The forecast for the consumption of natural rubber is growing
The Association of Natural Rubber Producing Countries (ANRPC) has changed its forecast for the consumption of natural rubber on the world market upward. Demand is expected to accelerate its recovery and grow by 2.2% compared to the previous year to 14.639 million tons, while pandemic and geopolitical conflicts related uncertainties remain. In March, it was predicted that the market would grow by only 1.2%, to 14.332 million tons.
At the same time, ANRPC lowered its forecast for rubber production in the world. This is expected to be 14.179 million tons (+1.8% compared to 2021), and not 14.292 million tons, as previously predicted.
The changes are associated with a decrease in rubber production in Indonesia – from 263 thousand tons in March to 257 thousand tons in April 2022. Global rubber production volumes increased in April compared to March – from 904 to 941 thousand tons. At the same time, demand decreased slightly – from 1.275 to 1.21 million tons.
The association noted that "the global economic recovery continues, but the uncertainties caused by geopolitical instability and lockdown in Chinese cities still affect the industry."
News source: polymerbranch.com