ANRPC: Growth in natural rubber supply and demand slows down

Kuala Lumpur – The natural rubber market has seen a slowdown in growth rates for both supply and demand, the Association of Natural Rubber Producing Countries (ANRPC) has reported. 

The declines, compared to 2021, were linked to multiple factors, including the impact of Covid, labour issues and climate-related disruptions, the association said in its latest monthly report.

Total annual NR production reached 14.3 million tonnes in 2022, compared to 14.0 million tonnes reported the year before. The pace of growth, however, stood at 1.9%, down from 3.7% in 2021.

According to ANRPC, production growth was slower due to a “prevailing labour shortage”, leaf diseases, unfavourable climate and other local factors in respective producing countries.

Vietnam, China, Malaysia and Sri Lanka reported year-on-year decline in production, led by Malaysia and Sri Lanka which saw production dip by 16% and 8.4% respectively.

On the flip-side, production increased particularly across ANRPC members India and Bangladesh, which reported respective rises of 9.6% and 5.8% year-on-year.

Output in non-member “rest of the world” also rose considerably at 8.6% year-on-year, the ANRPC further stated.

World demand for NR also rose 1.9% to 14.8 million tonnes, but the growth rate was sharply down from 12.2% reported in 2021.

The slowdown in growth particularly reflected lower demand from Malaysia, Sri Lanka and China, which respectively reported declines of 10.5%, 9.1% and 1.6% year-on-year.

Some of the decline, however, was offset by sharp increases in consumption in Thailand and Vietnam, which reported year-on-year growth figures of 44% and 34% respectively.