On May 26, the natural rubber price reached US$3.25/kg, 12% above the level reached last month (US$2.90/kg); and 40% above last year’s average price (US$2.30/kg).
According to one Deutsche Bank analyst’s research note the price surge is surprising because natural rubber supply (9.9 million tons in 2007) still exceeds demand (9.7 million tons in 2007); and world inventories represent 23% of annual demand. (Tyres & Accessories/Staffordshire, U.K.)