Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • MID YEAR REPORT
    • TIRE MAKERS
    • HUMANITARIAN
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
  • Resources
    • ADVERTISE
    • AWARDS
    • CLASSIFIEDS
    • DIRECTORY
    • SHOP FLOOR
    • Best Places to Work
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
January 09, 2014 01:00 AM

NR prices reach lowest level since 2009

Tire Business Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    (Blue Plover photo)
    A workman taps a rubber tree at a rubber plantation in south-central Thailand.

    WASHINGTON (Jan. 9, 2014) — Natural rubber (NR) prices have reached their lowest levels on Asian markets since late 2009, prompting concerns that China, the world's largest NR consumer, faces a slowing economy.

    However, sources in the rubber trade said they believed other factors were at work regarding NR prices, and suggested that the current dip may not be of long duration.

    Data from the Tokyo Commodity Exchange Jan. 8 showed rubber futures at 256.1 yen ($2.46) per kilogram, up 2.1 yen from the two-month low posted the day before.

    On the Singapore Commodity Exchange, meanwhile, futures for Rubber Smoked Sheets 3 stood at 236.5 cents per kilo Jan. 8, up a fraction from the previous day but down from the 253 posted on Dec. 27. The Jan. 8 price for Technically Specified Rubber 20—the grade of rubber used for tire manufacturing — was priced at 218.7 cents per kilo, compared with 218.5 Jan. 7 and 229.5 Dec. 27.

    News reports Jan. 6 placed Chinese NR stockpiles at a nine-year high, which contributed to fears that the Chinese economy is weakening.

    "The Chinese economy has been off, and current (NR) prices are a little bit of a red flag for me," said an industry source who asked to remain anonymous. "We'll see an economic slowdown in China. But I also think the U.S. economy is back, and we are a horrendous consumer of things. Furthermore, a lot of the things the U.S. consumes come from China.

    "I always feel that China gets the best of us," the source said. "Things will be quiet for a while, then they start buying up everything."

    Greg Jagt, vice president of trading at Astlett Rubber Inc. in Oakville, Ontario, noted that the Shanghai futures market seemed to be falling faster than most other markets. He also said, however, that Vietnam — one of China's largest NR suppliers — had increased NR production 14 percent in 2013 and seemed poised to raise production still further.

    In any case, Mr. Jagt did not think China was the sole factor in the current NR pricing situation. "It seems to be a global issue to me," he said.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Canada court rules for Michelin in tire trademark case
    2
    Grupo Tersa's Rodrigo Valle Hernandez dies at 69
    3
    Tire Business ranks the Top 75 Tire Makers of 2023
    4
    Michelin to roll out tires with recycled plastics by 2024
    5
    Hankook upending tire design paradigms with i-Flex airless tire
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • MID YEAR REPORT
      • TIRE MAKERS
      • HUMANITARIAN
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
      • RUBBER NEWS EVENTS
    • Resources
      • ADVERTISE
      • AWARDS
        • Best Places to Work
      • CLASSIFIEDS
      • DIRECTORY
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
    • DIGITAL EDITION