KOCHI: The Association of Natural Rubber Producing Countries (ANRPC), accounting for 90 per cent of global supply, in its July report says that the possibility of NR demand gaining strength in 2016 or 2017 is bleak.
The NR market has not been able to gain traction from the reduced growth in global supply due to dominant influence of a host of other factors.
They include uncertainty clouding global economy following Brexit and geopolitical tension and terrorism taking a heavy toll on the outlook in several economies especially in the Middle East with cross-border ramifications, it said.
“The expected weak demand outlook is likely to hold back the anticipated slow growth in supply from translating to a bullish market. Besides short term energy outlook suggests that NR market may continue lacking support from crude oil,” said Sheela Thomas, secretary general of ANRPC.
As per the association the total NR production during the seven month ended July 2016 is estimated at 5.899 million tonnes, up 0.2 per cent year-on-year. The production went up inThailand, Indonesia, and Vietnam but fell in China, Malaysia and India.
The consumption in ANRPC countries is up by 4.4 per cent year-on-year at 4.7 million tonnes for the seven month period.
But ANRPC says slightly slower growth in consumption is expected for three months from August to October 2016 taking into account post-Brexit global uncertainties and downscaled economic scenario by International Monetary Fund.