KOTTAYAM(Commodity Online): In 2015, a 46% slump in global natural rubber surplus can be expected, according to the International Rubber Study Group. Demand will expand but falling prices may force farmers to reduce rubber tapping, the Singapore-based organisation said.
Production will outpace demand by 202,000 metric tons from 371,000 tons in 2014 and 650,000 tons last year. The group said in May the surplus this year would exceed the 714,000 tonnes in 2013 after it enhanced output estimates for Thailand.
Farmers are showing less enthusiasm for tapping while tyre demand is boosting usage. Global stockpiles are still expanding. Inventories will reach 3.79 million tons by the end of 2014 and 4.33 million tons by 2015, according to The Rubber Economist Ltd. Reserves will increase to the equivalent of 3.9 months of consumption at the end of 2014 from 2.5 months a year earlier.
Meanwhile, Indian farmers are in distress owing to the free fall in prices triggered by boost in imports. A recent report said India’s car sale growing thereby boosting demand from tyre makers. According to India Rubber Board, the monthly rubber prices have fallen from Rs13250 to Rs13050.
– Commodity Online
