ANRPC notes ‘slower-than-anticipated’ growth in rubber production

Kuala Lumpur – Natural rubber (NR) production demonstrated a “slower-than-anticipated” growth rate during the peak production month of October, according to latest data by Association of Natural Rubber Producing Countries (ANRPC).

In its October monthly NR review, ANRPC said production is estimated to have reached 1.496 million tonnes during the month, up 2.65% compared to the year before.

The growth, however, was below expected levels, said ANRPC, citing “erratic weather patterns” and lower grower prices.

“As these adverse conditions persist, the ability to satisfy demand is becoming increasingly compromised, likely leading to a tighter market situation,” the association added.

This scenario, it said, highlights the “vulnerability of the natural rubber supply chain to environmental fluctuations.”

ANRPC called for “adaptive strategies” to mitigate the impact of climate variability on NR production.

Other influencing factors, the association said, include insufficient investment in replanting, and abrupt shifts in market perceptions driven by the volatile nature of the global economy.

Amid projected year-on-year growth, global consumption in October is estimated to have declined by 4.22% to 1.26 million tonnes.

The decline, ANRPC noted, reflects the compounded impact of the US tariffs and anti-dumping duties on China’s tire exports, which it said have dampened trade flows alongside a slowdown in Chinese tire production.

“These factors signal mounting pressure on demand and highlight the vulnerability of global supply chain to policy shifts,” the association further added.

For the full year, ANRPC expects a 1.3% growth in production to 14.892 million tonnes and a “modest” increase of 0.8% in demand to 15,565 million tonnes, influenced by geopolitical uncertainties.