ANRPC notes natural rubber supply deficit in July

Kuala Lumpur – July 2017 witnessed a natural rubber supply deficit of 648,000 tonnes, according to the latest figures published by the Association of Natural Rubber Producing Countries (ANRPC).

In a 9 Aug statement ANRPC secretary general Nguyen Ngoc Bich said for the first seven months of 2017, the global NR production amounted to 6.838 million tonnes, including non-ANRPC member countries; while the global world consumption recorded at 7.486 million tonnes.

The favourable supply-demand fundamental from the deficit, however, was unlikely to overrule the physical prices over negative sentiments in the NR market such as higher rubber inventories and stronger yen, noted the ANRPC official.

During July, NR physical prices gradually improved followed by the recovery in crude oil price, especially during the first three weeks.

This, noted Bich, has also narrowed the price difference between the two major TSR grades, STR-20 and SMR-20.

Over the last week of July, however, the rebound of NR prices was hit by the negative sentiment of higher rubber inventories in regional futures markets.

As a result, NR prices fell sharply across key physical markets in Thailand and Malaysia.