Rubber Output Is Expected To Fall Up To 10x Double!

 Natural rubber production is expected to decline over the rest of this year until the end of next year, according to the International Tripartite Rubber Council (ITRC).

Representatives of ITRC member countries, namely Malaysia, Indonesia, Thailand (TIM), the decline occurred due to unpredictable weather, lack of rubber tapping activities due to Covid-19, and leaf rot Pestalotiopsis.

“Natural rubber supply faces constraints due to lack of rubber tappers in Malaysia and Thailand.

"Winter in South Sumatra also contributed to the decline in natural rubber production," the ITRC said in a statement in conjunction with a two-day virtual meeting that ended yesterday.

The statement added that although rubber production was declining, consumption levels were expected to increase after China, the world's largest consumer of natural rubber, boosted economic activity.

The Chinese government has boosted its domestic automotive sector, contributing to the increase in rubber imports from TIM.

"The demand for natural rubber for dyed products, especially gloves used in the medical and health sectors will continue to record high increases and strengthen the price of natural rubber," the statement said.

China's TIM oak export data for the first seven months of this year showed an increase of 405,473 tonnes over the same period last year.

Exports are expected to increase to 700,000 tonnes this year.

Meanwhile, natural rubber production among ITRC member countries this year is estimated to have decreased by about 859,000 tonnes from 8.793 million tonnes last year.

Although the supply of natural rubber is declining, it is likely to drive up rubber prices.