Rubber strips used to be cheap in Spain but they have become increasingly expensive, with the price per strip reaching as high as $1,400 in 2016.
There are several reasons for the jump in prices, with many of them related to the growth of the Spanish economy.
One of the biggest causes is the increase in the number of rubber producers in Spain.
In 2014, there were around 10,000 rubber producers, according to the Ministry of Agriculture and Food.
By 2016, there had been more than 250,000 producers and more than 7,000 factories.
By 2017, however, production of rubber strips had fallen to less than 5,000 manufacturers, according the Spanish ministry of agriculture.
According to the International Rubber Products Association (IUPPA), this has resulted in prices of rubber in Spanish factories increasing by over 300 per cent since 2014.
IUPP president Pedro Espinosa told the Australian Financial Press that this has been caused by a number of factors including the expansion of factories in the country.
“There are a number more factors behind the rise in prices,” Mr Espinasa said.
It has also led to an increase in competition between producers.
While most of the producers who are selling rubber strips have been established in Spain, there are also new producers entering the market, with several manufacturers offering strips at a lower price.
In some areas, like Alicante and Granada, prices have gone up by up to 300 per year, compared to Spain’s average inflation rate of 4.5 per cent, according Mr Espina.
And while prices have been rising in the past, it has been a relatively slow rate of inflation, with inflation rates in Spain increasing by about one per cent per year.
However, the rise has also caused the price of rubber to rise.
In December 2017, the Spanish government introduced a tax of 15 per cent on all purchases of rubber products in the national economy.
This is expected to increase by another 25 per cent next year.
“The increase in price has increased competition between manufacturers,” Mr Esperaso said.
“The new producer can only charge the higher price to the Spanish consumer.”
The increased competition has made it more expensive for Spanish consumers to buy rubber strips.
Last year, according