RUBBER MARKET

Hokitika Guardian, 26 November 1925, Page 4

RUBBER MARKET

CAUSE OF RISE IN RRICE. LONDON, October 1(1. Rubber bas been going through exciting times and scenes of almost prewar exhil.-irtimi have returned. Those uliu are interested in the rubber market will be glad to have the main facts •if the rubber position. They were given \osterduy h.v Mr Erie Miller in his speech at tile meeting of Harrisons and ( rnsfields. He explained that consumption this year (as well as last) had exceeded anticipations, lie estimated it was likely to amount to 7fi(U)oo tons, as against a production of about 709,(190 tons; nl the total absorption the United States would take about 409,00(1 tons, other countriestaking the balance. Mr Miller again emphasised the progressive nature of the increase of consumption, which, over a period of fifteen years, had averaged 13 per cent per annum, lie gave a number of reasons for believing that the consumption would continue to increase, but he admitted that the high price of crude rubber would stimulate the use of reclaimed rubber. This lie added, would have to be allowed lor in estimates for future eoiisumption. In America, in 1917. the proportion of reclaimed rubber used to the total consumption of rubber was 3:T per cent. In 1922 it dropped to Ifi per cent. All Miller believed that by He noddle of next year the production of rubber will be at full capacity, not taking too seriously Air Firestone’s alleged sebemes in Liberia. Air Miller made a statement which excited surprise—tliaL ‘-the restriction scheme could not be credited with the attainment of the present high price for rubber.” He suggested that if the buyers had bought more than was actually necessary to satisfy tlu-ir current requirements, so as to raise the average price, the quarterly releases under the restriction scheme would have come sooner, and prices would not have risen so steeply. Act he admitted that the manufacturers had no! only bought more than in 1921, but more than lie anticipated. An explanaation now put forward of the present high price of rubber is not the fact that the consumers purchased ton little rubber, but that thoy purchased too mueli to avoid the recent sharp rise. Put for the restriction scheme, there would not have been such an oxceplional increase in the Dutch output as has occurred since 1922, which has more than offset the reduction in the British production.