Based on the estimates given by member governments up to June 2022, the outlook of natural rubber (NR) market is expected to improve further during the year 2022, in production and consumption, says the Kuala Lumpur-based Association of Natural Rubber Producing Countries (ANRPC).
During June 2022, the global production is recorded at 1.113 million tonnes, up 3.8% from the same period in 2021; while the global consumption projected a faster growth at 5.8% amounting to 1.206 million tonnes during the same reference period.
Despite the favourable market fundamental in NR market, the market sentiments were driven by various factors namely the resurgence of Covid-19 cases in China, recovery outlook from the rising raw material and energy costs, worries over inflationary pressure and interest hikes from tightening monetary policy imposed by central banks, uncertainties from geopolitical conflicts between Russia and Ukraine.
ANRPC adds that it has also started an online survey to gather feedback from rubber stakeholders in the value chain of NR industry on the proposed Sustainable Price Mechanism (SPM). The said proposed mechanism targets to tackle prevailing low prices and safeguard the interests of stakeholders in the NR industry. It’s ultimately to provide a sustainable NR industry in the entire value chain for long run.