NEW DELHI: Despite significant fall in the industrial activities around the world, global natural rubber demand is expected to be firm in 2013 on rising demand. Demand for natural rubber from emerging economies like, Brazil, China and India likely to go up on improved industrial activities.
Recovering Chinese manufacturing sector would help to rise in demand for rubber. Last November, China’s auto sales grew to 1.79 mn vehicles, an increase of more than 11.5 percent from the October sales and 8.16 percent up from the corresponding period of last year, according to the reports.
Monetary and fiscal stimulus adopted by Japan, United States and Japan may help to accelerate global market recovery and boost raw-material demand.
In Thailand, the world’s largest producer and exporter, rubber production may decline in the first quarter of 2013 on winter season which begins from February.
Rubber futures on Tokyo Commodity Exchange (TOCOM), global benchmark for rubber, will climb 14 percent to 344 yen a kilogram ($3,981 a metric ton) by March – states Bloomberg.
On the other hand, recovering U.S. auto industry, pick up in truck demand and a stable economy are expected to push auto sales above 15 mn for 2013.
Earlier, Thailand, Indonesia and Malaysia, representing 67 percent of total global rubber supply, have agreed in August to combat lower prices by limiting shipments and cutting down trees and paring 450,000 tons.
New vehicle registration in U.S would go up 15.3 mn as consumers with more access to loans and leases ,continue buying- says automotive forecasting firm R.L. Polk & Co.
In U.S last year’s new vehicle sales are on track to hit 14.4 mn. The final count is expected to be disclosed on Thursday when auto makers release December U.S. sales data- reports Wall Street Journal.
International Monetary Fund projects a 3.6 percent global economic expansion in 2013, from 3.3 percent this year.
In Thailand, the world’s largest producer and exporter, rubber production may decline in the first quarter of 2013 on winter season which begins from February.
On the other hand, Rubber production in Indonesia, the second-largest grower, may drop for the first time in four years in 2013 as the country limits output and shipments in coordination with other producers.
In India, higher rubber import at lower prices from Cambodia, Vietnam and other south east Asian countries has directly led to fall in the prices of natural rubber. Indian rubber grower are holding their stocks with the anticipation of better market prices in near future.
However, natural rubber prices may remain weak in the early period of 2013 on higher imports. India imported 22748 tons of natural rubber in November 2012 against 16125 tons of corresponding period of last year.
Commodity Online
