KUALA LUMPUR, Malaysia—Natural rubber production in Southeast Asia will rise only 5.8 percent in 2011's second quarter, not the 10.5 percent projected only last month, according to the latest figures from the Association of Natural Rubber Producing Countries.
“The natural rubber market continues to be clouded by uncertainties,” the ANRPC said in its publication, Natural Rubber Trends & Statistics, the association's monthly statistical newsletter. “NR prices from mid-April onwards have been on the decline, although at a slow pace, on growing concerns about global economy, strengthening of Japanese yen and marginal drop in crude oil prices.”
Lower demand, especially from China, and the weakening of the Thai baht and Malaysian ringgit against the U.S. dollar also have held prices down, although lower supplies have prevented a greater fall, the ANRPC said.
Total second-quarter 2011 NR production in ANRPC member countries will total 2.21 million metric tons, up 5.8 percent from the 2.08 million tons produced in the second quarter of 2010 but considerably less than the 2.3 million tons predicted last month, the ANRPC said.
Total NR exports from ANRPC countries will grow at a 5.2 percent annualized rate in the second quarter, to 1.75 million tons compared with the 1.66 million tons exported during the same period in 2010, the association said.
On the Singapore Commodity Exchange, Rubber Smoked Sheets 3 stood at $5.08 per kilogram at the port of origin May 25 for July delivery, compared with $5.386 for July delivery on April 28. Technically Specified Rubber 20, or tire-grade rubber, stood at $4.59 May 25 for July delivery, compared with $4.60 for July delivery April 28.
ANRPC member nations are Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.