Malaysia's Natural Rubber Production Decline May Affect The Domestic Rubber Market

- Jul 22, 2020-

On March 13, 2020, the Malaysian Bureau of Statistics released the latest data: Malaysia's natural rubber production in January 2020 increased by 13.3% from the previous month to 66,232 tons, a decrease of 13% from the same period last year; Malaysia's natural rubber exports in January 2020 increased from 2019 In December, 50,516 tons fell to 45,827 tons, down 9.3%, and natural rubber exports to China accounted for 44.3% of total exports.

Malaysia's natural rubber is exported to China, Germany, Finland, the United States and Italy, of which China is one of the main exporters. Malaysia's natural rubber production and exports have both decreased, and the amount of natural rubber exported to China has shrunk, which may affect the price fluctuations of the natural rubber market.

The new crown pneumonia has spread globally, and domestic and foreign manufacturing industries have been severely affected. Although the epidemic situation in China has been effectively controlled, the downstream tire companies have low operating rates, incomplete production capacity, and reduced natural rubber consumption; the current natural rubber inventory is sufficient, in a situation of oversupply; Malaysia natural rubber production is reduced or the inventory pressure is weakened ; There is no obvious impact on the domestic natural rubber market in the short term.

It is understood that Malaysia’s domestic consumption of natural rubber in January was 42,015 tons, a decrease of 22.9% from 54,477 tons in December 2019. The rubber glove industry occupies the main consumer, with a consumption of 31,686 tons, or 75.4% of the total national consumption. Malaysia's natural rubber inventory in January 2020 was 288,586 tons, an increase of 17.8% from 245,002 tons in December last year.