NR Prices to Continue to Rise in 2006

Natural rubber prices are predicted to keep rising in 2006 for the second straight year, as demand from tyre manufacturers continues to outstrip supply, Rubber World has reported. “Bullishness may persist in the rubber market as demand for the commodity remains quite strong,” Michael Coleman, managing director of Singapore-based Aisling Analytics told Dow Jones newswires.

According to the report, “2005 was certainly one for the bulls in both the rubber futures and cash markets”. This is explained by particularly high demand for the product, especially from China. In addition high crude oil prices are also said to have had a positive effect.