KUALA LUMPUR—The resurgence of COVID-19, particularly in India, and the Thai government's reported move to sell natural rubber through local tenders impacted markets in April, according to a recent report by the Association of Natural Rubber Producing Countries.
Markets, both in futures and the physical markets, moved without exhibiting a clear trend during April 2021.
The prices did move down for a few days in the first half of April mainly due to the second wave of COVID-19 in India, ANRPC said in a May 7 market analysis report.
In addition, the government of Thailand reportedly sold 104,000 metric tons of NR from state inventories by inviting tenders from interested local buyers, a move which ANRPC said impacted prices.
While the sale was completed in the second half of April, the news reached the market a few days earlier as the government had to initiate the administrative processes including invitation of tenders, ANRPC said.
Lower crude oil prices, in response to the resurgence of COVID-19 cases in India and Japan, also contributed to the the drop in prices.
In the second half of the month, prices saw a "slow and hesitant recovery."
The ANRPC linked the increase to strong evidence of a faster economic recovery in China, the 6.4 percent economic growth in the U.S. over the first quarter of 2021 and the U.K.'s projected 7.8 percent economic growth this year.