WASHINGTON (Feb. 13)—Natural rubber prices are rising fast with no end in sight because of high oil prices and short petroleum reserves in the U.S. The price of Standard Indonesian Rubber 20—the grade most often used by U.S. tire manufacturers—stood at about 48 cents per pound delivered to Norfolk, Va., and was expected to rise past 50 cents soon. High prices and demand are causing Thai officials to consider replanting old rubber trees and canceling plans to cut NR production by 4 percent as agreed to in the tripartite rubber agreement between Thailand, Malaysia and Indonesia. "Prices are already 50 percent above the tripartite agreement's benchmark figure, so the agreement's effectively null," said Dennis J. Fenley, vice president of Patriot Trading Inc., Danbury, Conn.
NR prices spike on high oil prices
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