Rubber Journal Asia Industry News Producing Countries (ANRPC), an organisation of 11 rubber producing countries (which collectively account for 90% of the total global NR production). It stated that total production of NR in ANRPC member countries fell by 2.2%, year-on-year to 1.7 million tonnes, during the two-month period. This coincided with a 3.3% rise in demand from the ANRPC, it said. ANRPC members consumed 1.2 million tonnes of NR during the current year reporting period. Generally, NR consumption in major producing countries increased. Nonetheless, the demand still outpaces the current output from the bloc.
Of the countries mentioned in the report, and in terms of percentage, those that witnessed a galloping rise in production include China (175%); Cambodia (48%); and the Philippines (36.7%).
Consumption up, except in Malaysia The ANRPC cluster consumed more than 1.2 million tonnes of NR during the first two months of 2017, up 3.3% from the same period in the previous year. Individually, consumption growth varies: in China it grew by 4.9%, in India 1.1%, in Thailand 7.8%, and in Indonesia 3.4%. Surprisingly, Malaysia’s consumption fell by 3.6% in the first two months of 2017, ANRPC Thailand flood waters affect output; rest of stated. The country is home to the world’s largest countries up glove makers that are supplying about 60% of Described as the worst rainfall in over 30 years, the total global demand for gloves. Malaysia’s Thailand’s southern region had not expected the rubber industry accounted for RM8 billion in the floods to continue until January this year. It not total national exports from January-March 2016, only claimed lives but also gutted properties according to the Malaysian Rubber Board (MRB). and industries. The floods also affected rubber MRB also indicated that the country’s rubber production in the south, where nearly two-thirds glove output in the January-March 2016 period of Thailand’s rubber reached nearly 10.6 growing areas are located. billion pairs. “…the year appears to have South Thailand’s Meanwhile, the Songkhla is being prepped ANRPC report stated started slow for Asia, but to become the country’s that policy deviation the rest of 2017 indicates rubber centre. It has a of the incumbent number of rubber planting US government on optimistic growth.. ” tracts, and the largest healthcare will affect rubber trading centre in the glove manufacturing the south is located in Hat Yai city near the and other latex-based manufacturing industries in Malaysian border. It is also the site of a worldMalaysia. standard rubber research centre and the location This situation may lead to an, albeit transitory, of the 197-ha Rubber City, due to be completed soft market trend considering certain market this year, according to the Industrial Estate applications. This outlook is supported by Authority of Thailand (IEAT). US-headquartered consultancy Stratistics MRC The ANRPC report indicated that the floods, forecast in its Rubber Gloves - Global Market Outlook as well as the leaf-shedding season of rubber 2016-2022 report that the market’s growth may trees across countries, caused production to wind up at a CAGR of 8.5% between 2015 and 2022. decline by 13.9%. The January-February 2017 This growth will be accelerated by the burgeoning preliminary estimates of NR production in demand in the electronic manufacturing market Thailand, a country that accounts for 37% of the as well as the emergence of new diseases, rising global supply of rubber, stood at 726,000 tonnes. healthcare expenditure, increasing health threats This is lower than the actual estimate of 843,000 and increasing hygiene awareness and healthcare tonnes over the same period a year ago. regulations. The rest of the major producing countries Even though the year appears to have started witnessed an increase in rubber production slow for Asian rubber producing countries, the rest during the covered period of the report: of 2017, nevertheless, indicates optimistic growth. Indonesia’s production increased by 4.4% from The “supply and demand fundamental, along 505,000 to 527,000 tonnes; Vietnam by 7.9% from with a set of non-fundamental factors”, according 140,000 to 151,000 tonnes; Malaysia by 7.7% from to ANRPC, are favourable, particularly during 130,000 to 140,000 tonnes; and India by 30.3% the period from March-May. It also says that from 89,000 to 116,000 tonnes. Only Sri Lanka’s despite potential price challenges, “in response to output declined by 29.8% from 19,000 tonnes in developments in the crude oil sector, variations the first two months, to 13,000 tonnes over the in currencies and flow of speculative funds”, the same period this year. market is expected to grow. 3 M A R C H / A P R I L 2 017