Natural Rubber Prices Reach New High

Natural Rubber Prices have reached a new high at $1.70/kg and resulting tyre prices increases could be on their way. The cost of natural rubber has increased 45 per cent since January and 30 per cent when compared with the average price in 2004. This price surge, reportedly +30 per cent in two months, will impact the tyre manufacturer’s balance sheets in four to six months, Deutsche Bank analysts predict. The analysts also suggested: “After two sets of price increases, both in 2005 and in 2006, we expect the industry to remain disciplined and would expect a further price increase in 2006.”