KUALA LUMPUR, Malaysia—Natural rubber production and demand grew year-on-year in April, helped by the conclusion of seasonal leaf fall and signs of economic recovery globally.
"As the seasonal exfoliation period concludes and tappers begin to resume their harvesting activities, the supply of NR is recovering," said the Association of Natural Rubber Producing Countries (ANRPC).
Based on data provided by ANRPC members, NR production for April is estimated to reach 747,000 metric tons, reflecting 3.0-percent growth on a year-to-year basis.
The improvement is further driven by the price uptick in recent months, ANRPC noted in its April monthly NR review.
Consumption also increased 1.6 percent year-over-year to 1.2 million tons in April, as demand grew across Asian economies.
The Asian Development Bank's April outlook revealed that growth in Asia "will remain resilient" this year despite an uncertain external environment.
Furthermore, ANRPC said, "a shift towards more dovish monetary policies" in most global economies, coupled with a recovery in exports of goods had resulted in "a positive regional outlook."
Despite the positive signs, ANRPC warned that policymakers must remain alert to several risks.
These include escalating conflicts and geopolitical tensions that could disrupt supply chains and increase commodity price volatility, as well as the U.S. monetary policy, market conditions in China's property sector, and adverse climate effects.
To enhance market resilience, ANRPC recommended that policymakers should prioritize strengthening trade, cross-border investment, and commodity supply networks.
