World demand of Natural Rubber (NR), including non-ANRPC (Association of Natural Rubber Producing Countries), is anticipated to grow by 1.7 per cent to 12.900 million tonnes during 2017 against 12.679 million tonnes in 2016. During the first half of 2017, world has consumed at 6.417 million tonnes of NR ocompared to 6.395 million tonnes in the same period last year, an increase of 0.34 per cent. Based on actual figure up to March, preliminary estimates for April to June 2017 and forecasts for July to September 2017, the world consumption of NR during the first nine month of 2017 is anticipated at 9.693 million tonnes, up 1.5 per cent from the same period in 2016.
According to ANRPC, World supply of NR during the first half of 2017 is expected to record a shortfall of 688,000 tonnes, as per preliminary estimates. The deficit is anticipated to narrow down to 466,000 tonnes by the end of the third quarter (September 2017) and 103,000 tonnes by the year-end (December 2017).
The reason behind slight growth in demand is that most of the ANRPC countries have consumed more NR than last year.
“Most ANRPC Member Countries have demonstrated growth in consumption. Major consumers such as India (2.3 per cent), Thailand (7.7 per cent), Indonesia (3.3 per cent), Malaysia (1.1 per cent) and Vietnam (10.4 per cent) have registered increase in demand. Meanwhile, China (-2.4 per cent), Sri Lanka (-29.8 per cent) and Philippines (-10.6 per cent) have demonstrated decline in consumption of NR during the same period, year-on-year basis,” the latest report from ANRPC said.
In Malaysia, the rubber gloves industry remains as the main domestic consumption at a rate of 70 per cent from the local consumption, it added.