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A terrible tsunami affected several countries in Southeast Asia and South Asia and caused great damage to natural rubber cultivation in these areas. An industry official told reporters the day before yesterday that this tsunami will seriously affect the supply and demand relationship in the Asian rubber market. The Chinese rubber industry is facing the shock wave of the tsunami. Among the disaster-affected countries and regions, Thailand, Indonesia, India, and Malaysia are both important producers and exporters of natural rubber, of which Thailand ranks first in the world, and natural rubber planting area has exceeded 2 million hectares. The increase in the production of rubber in South and Southeast Asia is from May to July and November to January in the rainy season. The reduction period is from February to April and from August to October in the dry season. It is currently at a rubber production increase period. Over the years, the price of natural rubber in these countries has become the 'barometer' for the world's rubber. Unfortunately, the tsunami destroyed rubber farms in these four countries. The rubber plantation in the earthquake center Sumatra was almost completely destroyed, and the rubber trees in Thailand and Malaysia were not spared. Since the planting of natural rubber trees takes a considerable amount of time and investment, it is a foregone conclusion that in 2005 or even in the next few years, the rubber production in these areas will have been reduced. China is the world's largest consumer of rubber, but neither natural rubber nor synthetic rubber produced by itself can meet consumer demand. According to statistics, from January to November 2004, China imported 1.155 million tons of natural rubber, of which 572,000 tons were imported from Thailand, 285,000 tons from Malaysia, 193,000 tons from Indonesia, and 25,000 tons from India. From the above four countries, imports totaled 1.075 million tons, accounting for more than 93% of the total imports. The natural rubber producing areas in Hainan and Yunnan, China, have been tapped at the end of November and early December of last year, and there will be a four-month cut-off period during which the demand for natural rubber will all depend on imports and corporate stockpiles. It goes without saying that the reduction in the supply of goods will generate a greater upward pressure on the price of rubber in the world. What is even more frightening is that the tsunami will also affect the minds of rubber farmers and rubber suppliers. They have begun to collect limited 'glue sources' to push rubber prices higher. According to industry analysts, the price of natural rubber in the world in 2005 will rise again in recent years.
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