Gums, Resins 



398 



[November, 1909. 



THE ADVANCE IN RUBBER. 



(From the Chemist and Druggist, Vol. 

 LXXV., No. 1, 543, August 21, 1909.) 



In view of the remarkable advance 

 in the price of raw rubber, we have 

 made inquiries as to what effect this 

 is having upon the prices of the finished 

 products handled by chemists and drug- 

 gists. The extracts from manufac- 

 turers' and dealers 1 letters, which we 

 print on another page, show how the 

 matter stands. It will be seen that the 

 advance in most instances varies from 

 5 per cent, to 15 percent., according to 

 the class of goods, and if the market 

 for rubber should further advance, it 

 is quite likely that prices will have to 

 be again adjusted. Up to the present 

 buyers are still at an advantage, as 

 the advance in raw rubber is not yet 

 fully reflected in the finished article ; 

 but when makers' stocks on hand have 

 been worked off, and if the advance 

 on raw rubber is maintained, further 

 increases may be looked for. Judging 

 from the tenor of the letters we have 

 received, it would appear that there is 

 an unsettled time ahead for the makers 

 of rubber goods, who are compelled to 

 face an enormous advance in raw rubber 

 without a compensating advance on 

 finished products. In 1903 and 1901 there 

 were three advances each of 10 per cent, 

 on the part of manufacturers, but on 

 the present occasion the advance is 

 phenomenal and more pronounced. This 

 may be judged from the fact that in 

 February, 1908, fine hard Para rubber 

 was selling at 2s. 9d. per lb. on the 

 spot, whereas to-day it is worth 8s. 3d. 

 July was an exciting month, prices 

 commencing at 6s. 6d, and closing at 

 8s. 4d. They dropped to 8s. early this 

 month, but this was merely temporary, 

 and the market has again advanced to 

 8s. 3d. rate. How long these high prices 

 are expected to rule it is impossible 

 to state. In certain quarters the opinion 

 is held that they must rule for many 

 months to come, some brokers believ- 

 ing that 10s. will be reached. As it 

 is, forward business for 1910 is being 

 done at about Is. per lb. below current 



rates ; on the other hand, the opinion 

 is expressed that a decline of 2s. to 3s. 

 per lb. may take place shortly, but 

 even well-informed brokers are not in a 

 position to judge. Meanwhile, there has 

 been a remarkable boom in the flotation 

 of new rubber companies, July alone 

 establishing a record with twenty-three 

 companies, involving capital of over 

 £1,860,000. These concerns are getting 

 to work as quickly as possible, and 

 future supplies, say, within the next 

 four or five years, are bound to be 

 materially increased, judging by the 

 acreage devoted to rubber in the East, 

 where it is estimated there are 600,000 

 acres now under cultivation. 



Such a high figure as at present pre- 

 vails for rubber is undoubtedly detri- 

 mental to the best interests of makers, 

 whose trade in the present famine tends 

 to disorganisation, as naturally retail- 

 ers do not care to stock high-priced 

 goods which are liable to violent fluctu- 

 ations. The public also object to pay 

 the higher prices ; but it should be 

 explained to them that the present rise 

 is unprecedented, and that when reduced 

 prices again prevail for rubber, they 

 will have the benefit. In the present 

 market conditions chemists would be 

 well advised to cover their winter re- 

 quirements early. It need hardly be 

 said that the development in the motor- 

 ing and cycling industries is responsible 

 for the greatly increased demand for 

 rubber, and these large users are the 

 first to feel the pinch. Some of them 

 maintain that the abnormal advance 

 is not due to natural fluctuations of 

 supply and demand, bat to internal and 

 artificial manipulation of the market. 

 Consequently they deprecate this in- 

 terference with the flow of raw mate- 

 rials, resulting in loss and inconvenience 

 to themselves and customers- The same 

 remarks apply also to rubber druggists' 

 sundries makers, who no doubt would 

 like to see prices at round about 4s. 

 per lb. We understand that German 

 rubber manufacturers have raised their 

 prices from 10 per cent, to 15 per cent, 

 on surgical articles of soft rubber in 

 order to avoid making any alteration 

 in quality. 



