Tuesday, Sep 21, 2010
Tyre Inflation
Bloomberg: Bridgestone, Goodyear Face Worst Rubber Shortage in Four Years
Stockpiles of the raw material, also used in gloves and condoms, will drop 12 percent to 67 days of demand next year, the lowest level in at least a decade, according to Goldman Sachs Group Inc. Consumption will outpace supply by 127,000 metric tons, the most since 2007, the bank estimates. Futures in Singapore may jump 20 percent by March, said Makoto Sugitani, a senior director at Newedge Japan Inc., who correctly predicted the rally in January. That would mean a record $4.20 a kilogram.
Posted by mark @ 09:47 AM (597 views) Add Comment
10 Comments
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1. mark said...
No doubt some people will post "What has this got to do with house prices" "stop posting this cr^p" etc
Inflation is getting worse from every angle, this erodes peoples money and ability to pay for many items including essentials, can't afford the car tyre? Then you might not be able to get to work.
Can't afford the condom anymore, hey it ruins your night out. lol
2. Crunchy said...
Deflationist City 1 Inflationist Athletics 4
People rarely give a thought about resourses and the implications of transportation in an increasingly hostile globe.
Think on!
3. drewster said...
Mark,
While it's true that many essentials are rising in price as the pound devalues, the article does make it clear that for rubber this is a temporary phenomenon caused by environmental factors: "Drought earlier this year and heavy rains later...".
Of course, rising prices for essentials means less money left over each month to service a mortgage.
4. Mh said...
Will this effect the spring bounce?
5. mark said...
Drewster , mervyn says that each month but it doesnt seem to stop inflation, once companies raise prices they never go back, tyres will keep creeping up in price now
6. drewster said...
Oh I agree... but in the case of rubber it appears to be true.
Slightly related, there's an article in the Telegraph's motoring section about the latest price wars in the new car market: New car discounts exceed 40pc. You can get a brand new Ford Focus 1.6 diesel for £11,995, or a base model Fiat Panda for £5,995. I bet Mervyn can't wait to put those numbers into the CPI.
7. ontheotherhand said...
Is this the same Goldmans that whilst buying lots of oil was at the forefront of predicting, $150, $200, $250 a barrel coming shortly?
8. alan_540 said...
mark said :
No doubt some people will post "What has this got to do with house prices" "stop posting this cr^p" etc
Mark, stop posting this cr@p please.
9. mark said...
Alan took all day but you made me laugh
10. alan_540 said...
Had to be done :)