Rubber Industry Overview (2010)

INDUSTRY OVERVIEW

Natural Rubber

The elasticity, resilience and toughness of rubber has made it the ideal commodity or base constituent in many products used in the transportation, industrial, consumer, hygiene and medical sectors around the world today. Transportation (tires) is by far the largest single consuming sector where between 50% and 70% of the global Natural Rubber (“NR”) is currently consumed.

General rubber goods for industrial, commercial and medical uses make up the balance of NR demand. Such end uses include transmission and elevator belts, hoses, tubes, linings and bearings (industrial applications); sports balls such as golf balls, erasers, footwear and in clothing (commercial applications) and latex rubber glove, condoms and catheters (health & medical applications).

Demand growth in these end use sectors and the tyre industry sector in particular are the key drivers for the NR industry and market globally. However, it is of note that any increase in demand for such products does not necessarily translate directly into demand for NR. Synthetic Rubber (“SR”) and other alternatives readily substitute for rubber in a wide variety of end-use applications. In spite of this competition, NR continues to be used, particularly in applications where the specific physical and chemical properties of the elastomer are not easily replicated.

Year | Production | Consumption |

| Natural Rubber | Synthetic Rubber | Total Rubber | Natural Rubber | Synthetic Rubber | Total Rubber |

1998 | 6,634 | 9,880 | 16,514 | 6,570 | 9,870 | 16,440 |

1999 | 6,577 | 10,390 | 16,967 | 6,650 | 10,280 | 16,930 |

2000 | 6,762 | 10,870 | 17,632 | 7,340 | 10,830 | 18,170 |

2001 | 7,332 | 10,483 | 17,815 | 7,333 | 10,253 | 17,586 |

2002 | 7,337 | 10,882 | 18,219 | 7,628 | 10,692 | 18,320 |

2003 | 8,033 | 11,390 | 19,423 | 8,033 | 11,371 | 19,404 |

2004 | 8,756 | 12,019 | 20,775 | 8,715 | 11,839 | 20,554 |

2005 | 8,892 | 12,151 | 21,043 | 9,082...