IRSG releases review of 2005; forecasts for 2006

London - January's edition of Rubber Industry Report from The International Rubber Study Group (IRSG) incorporates an annual review of the rubber and related industries, and provides quantitative and qualitative assessments of likely scenarios in coming years.

According to Dr Prachaya Jumpasut, head of economics at IRSG, "In 2005, rubber consumption increased to 20.78 million tonnes. However, the annual growth rate fell to just 3.1%, - the lowest level in four years. All regions except the European Union (EU) are experiencing a cyclical downturn in rubber consumption."

Prachaya continued, "NR prices increased 41 percent in 2005. The increase in prices was achieved despite two unusually large seasonal corrections, from which sheet rubber was the worst affected. The underlying cause of prices being carried so high were tight supply conditions, exacerbated through bad weather in Southeast Asia and China and, towards the latter part of the year, via sharply rising oil prices. All of which left the NR market continuing to ride the bull-run that began in 2002 to price levels that have not been seen in many years. "

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Website of IRSG