The Association of Natural Rubber Producing Countries hereby releases the most updated picture of emerging developments in supply, demand and market trends in world rubber market, through the monthly bulletin “Natural Rubber Trends & Statistics” for April 2017.
… Based on the assessment, world supply of natural rubber, including supply from non-ANRPC countries, is anticipated to remain short of demand during all months up to December 2017. The shortfall is expected to progressively widen from April 2017 onwards to reach 688,000 tonnes in June 2017 before narrows down in subsequent months to reach 46,000 tonnes by December 2017.
World supply during January to April 2017 was short of demand by 466,000 tonnes, according to preliminary estimates. Despite a deficit supply, natural rubber prices have moved along a falling trajectory from February 2017 onwards largely due to factors external to the sector. Crude oil prices sharply fallen from February 2017 due to rising US shale gas output and reported failure in the effective implementation of the production curtailment programme agreed among OPEC members and major non-OPEC oil producing countries. Low crude oil prices keep sentiments down at Shanghai rubber futures and physical markets often follow suit.