Ultimate Uses of RUBBER!!!!!

Life rolls on:


A woman selling household utensils made out of car tyres in Dimapur, the
commercial town of Nagaland. These utensils are widely used in farming and for storing water.

Rubber May Drop as Strong Dollar, Prius Recall May Hurt Demand Share Business

Feb. 8 (Bloomberg) -- Rubber, little changed in Asia, may decline as a strong dollar reduces the appeal of commodities as an alternative investment and a possible recall by Toyota Motor Corp. of its Prius cars may slow auto sales.

Futures in Tokyo fluctuated after slumping 5.3 percent on Feb. 5, the biggest daily loss since Sept. 14. The commodity used in car tires has fallen 12 percent from this year’s peak of 306 yen per kilogram ($3,424 a metric ton) on Jan. 15.

The dollar climbed toward the highest level in eight months against the euro on speculation mounting budget deficits in some European nations will keep policymakers from raising interest rates. Toyota will recall at least 311,000 Prius hybrid cars globally after complaints about the brakes, the New York Times reported yesterday.

“Prius has been the best-selling car in Japan because of its fuel-efficiency,” Kazuhiko Saito, an analyst at commodity broker Fujitomi Co. in Tokyo, said today by phone. “Its recall could have a negative impact on car sales in the country.”

Rubber for July delivery, the most-active contract, lost 0.1 percent to 267.8 yen per kilogram on the Tokyo Commodity Exchange at 11:09 a.m. local time. Prices earlier fell to 266.2 yen, the lowest level since Dec. 22.

Losses were limited by speculation that lower prices may lure buyers from China, the largest consumer, ahead of the Lunar New Year holiday next week when markets close, Saito said. About 90 percent of natural rubber is used to make vehicle tires, he added.

Shanghai Rubber

May-delivery rubber on the Shanghai Futures Exchange added 0.2 percent to 22,230 yuan ($3,256) a ton at 10:13 a.m. local time. Prices fell to 22,000 yuan on Feb. 5, the lowest level since Dec. 16.

Rubber inventories plunged 13,645 tons to 128,306 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the exchange said Feb. 5.

Rubber futures in Tokyo have lost almost 3 percent this year amid concern that U.S. job losses and European budget deficits may stifle a global economic recovery. The Reuters/Jefferies CRB Index of 19 raw materials reached the lowest level since Oct.6 on Friday as investors cut holdings of riskier assets.

The dollar and the yen advanced against the euro after Group of Seven finance ministers in Iqaluit, Canada pledged to press ahead with economic stimulus measures amid concern about sovereign risk crises in nations including Greece, Portugal and Spain.

“As sovereign risks spread in the euro-zone, risk aversion will continue in the market,” said Susumu Kato, chief economist for Japan at Calyon Securities in Tokyo.