Rubber

Experience and Expertise

LMC’s team of rubber research specialists undertakes confidential consultancy assignments for individual clients throughout the world. We travel extensively throughout the rubber industry ensuring that our contacts are unrivalled, and that we are abreast of the latest developments to meet the practical needs of the global industry.

A sample of the broad range of types of LMC consultancy services we can provide is given below.

Market and price forecasting

Development of a model for forecasting global demand for a synthetic rubber

For a major synthetic rubber supplier, we led a team that developed a model for forecasting in detail the global demand for a particular type of rubber. The model took close account of technological developments affecting levels of use of the synthetic rubber per product unit and was built on LMC's detailed analysis of the structure of the end-market and its regular assessment of the end-market's outlook.

Long term planting strategies in Indonesia

As part of a programme of assistance from international agencies to the Indonesian Directorate-General of Estate Crops, a study estimating the costs, benefits and marketing problems associated with a range of alternative tree crop plantation strategies, comparing oil palm, coconut, rubber, sugar, coffee, cocoa and other perennial crops.

Strategy to identify potential partner for a Latin American conglomerate.

LMC was requested by a Latin American conglomerate to develop a strategy to establish a rubber-based manufacturing operation, which would be part of the conglomerate’s broader diversification strategy. A three stage assessment was undertaken. In the first stage, a range of potential rubber products were evaluated; the products matched the client’s selection criteria, namely a medium/high technical content and a medium/high natural rubber content. The second stage was to examine potential markets for these products. At this stage, product selection was narrowed to a single product group, rubber-to-metal bonded anti-vibration products for the auto industry. In the third and final stage the structure of the major markets for these products was investigated, highlighting market requirements and barriers, and the distribution channels used to supply these products were analysed in detail

Supply and demand outlook for bulk synthetic rubber

The study assessed the prospects for demand for bulk synthetic rubber by end use market (including a split between emulsion and solution SBR) and by region. Forecasts were provided to 2015. Trade patterns were also analysed in order to determine production by region. Strategic conclusions were then drawn.

Feasibility/due diligence/investment appraisal

A briefing on the outlook for the BSR market

An assessment of the global market for the major bulk synthetic rubbers, including styrene butadiene rubber (SBR) and polybutadiene rubber (BR), with a particular emphasis on the North American market

A strategic review of a company's rubber project

A strategic review of a company's existing investments in the natural rubber sector, and of the opportunities for further investment within the industry. The competitive advantage of producing in different countries was assessed, together with merits of investment in processing versus primary production, the outlook for different grades of material, and the scope for moving downstream into the production of rubber goods.

Assuring the future supply of natural rubber

A major study for the rubber industry concerning the future availability of natural rubber and recommending a mechanism to determine the orderly growth of the industry in order to avoid boom-bust cycles.

Due diligence assessment of a proposed synthetic rubber plant

A study on the supply and demand prospects for SBR and BR in the Asian region. The demand component was broken down according to the major end uses of bulk synthetic rubber

Potential rubber processing in Indonesia

A survey of Indonesian rubber production and processing capacity by province and by owner, identifying the different grades processed and the processing margins/pricing differentials between different products, in order to advise a client whether to invest in a processing factory in Indonesia.

The market environment for a rubber project

A bank, considering the feasibility of a long-term investment in natural rubber for which one of its clients had sought finance, sought LMC's views on the most sensible assumptions about the future price of natural rubber, on which to base the discounted cash flow projections for the project. LMC provided an explanation of the driving forces determining natural rubber prices, together with a reasoned set of assumptions about the likely future evolution of global demand, supply and prices of the commodity.

Value chain analysis

The Russian rubber industry

A pioneering study that provided a unique insight into the composition of Russian rubber demand and supply: the types of synthetic rubber produced and their share of the total, the importance of the tyre, footwear and other industries in total consumption, and plans for future expansion of the industry

The solid natural rubber market

An examination of the development of the global solid natural rubber market, including production, trade and consumption

International and national policies

Natural rubber and latex in South East Asia

Undertaken for a natural rubber trading organisation, the report provided details of the scale of natural rubber and latex exports from Thailand, Sri Lanka, Vietnam and Cambodia. In addition, the report provided details of the grade composition of the exports, the marketing methods, and the outlook for future export levels

Industrial market research

Glove demand in US hospitals, nursing homes, the dental sector and doctors' offices

A series of four studies each examining a different sector of the market for rubber and latex gloves in the US health sector.

Prospects for a synthetic rubber plant

An assessment of the characteristics of the international market for a specific type of synthetic rubber, and the outlook for supply, demand and price for the product out to the year 2010. A number of geographic target markets were identified, and an assessment was made of the relative strengths and weaknesses of a plant sited in the Middle East in supplying these markets.

Rubber

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