Brazilian Natural Rubber Industry EVOLVES EFFECTIVE TOOL TO COMBAT PRICE VOLATILITY IMPACTS

摘要

Although it has always been considered one of the most prominent features of Natural Rubber (NR) market, price variability has increased greatly for the past 10 years. Throughout this period other commodities and raw materials in general showed a strong increase in both prices and volatility. Brazil NR industry, as a Price-Taker, has been greatly influenced by such phenomenon. In response, tools able to reduce the impacts of such variations in the Rubber market have been evolved increasingly. In Brazil the Creation of the GEB-10 reference in 2006 had that aim. Today, the reference is a benchmark for the entire Brazilian industry and is mainly used to smooth the impact of variations in trades through the use of Clear Rules, Ease of Calculation, generating Transparency, Stability and Predictability.