Heavy rains in Southeast Asia have led to a surge in rubber prices
it is reported that after the natural rubber price rose 65% last year, people are unable to cut rubber due to heavy rains in the main rubber producing areas in Southeast Asia, resulting in a surge in natural rubber prices. The cost of tyres, gloves and condoms is expected to rise
the price of rubber tripled in two years, surpassing the historical record set in 1952 when the market worried about the possible spread of the Korean War and triggered panic buying. This situation is causing manufacturers to raise prices or face the pressure of "checking that the hydraulic loading system falls behind the automatic operation state and stops the test under the profit margin". Major tire enterprises, including Bridgestone, Michelin, Goodyear and Continental, have caused cracks in the use process. Prices have been raised by 5% to 15% this year, and some enterprises have announced a new round of price increases
continental will raise the price by 5% from the beginning of next year, because "the price of the main natural rubber varieties used in the production of automobile tires is too high at present"
Goodyear announced last week that although sales hit a two-year record, it still suffered a loss in the third quarter, which made the company's share price fall 12% in two trading days
Adam Glickman of condomania, one of the largest professional condom retailers in the United States, said that the condom price has increased by 10% to 20% in the past year due to its high cost, and the manufacturer warned that further price increases may be possible
the brand condom market is dominated by SSL international in London, church Dwight in the United States and Ansell, an Australian listed company. SSL international owns the Durex brand, which is currently being acquired by Reckitt Benckiser
Lim Cheong Guan, executive director of Top Glove Malaysia, the world's largest manufacturer of rubber gloves, said the company was forced to raise prices "to maintain business"
according to the data provided by the Rubber Research Institute of Thailand, the benchmark rubber - Thai No. 3 cigarette adhesive (RSS3) reported $4.05 per kilogram in Bangkok last week, slightly lower than the historical high of $4.10 per kilogram set in April
analysts expect prices to remain high. While supply is declining, demand is rebounding from its low point during the financial crisis
according to JD Power, the global light vehicle sales will increase by 10.5% this year, and Pirelli, the tire manufacturer, predicts that the demand for truck tires in China and other markets has increased by more than 50% so far this year
JOM Jacob, senior economist of the association of natural rubber producing countries (ANPRC), predicts that the tension in the rubber market will intensify. "Natural rubber supply concerns may continue until the end of 2011"
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