ERJ staff report (DS)
Kuala Lumpur -- Global economic worries are creating a bearish position for natural rubber and other commodities, according to the year-end review from the Association of Natural Rubber Producing Countries (ANRPC).
In the December 2011 edition of its monthly review, Natural Rubber Trends and Statistics, the organisation says, "As the year 2012 begins, it appears that the possibility is remote for the global economy to return to the recovery path by the first quarter of the New Year. Such a pessimistic global economic outlook compels speculative investors to stay away from commodities and stocks. This has been reflected in commodity prices. "
As a result, ANRPC said global stocks of NR have been on a progressive rise starting from the fourth quarter of 2011.
To add further to ANRPC woes, global production is also increasing. The organisation said, "Based on preliminary estimates available on 19th December from member nations, ANRPC's total supply rose 6.4 percent to 10.100 million tons during 2011, faster than the 5.6 percent rate expected until a month ago, but slightly slower than the 6.6 percent attained during the previous year. "
ANRPC's total NR-output is now anticipated to rise at 3.1 percent rate to 10.415 million tons during 2012, slightly lower than the 3.6 percent rate expected until a month ago. The downward revision results from the upward revision for the base year output.
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Press release from ANRPC