In 2018, world production of natural rubber (NR) accounted for 13.960 million tonnes, an increase of 4.6% from 13.350 million tonnes on a year-to-year basis, says the Association of Natural Rubber Producing Countries (ANRPC) in its latest report for December 2018.
Meanwhile,
the world demand recorded an increase of 5.2%, year-to-year, amounting
to 14.017 million tonnes in 2018. This resulted a deficit in supply of
57,000 tonnes of NR during the reference period. This scenario is
attributed to the recent revision from Thailand, said the Kuala
Lumpur-headquartered ANRPC.
Some recovery on NR prices were
spotted across physical and futures markets during December 2018.
Although millions of rubber smallholders still have been affected with
the low rubber prices, this rebound was timely to close the year of 2018
with a higher low of US$1.50 per kg (average price of block and sheet
rubber for the month of December 2018).
The International
Monetary Fund (IMF) retained its earlier estimate for the global growth
at 3.7% despite weaker performances in some economies, says ANRPC.
Trade tensions between China and the US have eased after both countries agreed to halt the new tariffs for 90 days and allowed talks during this period. With the involvement of the US’s President Trump in the negotiations, who has showed his desire for making a deal with China, it is expected that some promising results from these talks may be available in the coming weeks.