ANRPC: Natural Rubber demand to grow 2.1% in 2022

Global natural rubber production reached approximately 1.435 million tonnes during October 2022, a 3.5 per cent increase on production a year earlier. The Association of Natural Rubber Producing Countries (ANRPC) reports that its members – the governments of Bangladesh, Cambodia, China, India, Indonesia, Malaysia, Myanmar, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam – accounted for around 87 per cent of this production.

Demand for natural rubber worldwide grew 1.2 per cent year-on-year, to 1.301 million tonnes, during the month. Nevertheless, the ANRPC reports that “rubber markets across major producing countries have posted downward price trends in October 2022.”

In the block rubber market, SMR-20 rubber inched lower in October 2022 as compared to the previous month while STR-20 kept its average pricing same during the reference period. In RSS markets, a mixed trend observed between RSS-3 in Bangkok and RSS-4 in Kottayam. The RSS-3 in Bangkok has unexpectedly increased its average pricing, while the price of RSS-4 in Kottayam fell marginally during October 2022.

The association observes that concerns regarding a global recession have risen following another hike of 75 basis points from US Federal Reserve to battle inflation in early November 2022, a move that could also be expected from other central banks. As a result, the ANRPC anticipates that global economy’s recovery after the pandemic “might be refrained.” Although the association foresees slower growth in global demand for NR this year in view of such economic conditions, demand is expected to grow by 2.1 per cent to 14.805 million tonnes as compared to 14.495 million tonnes in 2021.