Natural rubber production to decline until early 2021 — ITRC

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 of ITRC member countries, namely Thailand, Indonesia and Malaysia (TIM), said the decline is attributed mainly to erratic weather, declining tapping activities due to the Covid-19 pandemic, and the Pestalotiopsis leaf fall disease.

“Natural rubber supply is further constrained by a shortage of tappers in Thailand and Malaysia.

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

It said despite the low production, consumption is expected to increase as China, the biggest consumer of natural rubber, accelerates 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.

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

Export data on TIM’s compounded and mixture 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.

Exports are projected to increase to 700,000 tonnes for this year.

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