Rubber Consumption To Hit 25.7 Million Tons This Year .

Global Rubber demand is forecast to reach 25.7 million tonnes in 2011 and 27.6 million tonnes in 2012, said International Rubber Study Group in a report.

Global Synthetic Rubber (SR) demand is expected to grow by 5.0% in 2011 and 9.0% in 2012, while global Natural Rubber (NR) demand is forecast to rise by 3.8% in 2011 and 5.4% in 2012.

“Partly due to the impact of higher prices, and assuming normal growing conditions, global natural rubber production is forecast to rise by 5.6% in 2011 and 8.2% in 2012.”, said IRSG.

Global rubber consumption reached 24.6 million tonnes in 2010, 15.3% higher than in 2009, reflecting a strong recovery in the demand for vehicles and tyres.

Global SR production was 14.1% higher than in 2009, in line with the strong recovery seen in SR consumption, while global NR supply was 7.2% higher than in 2009.

Meanwhile, NR prices are likely to fall globally in the short-term, according to ANRPC (Association of Natural Rubber Producing Countries). China and Malaysia, two leading consumers of natural rubber may slow down in consumption of rubber, ANRPC feels.

With the Chinese economy slowing down and its PMI hitting a 28month low, the prediction is not without reason.

Chinese natural rubber consumption in April-June period is expected to have fallen by 1.3%, while in Malaysia, the Natural Rubber consumption may have fallen by 14% in April-June.

Chinese import of natural rubber dropped from 2,80,000 tonne in March to 2,44,000 tonne in April and further down to 2,10,000 tonne in May, said a report in Finanacial Express citing ANRPC sources.

On the NMCE, all contracts of natural rubber are trading in red, following the uninspiring trend in TOCOM rubber.

Source : commodityonline.com