By on April 13, 2021

Those of you tracking the semiconductor shortage can probably take it easy for a while, as practically every industry group on the planet has tentatively agreed we’ll be seeing a chip deficit for a few years. Meanwhile, market analysts are trying to predict the next material we won’t have enough of and rubber is looking like an ideal candidate.

Rubber supplies are drying up and price increases are reportedly beginning to climb at an untenable pace. Despite several years of relatively stable availability and low prices, supply chain disruptions created by lockdowns have left latex harvesters in a bad position. Low prices encouraged many to over harvest their existing crop, rather than invest in farmland. But with shortages looking probable as countries began responding to the pandemic, China went on a buying spree to maintain a robust national stockpile in 2020. The United States was late to the party and now finds itself in a position where scarcity is driving rubber prices through the roof just when it needs to buy more.

(Read More…)

By on May 16, 2017

Tires

General Motors has announced it will choose “sustainable natural rubber” for the 49 million tires it buys each year. The automaker claims it is establishing a set of buying principals to ensure sustainably harvested materials and is encouraging other automakers to follow suit in a bid to reduce deforestation.

It won’t suddenly make driving your Chevrolet good for the environment, but it should give drivers bragging rights — allowing them to claim their tires killed fewer critters before even getting the opportunity to run any over.

However, environmental smugness is occasionally warranted. With tire manufactures representing 75 percent of the natural rubber market (according to the World Wildlife Fund), an overall shift toward sustainability would provide a measurable impact on deforestation. But what is General Motors getting out of this move and what will the price of environmental awareness be? (Read More…)

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