MUMBAI (Commodity Online): Tyre makers, who were facing high input cost situation due to steep rise in natural rubber prices over past few months, are trading with heavy selling pressure on the bourses even as the companies are said to be considering a rise in product prices to the tune of 2-5%.

Stocks of leading tyre manufacturers including MRF Ltd (BOM:500290), which fell by close to 2% on BSE to Rs.6252 in the afternoon trades and JK Tyre & Industries Ltd (BOM:530007) that posted marginal loss of close to 0.5% to Rs.185.10.

However, CEAT Ltd (BOM:500878) gained by over 1% to Rs.147.55, and Apollo Tyres Ltd (BOM:500877) too gained by 0.55% to Rs.63.65.

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Companies such as CEAT have reportedly decided to hike prices by 2-5%, others like Apollo Tyres and JK Tyre are closely tracking the market before taking a final call on the quantum of increase. In January 2010, the tyre companies had increased the prices.

India's natural rubber consumption and its imports rose in February 2010 on account of the highest-ever auto sales in a month. While consumption rose by 7% to 77,500 tonnes, imports were up 323% to 10,236 tonnes in February 2010 over February 2009.

Natural rubber prices have been breaking all-time high levels on a daily basis for the past one week. The spot rubber prices hovered at Rs.14,918.60 per 100 kg in Kochi, while for MCX May contract prices remained up at Rs.14,598 per 100 kg.

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