Global Natural Rubber Output Demand Expected To Be Strong in 2020, ANRPC
Published On 2020-02-04 16:11:35 292 views
A growth of 2.7 percent to 14.07 million tonnes estimated for this year
The demand for natural rubber is expected to be back on track in 2020 after its poor show last year due to various reasons affecting its global demand and production. The global natural rubber output is expected to register a progressive jump of 3.8 percent to a record 14.285 million tonnes this year. The rise in production is largely attributed to the strong expansion in area under cultivation, the Association of Natural Rubber Producing Countries (ANRPC) stated.
Overall, the demand for natural rubber will be up to 2.7 percent to 14.07 million tonnes in 2020. Due to the fungal attack last year in key rubber producing countries, the production was hit back by 0.7 percent to 13.76 million tonnes. Rubbing salt on the wound was the drop in demand which further led to a slight slump in the rubber production. It dipped by 1 percent to 13.7 million tonnes owing to an overall drop in the global automotive demands.
Globally speaking, the rubber contract of the Tokyo Commodity Exchange (TOCOM) dropped by a massive 6 percent – lowest in a week. The demand was mainly affected by the fear of overspreading of the coronavirus in China. However, opportunist traders who bought shares offset the majority of the loss.
Last year in November, the domestic rubber producers were facing natural rubber crunch and measures to improve quality and domestic production of the rubber were taken. Usually, the supply increases during the last quarter of the calendar year but, last year the production didn’t increase as expected. “This is also indicative of the effect of climate change in the traditional growing areas”, said Rajiv Budhraja, Director General, Automotive Tyre Manufacturers Association (ATMA).
After imparting the new measures to increase production, the industry is hopeful for a surge in rubber production this year.