UNFAVOURABLE weather conditions have lowered this year’s global output of natural rubber, according to the Association of Natural Rubber Producing Countries (ANRPC). The association’s earlier forecast was 2.6% but has been revised to 1.1% or 10.42 million tonnes.
In Malaysia, unseasonal rains for almost a month from mid-February onwards have disrupted harvesting of trees. In China, more rainy and cloudy days during March put trees vulnerable to powdery mildew disease.
Sluggish demand from top consumer China also contributed to the revision in the supply outlook for this year, said the ANRPC, adding that supply in the first quarter was forecast to fall 5.1% compared with the same period last year.
It said that the slow export demand from China is partly due to an on-going shift of light manufacturing to countries with lower wages. But the slowdown could be partially offset by an increase in domestic consumption in countries such as Thailand, Indonesia, India and Vietnam. (PRA)
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