Kuala Lumpur – The world production of natural rubber (NR) fell 7.3% year-on-year to 7.039 million tonnes during the first seven months of 2019, according to the preliminary estimates published by the Association of Natural Rubber Producing Countries (ANRPC).
Total product was hit by the outbreak of Pestalotiopsis leaf disease in the rubber producing states, with Indonesia estimating a 15% decline in annual output.
The global NR consumption, meanwhile, registered a marginal growth at 0.8% to 8.082 million tonnes during the seven months to end of July.
However, despite the favourable market fundamentals, ANRPC said the market sentiments remained weak in the month of July 2019.
Price of physical rubber across key markets namely Kuala Lumpur, Bangkok and Kottayam were down by 3-9% during July 2019 as compared to June 2019.
The increasing weekly warehouse stock figures reported in Shanghai for the month of July 2019 and the uncertainty from the trade negotiation between China and US have constantly become a concern to the traders and other investors.