KUALA LUMPUR, Malaysia—Demand for natural rubber is expected to rise slightly higher than originally expected in 2022, according to the latest report from the Association of Natural Rubber Producing Countries.
In February, the association noted that World NR production in 2022 was expected to be around 14.107 million metric tons. But in March, ANRPC revised that expectation, saying that 14.292 million tons of NR production was expected this year.
The improved outlook is based on the updated preliminary estimates from ANRPC members up to March 2022, when the war between Russia and Ukraine had just started.
Meanwhile, ANRPC said, the outlook for global demand also increased to 14.330 million tons, up 2.2 percent from 14.058 million tons reported earlier in the year. The improvement, said ANRPC, was made following a revision in consumption estimates by China and Thailand which saw a "better-than-expected" demand registered during March.
"Most countries," ANRPC said, "have moved into (the) endemic phase with expectation for boosting its economy recovery ever since COVID-19."
But there is more than just the COVID-19 endemic weighing on the industry. Global events continue to impact NR growth. Russia's war in Ukraine, sanctions imposed on Russia and renewed COVID-19 restriction in China's main industrial cities, could hamper the growth.
"The United Nation Conference Trade and Development has recently slashed its the projection of global economic growth for 2022 by 1 percent to 2.6 percent in early March 2022," ANRPC said. "This may influence the prospect growth of global NR industry during 2022."