Rubber prices up threefold in 3 years

SINGAPORE : Rubber prices have risen threefold in the last three years, affecting prices of rubber products in Singapore too.
Reports attributed the increase to rising demand in emerging markets like China, and bad weather in Thailand, which is the main rubber exporter.
Traders said Japan's biggest tyre manufacturer, Bridgestone, has increased prices of its tyres, and some tyre dealers in Japan also plan to raise prices by an average of 7 per cent in April.
Car workshops here said local tyre prices have gone up by 10 per cent in the last six months.
A 15-inch tyre for a 1,600cc car, for example, has increased by S$10 to S$110.
The prices of tyres from Indonesia and Thailand have also reportedly gone up by about 5 per cent.
In order to cope with rising costs, Japanese tyre makers said they are trying to find ways to produce cheaper tyres by using less natural rubber.
But further price hikes may be unavoidable in the short term.
The price of Malaysian rubber will also continue to rise because of lack of supply.
Mr Lim Choon Jin, a foreman at City Auto Testing Centre, said: "In the last six months, tyre prices have gone up by 10 to 15 per cent. Some commercial car owners may want to downgrade to Indonesian tyres, which are less durable. Most of these are commercial companies with higher operating costs."

(Source: http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1112163/1/.html)