Record Low Rubber Stocks-to-Use Ratio May Lift Prices

Rubber Jul 28, 2011 No Comments

RubberThe global natural rubber stocks-to-use ratio has plunged to the lowest level ever as expanding demand shrinks inventories in China, potentially boosting prices, according to RCMA Commodities Asia Pte Ltd.

Global inventories are just enough to meet about a month’s demand compared with supplies for about 6.3 weeks a year earlier. The low stock-to-use ratio may help rubber futures in Tokyo extend an almost 50 percent gain in the past year and increase costs for Bridgestone Corp., Michelin & Cie. and Goodyear Tire & Rubber Co., the top three tire makers.

China, the largest automobile market, may consume 3.5 million tons of rubber this year, 6.1 percent more than a year earlier, the Association of Natural Rubber Producing Countries said last month.

via Record Low Rubber Stocks-to-Use Ratio May Lift Prices, RCMA’s Pardey Says – Bloomberg.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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