Kuala Lumpur – The global natural rubber industry is currently being driven by “favourable supply-demand fundamentals,” according to a 7 Dec report by the Association of Natural Rubber Producing Countries (ANRPC).
Supply of natural rubber from ANRPC states is expected to grow marginally at 0.1% to 11.08 million tonnes during 2016, while consumption by the member states is anticipated to show a healthy 4.1% growth at 8 million tonnes this year.
Consumption by ANRPC member states accounts for 65% of the global demand, the association added.
Price-wise, the uptrend momentum in October improved in November across all major physical markets, according to the group's report.
Among the contributing factors to the price rally, said ANRPC, were favourable supply-demand fundamentals, weak Japanese yen, rebound in crude oil prices and an improved economic outlook in the US.