KUALA LUMPUR—Global production of natural rubber was up in 2017, but global consumption of NR dropped during the same time period.
According to a recent release from the Association of Natural Rubber Producing Countries, NR production rose 6.8 percent last year to 13.3 million metric tons, compared to the 12.4 millions tons produced in 2016. ANRPC noted that almost 90 percent of the world supply was produced by its member states.
Global NR consumption, meanwhile, rose by a mere 1.4 percent to 12.9 million tons during 2017, according to ANRPC.
In December, the association saw signs of recovery in rubber pricing, but the improvement was linked to higher crude oil prices and a previously agreed upon cut in supply by three major NR producers.
In an effort to address low NR prices, Thailand, Malaysia and Indonesia, members of the International Tripartite Council, agreed Nov. 29 to cut NR exports by 350,000 tons between Dec. 22 and March 31. Other measures included providing loans at subsidies to encourage replanting and increase productivity.