Natural rubber production by members of the Association of Natural Rubber Producing Countries (ANRPC) is estimated to have reached 2.499 million tonnes, showing a 2% increase in the first three months of 2017 compared to the same period a year ago.
Consumption of natural rubber by ANRPC member countries was 1.951 million tonnes in this period, which was 78% of their total production.
Although natural rubber prices fell sharply since mid-February, sentiments slightly improved by the end of March due to improved economic outlook in the US and Europe, better-than-expected automobile sales in China and recovery in oil prices, said a report by ANRPC.
Production from ANRPC member countries is anticipated to grow 5.8% to 2.491 million tonnes during the April-June 2017 period from 2.355 million tonnes in the period last year. On the demand side, the outlook has improved for China in view of withdrawal of the US tariff on tyres of heavy commercial vehicles originating from China.
Improved economic outlook in the US and Europe suggests the possibility of faster growth in demand for natural rubber from these non-ANRPC regions.
Natural rubber market is also expected to gain from possible improvement in crude oil prices as OPEC is planning for an extension of the curtailment programme in association with major oil producing countries outside the OPEC.
In India, improved domestic production and lower prices prevailing in the domestic market make imports less attractive, said the report. In addition, more rains received during the summer months in some of the major rubber growing regions in the country have contributed to higher production.