WASHINGTON (Dec. 5) — After a soft period over the last few months, natural rubber prices are expected to soar again as China once again enters the market aggressively, according to various sources.
Rubber smoked sheets 3, after soaring to an all-time high of $2.81 per kilogram in June 2006 on the Tokyo Commodity Exchange, fell to $1.68 per kilogram by Dec. 1, according to Bloomberg News. However, RSS3 prices rose to $1.80 per kilogram Dec. 5, and several market observers said strong Chinese demand and high oil prices will keep NR prices rising.
Other experts, however, said the weakness in the U.S. vehicle market could offset the more bullish factors.