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p/direct-materialsJun 29, 2026
150

Natural rubber price swings — tyre industry hedging approaches

VS

Varun Saxena

SaaS Contract Manager, Tech Mahindra

NR futures liquidity in India still limited compared to SGX. Physical contracts with quarterly resets vs blended formula — what is working for tyre and rubber goods buyers?

4 comments

Comments (4)

5·0
VS

Vikram Singh

Jul 3, 2026·Jul 3, 2026, 3:16 PM

Talk to multiple processors early. Single origin dependency is the real risk.

4·0
AR

Ananya Reddy

Jul 2, 2026·Jul 2, 2026, 2:23 PM

Physical inventory buffers still matter; paper hedges alone are not enough here.

3·0
RM

Rahul Mehta

Jul 1, 2026·Jul 1, 2026, 1:30 PM

Quarterly resets with collar/cap reduced blow-ups for our tyre plant.

10·0
PS

Priya Sharma

Jun 30, 2026·Jun 30, 2026, 12:37 PM

Blended formula with SGX + domestic average — noisy but fairer than pure spot.