THIS YEAR, Vietnam is projected to increase rubber output to 1.5% to 995,000 metric tonnes, following a 14% to 980,000 metric tonnes increase in 2013. The growth in yields has made Vietnam edged out Malaysia from its third spot ranking in global rubber output, according to a recent report by the Rubber Economist.
Top rubber producer, Thailand is set to increase yield to 4.2% to 3.74 million metric tonnes, while Indonesia is expected to yield a 2.1% to 3.16 million metric tonnes increase.
Amid the expectations of increased output, a global surplus of rubber produced may also happen this year, outpacing demand. Last year, surplus was predicted to climb 366,000 metric tonnes from 336,000 metric tonnes in 2013, according to the report.
Global use may expand 3.1% to nearly 11.6 million metric tonnes in 2014, less than the 4.1% growth estimated in September; while production will climb 3.3% to over 11.9 million metric tonnes next year. Increases in Vietnam and smaller suppliers such as Myanmar and Cambodia contributed to the higher forecast, the report said.