In the first part of 2018, starting January till May, approximately 6 million tons of natural rubber had been consumed – the figure constitutes an increase of 6.2 percent since 2017, revealed new report by the Association of Natural Rubber Producing Countries.

According to the Natural Rubber Trends & Statistics, extra 7.7 percent, or more than 5 million tons of NR, was supplied in the world during the mentioned time interval.

Taking into account this data, it is easy to see that the level of production has outweighed the one of consumption by 570,000 tons.

Markets expect the 6.1 percent growth in global manufacturing of tires, which will lead to total production of 14.150 million tons. The global consumption rate is anticipated to show growth of 6.9 percent resulting in 14,300 million tons. If the forecast turns out to be credible, the market will be balanced in 2018.

Starting from late April, crude oil prices jumped on the market, however, no price growth for natural rubber has been seen. Nevertheless, the rubber was trading better on the margins during May than during April. The recovery on the margins became possible due to devalued Japanese currency that normally positively drives prices of natural rubber futures at TOCOM.

According to ANRPC, the market sentiment towards Asian commodities, including natural rubber, is bearish amid intensifying debates surrounding the looming trade war and speculations whether the US Fed is set to change its interest rates. To be more precise, the future of natural rubber market is unclear predominantly because of the aspects external to the segment.

Article by Association of Natural Rubber Producing Countries