Natural rubber prices under pressure despite production slowdown
Positive market fundamentals offset by risks seen across global financial markets
Kuala Lumpur – Global natural rubber (NR) production "posted much slower growth" in April, the Association of Natural Rubber Producing Countries (ANRPC) has reported.
Output last month totalled 896,000 tons, equating to a year-to-year growth rate of 1.5%, according to the association's latest 'monthly NR statistical report'.
While supply tightened, global NR demand witnessed a 2.7% year-on-year increase to 1.241 million tonnes, noted the report issued 18 May.
In terms of pricing, ANRPC said the positive market fundamentals were offset by “elevated risks” seen across global financial markets.
Risk factors, it said, included high borrowing costs from interest rate hikes, impacts from the prolonged Russia-Ukraine war, and “stubborn inflation”.
ANRPC, however, maintained its previously stated production and consumption forecasts for full-year 2023.