Wednesday, December 14, 2016

Supply and Demand for Rubber, Tires and Cars. Graphs to Illustrate.

From: Financial Times:

China’s buoyant car sales boost rubber price

Expectations of robust demand from China boosted rubber to a three-year high after buoyant car sales data for November lifted expectations of higher tyre demand.
The China Association of Automobile Manufacturers reported vehicle sales of 2.9m in November, up 16.6 per cent year on year. Tax breaks introduced this year on small passenger cars have spurred demand and while the November figure was down from a September peak of 26.1 per cent, it marked the sixth straight double-digit rise in growth.

There are three different things going on here that we can graph. One affects the Market for Rubber, one the Market for Tires (or the British spelling "tyres") and the Market for Cars in China (and elsewhere, truth be told).

Here are a series of graphs that illustrate how each market could be affected by the change in market conditions.


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