Rubber tapping activity is expected to increase this year in key rubber-producing countries like Thailand, Vietnam and India that could lead to the expected 5.7% rise in the 2017 global natural rubber output, the Association of Natural Rubber Producing Countries (ANRPC) said.
However, production, expected at 12.77 million tonnes, would still fall short of annual demand of 12.817 million tonnes this year, up 1.8% from a year ago, the association said in a statement.
Natural rubber production was stagnant over the past three years due to lower prices, but the recent rally will boost output in 2017, it said.
Production in Thailand, the world’s biggest natural rubber producer, is expected to rise 5.1% in 2017 to 4.381 million tonnes, while Vietnam’s output could jump 8.5% to 1.12 million tonnes.
Natural rubber demand in China and India, the world’s top two consumers, is likely to rise by 1.3% and 3.5% respectively, it said.
India’s natural rubber imports in 2017 could fall 30.5% from a year ago to 320,000 tonnes as local output is estimated to jump 20%, it added.