Global rubber demand forecast at 25.7 mln T

Friday, 8 July 2011 03:18 - - {{hitsCtrl.values.hits}}

Reuters: Global demand for rubber, both natural and synthetic, is forecast to rise to 25.7 million tonnes in 2011, down slightly from an earlier estimate of 26.1 million tonnes in March, but still higher than last year's consumption, the IRSG said.

Global rubber consumption reached 24.6 million tonnes in 2010, 15.3 percent higher than in 2009, reflecting a strong recovery in the demand for vehicles and tyres, the International Rubber Study Group said in a statement.

Demand is forecast to rise further in 2012 to 27.6 million tonnes, said the IRSG without giving details.

“Global synthetic demand is expected to grow by 5.0 percent in 2011 and 9.0 percent in 2012, while global natural rubber demand is forecast to rise by 3.8 percent in 2011 and 5.4 percent in 2012,” it said.

“Partly due to the impact of higher prices, and assuming normal growing conditions, global natural rubber production is forecast to rise by 5.6 percent in 2011 and 8.2 percent in 2012.”

But natural rubber prices have tumbled nearly 30 percent 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.

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, another industry group, the ANRPC, said on Wednesday.