ERJ staff report (DS)
Kuala Lumpur - The latest ANRPC report on Natural Rubber takes the sub-title, Deepening Euro-Zone Crisis Dominates Natural Rubber Trends.
The group says the publication Natural Rubber Trends & Statistics for November 2011, provides an authentic picture of rubber market based on information gathered from member countries at its most recent meeting, which took place in China on 21st November.
The group, which represents the vast majority of natural rubber producing nations in the world said its latest forecast suggest that NR demand in 2011 will be 0.8 percent below 2010 demand and that supply will slow by 5.6 percent in 2011 and 3.6 percent in 2012.
ANRPC said, â€œPreliminary estimates indicate that the price fall has started impacting on the supply. The total supply from member countries of the ANRPC, which grew annually at 10.6 percent in Q1 and 10.7 percent in Q2, has slowed down to 2.5 percent in Q3, and is expected to slow down further to 0.6 percent in Q4.â€ ANRPC noted that the supply of NR in the last quarter of 2010 was significantly down, and the forecast for the equivalent period in 2011 is only marginally above that reduced figure.
The group added, â€œThe revised outlook suggests that the total supply this year (January to December 2011) will grow only at 5.6 percent to 10.023 million tons, lower than the 6.0 percent rate previously-expected and the 6.6 percent attained in the previous year.â€
It is striking to note that ANRPC regards the current price of around $3.50/kg as low and leading to a marked decline in profitability among the growers.
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Press release from ANRPC