ANRPC: Global natural rubber demand is expected to increase by 7.2% in 2021

ANRPC's latest July report predicts that in 2021, global natural rubber production is expected to increase by 5.
2% year-on-year to 13.
782 million tons
.
Among them, Thailand increased by 6.
9%, Indonesia increased by 2.
8%, China increased by 18.
5%, India increased by 13.
9%, Vietnam decreased slightly by 0.
3%, and Malaysia increased by 3%
.
Compared with the June forecast, Malaysia's production has been revised down by 30,000 tons
.


Global natural rubber production is expected to increase by 7.
1% to 1.
216 million tons in July
.
Among them, Thailand increased by 18.
5%, Indonesia increased by 6.
2%, Vietnam decreased by 15.
1%, and Malaysia increased by 7.
7%
.


  With the relaxation of global containment measures, major economies are showing signs of recovery, which will result in global natural rubber consumption expected to increase by 7.
2% year-on-year to 13.
9 million tons in 2021
.
Among them, China increased by 2%, India increased by 10.
5%, Thailand decreased by 10%, and Malaysia decreased slightly by 0.
5%
.


  Global natural rubber consumption is expected to increase by 5.
4% to 1.
146 million tons in July
.
Among them, China fell 1.
7%, India fell 6.
8%, Thailand fell 12.
3%, and Malaysia fell 11.
1%
.


  In July, natural rubber spot market prices fluctuated
.
However, compared with the same period last year, the market for standard rubber, smoked sheet rubber and latex all showed signs of recovery
.
In terms of standard rubber, the average daily FOB price of STR20 has risen from US$1.
28 per kilogram in July 2020 to US$1.
61 per kilogram in July 2021
.
The average price of SMR20 is US$1.
64 per kilogram, an increase of US$0.
45 from July 2020
.


  In terms of tobacco sheet glue, compared with July 2020, the deviation of the average daily FOB price between Bangkok RSS3 and India RSS4 in July 2021 has increased
.
In July 2020, it was US$0.
16 per kilogram, and in July 2021, it was increased to US$0.
42 per kilogram. .
Due to the high demand for latex products including gloves during the pandemic, the price of latex in Kuala Lumpur has also increased from US$1.
11 per kilogram in July 2020 to US$1.
20 per kilogram in July 2021
.


  In view of the fact that rubber is an indispensable commodity in all walks of life, especially its latex products used in the medical field to fight this virus
.
Although the natural rubber market is affected by other external factors, such as the growth of other commodity markets, oil, global economy, etc.
, good natural rubber market fundamentals may offset its adverse effects
.