Jk Tire, Tvs Srichakra Rise; Mrf, Apollo Tires Chute
Tire stocks settled on a mixed note Thursday, while ending the session between 2 percent higher and 1.56 percent lower. While JK Tire, TVS Srichakra, Ceat and Goodyear India closed in the green, MRF, Balkrishna Industries and Apollo Tires finished in the red.
Shares of Balkrishna and Apollo Tires closed 0.38% and 0.29% lower.
In an exclusive conversation with CNBC-TV18Rajiv Budhraja, of the Automobile Tire Manufacturers Association (ATMA), said tire production fell behind in September and October. Production is around 75,000 to 80,000 tonnes per month compared to 1.5 lakh tonnes in the past year.
“Production has lagged behind consumption in recent months. Rubber production this year is not even half of what we saw last year. Unexpected rains also affected production in October and November. Kerala has experienced a longer period of COVID-19 which has also affected production. Two successive cyclones also had an impact on weather conditions in Kerala, “he said.
He added that demand has been very strong and exports have worked well. He expects a shortfall of 5-6 lakh tonnes of rubber.
“We will have to import rubber to maintain domestic manufacturing,” he said.
(Edited by : Ajay Vaishnav)
First publication: STI