Rubber prices hit record high, fueling manufacturers’ appetite for Guayule rubber
According to a report February 9 from Rubber & Plastics News, Hevea-based natural rubber prices have skyrocketed to an all-time high – tripling in the past two years. This is due to dramatic increases in demands for rubber material and a tightened supply. Industry experts see the upward trend continuing with soaring demand for raw materials in Asia and weather problems affecting rubber production in Southeast Asia.
Many manufacturers have been turning to synthetic rubber. As a result, since early October 2010 synthetic rubber prices have increased by 500%, from $600 to $3,000 per metric ton according to the ICIS. Compounding the increased demand for rubber, synthetic rubber is also petroleum-based and has grown more expensive as oil prices climb. In addition, as a petroleum product, it is a non-renewable material.
The rising costs of Hevea-based and synthetic rubbers are putting pressure on manufacturers to raise prices or face lower margins. The Financial Times reported, tire companies including Bridgestone, Michelin, and Goodyear, have raised prices by 5-15% in 2010 with more increases to come. Due to increasing financial pressures, manufacturers are looking for alternative sources of rubber. Guayule rubber has been emerging as an attractive and sustainable alternative to both natural rubber and synthetic rubber.
Yulex Corporation has been ramping up guayule production in the Southwestern United States, where guayule is indigenous and the guayule rubber industry has taken root. Guayule is domestic, renewable and environmentally sustainable. The plant grows in a desert climate and requires less water than many other industrial crops, including cotton. Unlike the Hevea rubber tree that takes 5-10 years to mature before it can be tapped, the perennial guayule plant matures for harvest within 12-20 months and can be harvested year after year, which is particularly helpful in responding to short-term natural rubber shortages.
With its planned agricultural expansion with partner Arizona Grain, Yulex is proactively advancing guayule rubber’s ability to meet the world’s increasing appetite for natural rubber and more sustainable materials in general. Currently Yulex Natural Rubber from guayule is being utilized in manufactured goods as diverse as medical devices, cleaning products and specialized apparel.
IT WILL BE MORE HELPFUL FOR MANUFACTURING AT LOWER PRICES . BUT WAHT ABOUT THE STRENGTH OF THIS ALTERNATIVE AGAINST NATURAL RUBBER.