380 



THE INDIA RUBBER WORLD 



FkBRI AKY 1, 1921 



The New York Crude Rubber Market During 1920 



THE YEAR \9M has wiuiessed the most remarkable decline in 

 crude rubber prices and increase in spot stocks in the his- 

 tory of the industry, these conditions having been brought 

 about by the decreasing demand due to the inevitable readjust- 

 ment period following a great war, together with the rapidly 

 increasing plantation production. 



The year opened at the peak of a rising market wilh continued 

 demand and prices at the liighcst point they had shown in some 

 months, plantations commanding higher prices than the best 

 grades of Brazilian, due in large part to the firm handling of 

 the Singapore and London markets. New York stocks were 

 large, but not more than would satisfy the anticipated demand. 

 Excessive stocks in the East 

 had not been dumped upon 

 the market. On January 2 

 spot prices were : first latex 

 crepe, 55!4 cents ; ribbed 

 smoked sheets, 55 cents ; up- 

 river fine, 49^4-50 cents. 

 .-\fter declining slightly in 

 the first week of January, . 

 the market remained very 5 

 steady, holders refusing to"* 

 concede much to bidders .^ 

 until toward the close, when, gj 

 on January 26, spot prices § 

 reached 52 cents for first "■ 

 latex crepe, futures s3 

 cents ; ribbed smoked sheets, 

 52 cents; futures, 53 cents; 

 upriver fine, 47 cents. 



During February the mar- 

 ket continued steady, declin- 

 ing gradually to the close, 

 spot prices February 25 be- 

 ing: first latex crepe, 46-47 

 cents; ribbed smoked sheets, 46!-j cents; upriver line, 42^^^ cents. 

 l"irst latex crepe futures were: April-June, 47>.. cents; July- 

 December, 49'/. cents ; ribbed smoked sheet futures were one- 

 half cent less than latex. Manufacturers bousbt little-, but trading 

 among dealers was good. As in London and Singajiore the deal- 

 ing in futures was dull owing to the uncertainty in exchange. 



Prices remained firm, with minor fluctuations, and the market 

 quiet throughout March, despite the partial recovery in ex- 

 change and very large arrivals, mostly, however, to fill forward 

 orders. There was some trading among dealers, but manufac- 

 turers did little buying. On March 25 spot i)riccs were: first 

 latex cri'pe, 47;/. cents ; ribbe-d smoked sheets, 47 cents ; upriver 

 fine, 42-42;^ cents. I'"irst latex crepe and ribbed smoked sheet 

 futures were: April-June. 49 cents; July-December, 51 cents. 



The .April market was dull, with a sharp decline toward the 

 close. Only speculative buying was in evidence, from which 

 manufacturers refrained. Large arrivals continued and i)riccs 

 were affected by the rate of exchange and railroad strikes. Paras 

 were least affected in price, although supported ])y little trading. 

 First latex crepe, spot, which was 46;/> cents on .\]n\\ 1, sold for 

 425^2 cents on April 2Ci; ril)bed smoked sheets, spot, droppe<l from 

 46 to 42'/! cents between the same dates, while upriver fine, spot, 

 remained at 42 cents. F'irst latex crepe futures were : May- June, 

 43 cents; July-December, 44 cents; January-June, 1921, 47 cents. 

 Smoked sheet ribbed futures were: May-June, 42^ cents; July- 

 December, 44!/i cents; January-June, 1921, 47 cents. 



Dullness and decline contiinicd in May, manufacturers buying 

 only in small lots and showing little interest in the market owing 

 to the long series of railroad .strikes, car shortages and freight 

 embargoes which hampered industrial operations generally. Rub- 



Pn'Ci r.\TinNs ni- First T.atf.x CRf-pE, Ribbed Smoked Sheet, .ind Upriver 

 Fine Spot Rtbrer During 1930 



her manufacturers in the Akron district were forced to curtail 

 their output practically 50 per cent by stopping work on Satur- 

 days and discontinuing night shifts. The only buying activity 

 occurred among dealers securing spot rubber to cover contracts 

 as the market sagged off. The London and Singapore markets 

 ruled firmer and higher than New York, when spot prices on 

 May 24 had dropped to 39 cents for first latex crepe ; ribbeu 

 smoked sheets, i^'/z cents ; upriver fine, 39 cents. I'irst latCA. 

 crepe futures were : July-September, 40 cents ; October-Decem- 

 ber, 42,',-2 cents; January-June, 1921, 44-45 cents. Ribbed smoked 

 sheet futures were about the same as latex. 

 While much speculative activity occurred in June, the regular 



rubber market continued 

 dull, with few sales and 

 slightly declining prices. 

 Transportation difficulties 

 continued to curtail demand 

 by manufacturers, and the 

 general tightness of money 

 and inability to procure 

 loans ])reventcd dealers from 

 acting upon the low prices 

 in the East and securing 

 stocks in anticipation of fu- 

 ture ri.ses. Manufacturers 

 had sufficient stocks under 

 existing conditions. They 

 anticipated lower prices and 

 also held back because of 

 confused foreca.sts in the 

 tire building trade resulting 

 from the labor troubles of 

 fabric makers and the les- 

 sened demand for tires due 

 to the long-continued bad 

 .Spring weather. On June 25 

 spot prices were : first latex ere])e, 38 cents ; ribbed smoked sheets, 

 37-38 cents; upriver fine, ZT/i cents. First latex crepe futures 

 were: July-September, 40 cents; October-November. 43'/> cents; 

 January-June, 1921, 46 cents Ribbed smoked sheet futures were 

 one-half to one cent lower than latex. 



Conditions were generally quiet and prices .steady, although 

 lending downward throughout July, and when first latex crepe, 

 spot, reached 30 cents during the last week of the month a low 

 record was established. I"or the first time during the year up- 

 river fine, spot, gained a Miljstantial lead of 4K-5 cents over first 

 latex crepe. The scarcity of both buyers and sellers was an im- 

 portanl factor in the support of the market. Dealers were about 

 the only buyers, manufacturers believing the bottom had not been 

 reached, and some becoming September sellers, as futures were 

 al! on! of proportion to spot quotations. On July 26 spot prices 

 were: first latex crepe. 32 cents; ribbed smoked sheets, 31K 

 eenis; upriver fine, 34}^ cents. First latex crepe futures were: 

 July-September, 33K> cents; October-December, 37 cents; Janu- 

 ary-June, 42V^ cents. Ribbed smoked sheet futures were: July- 

 September, 33'4 cents ; October-December, ZbV^ eents : fanuary- 

 June, 42 cents. 



Quiet conditions prevailed throughout .Xu.nusl. Curtailment of 

 tire production was extended, reducing rubber consumption about 

 8,000 tons monthly. Arrivals for the year had been 36,000 tons 

 greater than for the same period of 1919, and 20,000 tons was 

 reported in New York storage. Depression ruled the first week, 

 with only small lot buying for immediate recpiirements, sending 

 both lirst latex crepe and ribbed smoked sbeels, spot, to a new 

 low level of 29'/. cents. Later in the month contract covering on 

 the part of shf)rt interests res\ilted in slight spot advances to 31 



