Still Good

Rubber Outlook is Still Good

REVIEWS of the rubber industry i made in recent months by the world’s leading rubber consum l companies all indicate that de ite great improvements in ithetic rubbers and the prospects enormously increased synthetic tput in the next few years, there no cause for gloom on the part natural rubber producers.

Dhe US Natural Rubber Bureau imates that world natural rubber )duction in 1956 will reach 70,000 tons and that consumption 1 fall short of this by probably )0 tons. However, some of the ger consumers disagree with the isumption figure, and consider t natural rubber demand will tinue to exceed supply for many rs. a support of this contention the ilop Rubber Co. has just decided establish new plantations in eria and Malaya—and they will reach the bearing stage for

m years after planting,

his year the world total rubber sumption is expected to be about 0,000 tons, of which 1,135,000 5 would be synthetic. The pre

sident of the Goodyear Tyre and Rubber Co. considers that total con sumption will rise to about 4,000 000 tons within 10 years. On present plantings the natural output could not increase very greatly over this period. With an increase in better synthetic supplies the price of natural rubber might become “more reasonable,” though this seems un likely in the very near future, as at present consumers are forced to purchase natural rubber for applica tions where synthetic would be sat

isfactory, were it available.

The Malayan rubber industry is hampered by a rather heavy export tax which is causing consumers to seek their supplies elsewhere when possible, though the present world shortage seems to assure a market for all Malayan rubber despite the t£lX.

Natural rubber production in the main producing coutries is estimated this year to be as follows: Malaya, 625,000 tons; Indonesia, 720,000 tons rest of the world 1,870,000 tons