Rubber Update

Rubber trees
Rubber trees

Tapping a Global Market

Although it is a widely traded bulk commodity, the history of natural rubber is remarkably short, dating only to 1876, when seeds of the wild rubber tree were gathered in Brazil, germinated in London and distributed to British and Dutch colonies in Asia.

More than 100 years later, the industry founded by 19th-century colonial planters is producing around 10,000 tonnes of natural rubber a year, of which about 75 per cent is grown and tapped in the three major south-east Asian nations of Malaysia, Indonesia and Thailand. (full article)

Rubber glove sector downgraded at OSK

Malaysia’s rubber-glove industry was downgraded at OSK Research Sdn Bhd because of a stronger ringgit, demand that has “normalized” and manufacturers inability to pass on cost increases from higher latex prices. (full article)

Natural Rubber Supply to Remain Tight Into Next Year

Sept. 21 (Bloomberg) — Natural rubber will remain in tight supply next year as yields from aging trees decline and output growth slows, said the Association of Natural Rubber Producing Countries.

“While supply remains tight throughout this year, the possibility of change is remote in 2011 also,” Jom Jacob, the group’s senior economist, said in a monthly statement. The market remains “bullish” as supplies have been disrupted by rains in Thailand and Indonesia, the top two producers, said the group. (full article)

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