KUALA LUMPUR, Malaysia—Natural rubber production rose 4.2 percent year-on-year in August to reach 1.37 million metric tons, the Association of Natural Rubber Producing Countries has reported.
Global demand, meanwhile, remained fairly flat with a 0.2-percent increase to just under 1.3 million tons, according to ANRPC data published Oct. 2.
The NR market started August "with skepticism" amid ongoing geopolitical tensions and rising U.S. interest rates, according to the monthly review. An imbalance between NR production and demand also weighed on physical and futures markets during the first half of the month.
Markets, however, strengthened progressively in the second half of August on optimism about the economic outlook of major consuming nations and improved market sentiment.
Going forward, ANRPC said a "hawkish" U.S. interest rate policy, Russia's war in Ukraine, China-U.S. tensions and global economic uncertainty are likely to negatively impact the market.
On the other hand, the association noted a number of positive developments that could significantly support market growth, including faster growth in demand compared to output, optimism regarding the economies of China and India, and crude oil price trends.
