ANRPC revises down rubber supply growth forecast

via Khmer NZ

Published on: July 07, 2010

MUMBAI (Commodity Online): The Association of Natural Rubber Producing Countries has lowered its forecast for growth in global natural rubber supply this year to 5.2% from 6.1% predicted in May.

Improvement in short-term supply will be limited due to climate constraints and the unfavorable age structure of existing trees.

The Vietnam Rubber Association said that according to its members, cross border trade in rubber had restarted after being prohibited by Chinese authorities. In late April, Vietnamese rubber companies complained to the association that they could not export natural rubber to China due to the ban.

VRA expected an upward trend in rubber prices, Strong consumption in China, India, Southeast Asia and Brazil is also expected to boost demand this year. China' automobile industry, the biggest consumer of the world's natural rubber, this year might grow by 15% in output.

Cambodian rubber exports dropped more than 34 percent in the first five months of this year compared with the same period in 2009, according to official figures from the Cambodia Import, Export, Inspection and Fraud Repression Department (CamControl). Rubber export dropped to 9,730 tonnes; from 13,057 tonnes. Harsh weather during the first five months of the year reduced production.

India's synthetic rubber output in 2009-10 (Apr-Mar) rose 10.3% year on year to 106,743 mt from 96,739 mt, according to data from the Rubber Board. Demand for synthetic rubber rose 18.7% during the period to 347,710 mt from 292,950 mt, it said.

Synthetic rubber imports rose 31% on year to 250,210 mt from 190,630 mt. Rise in demand from automobile tyre manufacturers led to higher demand for synthetic rubber.