Kuala Lumpur – There has been no significant strengthening in natural rubber (NR) pricing despite “near-zero growth” in supply, according to the Association of Natural Rubber Producing Countries (ANRPC).
In its “Natural Rubber Trends and Statistics” report for July, ANRPC noted that global supply of natural rubber (NR) grew only by 0.2 percent, year-on-year, during the first seven months of this year.
But any price-lift, it added, has been suppressed by, “a weak demand outlook, low crude oil prices and weak currencies of major NR-exporting countries have combined to suppress prices."
Moreover, ANRPC warned that emerging global economic trends suggested that the “possibility for NR demand gaining strength in 2016 or 2017 is bleak.
“The anticipated weak demand outlook is likely to hold back the anticipated slow growth in supply from translating to a bullish market.”
Another unhelpful factor is the short-term energy outlook which, said the association, “suggests that NR market may continue lacking support from crude oil,” the producer association added.