Singapore-based International Rubber Study Group (IRSG) says that the total global rubber consumption increased to 26 million tonnes in the first quarter, increasing from 25.9 million tonnes in December 2011, expanding at 3.1%.
However, global natural rubber consumption has been stagnant, from 11 million tonnes since December 2011, going down to 10.9 million tonnes in March 2012. Global synthetic rubber consumption, on the other hand, increased robustly in the three months to March 2012, rising to 15.1 million tonnes.
Total rubber supply increased by 4.7%, with NR supply totaling 11 million tonnes and SR output 154.2 million tonnes. The group said the relatively faster rate of growth of production resulted in a surplus for both the NR and SR markets, adding to their respective stocks.
The group reported that NR physical market prices were on a down trend through the second quarter on sluggish demand amid rising concerns over weak outlook of the global economy. The reported release of inventories in the bonded warehouses in China, as well as Thai market intervention for price control, had no impact on prices under the ‘bearish’ NR market situation.
Meanwhile, IRSG says total rubber consumption will reach 26.6 million tonnes in 2012 and 27.6 million tonnes in 2013. Global synthetic rubber demand is forecast to grow by 2.7% to 15.4 million tonnes in 2012 and by a further 3.7% to 15.9 million tonnes in 2013; global natural rubber demand is forecast to rise by 2.5% to 11.2 million tonnes in 2012 and by a further 4.3% to 11.7 million tonnes in 2013. Global NR production is forecast to rise by 3.2% to 11.3 million tonnes in 2012, while in 2013, the output is expected to increase by 4.4% to 11.8 million tonnes. (PRA)