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A sizable rubber supply deficit is set to 180 into a massive glut thanks to a material slowdown...

A sizable rubber supply deficit is set to 180 into a massive glut thanks to a material slowdown in China. The resulting price drop will cut income for producers, but slash costs for tire makers like Goodyear (GT), Bridgestone (BRDCF.PK), Michelin (MGDDF.PK).
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  • rubberoptions
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    The aftermarket tire business in the US is highly saturated. all the US tire manufacturers would be forced to offer deep discounts and pass on the savings to consumers. let's not forget that Obama's 3 year tariff (35%) on Chinese tires will expire in September & is unlikely to be renewed!

     

    Goodyear will also throw away good money by selling these tires to grey market trade at steep discounts

     

    China's automobile & consumer boom is here to stay; 1.3 billion people & goods moving ensures sustained consumption of natural rubber, copper & other essential raw materials. the ''massive glut'' is a figment of some short sellers' imagination trying to TALK DOWN the market. if the CRB index does not slump; neither will rubber!
    19 Jun 2012, 09:43 AM Reply Like
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