KOCHI: The price of rubber has shown 10 per cent increase across the main markets in January, according to the Kuala Lumpur-based Association of Natural Rubber Producing Countries (ANRPC), accounting for 90 per cent of global natural output. “Throughout January 2017, rubber market has improved supported by favourable market fundamental in supply-demand and other external factors,” the ANRPC stated in its latest data on Natural Rubber Trends and Statistics for January 2017. The supply constraint in ANRPC countries is the main trigger for the uptrend in prices.
“The supply of natural rubber (NR) by the ANRPC member countries has declined with a negative annual growth at 8.4 per cent. The tight supply was attributed to production disruption in southern Thailand, as major producing provinces were badly hit by severe floods during January 2017,” said an ANRPC release. The commencement of early wintering season in major NR producing countries also hit the supply.
The uptrend was also attributed to the Japanese yen devaluation against US dollar and improved world economic outlook by the IMF based on its World Economic Outlook released in January 2017, the release added. The consumption of NR, however, witnessed a slowdown to 5,72,000 tonnes in January compared with 6,53,000 tonnes in the same month last year mainly due to low economic activities in China in conjunction with Lunar New Year celebration, the release said.
