At the start of the century in 2001, natural rubber (NR) prices reached USD 0.51/kg and farmers were refraining from planting NR. In 2005 NR prices reached USD 1.39/kg and at the peak in 2011, the average price was USD 4.52/kg with a maximum of around USD 5.50/kg in early 2011. Farmers were anxious to plant rubber. Why did prices increase so fast? It is always a matter of demand requirements and supply capacity. On the demand side, the annual growth rate of NR consumption during 2002-2007 was an impressive 5.6%, based on the Rubber Statistical Bulletins of the International Rubber Study Group, the source for all historical data on consumption, production and prices used for this article.
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