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Global demand for rubber is declining
4/26/2012 1:59:16 AMWith Europe's growing economic uncertainty and the slowdown in China's economic growth, global demand for rubber is declining.
China is the world's largest rubber consumer, with the gross domestic product (GDP) dropped to 8 percent from last year's 11 percent, seriously affecting the rubber industry. The rubber is mainly used in tire manufacturing in the past three months ended March 31, China's car sales fell 1.3 percent, to further increase the pressure on the industry.
However, India's rising demand for rubber may offset some of the pressure of the industry. India's natural rubber supply and demand gap has been expanded to 1 million tons.
India's National Multi Commodity Exchange (NMCE), Rubber May delivery on Tuesday to Rs 18,969 per kilogram transaction.
Tokyo Commodity Exchange (TOCOM) April 24, 2009, commodity trading at 293.4 yen per kg.
From a global point of view, the needs of the global rubber is declining.
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