Analysts: Natural rubber prices to average $5.10/kg in 2012

Natural rubber prices should average $5/kg, $5.10/kg and $4.50/kg in 2011, 2012, 2013, respectively, according to a recent Deutsche Bank report. The stabilisation of prices that have been skyrocketing for the last few years is predicted as the Association of Natural Rubber Producing Countries, whose members produce 92 per cent of the world's supply, is expected to expand production by about 6.3 per cent in 2011. Production will grow another 6 per cent in 2012. Global production was about 10.4 million metric tonnes in 2010.

“Essentially, there is limited scope for production to rise strongly in the immediate term (2011-12) due to underinvestment in the past,” the bank said. “Accounting for about a third of global production, Thailand continues to invest in new planting and adopt efficient crop management system. We expect Thailand to record gradual increase in output growth from 5 per cent this year to 9 per cent in 2013,” Deutsche Bank said.

In 2010, Thailand’s natural rubber production totalled 3,252,135 metric tonnes, according to statistics from the Thai Rubber Association.

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