Sunday, May 30, 2010

Rubber will become the new gold

Prices for rubber will increase rapidly

In brief: Prices of rubber will be exposed to a substantial correction of growth, the reason for this is the rapid increase in demand from consumers.

The cost of natural rubber could soar by 25% and reached a peak in 30 years thanks to growing demand in China, the largest consumer of this type of stuff, and despite fears of reduction in consumption in Europe, analysts say the Japanese broker Yutaka Shoji Kazuo Tetsu.

Futures may exceed the peak value of 2008 at 356.9 yen per kilogram ($ 3922 per ton) at the tender Tokyo commodity exchange and achieve maximum performance from March 1980. Prices of natural rubber has increased by 3,6% since the beginning of this year - after doubling in 2009. The number of car owners in China will continue to grow this year, which, according to K. Tetsu to lead to increased demand for raw materials used in the automotive industry. The most actively traded contract for the supply of rubber in November rose in price on Friday at 1,8% - to 286.2 yen per kg. At the auction on May 17 the price fell to 5-month low - 250.9 yen per kg. The maximum value for this contract in 2010 - 338.5 yen per kg - was recorded in April.

According to the International Rubber Study Group, Europe’s share in the global market for natural rubber in 2008, estimated at 10.2 million tonnes, was only 15%. In this case, according to the same organizations, the consumption of natural rubber in China this year will grow by 10% from 3.35 million tons in 2009. According to estimates of experts ANPRC, world-class production of natural rubber in the current year will increase from year 2009 to 6,2% - to 9.37 million tons.

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