17 Aug 2021
Based on the preliminary estimates from member countries, the outlook of natural rubber (NR) production in 2021 trimmed down to 13.782 million tonnes following a downward estimate for Malaysia’s production by 30,000 tonnes. Signs of recovery observed in majo
The Association of Natural Rubber Producing Countries (ANRPC) releases the Natural Rubber Trends, July 2021.
Based on the preliminary estimates from member countries, the outlook of natural rubber (NR) production in 2021 trimmed down to 13.782 million tonnes following a downward estimate for Malaysia’s production by 30,000 tonnes. Signs of recovery observed in major economies as the containment measures eased, this has led to an anticipated world demand of NR of 13.900 million tonnes, up 7.2% growth from previous year when the world was first hit by the pandemic.
Prices of physical NR market were volatile during July 2021. However, signs of recovery observed in block rubber, rubber sheet, and latex as compared to the same period last year. For block rubber, the average daily FOB price of STR-20 recovered from US$1.28 per kg in July 2020 to US$1.61 per kg during July 2021. While SMR-20 prices averaged at US$1.64 per kg, rose US$0.45 per kg from July 2020.
In rubber sheets market, the price deviation between average daily FOB price of RSS-3 in Bangkok and RSS-4 in Kottayam widened during July 2021 as compared to July 2020. It was recorded at US$0.16 per kg in July 2020 and increased to US$0.42 per kg in July 2021. As latex products including gloves are highly demanded amid this pandemic, the latex price in Kuala Lumpur also improved from US$1.11 per kg in July 2020 to US$1.20 per kg in July 2021.
In view that rubber is an essential commodity in various industries especially its latex products in medical fields for combating with this virus. Despite the NR market is subject to other external factors, such as growth of other commodity markets, e.g. oil, the global economy and others, the adverse impact could be weighed off by the favourable market fundamental in NR market.
The incessant support and cooperation extended by the esteemed users, statistical correspondents, and stakeholders are once again gratefully acknowledged.
Mr. R. B. Premadasa