Natural rubber supply deficit continues in July, ANRPC says
For the first seven months of 2017, world production of natural rubber amounted to 6.838 million tons while world consumption reached at 7.486 million tons, resulting in a supply deficit of 648,000 tons, according to the Association of Natural Rubber Producing Countries (ANRPC).
The deficit will not drive up prices due to higher rubber inventories and the stronger yen, the association said. During July, natural rubber prices gradually improved along with the recovery in crude oil prices, especially during the first three weeks of the month. Market conditions have also narrowed the price difference between the two major TSR grades, STR-20 and SMR-20. The rebound of natural rubber prices was impacted by higher rubber inventories in regional futures markets.
As a result, natural rubber prices fell sharply projecting a downward trend in price over the last week of July in Thailand and Malaysia.