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Natural rubber prices increased by 65 per cent of recent months after tapping in Southeast Asia was interrupted by the bad weather and floods.

Prices have already tripled during the past two years and heavy rains hit collection and production, has forced more fresh up and low inventory.

Major manufacturers warn today that prices for their products may need to increase to compensate for the increased production costs.

Tyre companies, including the Continental Bridge, Michelin and Goodyear were already forced some increases hikes and pass on to their customers and analysts believe others will inevitably follow.

Condom retailers reported increases of up to 20 per cent as the cost of the raw product continues to climb and manufacturers of rubber gloves warned that they also see their margins squeezed.

While prices for natural rubber remain their record on the trade fair in the world, demand has decreased in the financial crisis.

However some economies began to climb the recession, demand has begun to improve once more.

Analysts have predicted further increases in prices in the coming months.

Employment Jacob, Senior Economist at the Association of natural Rubber Producing country, told the Financial Times, provides conditions worsen.

He said: 'concerns about the supply of natural rubber are likely to persist until the end of 2011.

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