International Rubber Study Group, said rubber supply will continue until 2012

International Rubber (21,195, -105, -0.49%) Research Organization recently issued a statement saying that if the rubber production can not keep up China, India, the two countries growing pace of demand, the supply shortage of rubber market, the problem will continue until at least 2012 . However, in the face of rising rubber prices, market demand is shrinking periodically.

Secretary-General of the International Rubber Study Group Hidde Smit a few days ago in Sanya, Hainan at a meeting that by 2020, the world's third largest rubber producing countries --- Malaysia's rubber output is expected from this year's 1,200,000 tons, down to 100 Below 10,000 tons, as more and more farmers cut plastic rubber tree replanting oil palm. As the demand for biodiesel growing demand for CPO, the cost is more than rubber.

At present, the price of rubber has been twice in 2002, and last year on June 13, on rubber prices to 324.5 yen, a record since 1979, the highest price level. Despite the high price of rubber to promote the world's largest rubber producing countries Thailand and the fifth largest rubber producing countries of Vietnam to plant more rubber trees to meet the needs of the market, but the rubber from the production cycle, these trees to reach commercial production , Also offer five years.

"Since 2002, the rubber market has been in short supply in the situation", Hidde Smit said that the situation will continue until at least 2012.

Hidde Smit is expected that by 2020, if all the good weather, the world's rubber output will be 12,600,000 tons, while global demand for all types of rubber will reach 32,000,000 tons, of which the difference between the two would be required by the rubber compound Or synthetic rubber fill.

Thailand and China Rubber Group Executive Vice President Yew Kong Hing said that as demand growth, much faster than the supply increase is expected this year's prices will remain high. He said that this year Yanpian Jiao Singapore prices should be above the 200 cents, last year's average price of 210 cents per kg. From the Chinese Customs statistics released by the point of view, in 2007 Jan-Feb China over the import of natural rubber in the same period last year, up 14% to 250,000 tons, only in February on Chinese imports of natural rubber reached 100,000 tons.

At present, the Asian spot rubber prices Pu Zhang, the light turnover. Thai traders said the seasonal decline in production continue to hamper the supply of raw materials. Other parts of the supply has not changed. April shipments of Thai RSS3 Yan Pianjiao 3 reported 227 cents per kilogram, Monday reported that 221 cents. April shipments of Thai rubber tires standard STR20 reported that 215 cents per kilogram, Monday reported that 210 cents. April shipments of standard grade rubber tire Indonesia SIR20 reported cents 204-205. April shipments of Malaysia SMR20 rubber tire-class standards has been reported 209 cents per kilogram, Monday reported that 207 cents.

But the rising price of rubber has also curbed demand for rubber exporting country's exports declined. According to Vietnam Trade Information Center network, in February 2007 Vietnam exported 49,000 tons of rubber, 82,000,000 U.S. dollars export volume, export volume and export volume dropped by 24.96 percent year-on-year and 23.36 percent. However, rubber export prices remained high, and in January compared to, SVR3L China's rubber export prices in 1939 U.S. dollars / ton, up 129 U.S. dollars / ton; exports of South Korea 2060 U.S. dollars / ton, up 245 U.S. dollars / ton; 1993 U.S. dollars exported to Japan / Tons, up 229 U.S. dollars / ton. SVR10 rubber export prices increase more, the average price reached 1773 U.S. dollars / ton, in January to raise more than 123 U.S. dollars / ton.