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Abstract
Over the last several years, domestic NR prices have been moving in tandem with the international prices. Prices in the international market have been seeing a downtrend since the second quarter of 2011. The trend is mainly a result of the growing concerns about world economy, particularly in the light of the debt crises in the Euro zone. There is a fall in import demand from China and piling up of inventory in Qingdao Free Trade Zone. The corrections in crude oil prices also had a negative impact on the market. Crude oil prices, currency exchange fluctuations and weather factors also play a role in rubber production, consumption and price. Most of these factors are volatile. The world economy is in a phase of slow recovery though with several downside risks.