RUBBER CONSUMPTION IN U.S.

Press, Volume LXXXVII, Issue 26319, 13 January 1951, Page 8

RUBBER CONSUMPTION IN U.S.

PROBLEM OF PRICE AND SUPPLY

The production and consumption of rubber in the United States m 1950 reached record levels, according to the annual review of the American Rubber Manufacturers’ Association. Consumption was 1240.000 long tons, an increase of 25 £er the 1949 figure, and 10 per cent, above the previous record in 194.. The association says that these records were set in spite of extremely problems in management and administration. The industry had been faced with a diminishing rubber supply and violent cost fluctuations. Since 1940 the cost of natural rubber had not varied greatly, but in the early spring of 1950 world demand and violent speculation caused costs to rise to a record of 91 cents per lb. By mid-Decem-ber natural rubber costs ranged from oo to 75 cents per lb. The cost of the raw material remained a real problem, when it was considered that a rise of only one cent added 13,500,000 dollars to the nation's rubber bill on the basis of a consumption of 600,000 long tons a year The two main factors in the supply picture, said the report, were the amazingly high consumption requirements, both In the United States and the rest of the world, and the impact of the Government's accelerated purchases for security stocks. The only helpful influence was the increasing production of American synthetic rubber, although at no time within the last seven months of 1950 was the Government able to meet all demands for either general purpose synthetic or butyl rubber.