Kuala Lumpur – World demand for rubber is estimated to have fallen 1.5% year-on-year in 2019 to 28.7 million tonnes, new figures from the International Rubber Study Group (IRSG) show.
But demand is set to show a 2.6% year-on-year increase this year, according to the latest edition of the IRSG’s World Rubber Industry Outlook.
The recovery will be driven by a 1.5% rise in demand from the tire sector and 4.3% growth in the non-tire sector, said the IRSG report.
The trend is predicted to continue beyond the 12 months, with the growth rate likely to reach 2.8% year-on-year in 2021.
Published 30 Dec, the WRIO includes data on production, consumption, trade and prices – covering both natural rubber (NR) and synthetic rubber (SR).
According to the report, world natural rubber (NR) demand increased by 4.1% year-on-year in 2018 to 13.76 million tonnes.
Based on the projections by the International Monetary Fund (IMF), the figure is expected to decline marginally by 0.1% in 2019, reaching 13.75 million tonnes, before recovering by 1.9% in 2020.
Global synthetic rubber (SR) demand increased by 1.5% in 2018 to 15.4 million tonnes. The market, however, is expected to decline by 2.8% in 2019, reaching 14.98 million tonnes, before registering growth of 3.4% in 2020.