ANRPC revises down natural rubber demand outlook as output set to grow

Kuala Lumpur – Global demand for natural rubber (NR) is set to decline marginally year-on-year, according to the latest figures provided by the Association of Natural Rubber Producing Countries (ANRPC).

Demand for the full year is expected to come in at 15.136 million tonnes, down from an earlier estimate of 15.240 million tonnes and 0.2% compared to 2023, ANRPC reported in its October review of the market.

The downward revision was primarily due to China’s lowering its outlook from 7.230 million tonnes for the year to 7.216 million tonnes and Malaysia’s annual revision from 355 million tonnes to 265 million tonnes.

Meanwhile the outlook for NR output has been revised up despite expected disruptions in production among Southeast Asian producers.

Production for the full year is anticipated to reach 14.528 million tonnes, up from an earlier estimate of 14.359 million tonnes and 4.5% higher than last year.

The upward revision, said ANRPC, was mainly due to updated prediction on Ivory Coast production to 1.8 million tonnes.

In October, production was recorded at 1.366 million tonnes, down 1.6% compared to the previous month.

This was partly due to supply disruptions caused by Typhoon Yagi in China, which affected 16,000 ha of rubber trees and continuing rain in parts of Thailand.

Demand during the month of October grew 1.1% month-on-month to 1.138 million tonnes as major consumers, including China and India experienced modest growth.

Conversely, many countries, including Thailand, Indonesia, Malaysia, and Vietnam, reported a substantial year-on-year decline in demand during the first month of the fourth quarter.