Kuala Lumpur – The Association of Natural Rubber Producing Countries (ANRPC) has revised up its outlook for global natural rubber (NR) demand slightly as economic recoveries continue across the world.
Demand in 2021 is now expected to increase 6.7% year-on-year to 13,680 million tonnes, compared to the previous estimate of 13,571 million tonnes reported in April, said ANRPC in its May review of the market.
The improved outlook is supported by demand in certain countries that are expected to perform better than expected, particularly China, said the 14 June report.
The outlook for production also had a marginal improvement at 13,812 million tonnes, up 5.8% year-on-year. The 0.1% improvement, ANRPC said, was due to China, India and the Philippines revising up their output figures.
Over the month of May, production rose 7.8% year-on-year to 982,000 tonnes, helped by significant increases in production from Vietnam, China and Malaysia.
Demand during the month increased 7.3% to 1,052 million tonnes, with most ANRPC members reporting positive growth in consumption.
Malaysia, Sri Lanka and the Philippines saw demand shrink, due partly to Covid-induced lockdowns.