First processors, now rubber. According to Bloomberg, the automobile industry may be about to face another crisis, with analysts warning of the scarcity of rubber that is used in the production of tires and the most diverse components.
According to them, rubber supplies are at very low levels, in part due to the increased demand to produce gloves and other products needed to fight the pandemic.
To make matters worse, the supply of rubber was also affected by droughts, floods and even a disease that affects the trees used to produce it in Vietnam and Thailand, two of the world's largest producers of this product.
prices going up
Bloomberg warns that in addition to all these situations, China began to reinforce its rubber stock last year, something that other countries have not done.This was reflected in the increase in the price per kilogram of rubber, which in February was already at two dollars and which, according to Robert Meyer, former CEO of Halycon Agri Corp., could reach five dollars per kilo in the next five years .
In addition, in statements to Bloomberg, Meyer reinforced that "the problems we see now are structural (…) and will not disappear quickly".
Effects (yet) are not felt
According to Carscoops, Ford and Stellantis have already confirmed that they are monitoring the situation but have not yet felt its effects.
On this topic, a spokesperson for the representative of parts manufacturer Foley and Lardner LLP said: "In our view, so far, it's not even close to the level of processor shortage but it's definitely growing."
Steve Wybo of consultant Conway MacKenzie reminded Bloomberg of the hoarding trend, saying: “It's like paper towels at the start of the pandemic. If you manage to buy some plastic or rubber, you'll order more than you need, because you don't know when you'll be able to place the next order”.
Sources: Bloomberg, Carscoops.