India’s Automotive Tyre Manufacturers’ Association reportedly sought suspension of futures trading in natural rubber on Oct. 20.

According to India’s Business Standard newspaper, Rajiv Budhraja, director general of the ATMA, wrote to the Forward Markets Commission and the Rubber Board after rubber futures went up by 5 rupees for the November contract in one day, reaching 191 rupees/kg from 186/kg earlier.

By Oct. 20, NR futures are said to have risen to 200 rupees/kg.

“Traded volumes jumped to an average of 8,000 tons from 3,000-4,000 tons earlier, indicating heavy speculation,” he said. “The open position is also successively declining, clearly showing that intra-day players are on the prowl. We fear a bubble is in the making and that action needs to be taken to keep the market under check. Otherwise, such speculation may affect genuine stakeholders in the NR value chain, that is, rubber growers, dealers and consumers, adversely.” (Tyres & Accessories)