NR market sees slowdown in supply, demand growth rates

KUALA LUMPUR, Malaysia—The natural rubber market has seen a slowdown in growth rates for both supply and demand, according to the Association of Natural Rubber Producing Countries.

The declines, compared to 2021, were linked to multiple factors, including the impact of COVID-19, labor issues and climate-related disruptions, the association said in its latest monthly report.

Total annual NR production reached 14.3 million metric tons in 2022, compared to 14.0 million metric tons reported the year before. The pace of growth, however, stood at 1.9 percent, down from 3.7 percent in 2021.

According to ANRPC, production growth was slower due to a "prevailing labor shortage, leaf diseases, unfavorable climate and other local factors in respective producing countries.

Vietnam, China, Malaysia and Sri Lanka reported year-on-year decline in production, led by Malaysia and Sri Lanka, which saw production dip by 16 percent and 8.4 percent, respectively.

On the flip side, production increased particularly across ANRPC members India and Bangladesh, which reported respective rises of 9.6 percent and 5.8 percent year-on-year.

Output in non-member "rest of the world" also rose considerably at 8.6 percent year-on-year, the ANRPC said.

World demand for NR also rose 1.9 percent to 14.8 million metric tons, but the growth rate was sharply down from 12.2 percent reported in 2021.

The slowdown in growth particularly reflected lower demand from Malaysia, Sri Lanka and China, which respectively reported declines of 10.5 percent, 9.1 percent and 1.6 percent year-on-year.

Some of the decline, however, was offset by sharp increases in consumption in Thailand and Vietnam, which reported year-on-year growth figures of 44 percent and 34 percent, respectively.