Natural rubber production picks up as seasonal leaf fall ends

Kuala Lumpur – Natural rubber (NR) production and demand grew year-on-year in April, helped by the ending of seasonal leaf fall and signs of economic recovery globally.

“As the seasonal exfoliation period concludes and tappers begin to resume their harvesting activities, the supply of NR is recovering,” said the Association of Natural Rubber Producing Countries (ANRPC).

Based on data provided by ANRPC members, NR production for April is estimated to reach 747,000 tonnes, reflecting a 3.0% growth on a year-to-year basis.

The improvement is further driven by the price uptick in recent months, ANRPC noted in its April monthly NR review.

Consumption also increased 1.6% year-over-year to 1.2 million tonnes in April, as demand grew across Asian economies.

The Asian Development Bank's April outlook revealed that growth in Asia “will remain resilient” this year despite an uncertain external environment.

Furthermore, ANRPC said "a shift towards more dovish monetary policies" in most global economies, coupled with a recovery in exports of goods had resulted in “a positive regional outlook.”

Despite the positive signs, ANRPC warned that policymakers must remain alert to several risks.

These include escalating conflicts and geopolitical tensions that could disrupt supply chains and increase commodity price volatility.

Additionally, the US monetary policy, market conditions in China’s property sector, and adverse climate effects pose further challenges.

To enhance market resilience, ANRPC recommended that policymakers should prioritise strengthening trade, cross-border investment, and commodity supply networks.