NR prices hit new highs

Washington, DC -- Natural rubber prices have hit their highest levels since the AIDS epidemic of the late 1980s, and various factors--such as high oil prices, high demand and the monsoon season in Thailand--will keep prices high at least through the end of the year, according to various sources.

The price of Standard Indonesian Rubber 20--the grade used most often by US tyre manufacturers -- stood at 81 cents per pound at the port of delivery Oct. 7, compared with the June 10 price of 64 cents per pound.

One source who asked to remain anonymous, however, noted that according to the Consumer Price Index over the last 20 years, NR prices should have hit 80 cents years ago, based simply on historical expectations. "Maybe prices aren't too expensive right now, but have been too cheap over the last 10 years," she said.

From Rubber & Plastics News (A Crain publication)