Lower output, rising demand push up rubber prices

Lower output, rising demand push up rubber prices 19 Aug 2009, 0248 hrs IST, S Sanandakumar, ET Bureau, economictimes.indiatimes.com

KOCHI: The global supply of natural rubber, a key industrial raw material, is slated to fall in the current year even as the recession seems to be abating in economies around the world. The production in India has registered a 10.9% fall in the January-July period of the current financial year. The fall was of the order of 49,000 tonnes during the period. The global production has registered a 4.6% fall, ending July, as per the latest data released by Association of Natural Rubber Producing Countries (ANRPC). The domestic production has recorded a fall of 13% in April-July period. The highest fall in production of 32.6% was recorded in Malaysia followed by Thailand with a fall of 12.4%. The extent of fall in Malaysia stood at 183,000 tonnes, while in Thailand the decline was to the extent of 184,000 tonnes. Indonesia’s production fell by 86,000 tonnes, down 6%. In Vietnam the fall stood at 18,000 tonnes which represents a fall of 7.3% in production. However, China and Sri Lanka have registered an increase in production. In China, the production saw an increase of 102,000 tonnes in the first seven months of the current year, revealing a growth of 54.6%. In Sri Lanka, the production fell by 3.6% between January and July 2009. The increase stood at 3,000 tonnes during the period. An ANRPC statement said that the membership of the association is likely to increase to eleven soon. This is because the Philippines and Cambodia have shown interest to be a part of ANRPC. “Investments taking place in natural rubber production sector since the last few years in Cambodia and the Philippines indicate the potential of the two countries to be significant players in the commodity’s global supply in future,” the association said in a statement.