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Rubber scarcity creates new headache for beleaguered automakers SECTIONS Last Updated: Apr 14, 2021, 10:09 AM IST Share Synopsis The rubber industry is dominated by smallholders, making it difficult for producers to adjust quickly as demand changes, prices fluctuate or supply chain problems emerge. iStock Snarled shipping lines are disrupting the movement of natural rubber, a key material used in tires as well as components under the hood. Automakers struggling with pandemic-induced plant shutdowns and a global chip shortage are now confronting another supply chain headache: dwindling rubber supplies. Snarled shipping lines are disrupting the movement of natural rubber, a key material used in tires as well as components under the hood. With the global supply already running short following stockpiling by China and a devastating leaf disease, rubber prices are on the rise and some U.S. auto suppliers are rushing to secure shipments before the market gets squeezed further.

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