According to the Malaysia-headquartered Association of Natural Rubber Producing Countries (ANRPC), the global outlook of NR (natural rubber) supply is anticipated at 13.784 million tonnes in 2018, up 4.5% from 13.196 million tonnes recorded in 2017. The slower production growth in 2018 is mainly attributed to a lower production anticipated by Thailand at 4.375 million tonnes, down by 1.2% on a year-to-year basis.
A 2.8% growth is anticipated for the global demand outlook of NR in 2018. It is expected to grow from 12.964 million tonnes of NR in 2017 to 13.327 million tonnes of NR in 2018.
ANRPC says its member countries will continue their efforts to encourage more uses of NR in their respective countries, for a better balancing of supply-demand of NR and sustainability of NR industry in the long run.
The upward revision for global economy outlook during 2018 by IMF has resulted from the increase of global growth momentum and the expected impact of the recent approved US tax policy changes, said Secretary-General of ANPRC Nguyen Ngoc Bich.
“Furthermore, the outlook on commodity markets is expected to improve during 2018. This is followed by the efforts of agreed oil production cut by OPEC and geopolitical tensions in Middle East which will support the oil prices. This may result to a better recovery in NR prices during this year,” he adds.
In January 2018, an early wintering season faced by rubber farmers in China has slowed down the country’s production. According to Bich, this seasonal phenomenon will soon be happening in other major producing countries. “Slowdown in NR supply may be expected, and this may lead to a much-balanced supply-demand NR market in the coming months.”
As of 2017, ANRPC has 12 members: governments of Bangladesh, Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
ANRPC provides updated trends and emerging developments in natural rubber sector, through its Natural Rubber Trends and Statistics, during the period up to January 2018 and the anticipated annual figures for the year 2018, covering all ANRPC member countries.
(RJA)
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