China's Rubber Imports Rise In July, The Global Economy Recovers And The Demand For Natural Rubber Rebounds

- Sep 30, 2020-

On August 7, 2020, the General Administration of Customs of the People's Republic of China announced the data on China's imports of rubber in July. The data showed that China imported 677,000 tons of natural and synthetic rubber (including latex) in July 2020, a year-on-year increase of 22%. From January to July 2020, China imported 3.809 million tons of natural and synthetic rubber (including latex), an increase of 5% from 3.628 million tons in the same period in 2019. China's economic situation and natural rubber demand are constantly recovering.

According to the latest data from the Association of Natural Rubber Producing Countries (ANRPC), after 7 consecutive months of decline in natural rubber, the global natural rubber demand will increase by 2.6% in the three months to the end of October. The US plan to boost the economy and the recovery of Chinese demand are the main factors driving the rebound in natural rubber demand. As of the end of July, the outlook for global natural rubber production remained unchanged, and global production is expected to fall by 4.5% to 13.2 million tons in 2020.

ANRPC believes that after the economic recovery "earlier than expected", China has increased its natural rubber consumption forecast for 2020 from 4.93 million tons a month ago to 5.04 million tons. However, as people increasingly tend to use nitrile rubber gloves to deal with the epidemic, Malaysia has lowered its demand forecast from 603,000 tons a month ago to 522,000 tons.

It is understood that ANRPC’s global natural rubber demand forecast a month ago was 12.67 million tons, and it is currently slightly revised up to 12.75 million tons, a decrease of 7.3% compared with the same period last year. From January to June 2020, global natural rubber production will drop by 6.8 % To 5.67 million tons, and production is expected to fall further by 2.4% in the four months to the end of October.