The Latest Forecast: 2020 Global Natural Rubber Production May Drop To 13.149 Million Tons

- Sep 26, 2020-

A few days ago, the Association of Natural Rubber Producing Countries (ANRPC) released the latest expected data: It is estimated that global natural rubber production in 2020 will fall 4.9% year-on-year to 13.149 million tons, and global consumption will fall 8.9% year-on-year to 12.544 million tons. It is understood that in the first seven months of 2020, global natural rubber production fell by 8.9% year-on-year, and global natural rubber consumption fell by 14% year-on-year. From January to June 2020, global consumption of natural rubber fell by 15.7%. China, which accounts for 40% of global demand, saw its consumption drop by 20.1%.

In June 2020, the association predicts that global natural rubber production will fall by 4.7% this year to 13.13 million tons; among them, Indonesia's output is expected to drop by 12.6% to 2.89 million tons, Thailand is expected to drop by 0.9% to 4.81 million tons, and Vietnam is expected to drop by 4 % To 1.14 million tons, Malaysia is expected to drop by 14% to 550,000 tons. Global natural rubber consumption is expected to drop by 6% this year to 12.904 million tons; among them, China's consumption is expected to drop by 5.6% to 5.24 million tons, and India is expected to drop by 21.3% to 900,000 tons.

In the third quarter of 2020, global consumption will increase by 1.4% year-on-year, entering a positive value. The natural rubber market was full of vitality in August, and both the physical and futures market prices rose sharply that month. Bangkok’s RSS3 market surged 24.1% this month. In contrast, Bangkok’s STR20 rose 14.3%, Kuala Lumpur’s SMR20 rose 7.9%, Kuala Lumpur’s NR latex rose 4.0%, and India’s Kottayam RSS4 rose That’s 3.7%.

At present, the consumption of natural rubber is continuously recovering. Ms. Ratchada, Deputy Spokesperson of the Prime Minister's Office of Thailand, said that in the past week, the price of Thailand's third-grade tobacco sheet rubber (RSS3) exceeded 60 baht/kg, a record high in the past three years. The price is high. And due to the demand of the international market, especially the increase in the number of orders placed in China after the economy began to recover, the price of smoked sheet glue will continue to rise. The new crown epidemic situation had an impact on the overall demand for rubber use at the beginning of the year, but Thailand’s rubber glove exports ranked second in the world, achieving a growth rate of 8-15%.