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June 18, 2015 02:00 AM

Report: Rubber demand to dip, then recover in 2016

European Rubber Journal Report
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    LONDON—Global demand for natural rubber and synthetic rubber is in decline this year following a sharp rise in growth in 2014, according to the Rubber Economist.

    The latest edition of the quarterly report, however, predicts that growth in consumption of NR and SR will rise in 2016 and 2017.

    The predicted trends could contribute to an increasein rubber prices over the next two years—particularly for hard-pressed growers in Southeast Asia.

    Last year, the NR supply balance turned to a deficit for the first time in four years, according to the Rubber Economist. The SR balance was negative for the first time in 12 years.

    Despite an increase in NR production in Thailand, the world output declined in 2014. The newsletter predicted that NR stocks would continue to decline, while SR stocks would rise in the coming years.

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