This June’s the Natural Rubber Trends & Statistics issued by the Association of Natural Rubber Producing Countries (ANRPC) has revealed the growth of 5% of the demand for natural rubber setting the figure of almost 7 million tons in the period of the first six months of 2018.

In addition, there has been a growth of natural rubber’s supply on international level for more than 4.5% reaching more than 6 million tons for the same period this year. Thus, it signifies a shortage of over 700,000 tons.

The forecast for natural rubber has been altered and showed the expected increase in global manufacturing by 5.2% reaching the number of 14.040 tons. Moreover, the increase in global demand is projected to go up by 5.7% towards 14.136 million tons.

Neither futures, nor physical rubber markets have been impacted by the positive data released in June this year. It is likely that these markets depend on external aspects, with changes within the oil sector and trade conflicts between the United States and China being the most important ones.

It is also noteworthy, the Shanghai Futures Exchange has seen downfall in rubber rates, which is attributed to strong devaluation of the currency of China that has started in spring, and absence of any deficit in rubber inventories. Thus, it has led to a worsened attitude in physical markets in a number of states.

Article by ANRPC