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Where is all the Rubber Going?

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In the past year, the price of natural rubber has more than doubled. This, in what is supposedly a great recession. This is being blamed mostly on demand from China.

What the hell are the Chinese doing with all the rubber they’re buying? Auto sales are down globally, so making tires is pointless. So is mine output, so making conveyor belts is ruled out. Condoms just don’t use that much rubber. Neither do gasket rings and suchlike.

It’s possible that Chinese companies have decided in the face of all logic to build up stocks in the face of falling demand. But I’m worried that they’re putting the rubber to far more nefarious uses. Specifically, that they’re building giant armoured robots to more successfully persuade the United States to hand over the Pacific states when they default on their sovereign debt.

Be afraid. Be very afraid.


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