KUALA LUMPUR, Malaysia—World demand for rubber is estimated to have fallen 1.5 percent year-on-year in 2019 to 28.7 million metric tons, new figures from the International Rubber Study Group show.
But demand is set to show a 2.6 percent year-on-year increase this year, according to the latest edition of the IRSG's World Rubber Industry Outlook.
The recovery will be driven by a 1.5 percent rise in demand from the tire sector and 4.3 percent growth in the non-tire sector, the IRSG report.
The trend is predicted to continue beyond the 12 months, with the growth rate likely to reach 2.8 percent year-on-year in 2021.
Published Dec. 30, the WRIO includes data on production, consumption, trade and prices, covering both natural rubber and synthetic rubber. According to the report, world natural rubber demand increased by 4.1 percent year-on-year in 2018 to 13.76 million tons.
Based on the projections by the International Monetary Fund, the figure is expected to decline marginally by 0.1 percent in 2019, reaching 13.75 million tons, before recovering by 1.9 percent in 2020.
Global synthetic rubber demand increased by 1.5 percent in 2018 to 15.4 million tons. The market, however, is expected to decline by 2.8 percent in 2019, reaching 14.98 million tons, before registering growth of 3.4 percent in 2020.