Apollo Tyres chairman Onkar Kanwar addressed at the recent AGM the noticeable fall in natural rubber prices, attributing it to stagnation in the demand for all commodities rather than being a result of imports or any other factors.
“This is a reflection of the demand situation in the consuming industries, of which the tire industry is the largest. The global slowdown has meant that worldwide the demand for natural rubber has continued to be below expectations, and prices around the world have come down,” Kanwar stated.
“Artificial means of propping up prices cannot work in the long run in a globally connected economy like ours, and the only sustained effect on prices can be with a strong and buoyant economy.
“At Apollo, we are acutely conscious of our responsibilities to our ecosystem of suppliers, customers and shareholders, and we see our responsibility toward these as equally important. In order for us to discharge these responsibilities and repay the faith that you put in us, we have to make ourselves stronger and more capable of long term sustainability.”
Kanwar concluded his speech on a positive note: “I see the coming year as another in a string of challenging years, with global uncertainties, talk of QE roll-back by the US Federal Reserve, currency instability across much of Europe and slowing growth in large economies like China. Closer [to]home though, I believe the green shoots of a revival can now be seen. Nevertheless, your company (Apollo Tyres) is and will remain ready to take on all forms of adversity and continue to chart our own path to success.”
For a full feature on natural rubber supply and demand see the July issue of Tire Technology International.
August 12, 2015
