KUALA LUMPUR—The Association of Natural Rubber Producing Countries revised up demand outlook for natural rubber, due mainly to "updated 2023 performance figures from non-members."
The association now forecasts demand to reach 15.7 million metric tons, up from an earlier forecast of 15.6 million tons and up 3.1 percent compared to 2023, said ANRPC.
Last month, global demand reached 1.283 million tons, marking a modest 2.0-percent increase compared to the previous year, the association said in the May edition of its monthly NR report.
However, ANRPC projects a marginal growth of 0.2 percent in demand for June, with outlook being potentially influenced by elections in the European Union and India.
"These elections are expected to draw considerable attention as observers analyze their potential impacts on the global economic landscape," said ANRPC.
On the supply side, the association revised down global outlook to 14.5 million tons, down 0.3 percent compared to the previous forecast but up 1.1 percent compared to the year before.
Based on preliminary estimates, production reached 1.0 million tons in May, a 4.8-percent increase compared to the same period last year.
On lower global supply outlook, ANRPC said reduced interest from rubber farmers in harvesting continued to slow down growth in production, particularly in traditional rubber-producing countries such as Thailand, Indonesia and Malaysia.
Additionally, challenges such as adverse climate conditions, leaf diseases and persistently low rubber prices have also significantly impacted farmers' production.
In the short-term, Indonesia is anticipated to transition to "la niña" and is expected to experience more rainfall through the end of June, while Thailand and Vietnam are set to have normal rainfall.
Consequently, ANRPC said, a projected year-over-year growth of 4.5 percent for June could be influenced by these climatic conditions, in addition to "other prevailing factors."
