KUALA LUMPUR, Malaysia (April 26, 2012)—Sluggish global growth is leading to a decline in the price of natural rubber, according to the Association of Natural Rubber Producing Countries.
“In spite of the low supply, rubber prices have taken a marginal down from mid-March onwards caused by a sluggish demand outlook, decline in crude oil prices and unfavorable trends of relevant currencies,” said Kamarul Baharain Basir, secretary-general of the organization, which represents countries that account for 93 percent of all rubber grown in the world. He was quoted in the April edition of Natural Rubber Trends & Statistics.
“Global economic recovery is losing its momentum after it showed signs of an improvement during the early part of the first quarter,” he said.
NR supply from ANRPC member countries fell 9.5 percent in the first quarter, according to actual figures for January and preliminary estimates for February and March, the group said. The steeper fall, against a 5.1-percent fall anticipated a month ago, was attributed in large part to Thailand and Malaysia, where supply dropped 24.5 and 9.4 percent, respectively, reflecting farmers' response to falling prices, the ANPRC said.