CS Agriculture Rubber July 2013

Commodity Spotlight Agriculturals

Rubber: Gloomier demand outlook weighs on prices

Several years of supply surpluses on the global rubber market have pushed prices in Singapore down to their lowest level since autumn 2009. High prices in the years before had made it attractive to set up new plantations. After the long growth phase of rubber trees, this is now increasing supply. On the other hand, rubber demand is suffering under the uncertainty about the global economy. The focus is on the USA and China especially. As the world’s largest automobile producer, China is also the biggest consumer of rubber, as tyre production accounts for approximately 70% of rubber demand.
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