SUPPLY for natural rubber (NR) will exceed demand for a third straight year in 2013 whilst the price of the commodity is set to extend declines, according to an analysis by Singapore-based NR supplier RCMA Commodities Asia.
Global NR production is expected to increase to 11.9 million tonnes in 2013 from 11.47 million tonnes this year, against the world rubber demand of 11.6 million tonnes in 2013 up from 11.15 million tonnes this year. The increase in output will be seen in Thailand, Malaysia, Indonesia, Vietnam and India.
The group also indicated that the sluggish economic growth in China and the debt crisis in Europe are slowing down the demand for industrial commodities. Demand in China may contract 0.7% to 3.75 million tonnes this year, before climbing 4.1% in 2013; whereas, demand in Europe may slide down to 5.3% to 1.4 million tonnes in 2012 and slightly rebound at 2.9% in 2013. (PRA)
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