February 1, 1920] 



THE INDIA RUBBER WORLD 



The Spot Crude Rubber Market During 1919. 



As WAS ANNOUNCED in the middle of December, 1918, govern- 

 ment restrictions on rubber imports were removed in Janu- 

 ary and at tlie same time the armistice began to set ocean 

 transport free so that a decline in prices was to be looked for 

 with the increase in supply. During January, first latex crepe 

 dropped gradually from 58 cents on January 7 to 52 cents on 

 January 27 and ribbed smoked sheet dropped with it from 56 

 cents to 50 cents, while the price of upriver fine went from 64J4 

 cents down to 58 cents. 



Early in February large orders were placed by manufacturers, 

 the demand for plantations was active and it seemed as if prices 

 would go up again. The spurt was followed by a reaction which 

 sen; the price down steadily not only to the end of the month, 

 but until the middle of the 



64 

 6? 

 60 



summer, when, aided by 

 large arrivals, the bottom 

 price of the year, 40 cents, 

 was reached. On February 

 4 first latex crepe was 58 

 cents again, as was upriver 

 fine ; on February 27 the 5 

 prices were 55 cents for first i_ 

 latex crepe and 58 cents for o- __ 

 upriver fine. 



During March the market 

 was stagnant, there was lit- 

 tle demand from buyers, and 

 prices continued to go down. 

 The Para rubbers reached 

 the level of between 55 and 

 56 cents, at which upriver 

 fine remained for several m( 



Fluctuations of Upriver Fine, First Latex Crepe and Smoked 

 Sheet Ribbed Spot Rubber During 1919. 



iths, further decline being checked 

 partly by the holding back of rubber exports by Brazilian finan- 

 cial institutions. First latex crepe which was 55 cents on March 

 4 sold for 51^< cents on March 28 and ribbed smoked sheets kept 

 at one cent below the latex price. 



In April the market continued dull, plantation grades declined 

 steadily owing to heavy arrivals and little demand. On April 4 

 first latex crepe sold for 49 cents.- In the middle of the month 

 there was a little animation which sent the price up to SO cents, 

 but by April 29 it was down again to 48 cents. Some demand for 

 Para kept the price of upriver fine at 56 cents. 



May again was dull for crude rubber, though the price of plan- 

 tations kept steady owing to oversupply. On May 3, first latex 

 crepe was at 47 cents; it rose to a cent above, sank to half a cent 

 lower, and by May 28 was at 47 cents again. Upriver fine sell- 

 ing for 56 cents at the beginning of May, rose to 58 cents and 

 dropped again to 56!4 cents at the close of the month. 



The same story of dull markets is true for June, e.xcept that 

 the price of plantations dropped sharply; on June 7 first latex 

 crepe sold at 44 cents, by June 28 it was selling at 40 to 41 cents. 

 The Para prices were kept steady, upriver fine staying at 56 to 

 56M- cents in New York, while 66 cents was asked for it in Para. 



In July the bottom was reached for plantation rubber, arrivals 

 were heavy, manufacturers would not buy and holders would 

 not sell at the prevailing prices, as they expected Germany to 

 but heavily, so first latex crepe reached 40 cents and ribbed smoked 

 sheets 38; 2 cents ; by the end of the month, however, prices had 

 started on the upward course in which they were to continue 

 during the rest of the year. July 1 latex crepe sold for 42}^ 

 cents, July 31 it had returned to 42 cents. Upriver fine sank also 

 a little with the plantation rubbers, selling for a time at 54^^ 

 cents; July 1 it was at 55 cents and also on July 31. 



During August the market improved slowly, but steadily; manu- 



facturers began to buy and prices were firm, though there was 

 plenty of rubber on hand. August 1 first latex crepe sold for 

 41 J4 cents; August 25 it sold for 45^ cents. The Para market 

 was quiet with upriver fine at S4J4 cents at the beginning and 

 close of the month. 



With September a remarkable advance began in plantations, 

 which with some breaks, continued to the end of 1920. Manu- 

 facturers of tires and of all rubber goods bought heavily and 

 seemed ready to pay any price for the rubber they wanted. While 

 there was speculation, the demand came from consumers. First 

 latex crepe at 45;/2 cents on August 30 sold for 5) '.2 in the first 

 week and 52'/< in the second week of Septembe' and was selling 

 for 50^ on September 29. The Brazil market was quiet and in- 

 active, with upriver fine at 

 55 cents on September 6 

 and at 54 cents on Septem- 

 ber 29. 



Throughout October the 

 market continued firm with 

 increasing demand from the 

 factories for plantation, 

 while the Brazilian market 

 was practically dead. Dur- 

 ing the month the prices of 

 ^^ " both latex crepe and smoked 

 sheets rose above that of 

 upriver fine. October 3 the 

 price of first latex crepe 

 was SO cents, on October 31 

 it was 54 cents ; at the same 

 date ribbed smoked sheets 

 Upriver fine was quoted at 54 cents on October 3 



were 53 cents 



and at S3 cents on October 31. 



The rise in plantations continued till the middle of November, 

 when there came a temporary drop. The demand of the manu- 

 facturers fell off and prices were affected also by the drop in 

 sterling exchange. First latex crepe at 54 cents on November 1 

 rose to 55 cents the ne.xt week and then dropped, standing at 

 52y2 cents on November 27. There was a like drop in Para, up- 

 river fine selling at S3,'-4 cents November 1 and at 51 cents No- 

 vember 27. 



The crude rubber market continued steady throughout De- 

 cember, taking a sudden rise for plantations in the last week. 

 The steadiness was attributed in part to the firm handling of 

 the Singapore and London markets, but it was due also to the 

 continued demand. December 2 the price for first latex crepe 

 was 53 cents, December 31 it was 55 cents. It is remarkable 

 that ribbed smoked sheets sold for the same as first latex 

 crepe, 52;/ to 53 cents on December 2, and 55 cents on De- 

 cember 31. There was a further drop in Brazilian rubber, up- 

 river fine selling for 49 cents on December 2 and 31, but having 

 sunk to 4754 cents in the interval. 



Upriver fine, which sold at 64'.i cents at the beginning of 

 January, 1919, had fallen to 49 cents on December 31 ; first latex 

 crepe sold at 58 cents on January 1, and at 55 cents on December 

 31, and ribbed smoked sheets at 56 cents on January 1, and 55 

 cents on December 31. 



Rubber estates in the Straits Settlements, which have 

 depended heretofore wholly on cheap coolie labor, are now con- 

 sidering the use of agricultural machinery, such as tractors and 

 harvesters, because there is a shortage of the labor and a 

 general shortage of rice, the principal food throughout the 

 Far East. 



