Rubber Cartel Tries To Drive Up Prices

WSJ:

The three Southeast Asian countries that control 70% of the world's supply of natural rubber said Thursday they would withhold supply now and keep supply tight by burning older rubber trees, hoping to boost prices, which have fallen 60% since their February 2011 peak.
The move by the Bangkok-based International Tripartite Rubber Council, which represents Thailand, Indonesia and Malaysia and is the OPEC of the rubber market, rippled through markets. At one point on Friday, benchmark rubber futures at the Tokyo Commodity Exchange were up 9% from a nearly three-year low on Tuesday before settling at ¥221 ($2.78) a kilogram, 7% above the Tuesday low.
Higher rubber prices would hit tire makers, the largest consumers of natural rubber, as well as makers of rubber gloves, shoes, condoms and toy balloons.
But the Rubber Council faces challenges to its effort to boost prices.
"It's something like OPEC. There's always cheating somewhere," says Alvin Tai, plantations analyst for OSK Investment Bank in Kuala Lumpur.
Adding to the challenge, the world's fourth-biggest rubber exporter, Vietnam, isn't part of the club, despite recruiting efforts by the other three.

I'm surprised this doesn't involve Goldman Sachs. Damn, condom prices may go up?  Oh wait, that really isn't going to cut into my disposable income.