Dubai firm says raw materials costs up by 15 percent in 2009

ERJ staff report (DS)

Dubai, UAE -- A Dubai-based rubber processor says the average price of rubber raw materials across the globe has risen by 15 per cent in 2009.

Rubber World Industries (RWI), which claims 86 percent of the Middle East rubber insulation market share, makes closed-cell rubber insulation 'Gulf-O-flex' in the Gulf and South-East Asia.

RWI said, "Following a long period of continuous decline, the price of rubber raw material in the world market has seen an increase in the second quarter of 2009. Furthermore, three of the largest rubber producers in Southeast Asia - Thailand, Malaysia and Indonesia, agreed to cut down their exports to push up the export price. Rubber producers and exporters have also decided to cut down output, which could translate to a 6.2 per cent drop in world rubber production in 2009 to hit 9.36 million tons."