RUBBER PRICES.

Auckland Star, Volume LVIII, Issue 113, 16 May 1927, Page 3

RUBBER PRICES.

ANOTHER SPECTACULAR RISE? AMERICAN BUYERS COME IX. (From Our Own Correspondent.) LONDON. March 11 The condition of the rubber market ie f^T™*.™*?? B *** general attention, for although rubber stocks warehoused in London have been steadily accumulating •nnce November, 1925, nntil they lwve reached nearly (iO.OOO tone, market quote! tions have been maintained remarkably well. w The experts in this market think that the heavy stock now accumulated in London warehouses is not likely to be increased very considerably after the next few weeks, and about this time of the year it is usual for the American factories to take increased quantities of the comrny, ~ tyres as well as rubber goods of all kinds. The price movement anticipated also lunges on the fact that rubber stocks in the United States must now be getting low and will have to be replenished. The question that intrigues the market here is what is going to be done by the manufacturers' pool which was organised in the united States to hold a reserve of rubber stock against any shortage emergency. Rubber dealers here assert that the members of this American pool hold a certain proportion of the rubber stocks housed in London, and it may be that some of this will be shipped across the Atlantic and bo decrease London stocks. The rubber situation, of course, depends on the United States, and there is no doubt that the spot supplies over there are not considerable. The rubber restriction regulations, of course, produce certain effects, in that London prices for ribbed sheet during February, March, and April may not average out high enough to prevent another 10 per cent cut in exports from the beginning i of next May. Indeed, at present another quarterly cut to 60 per cent seems likely, unless we are to witness another battle over rubber prices between restrictionists ' and consumers during next month.