Up Crude, Up Synthetic

In a manner reminiscent of the ways of the prewar rubber cartel, the U.S., Great Britain, The Netherlands and France sat down last week to talk rubber. When they got through talking, they had fixed a new world price for Far Eastern natural rubber at 23.5¢ a lb., a boost of 3.25¢.

Of the 650.000 tons of natural rubber the Far East will probably ship this year, the U.S. expects to get 145,000 tons. The chances are it will have to raise the domestic ceiling price slightly, but that may prove a blessing in disguise.

For every increase in the cost of natural rubber improves the competitive standing of the war-born synthetic rubber industry, now turning out rubber on an average of 18.5¢ a lb. The U.S. has already closed down some ten high-cost synthetic plants, had planned eventually to shut down about two-thirds of the industry. But as long as the natural rubber price stays where it is, the U.S. will be able to keep the bulk of its low-cost synthetic rubber plants in operation.