BUSTLING industrial activities in emerging economies like Brazil, China and India are likely to boost demand for natural rubber (NR) in 2013.
China’s strengthening manufacturing sector and its surging vehicle sales are giving rise to the NR demand. In November last year, vehicle sales in China grew to 1.79 million, an 8.16% increase from the same period in 2011.
Monetary and fiscal stimulus in Japan and the US, which is kicking off in truck sales and forecast to push auto sales above 15 million this year, also boost raw material demand.
Meanwhile, rubber produced in Thailand and Indonesia, which faced uncertainties last year, is deemed to totter in the first quarter of 2013. Thailand’s rubber production may slip down by February, on winter season, while Indonesia’s is also likely to drop in lieu with its limiting output and shipments.
India’s NR prices will also be facing setbacks amidst the country’s high imports of lower-priced rubber from Cambodia, Vietnam and other Southeast Asian countries. (RJA)
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