NR price on downward trend; growth expected for demand

NR price on downward trend; growth expected for demandThe global market produced about 1.435 million tonnes of natural rubber (NR) during October 2022, according to Kuala Lumpur-headquartered Association of Natural Rubber Producing Countries (ANRPC) in its monthly report. It adds that about 87% of the production is attributed from ANRPC members.

Meanwhile, the growth in global demand of NR rose by 1.2% to 1.3 million tonnes during the same reference period, while rubber markets across major producing countries have posted downward price trends in October 2022.

In the block rubber market, the rubber of SMR-20 inched lower in October 2022 as compared to the previous month while the STR-20 kept its average pricing same during the reference period. In RSS markets, a mixed trend observed between RSS-3 in Bangkok and RSS-4 in Kottayam. The RSS-3 in Bangkok has unexpectedly increased its average pricing, while the price of RSS-4 in Kottayam fell marginally during October 2022.

The worries of global recession rise following another hike of 75 basis point from US Federal Reserve to battle inflation in early November 2022, is a move that could be expected from other central banks.

As a result, the recovery of global economy after the pandemic. under such inflationary pressure economy and higher cost of borrowing, might be refrained, says the association.

Although a slower growth is anticipated for global demand of NR this year in view of the economic conditions, the global demand of NR is expected to grow by 2.1% to 14.8 million tonnes as compared to 14.4 million tonnes in 2021, adds ANRPC.

ANRPC has 13 member countries including Bangladesh, Cambodia, China, India, Indonesia, Malaysia, Myanmar, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.