Kuala Lumpur – The gap between global supply and demand for natural rubber (NR) has continued to narrow, new figures from the Association of Natural Rubber Producing Countries (ANRPC) show. The group has also noted a recent slump in prices for the commodity.
During January to September, world output of NR was at 9,240 kilotonnes (kt) while world demand of NR accounted for 9,637kt, ANRPC reported 10 Oct.
“As a result, a shortfall in world supply reported close to 400,000 during this period,” ANRPC said in a commentary about its "Natural Rubber Trends & Statistics" for September.
The supply shortfall compares with equivalent ANRPC figures of 646kt (6,838kt vs 7,486kt) in July and 506kt in (8,038kt vs 8,544kt) in August.
The association went on to note that despite a recovery in August, physical rubber prices had “lost the momentum and plunged” in the last two weeks in September 2017.
ANRPC linked the decline to a "broad sell-off in global commodities and higher rubber inventories reported in Shanghai Rubber Futures," as well as a strong Yen, and trends in the crude oil market.