Rubber/GMG

Rubber/GMG: Rubber stockpiles in China’s Qingdao port, the main shipment hub for the commodity used in tires, are starting to expand as demand slows in the world’s largest consumer. Note that demand from downstream tire makers seems to be weak at the current stage, so destocking has slowed down, said exchange chairman Li Xiangou, who correctly forecast in March that high inventories may pressure prices. Futures have plunged 49% from a record in Feb 2011, cutting costs for tire makers such as Bridgestone Corp., Goodyear Tire & Rubber Co. and Michelin & Cie. Prices slumped as China, the biggest car market, expanded last qtr at its slowest pace in almost three years and Europe struggled to contain its debt crisis.