8 October 2013
Bloomberg Newswires reports today that the rubber price will rise another 17% to 310 US cents/g (300 yen/kg) by December 2013, according to the median of 15 analyst estimates compiled by Bloomberg News, as there are many following supportive factors. A natural rubber (NR) surplus will narrow by at least 12% to 284,000 tons for this year, said International Rubber Study Group (IRSG). China’s auto sales will be record global purchases in 2013 after its auto sales rose 13% in the first eight months of the year. Importantly, global auto sales will rise 2.9% to an all-time high of 83.5 million units this year and another 5.4% to 88 million units in 2014, said LMC.
NR production in Thailand, the biggest producer, fell 7% in the first half of the year and exports contracted 5%, according to the Rubber Research Institute of Thailand (RRIT). NR production inMalaysia, the third biggest producer also fell 11% in the first eight months from the previous year because of bad weather, reported by the Association of Natural Rubber Producing Countries (ANRPC). And NR production in India, the fourth biggest producer, produced 32% less in July than the previous year caused by monsoon rains, said Rajiv Budhraja, a member of the government-run Rubber Board.
In addition, China’s State Reserve Bureau is seeking 150,000 tons of NR in the country and 50,000 tons of imports for government stockpiles, added by Bloomberg Newswires.
Source: IRCo
