ANRPC revises up global rubber output to 9.96MT

Friday, 1 July 2011 02:32 - - {{hitsCtrl.values.hits}}

Reuters: Key global natural rubber production was forecast at 9.96 million tonnes in 2011, slightly higher than a previous estimate of 9.94 million tonnes on an upward output revision by the second-largest producer Indonesia, industry group ANRPC said on Wednesday.

But a downward revision was still possible because yielding areas in Indonesia were expected to drop by 37,000 hectares this year, while falling rubber prices could also curb supply, the Association of Natural Rubber Producing Countries (ANPRC) said.

ANRPC production reached 9.47 million tonnes in 2010.

“The marginal upward revision is due to the scaling up of Indonesia’s forecast by the government to 2.95 million tonnes from 2.89 million tonnes expected until a month before,” ANRPC said.

“But it will be a challenge to achieve a higher target,” the industry group said. “Lower prices may push the supply down due to farmers’ short-run response and uprooting of low-yielding aged trees for replantation.”

Natural rubber prices have tumbled nearly 30 per cent from a record high due to uncertainties in the outlook for the global economy, monetary tightening in China, a devastating earthquake which hit auto production in Japan, and now rising supply in main producing countries.

ANRPC members include Thailand, Indonesia, Malaysia as well as Cambodia, China, India, Papua New Guinea, the Philippines Singapore, Sri Lanka and Vietnam, accounting for 92 per cent of global output.

The group also accounts for 92 per cent of global exports and 48 per cent of global consumption of natural rubber.