KUALA LUMPUR, Malaysia—There has been no significant strengthening in natural rubber pricing despite “near-zero growth” in supply, according to the Association of Natural Rubber Producing Countries.
In its “Natural Rubber Trends and Statistics” report for July, ANRPC noted that global supply of natural rubber grew only by 0.2 percent, year-on-year, during the first seven months of this year.
But any gain in prices has been suppressed by “a weak demand outlook, low crude oil prices and weak currencies of major NR-exporting countries have combined to suppress prices,” ANRPC noted.
The group also warned that because of emerging global economic trends, “the possibility of NR demand gaining strength in 2016 or 2017 is bleak … (and) is likely to hold back the anticipated slow growth in supply from translating to a bullish market.”
Another unhelpful factor is the short-term energy outlook which, the association said, “suggests that NR market may continue lacking support from crude oil.”