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2018 Rubber Commentary by Chief Economist George Sulkowski



In 1963 Karl Ziegler and Giulio Natta shared the Nobel Prize in Chemistry for the development, in the 1950’s, of their eponymous catalysts for the production of stereoregular polymers from propylene. Their catalyst, an organoaluminum compound coupled with a transition metal, led to the development of synthetic rubbers with a structure closely resembling natural rubber.

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Natural Rubber Vs Synthetic Rubber – The price relationship and demand switchability



The price relationship and demand switchability between NR and SR are far more complex than initially meets the eye. Yes, the two polymers are competitive and substitutable to a degree. However, there is a tendency in commodities for participants to overestimate (assume) the level of demand price elasticity. In the case of NR and SR technical factors and end product specifications limit the degree in which NR and SR can be substituted.

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Natural Rubber: Structure and Function



In 1963 Karl Ziegler and Giulio Natta shared the Nobel Prize in Chemistry for the development, in the 1950’s, of their eponymous catalysts for the production of stereoregular polymers from propylene. Their catalyst, an organoaluminum compound coupled with a transition metal, led to the development of synthetic rubbers with a structure closely resembling natural rubber.

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Thailand Natural Rubber Economics



A study about smallholders and dealers on production cost, land cost and return on investment in South Thailand.

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Halcyon Agri’s Take on the World’s Natural Rubber Situation



There has been a steady decline in natural rubber prices since 2011 due to rising stocks as a result of expanding production. Prices are declining to an unsustainable level for key stakeholders in the industry driving potential future supply-side implications. Persistent increase in China’s visible inventory driving large market imbalances are contributing to the negative market sentiment.

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Hevea Problems In Southeast Vietnam: The Weather and the Disease Factor



In general, Vietnam’s terrain facilitates not only agricultural, industrial and urban development but also transport systems and their construction. The West and South-West, bordering the Mekong Delta, have the greatest potential for agriculture, in effect the country’s granary.

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The Sorry State of the Indonesian Hevea



The rubber tree (Heveabrasiliensis) is the only commercial source of natural rubber. Its cultivation can be severely limited by pathogenic diseases such as the Fusicoccum leaf fall disease. An outbreak of the disease was first recorded in 1987 in south Peninsular Malaysia. The disease first occurred in Indonesia in 2016 in North Sumatra and has now spread to the southern Sumatra region from the end of 2017.

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What is wrong with the natural rubber market? The Chief Executive’s View:



When analysing the reasons behind the persistently weak prices for natural rubber, the most intuitive explanation is normally fundamental: either demand must be weak or the market must be oversupplied.

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Indonesian Natural Rubber Smallholder Economics



90% of Indonesian natural rubber raw material is sourced through smallholders. The average smallholder in Indonesia owns 1.5 to 2 hectares of rubber trees. It is widely known that the rubber yields in Indonesia are notoriously low – let us take a closer look into the actual data from Gapkindo…

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Do we, in 2018, still need a traditional futures market in the Rubber Industry?



If there’s one thing that’s accelerated over the last twenty-odd years, it’s technology, opening up the greyest corner of any business to everyone with a smartphone. It has also meant that there’s little mystery left in anything we do. “What do I need an intermediary for, when I can do it myself?” Try it: it […]

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