The demand for natural rubber (NR) will become greater on an international level than it was predicted in March, reveals a current statement the Natural Rubber Trends & Statistics, released this May by the Association of Natural Rubber Producing Countries (ANRPC).

The trend is appearing thanks to favorable attitude towards natural rubber among the world’s biggest consumers, China and India.

This year’s trend, which began in January and which has been already recorded the Natural Rubber Trends & Statistics, is heralded as a sign that the consumption will keep on improving during the entire year. During the examined period of 2018, it was found that 4.6 million is consumed globally, which is 5.5% higher than before.

However, since January up until April, additional 4.0 million tons were produced, which accounts only to extra 2.6%.

Some forecast for 2018 predicts that 14.2 million tons will be produced globally, which will lead to the increase of 6.4%; and 14.3 million tons will be consumed globally, resulting in the increase of 6.4%.

In 2018, the NR demand has escalated in the world, with China and India together greatly influencing global consumption; it is now expected to grow by 48%. The revised outlook forecasts that 5.7 million tones will be consumed, and it will increase the consumption by 6.2%

India’s consumption is projected to rise almost up to 11%, establishing the mark of 1.2 million tons. Previous month, the prediction anticipated the increase of 6.8%.

The new data prognoses that India and China will consume a significantly higher amount than the one predicted earlier – extra 790,000 tones are expected to be consumed.

Even though the challenges between American and Chinese trading sectors and unsteady, currency rates led to unpleasant situation for the industries, the previously mentioned positive trend has provided a solid ground for registration of a marginal recovery.

Given that during this season the supplies on the market are limited and due to leaf-shredding of rubber trees, these factors create favorable situation for the industries.

Additionally, in 2018, the number of natural rubber produced in India has decreased by 99,000 tons as a result of 11.4% fall recorded in the period from January-April.

Moreover, some forecasts claim that India and Sri Lanka will witness torrential rains this month, which will seriously harm harvests this summer.

Article by ANRPC