Association of Natural Rubber Producing Countries (ANRPC) has rolled back its estimate of global production and consumption of natural rubber (NR) in the year 2020. At the same time, the Kuala Lumpur-based organization downsizes its own May estimate of NR production by 3,03,000 tonne, and as per the revised outlook of the global production of natural rubber (NR), it is expected to fall by 4.7% to 13.130 million tonnes during 2020.
However, ANRPC’s statistical bulletin (May), released this week, said that the NR price has started reviving globally by the reopening of economic activities across the world.
“The recovery is likely to continue, albeit at slow pace and subject to a set of risk factors, said RB Premadasa, secretary-general of ANRPC.
Moreover, the market analysts at ANRPC are listing four factors for “the positive sentiment” that drives the price recovery namely-
- Global relaxation of lockdowns
- Increased hopes on the COVID-19 vaccine.
- Hike in crude oil prices
- The substantial contraction in the world production estimates of NR in the first two quarters of the current year.
“However, the geopolitics centered on US response to China’s national security legislation for Hong Kong has affected market sentiments in May-end,” said Premadasa.
As per the ANRPC bulletin, the global consumption of natural rubber (NR) in 2020 is expected to fall by 6% to 12.904 million tonnes and in India, it is scaled down to 0.9 million tonnes, from the 1.065 million tonnes estimated in April 2020. Meanwhile, China has upscaled its NR consumption from 5.21 million tonnes to 5.24 million tonnes.