Supply and Demand :: essays research papers

Supply 1The no-account supply in lacquer is at an all time low. The article chosen discusses how the low supplies of condom are not typical for the time of year. Tokyo refuge or TOCOM is the Tokyo Commodity Exchange which regulates the rubber market in Japan. A rally was held recently which was the largest in years because of the concerns about low supplies and historically low rubber stocks. The benchmark December rubber contract on the Tokyo Commodity Exchange rose as high as 169.2 yen per kg, the priciest for TOCOMs key contract since March 11, 1996, when prices hit 174.6. At the conclusion it was up 3.4 yen at 168.7 (TOCOM.).The contracts that are already signed in the midst of different companies for delivery from August to November of 2005 are not looking excessively good. The price for rubber is expected to rise five yen on the stock exchange. Julys contracts, which have no price limit, finished up seven at 189.8 yen per kg of rubber. This meant that the rubber contrac ts hit their life-time high. The expectations of investors in Tokyo are that the price of rubber will peak in August and begin to decrease when rubber supplies cast up. The price gap of rubber between the December and July widened to 21.1 yen. Rubber supplies have been low due to a delay in shipments from Thailand. Thailand is the worlds largest manufacturer and exporter of natural rubber. The shipments of rubber have move due to bad weather conditions. Rubber supplies designly drop from the get-go of February which is winter and the dry season in southern Thailand. During Supply 2this season, latex output declines because the rubber trees shed their leaves. Production in general, returns to normal by beginning of May, but the buyers are still not acquiring enough shipments. Japan purchases over 60 percent of its rubber imports from Thailand. Because the signs of shortstop production, rubber stocks in Japan have decreased to the lowest direct in forty years. According to the h e Rubber Trade connector of Japan, Prior to June of 2005, the lowest the stock had been was back in 1962. Because of the high be of rubber and the decrease in supply, manufacturers are considering shifting to natural rubber from expensive synthetic rubber. High oil costs have in addition driven up rubber costs. Because of the low supplies of rubber, companies are forced to increase the price.