THE latest report from investment bank Goldman Sachs points to a rubber glut this year. World supply will increase 7% to 11.8 million tonnes as demand rises 3% to 11.4 million tonnes.
Inventories among members of the Kuala Lumpur-based Association of Natural Rubber Producing Countries (ANRPC), representing about 92% of global production, will expand 12% to 1.45 million tonnes this year.
Stockpiles held by processors and traders in China reached 365,600 tonnes by the end of December, compared with 46,100 tonnes at the end of July, said the ANRPC.
This year, of the three main producers, accounting for 70% of production, Thailand expects to increase its output by 8% to 3.7 million tonnes, Indonesia will harvest 5.1% more at 3.1 million tonnes with supply in Malaysia remaining unchanged at 1million tonnes. (PRA)
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