Companies in almost every market are facing a shortage, perhaps no industry is more affected than the automotive. Several plants have been idle due to the semiconductor crisis, which has cost tens of billions of dollars in revenue, while materials ranging from seating foam to metal to plastic resin are also hard to find. The industry, which has long relied on just-in-time production to reduce costs, is finding that it has limited flexibility in dealing with supply chain failures caused by pandemics. Car manufacturers are struggling with a global shortage of chips, and are likely to struggle for the rest of the year, which is likely to be followed by a shortage of rubber.
Analysts warn that global rubber stocks are critically short, in part due to increased demand for rubber gloves and packing tapes during a pandemic. The offer was also affected by drought, floods, and leaf diseases in countries such as Vietnam and Thailand, which are leading rubber producers.
The rubber industry is dominated by small farmers, making it difficult for producers to adapt quickly to changes in demand, price fluctuations, or supply chain problems. This is not the only finding on the commodity market that is not easy to fix: according to the commodity trader Trafigura Group, there may be a shortage of 10 million tonnes of copper by 2030 if no new mines are built.
This is shown by the price of rubber futures. Bloomberg notes that in addition to these changes in rubber demand and supply, China continued to buy rubber last year to strengthen its national stocks. The US could not follow suit. In February, natural rubber prices reached a four-year high of $ 2 per kilogram and former Halycon Agri Corp. CEO Robert Meyer believes prices could reach $ 5 per kilogram over the next five years.
Commenting on the deficiency, Ford and Stellantis confirmed that they were monitoring the deficiency, but had not yet felt its impact. Similarly, General Motors says it is not worried about its rubber supply at this stage. Michelin added that it reduces port congestion by air cargo from Asia. Yüce Yazılım is happy to read your opinions or comments about the lack of rubber in the comments below the article.