Singapore-based International Rubber Study Group said global demand for natural and synthetic rubber will expand about 40% to 33.9 million tons by 2020, driven by usage mainly in China and India.
This is partly because China has become the world's largest producer of automobiles and tires. It is also the world's top rubber consumer.
China's vehicle sales are set to outstrip the US for the third consecutive year in 2011, when they are likely to hit 20 million units, Tire Review reports.
China is already facing depleted stocks of rubber. The shortage has prompted the country to buy heavily in the international market, pushing up prices further.
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