RUBBER IN 1938
With the publication of the December figures of rubber consumption in the U.S.A. it is possible to form a close estimate of world rubber consumption for the whole of last year. American consumption of rubber for the year amounted to 411,242 tons, a decline of some 132,40o tons compared with 1937. It looks as though the figures of world consumption, when prepared, will amount to about 908,00o tons, a decline of 186,000 tons compared with the previous year. The recovery of the last three months is thus going to make the final figures appear much less discourag- ing than at one time seemed probable.
Even so, there was a sharp set-back in 1938, for the first time since 1931. Experts believe that the long-term trend in rubber consumption is still upwards, and they are already prophesying a rise during 1939. Control of shipments has been effective in so far as it has succeeded in reducing stocks, notwithstanding the lower level of consumption, though it has not been able to insulate rubber against the effects of a falling price level in primary commodities. End of the year world stocks will amount to a little over 450,000 tons, and will show a fall of upwards of 70,000 tons on the year. Up to about three months ago it appeared probable that the year would end with stocks still over 500,000 tons.
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