NR Prices See Another Jump

(Akron/Tire Review) Natural rubber prices continue to rise and dive, wreaking havoc among tiremakers and other rubber-based manufacturers. Rubber prices on the Shanghai Futures Exchange increased 2% on Jan. 31 to an estimated $2,800 per ton, according to Bloomberg News, its highest price since August.

After five years of constant increases, natural rubber prices tapered off earlier this year, with most of the increases due to supply-related issues. The increased growth of China’s tyre and rubber industries has forced much of the increases.

Bloomberg reported that China’s rubber imports grew from 1.68 million tons in 2005 to a record 2.14 million tons in 2006, and another 10% growth rate is expected this year.

Since Jan. 1, Rubber prices on the Shanghai Exchange have jumped 14%.