Japan disaster will not dent rubber demand – ANRPC

In response to widely circulated fears about the effect the disaster in Japan and subsequent nuclear reactor issues will have on demand for natural rubber, the Association of Natural Rubber Producing Countries has opined that these events “will not have significant impact on rubber demand from the country.” Supporting this statement, the ANRPC points out that major tyre manufacturers have already confirmed their plants remain largely unscathed and will resume full production upon the restoration of reliable electricity supplies.

“Japan accounts for seven per cent of the global demand for natural rubber,” stated Professor Djoko S. Damardjati, secretary-general of the ANRPC. “The closure of a handful of auto-tyre plants in the country’s northeast region for a few days cannot impact on the commodity’s global demand in a significant way. If at all there is any marginal impact, it will be for a short-term only.”

The Malaysia based association believes the disaster is unlikely to have a noticeable impact on the global economy as Japan “has not been a driver of the global recovery from the economic meltdown in 2008.” Furthermore, the tsunami-hit region is far from Japan’s economic hub in the area from the south of Tokyo South to Osaka. “Although the country’s economic and manufacturing activities may be affected in the short-term, rebuilding activities could help revive the economy in the medium term,” Damardjati added.