ANRPC lowers NR demand outlook

KUALA LUMPUR, Malaysia—The global natural rubber demand is expected to grow 2.1 percent year-on-year to 14.805 million metric tons, according to the latest monthly update by the Association of Natural Rubber Producing Countries.

The growth forecast is slightly lower than ANRPC's estimate in October, which anticipated total demand to increase 2.3 percent to 14.786 million tons, and considerably lower than a 3.7-percent growth estimate to 14.972 million tons reported in July.

The demand outlook was revised down despite a 1.2-percent year-on-year rise in consumption to 1.301 million tons during the month of October, according to ANRPC's report Nov. 17.

In its previous statements, the association had linked the weaker outlook mainly to a "lower-than-expected" demand from non-ANRPC members.

Consumption also has been negatively impacted due to the ongoing COVID-19 restrictions in China.

During October, global natural rubber production reached 1.43 million, of which 87 percent was produced across ANRPC members.

According to the association, rubber markets across major producing countries posted downward price trends during October.

In the block rubber market, it said, SMR-20 "inched lower" in October compared to the previous month, while STR-20 registered stable average pricing levels.

In RSS markets last month, ANRPC reported: "RSS-3 in Bangkok has unexpectedly increased its average pricing, while the price of RSS-4 in Kottayam fell marginally."

Overall, the industry body said the NR markets are being impacted by worries of a global recession and inflationary economic pressures.