274 



THE INDIA RUBBER WORLD 



[[•'euruarv 1, 1919. 



Crude Rubber During 1918. 



THE YEAR opened with a slight upward tendency which, 

 however, was not maintained. There was so little spot 

 rubber on the market that the demand fell off. Then came the 

 railroad congestion, with the resulting embargoes, and the gov- 

 ernment order shutting down factories. Toward the end of 

 j'anuary accumulations of rubber began pulling up at Pacific 

 ports owing to the breakdown of the transcontinental freight 

 service. On January 29, first latex, spot, was 55 cents, and up- 

 river fine, spot, 58 cents. 



During February manufacturing interest was entirely lacking 

 and dealers showed no desire at all to accumulate supplies, so 

 that all activity ceased. The railroads resumed, under un- 

 precedented difficulties, the eastward movement of rubber from 

 the Coast. The President's proclamation licensing all imports, 

 including crude rubber, resulted in a firm undertone. Quotations 

 on February 26 were : first late.x crepe, spot, 55^ cents, and up- 

 river fine, spot, 57 cents. 



Dullness characterized the market during the first half of 

 March, but in the third week it began to be feared that arrivals at 

 Pacific ports would be greatly reduced owing to the taking over 

 of the Dutch ships. Importers and manufacturers, therefore, 

 came into the market with good-sized orders. Prices accordingly 

 advanced and remained at the higher levels even after the de- 

 mands were satisfied, as buyers were showing an interest in 

 forward positions. On March 28 first latex crepe, spot, was 59 

 cents, and upriver, spot, 61 cents. 



Very little business was done during the first three weeks of 

 April, but a very heavy buying movement followed a meeting of 

 a special rubber trade committee with the War Trade Board at 

 Washington on April 18. This conference discussed the problem 

 of rubber imports in connection with the ever-increasing de- 

 mands for shipping to and from Europe. What was said at the 

 meeting did not transpire, but manufacturers and shorts partici- 

 pated in sending prices up sharply in an excited market. First 

 latex crepe, spot, reached 71 cents, and upriver fine, 69 cents. 

 By the last of the month latex was one cent lower, but upriver 

 did not decline. 



Government control of crude rubber importations became 

 effective on May 1. Under the option and guaranty clause the 

 Government optioned the standard grades of crude rubber at the 

 following prices, c. i. f. New York: standard smoked sheet, 62 

 cents; first latex crepe, 63 cents; fine Para, 68 cents— these 

 prices not to apply to rubber contracts in force prior to May 1, 

 1918. Imports for the three months beginning May 1 were 

 limited to 25,000 tons, government requirements coming first, the 

 balance to be allocated to each manufacturer at the rate of 7/16 

 of his consumption during 1917. Then the Government fixed 

 prices tor all other grades. All of these innovations were ac- 

 cepted by the rubber trade with equanimity. 



The market was stagnant during the month of June. The 

 large consumers had bought forward plantation rubber to the 

 limit of their allocations. It is true that rubber free from the 

 import restrictions was in continued demand, but the supply was 

 soon exhausted. Later in the month maximum prices on 

 jelutong, gutta siak, gutta percha and balata were fixed by the 

 Government. 



During July the market was virtually dead, partly under the 

 influence of the three months' experimental restriction period, 

 which began on May 1, and partly because of waiting to learn from 

 Washington what regulations would be enforced for the balance 

 of the year. Manufacturers' allocations had evidently been 

 covered, for very few certificates appeared. Standard plantation 

 grades for future shipment were quoted as low as 42 cents. New 

 York. A few small lots of free rubber were sold by importers 

 against similar quantities to be shipped against allocation certifi- 



cates from stocks bought in the Far East prior to May 8, and 

 for which no marketing provision had been made in the gov- 

 ernment regulations. 



For August and September the Government decided to permit 

 the importation of 16,666 tons of crude rubber, the needs of the 

 United States and allied governments coming first, the balance 

 being allocated to manufacturers at the rate of 3/8 of 1/6 of their 

 consumption during 1917; manufacturers not operating at full 

 capacity in 1917 to receive allocations according to a special 

 formula. It was also ordered that the number of tire casings 

 and tubes produced and the amount of rubber used during 



Oct, Nov. 0«C- 



Fluctuations of Upriver Fine, First Latex Crepe and Smoked 



Sheet Ribbed Spot Rubber During 1918. 

 August and September should only be 50 per cent of the produc- 

 tion and consumption during 1917. Paras were quoted at 60 to 

 61 cents for August-September shipment during the latter part 

 of August, but the consuming demand was limited to small 

 quantities for immediate requirements. 



Quiet market conditions prevailed during September. Crude 

 rubber imports were fixed at 25,000 tons for October, November 

 and December, according to previous allocations. Toward the 

 middle of the month considerable free rubber was offered by 

 manufacturers who were overstocked, and sales were reported 

 to have been made at prices ranging from 51 to 61 cents for 

 crepe and 49}^ to 60 cents for ribs. Trading in allocation 

 certificates vifas an unusual feature of the market, and the Far 

 East received attention from manufacturers, relieving the dis- 

 tress in that quarter to some extent. 



The October market was extremely dull. Orders for allocated 

 and free rubber were infrequent and unimportant in volume. 

 Allocated rubber remained firm, latex ranging from 37 to 42 cents, 

 and ribs from 35i^ to 40 cents. Free rubber prices ranged from 

 58J/2 to 62 cents for latex and 57^ to 61 for ribs. Prices on allo- 

 cated Para grades varied but little ; upriver fine, from 56 to 58 

 cents. The price on free rubber ranged fom 62 to 66 cents for 

 upriver fine. 



For a brief period after November 11 the market condition 

 improved, and the Government permitted the importation of 

 7,500 tons over and above the amount previously allowed for the 

 period ending December 31. Allocated rubber was quoted on 

 November 12 at 51 cents for latex and 49 cents for ribs. Free 

 rubber prices on November 26 were : 60 cents for latex and 52 

 cents for ribs. At the same time, upriver fine was quoted at 66 

 to 68 cents. 



During December quietness characterized the market. All 

 restrictions as to the quantities of rubber that might be im- 

 ported were removed. Import licenses were thenceforth to be 

 granted regardless of quantities involved. Government option 

 prices were withdrawn and undertakings as to maximum values 

 were no longer required ; the rubber, however, to be consigned to 

 The Rubber Association and the usual guaranties required. 

 Balata, gutta percha, gutta siak and jelutong are included in the 

 term rubber as used in this paragraph. On December 26 first 

 latex crepe was 54 cents, and upriver fine, 61 cents. 



