Natural rubber production as reported in the Natural Rubber Trends and Statistics of the Association of Natural Rubber Producing Countries (ANRPC) (Vol. 7. No. 6/June 2015), fell by 0.7% (-35,000 MT) to 5.041 million MT in the first half of 2015 as compared to 5.076 million MT in the same period of 2014.
The decrease of NR production in 9 ANPRC member countries were mainly due to unattractive prevailing low NR price which discourage smallholders to tap as well as the prolonged hot and dry weather from El Nino particularly in Southeast Asia.
On the other hand, the International Rubber Study Group in its latest report stated that the NR production for 2015 would increase by 4.4% to 12.6 million MT from 12.07 in 2014.
Judging from current production scenario, IRCo is of the view that the global NR production in the second half of 2015 would not increase as much, if price remains low and weather continues to be dry.
Latest update in Thailand, the biggest producer of NR confirmed the El Nino effect. Its Government has ordered provincial governors to work with the military and police to stop farmers from diverting water to farmland. Thailand’s Prime Minister Prayut Chan-o-cha has even warned farmers to brace for the impact from reduced dam water releases.
International Rubber Consortium Limited (IRCo)
16 July 2015
