ANRPC: Leaf disease outbreak could lead to 30% NR production loss

KUALA LUMPUR, Malaysia—Natural rubber supply is expected to remain tight in the months to come, according to a December 2022 report by the Association of Natural Rubber Producing Countries.

This is due in part to "circular leaf spot disease," which has plagued plantations in northern Indonesia and southern Malaysia.

The issue was the focus of a mid-December visit by the International Rubber Research and Development Board to north Sumatera, Indonesia, and Pahang, Malaysia.

The assessment team found that several plantations in the areas were "severely affected" by the disease, according to the ANRPC.

The disease, ANRPC said in its monthly report, has been aggravated by more rains during the peak production period.

According to the rubber growers' association, the leaf disease can lead to an estimated 30 percent productivity loss at the plantations.

In addition, the association said, supply also will be tight as the region enters into wintering season, when tapping activities will be significantly reduced.

On the other hand, ANRPC noted that worries over the global economic outlook, allied to a "bearish outlook" for Brent crude, would likely impact a recent price rally in NR prices.

NR prices have started 2023 on a strong note, due in part to a positive economic outlook in China and cyclical demand from top buyers ahead of the Lunar New Year on Jan. 21.