538 



THE INDIA RUBBER WORLD 



April 1, 1921 



The London \'ie\v of the 1920 Crude Rubber Market 



LoxuoN Spot Fluctu.\tions of 

 AND Ribbed Smoked 



SUPPLY EXCEEDS DEMAND 



THK DISTINGUISHING KEATiRE ol 1''20 was tlic great actual and 

 enormous potential supply of crude rubber and the lessened 

 demand for it, especially since March, The rubber trade 

 has experienced the worst crisis in its history, but the prospects 

 are that the situation will improve during the present year. The 

 large amount of rubber which American manufacturers bought 

 at the end of 1919 and the beginning of 1920 was made into 

 manufactured goods in anticipation of a generally overestimated 

 European demand. As a result, manufacturers were left with 

 large quantities of manufactured goods, yet still had to buy con- 

 siderable quantities of 

 crude rubber at high 

 prices. But for this, prices 

 would not have reached 

 the unjustified high level 

 of last Winter. 



During the past two 

 years supply has exceeded 

 demand. This has been 

 chiefly plantation rubber. 

 The 1920 supply of wild 

 rubber, except for 28,000 

 tons from Brazil and 

 Amazonas and about 2.500 

 tons from the Congo, has 

 been negligible and toward 

 the end of the year almost 

 unsalable, except fine hard 

 Para, The reclaiming of 

 old rubber has decreased 

 considerably because of the low prices of crude. l''orward sales 

 by estates over 1921 are much less than usual, and there is no 

 doubt that after contracts at high prices have been liquidated 

 the position as regards new buying powers will have im- 

 proved. In Europe, though the use of automobiles is small, there 

 is a considerable increase in bicycles, and Germany has bought 



a little rubber. 



THE MARKET 



The high prices (highest 2s. lO'/jd. in January for both 

 standard cri-pe and ribbed smoked sheets) with which the year 

 began, partly owing to a market operator's shortage, continued 

 until March, when the price fell to 2s. 2'/>rf. and continued with 

 small fluctuations until July, when l.v. 9rf. was reached. The 

 most serious fall came in the .\utunin. The price of 1.?. 9d. at 

 the beginning of September dropped two months later to \s. 1(/.. 

 and the market closed at the end of the year with standard 

 crepe at W/id. and ribbed smoked sheets at IQ'Ad. The agree- 

 ment made in Octolx-r by members of the Rubber Growers' .\s- 

 .sociation to curtail plantation output by 25 per cent was witlmut 

 cfTect, and it was not until early in 1921, when it was reported 

 that the Malay Government would probably advocate legislation 

 restricting output and export by 50 per cent, that the market 

 improved, the advance on January 15, 1921, lieing about 4'/jd. 

 above the lowest prices of last year. 



The price of fine hard Para has dropped almost continually 

 throughout the year, starting in January at 2s. Tyid. and closing 

 in December at l.t. O'Ad., an unprecedented low figure. Trading 

 has been very small. The demand for negrohcads has almost 

 ceased and caucho ball sells for llrf. per pound. 



The prices in the last three years on December 31 have been 

 as follows : 



Fine Ncurohcad Xeerohc.id Caucho 



Hard r ar.^ - - . - .. 



1920 l.r. O'/.rf. 



1919 2s. 7'Ad. 



1918 2j. 7d. 



Jelutong has been in less demand, its value being £40 per ton 

 c. i. f. Compressed jelutong is worth 6rf. per pound. Balata has 

 continued high with small fluctuations. STiect on the spot has 

 been about 4.$. 6rf. most of the year and is now quoted at 4.t. 2d. 

 for shipment c. i. f. Block has been very firm and high although 

 business has been small and the demand has fallen off. Its spot 

 value is 3.v. 9d., forward shipment c. i. f. 3.c 8rf. Owing to the 

 scarcity, gutta percha has realised high jirices. 



PLANTATION RUBBER 

 PREPARATION AND PACKING 



Tliere has been an unusual number of claims for quality, par- 

 ticularly from New York 

 on ribbed smoked sheets. 

 Part of the inferior con- 

 dition of the rubber has 

 been caused on the voyage 

 by improper stowage or 

 damage by the elements, 

 liut it is believed that con- 

 siderable rubber has not 

 been so carefully prepared 

 nor so well dried as 

 formerly. Buyers have 

 suffered losses in conse- 

 quence, although allow- 

 ances have licen heavy and 

 disappointing to shippers. 

 In this connection and 

 otherwise the Rubber 

 Growers' .-Xssociation and 

 the Rubber Trade .\sso- 



FiNE Hard Para First Crepe 

 Sheet During 1920 



ciation have been of great sen'ice during the year. 



Close pressed packing in bales and cases has been discon- 

 tinued owing to the objections of manufacturers. Quite a large 

 percentage of ruliber has arrived in cases not sufficiently strong, 

 which has entailed additional expense to importers. 



ACREAGE OF PLANTATION RUBBER 



The only increase of moment in planted areas has been in 

 Malaya and Malacca, where the advance has been some 300.000 

 acres. Planting has increased slightly in India, Burma and the 

 Mergui and is being extended somewhat, but the East .\frican 

 plantations of Ceara are not progressing and scarcely any ship- 

 ments have been received. The plantations, chiefly of Castilloa, 

 in Mexico, West Indies, Central and South America, have 

 almost ceased producing. The estimated plantation acreages 

 for the past three years follow : 



Ceylon acres 



Mnlava, Mr lacca 



Itnrr.eo 



Dutch East Indies 



India and Burma 



]''oriner (Icrinan Colonics; 



.Samoa. Kast and West .\frica 



W. IT. Rickinsrn S; Son estimates: 



.\cres in bearing 



Area under plantation rubber.. 



SOUTH AND CENTRAL AMERICAN RUBBER 



The year 1920 was very disappointing to shippers of South 

 .■\nierican rubber. The . supply from .\niazonns showed little 

 change, but that from Brazil decreased. Doubtless Xew York 

 stocks of fine hard Para held over from the previous crop 

 totaled 3,000 tons, but with normal trade this would have been 

 insignificant. In consequence shipments from Brazil, Bolivia 

 and Peru fell off some 6,000 tons, whereas Peruvian and caucho 

 shipments were only some 300 tons less than the previous year. 

 Total shipments for the past three years have been : 



