Malaysian NR production falls in November 2011

ERJ staff report (LMH)

Kuala Lumpur - The production of natural rubber (NR) in Malaysia dropped 17 864 tonnes in November 2011 to 67 936 tonnes, according to the Department of Statistics Malaysia in its summary of November 2011 rubber statistics, published 12 Jan.

NR production in November 2011 also showed a decrease of 5164 tonnes (-7.1 percent) from the previous year. The smallholding sector contributed 93.7 percent while 6.3 percent was from the estate sector. Kedah was the highest producer of NR in estates (26.8 percent), followed by Negeri Sembilan (22.5 percent) and Pahang (15.3 percent).

In exports, the Department of Statistics reported that a total of 66 302 tonnes of NR was exported in November 2011, 16.0 percent lower from the previous month. Exports also dropped by 20.3 percent as compared to November 2010. The Standard Malaysian Rubber (SMR) represents 95.4 per cent of total NR exports whereby 56.3 per cent comprised of SMR 20 type.

NR was exported mainly to China (43.6 percent), followed by Germany (10.0 percent), South Korea (5.8 percent), Brazil (2.8 percent), Iran (2.7 percent), US (2.7 percent), Belgium (2.4 percent), Finland (2.2 percent) and Netherlands (2.0 percent).

In November 2011, domestic consumption of NR was recorded at 33 833 tonnes, down by 4.9 percent from October 2011. Year-on-year comparison also showed a decrease of 3.3 percent.

The rubber gloves industry was the main consumer of NR in Malaysia (68.2 percent), followed by rubber thread (10.8 percent) and tyre & tubes industries (7.8 percent). These three industries constituted 29 400 tonnes (86.9 percent) of the overall domestic consumption of NR.

At the end of November 2011, the level of stocks of NR totalled at 135 254 tonnes, down 3.0 percent compared to the level of stocks held in October 2011. However, year-on-year, stocks went up by 2.9 percent.

The overall average monthly price of NR in November 2011 was low, the Department said. The average price of latex concentrate dropped 113.62 sen (-14.1 percent) to 692.38 sen for month-on-month, whilst year-on-year, price dropped 152.05 sen (-18.0 percent).

The price of SMR 20 was recorded at 1047.28 sen, reduced by 214.67 sen (-17.0 percent) compared to the previous month and 236.27 sen (-18.4 percent) compared to a year ago.

In November 2011, the total number of workers engaged in rubber estates was 11 136. From the total, 11,134 persons were paid employees with total salaries & wages paid amounting to RM12.1 million (Euro 3 million). The total number of workers engaged increased by 84 persons (+0.8 percent) from the previous month whilst year-on-year, it rose up by 476 persons (+4.5 percent).

The ratio of total production to total area tapped in November 2011 was 111.5 kilogram per hectare (kg/ha). Productivity decreased by 7.9 percent for month-on-month whereas for year-on-year, productivity rose by 10.3 percent.

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Press release from Department of Statistics, Malaysia