Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • Women in Tire & Rubber
    • ITEC
    • International Elastomer Show
    • HEXPOL Sponsored Content
    • Israel's Tactile Mobility launches tire insight technology
      Bidirectional EVs could lend a hand in power crisis
      WDK: German rubber industry set for double-digit growth in 2021
      Dana acquires electronics and software provider Pi Innovo
    • Israel's Tactile Mobility launches tire insight technology
      Goodyear joins EASE Logistics, Ohio city to launch connected mobility pilot program
      Goodyear to raise prices on passenger tires
      Ryan Patterson to lead Goodyear-Cooper integration efforts
    • Smithers opens doors to new medical device testing lab
      Maine's Poly Labs doubles work force
      Foam shortage a major concern for auto makers, seating suppliers
      New Products: Kraiburg launches advanced, ‘supersoft' TPEs
    • Emerald to close Illinois rubber additives site
      Smithers opens doors to new medical device testing lab
      Dana acquires electronics and software provider Pi Innovo
      Gelest's Barry Arkles enters National Academy of Engineering
    • Gelest's Barry Arkles enters National Academy of Engineering
      ECO starts 'first' U.S. silicone rubber recycling plant
      New legacy taking shape at Stockwell Elastomerics
      Fenner opens new textile treatment line in Pennsylvania
    • Ohio firm focuses on making better masks in U.S.
      U.S. to increase NBR, make gloves using Defense Production Act
      Tire Cologne canceled; rescheduled for 2022
      Tire Technology Expo canceled for 2021
    • Ryan Patterson to lead Goodyear-Cooper integration efforts
      New legacy taking shape at Stockwell Elastomerics
      Davis-Standard promotes Andrew Alaya to aftermarket sales role
      Harwick Standard adds Flores to West Coast sales team
    • Bidirectional EVs could lend a hand in power crisis
      Braskem Idesa reopens PE complex in Mexico with new contract
      To boost U.S. microchip production, Biden administration must find supply chains weaknesses
      TIA among associations against increase to minimum wage
    • Column: Value is the stuff in custom mixing
      New legacy taking shape at Stockwell Elastomerics
      Column: Discussions of race, equality may mean uncomfortable moments
      Column: Business trips possible because of essential workers
    • Part 2: Studying RPA ASTM methods for detecting compound quality differences
      Studying RPA ASTM methods for detecting compound quality differences
      Damage mechanism in oil and gas formulations during downhole testing
      Advancements in synchronous drive belt design for industrial and consumer markets
    • Rubber Division introduces WORD webinar series
      WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Rubber Division introduces WORD webinar series
      Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Kraiburg launches advanced, ‘supersoft' TPEs
      New Products: Mahr Inc. introduces MarForm MMQ 500 Form Tester
      New Products: Starrett expands field-of-view for multi-sensor vision system
      New Products: Nova thinks outside the box with sealing tech
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Israel's Tactile Mobility launches tire insight technology
      Bidirectional EVs could lend a hand in power crisis
      WDK: German rubber industry set for double-digit growth in 2021
      Dana acquires electronics and software provider Pi Innovo
    • Gelest's Barry Arkles enters National Academy of Engineering
      ECO starts 'first' U.S. silicone rubber recycling plant
      New legacy taking shape at Stockwell Elastomerics
      Fenner opens new textile treatment line in Pennsylvania
    • Top Glove eyes new expansions with Hong Kong listing
      Sri Trang Gloves starts major capacity expansion
      Synthomer dismisses takeover reports
      Combined Goodyear-Cooper Tire company has tire technology, sustainability edge
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • HB Chemical
      Sponsored By HB Chemical
      The HB Chemical and Ravago Partnership: Taking Customer Service to a New Level
      Sponsored By HB Chemical
      Above and Beyond with HB Chemical
      Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Labs of the Future: How to Choose a Laboratory Information Management System in 2021
      Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Select™: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2021 International Latex Conference Virtual Edition
      2022 ITEC
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
January 13, 2017 01:00 AM

ANRPC anticipates natural rubber price rebound in 2017

European Rubber Journal Report
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    KUALA LUMPUR, Malaysia—Natural rubber prices began a rebound late last year and the Association of Natural Rubber Producing Countries expects that trend to continue in 2017.

    NR price increases—particularly in the fourth quarter of 2016—were driven by several factors including recovery in the crude oil market, supply concerns and renewed expectation of a US-led global economic recovery, ANRPC reported.

    In its latest Natural Rubber Trends & Statistics, published Jan. 13, the ANRPC noted the impact of a recovery in crude oil price. This was driven by the OPEC's Nov. 30 deal to cut output by 1.2 million barrels per day for six months from January 2017.

    "While Brent crude oil prices rose 24 percent from end of September to end of December 2016, rubber prices (SMR-20 in Kuala Lumpur) jumped 43 percent during the same period," the report said.

    Citing a Jan. 10 U.S. short-term energy outlook, the association said Brent crude oil is expected to average at $53 per barrel in 2017, up 20.5 percent from $44 per barrel in 2016.

    The anticipated higher feedstock prices, ANRPC added, could make synthetic rubber materials more expensive in 2017, thereby offering better prospects for natural rubber growers.

    Meanwhile, another contributing factor to price-recovery was bad weather, which affected natural rubber supply. According to ANRPC, 12 provinces in south Thailand have been severely affected by the region's worst floods in the past three decades.

    Thailand accounts for 37 percent of the global supply of natural rubber and 70 percent of the country's output comes from the south, the association pointed out.

    "According to a preliminary assessment made by the Rubber Authority of Thailand, the flood is likely to shave out at least 360,000 (metric tons) from Thailand's output of NR expected in 2017," the report read. "The country will be able to produce only 4.381 million ton in 2017 as against 4.741 million ton originally expected."

    In addition to the shortage in Thailand, the global supply of natural rubber—including non-ANRPC—fell by an average of 0.6 percent per year between 2014 and 2016. Meanwhile demand for the product grew at 3.2 percent rate during the same time period.

    Based on preliminary estimates, the report states that global supply of NR stood at 11.975 million tons during 2016, which was short of the corresponding global demand by 655,000 tons.

    Another important factor is the global economy, which according to an International Monetary Fund's World Economic Outlook in October, will grow at a rate of 3.4 percent in 2017, faster than 3.1 percent rate in 2016.

    "Based on the emerging global economic scenario anticipated by IMF, global supply of NR will be short of demand by 350,000 tons during 2017," ANRPC said.

    With this mind, the expected natural rubber supply deficit is likely to be more severely felt during the period up to May 2017 as seasonal factors will affect the overall supply.

    In addition to a favorable demand-supply fundamental and anticipated trends in crude oil market, the natural rubber market is expected to gain from improvement in commodity prices this year. IMF predicts a 10 percent jump in the index of "all commodities" in 2017 as compared to 2016.

    Despite the positive outlook, ANRPC said that there was "very limited" possibility for a substantial rise in rubber prices during 2017. This, it said, is because supply has the potential to increase much beyond the expected level if prices scale too high, which can prevent the market from scaling substantial up.

    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • Women in Tire & Rubber
      • ITEC
      • International Elastomer Show
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION