Scrap rubber has a future on the Chicago Board of Trade. The exact role scrap rubber will play on the CBOT remains unclear, but one thing is certain-it will be a visible product that the CBOT will help promote.
``The industry came to us for our experience in various markets,'' said Bonnie Culp, a CBOT senior product manager, at Scrap Tire '96. ``Our objectives are to advance the marketplace for recovered materials, develop an efficient system to benefit all users and to reduce marketplace uncertainty.''
The CBOT is a commodity exchange that ensures quality, quantity, time and place of delivery, and price.
``Quality standards are what we're looking for in recyclables, including rubber,'' Culp said.
The CBOT's first step is to establish an Internet site for buyers and sellers of scrap rubber to do some dealing. The World Wide Web site, which is available for viewing only, will be up and running completely sometime this fall, Culp said.
The website address is: http://cbot-recycle.com.
The CBOT Recyclables Exchange is a centralized exchange for recovered materials. According to the board, participants use the on-line exchange to post listings to buy or sell recycled materials. Buyers and sellers will contact each other individually. Once terms have been agreed upon, the two parties can record the transaction. The CBOT hopes to establish a standard price index by tracking the transactions.
``We think we will help a lot of the market uncertainty,'' Culp said.
The future may even have scrap rubber as a commodity traded on the CBOT. ``We don't anticipate trading futures in recyclables now,'' Culp said. ``We hope in the future we can develop futures trading in them.''