The Rise and Rise of Rubber Prices
Following many financial reports from tyre companies suggesting that sales are up but profits have not necessarily followed suit, it seems that the high price of rubber – cited as a major profit-eating factor – is set to continue its upward momentum in the near future. The Financial Times says heavy rains in south-east Asian rubber growing regions are responsible, having disrupted tapping in the region, thus limiting supply. According to the report, this situation is unlikely to be alleviated until 2012.