Supply 1Rubber supply in Japan is at an all-time low. The chosen article explains why low rubber reserves are not typical for this time of year. Tokyo Rubber or TOCOM is the Tokyo Commodity Exchange which regulates the rubber market in Japan. A rally has taken place recently, the largest in years due to concerns over low supplies and historically low rubber inventories. The benchmark December rubber contract on the Tokyo Commodity Exchange hit 169.2 yen per kg, the most expensive for the key TOCOM contract since March 11, 1996, when prices reached 174.6. At the close, it rose 3.4 yen to 168.7 (TOCOM.). The contracts already signed between different companies for delivery from August to November 2005 do not look very good. The price of rubber is expected to increase by five yen on the stock market. July contracts, which have no price limit, ended up seven at 189.8 yen per kg of rubber. This means that rubber contracts have reached their all-time high. Investors in Tokyo expect the price of rubber to peak in August and begin to decline as rubber supply increases. The rubber price gap between December and July widened to 21.1 yen. Rubber supply has been low due to a delay in shipments from Thailand. Thailand is the world's largest producer and exporter of natural rubber. Rubber shipments fell due to poor weather conditions. Rubber supplies normally decline from the beginning of February, which corresponds to the winter and dry season in southern Thailand. During the Supply 2 season, latex production decreases because rubber trees lose their leaves. Production in general returns to normal in early May, but buyers are still not receiving enough deliveries. Japan buys more than 60 percent of its rubber imports from Thailand. Faced with signs of insufficient production, rubber stocks in Japan have fallen to their lowest level in forty years. According to the Japan Rubber Trade Association, before June 2005, the lowest stock was in 1962. Due to high rubber costs and dwindling supply, manufacturers are considering switching to natural rubber instead. than towards expensive synthetic rubber. rubber. High oil prices have also pushed up rubber prices. Due to low rubber supplies, companies are forced to increase prices..