Black stuff still making some see red

In-Depth

Over the past 12-18 months rubber consumption has remained strong in China, but raw materials are in scarce supply. Last month, for example, rubber prices increased 7% in India – an annualised rate of well over 100%. Last month, natural rubber was trading at US$2.2/kg and synthetic rubber at US$1.6/kg. A year ago natural rubber was trading at US$1.3/ kg.The EIU has forecast that rubber prices worldwide will rise by 25% this year, compared to an earlier forecast of “only” an 11% increase.

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