World NR supply falls 8.3% in first half

Kuala Lumpur – The world supply of natural rubber (NR) fell 8.3% to 5.853 million tonnes during the first half of 2019, on a year-to-year basis, according to figures released by the Association of Natural Rubber Producing Countries (ANRPC).

Global demand for the commodity rose 0.8% to 6.933 million tonnes during the same reference period, said ANRPC in an 18 Oct statement. 

Despite the presence of “favourable market fundamental”, particularly in physical rubber market, other external factors such as uncertainties created by the China – US trade war, rising tension in Middle East and the slowdown in Chinese economy, weighed in on the market, the association noted.

“The worries over the escalated trade war tension between China and US has made the traders remain conservatives in trading position,” it noted.