Natural rubber prospects dim for next three months, says ANRPC.

KOCHI: Association of Natural Rubber Producing Countries (ANRPC) has revised its earlier forecast of global supply outlook of natural rubber (NR) for 2016 and has said the prices may not rise in the next three months.

ANRPC has based the latest report on the monthly production in major rubber producing countries in the first five months ended May 2016.

The revised prediction suggests that the total supply could grow at a much slower rate of 0.3% during 2016 compared with the growth of 0.8% registered in 2015 and 5% in 2014. According to the association, the member countries of which account for 90% of total global NR supply, the anticipated total NR volume available in 2016 is 11.075 million tonnes , slightly higher than 11.042 million tonnes in the previous year.

In May ANRPC had predicted the NR global supply in 2016 will touch 11.166 million tonnes, up by 1.1% over the previous year. The association scaled down its forecast as the production in the member countries for the five months ended May 2016 stood at 4.080 million tonnes, just 0.3% up from the same period a year ago.

ANRPC secretary general Sheela Thomas said in the monthly report of the association that drop in average yield across the countries has offset the potential gain in supply from the substantial expansion in yielding area.

She said the demand will stay weak due to prevailing global uncertainties.

Source : economictimes.indiatimes.com