Synthetic rubber prices of natural rubber prices

Rubber industry faced with a piece of good news and bad news.

The good news: In addition to the outside Asia to the decline in the demand for rubber will cause a decline in prices of natural rubber.

The bad news: According to the rubber industry to observe and predict, the price of synthetic rubber and natural rubber on the contrary the trend will be higher.

Although the demand for natural rubber to increase only slightly, but the increase in production has caused the excess rubber. According to the London-based consulting and research firm Economic Intelligence Company (Economist Intelligence Unit), in the second quarter of 2007, the tire industry's most widely used RSS1 rubber, the average price of 2487 U.S. dollars / ton, a decrease of 100 U.S. dollars a year ago.

According to the Rubber Manufacturers Association said that 41% of the tire components for rubber, rubber and 40% for natural rubber, synthetic rubber for the rest.

Economic Intelligence Company, said that as China-led Asia to continue to expand the business, such as rubber tire production in Asia increased demand for rubber. North America because the region's manufacturers face the same threat of imports, the decline in demand for rubber.

The company forecast a year-end 2480 U.S. dollars / ton high before, RSS1 price will drop to the third quarter of 2390 U.S. dollars / ton.

The company also forecast 2008 RSS1 prices in 2007 compared with an average of 6.8 percent. However, RCMA (USA) Inc. (RCMA Americas Inc., A company selling rubber), deputy general manager of Whitney Luckett said, things may not be as simple as that.

He said that despite the recent analysis of the basic needs of all that rubber prices should decline, but do not forget the impact of prices on speculators, which makes rubber price trend can not be predictable.

In the synthetic rubber market, it has been called a procurement (Purchasing) trade publications, the most widely used tires in the SBR (SBR) prices to rise, the highest price in June to reach 84 cents / lb more than in the same period in 2006 Up 22%.

Despite the settlement of limiting the supply of synthetic rubber, but the price is still up in the main driving force of the tire is the product of the increased demand for synthetic rubber.

With the light truck and truck production declined, automobile tire factory original decline in demand. But as far as publication of procurement, replacement tire market growth fully make up for the original birth of the impact of declining demand.