ITRC: NATURAL RUBBER PRODUCTION TO DECLINE UNTIL EARLY 2021

KUALA LUMPUR, Sept 24 -- Production of natural rubber is expected to decrease for the rest of 2020 and into early 2021, said the International Tripartite Rubber Council (ITRC).

Representatives from ITRC member countries, namely Thailand, Indonesia and Malaysia (TIM), said the decline was attributed mainly to erratic weather, declining tapping activities due to the COVID-19 pandemic, and the pestalotiopsis leaf fall disease.

“The natural rubber supply is further constrained by the shortage of tappers in Thailand and Malaysia.

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“The cold season in South Sumatera also contributed to the decline of natural rubber production,” the ITRC said in a statement in conjunction with its two-day virtual meeting ending yesterday.

It said despite the low production, consumption was expected to increase as China, the biggest consumer of natural rubber, accelerated its economic activities post-COVID-19 lockdown.

The Chinese government has been encouraging its domestic automobile sector, leading to an increase in rubber imports from TIM.

“The increasing demand for natural rubber latex for dipped products, particularly gloves used in the medical and health sector, would continue to record a strong demand and strengthen natural rubber prices,” the council said.

The export data for TIM’s compounded and mixtures rubber to China for the first seven months of this year showed an increase of 405,473 tonnes compared to the same period in 2019.

The projected exports are expected to increase to 700,000 tonnes for this year.

On top of that, natural rubber production in ITRC member countries for the year was estimated to decrease by at least 859,000 tonnes from 8.793 million tonnes in 2019.

-- BERNAMA