Bangkok – Major natural rubber producers, Malaysia, Indonesia and Thailand, expect a decrease in production to continue for the rest of 2020 and into early 2021, it was announced during a recent meeting of the International Tripartite Rubber Council (ITRC).
The decline was attributed to “erratic weather, declining in tapping activities due to Covid-19 pandemic and Pestalotiopsis leaf fall disease,” senior ITRC officials announced at the virtual meeting held 22-23 Sept.
Furthermore, ITRC projected that NR supply would be further constrained by a shortage of tappers in Thailand and Malaysia.
The wintering season in South Sumatera in Southern Hemisphere is also expected to contribute to the decline in production.
Consumption, on the other hand, is anticipated to increase as China, the biggest consumer of NR, accelerates its economic activities post Covid-19 lockdown.
The trio expect to see an increase in demand for “compounded and mixures rubbers” exports to China, as Beijing continues to provide incentives for the revival of the local automotive industry.
During the ITRC meeting, member states pledged to implement “relevant measures” to ensure the well-being of rubber smallholders.
“ITRC strongly believes that a fair and remunerative price levels will benefit all stakeholders in the NR industry, in particular for rubber smallholders,” they said.
