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Are the global Natural Rubber Markets in a demand-driven, Bullish phase?

Posted on : 09 Apr, 2010

According to a recent report in Business Week, the global natural rubber market is now in a “demand-driven bullish phase”. The magazine was citing a source from the Association of Natural Rubber Producing Countries.

 

Concerns over tight supply, strong oil prices and strong demand from tire manufacturers are behind the price surge.

 

Weather conditions are restricting production in major producers including Malaysia and Thailand, and a target of 6 percent growth in world supply this year may not be met because of this. According to the Association of Natural Rubber Producing Countries, production may gain to 9.54 million tons this year, as per a survey conducted in March. This is below the International Rubber Study Group’s forecast of as much as 10.6 million tons.

 

The surge in demand is also being attributed to increasing imports and consumption in China and India. Chinese imports of natural rubber surged 63 percent in the first two months of this year.  China recently overtook the U.S. as the world’s largest auto market and is currently the world’s largest rubber consumer. In addition, large-scale capacity addition taking place in the Indian auto tire manufacturing industry, and expected doubling of car sales indicates the possibility of a further acceleration in natural rubber demand in the country and more dependence on imports.

 

At the 5th Global Rubber & Tire Markets conference meeting in Shanghai on 1-2 June 2010, Mr. John McClure, a leading Research economist at LMC International will be discussing the Global Natural Rubber outlook. Mr. McClure’s speech will provide details on replanting plans in key rubber producing markets, factors driving demand, influence of oil price, the change in product mix, and the impact of the growing tire industry.

 

Those keen on participation can submit their registrations online by clicking on the link below.