A surplus in the global natural rubber market this year will be 78% higher than estimated (652000 metric tons in 2014 v/s 366000 metric tons) as demand growth weakens and production in Thailand surpasses forecasts.
According to industry, worldwide production will continue to outpace demand over the next two years. World output may rise 1.1% to 12.2 million tons this year against consumption of 11.5 mn tons.
On the back, prices of international rubber continue to slide and expected to remain under pressure in near future (trading nearly 18-month low at 217.8 yen Kilogram in Tokyo exchange). Positive development for Indian tyre manufacturer particularly Apollo Tyres and Ceat Limited.
