increased the cost of synthetic rubber.

View: This is near-term negative for tyre manufacturers' profitability as Natural rubber is one of the largest raw-material expenses for tyre companies, and rising prices squeeze operating margins when manufacturers cannot immediately increase selling prices. Indian players like Apollo Tyres have seen margin moderation in Q1FY27 and had guided for consecutive price hikes to maintain their margins. Going ahead key monitorable would be margin recovery through costs mitigating efforts from Tyre players.

Impact: Negative

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