Growth in natural rubber production in key growing countries may slow next year as heavy rains disrupt tapping and declining prices prompt growers to cut supply, according to the Association of Natural Rubber Producing Countries.
"Weather impacts and prices influence the trends of natural rubber supply," Kamarul Bahrain Bashir, secretary-general of the Kuala Lumpur-based association said in an interview yesterday. Prices move down following economic trends, driving producers to cut supply in response to declining demand, he said.
Demand set to rise
Production from its member countries, representing 92 per cent of global supply, may expand 3.7 per cent to 10.4 million tons next year. That compared with a revised growth of 5.6 per cent to 10 million tons this year, Kamarul said on a sideline of the Global Rubber Conference in Phnom Penh.
Demand from member countries, which accounts for 57 per cent of global consumption, is estimated to rise 2.9 per cent next year to 6.3 million tons, he added.
Declining supply will help support rubber futures which have tumbled 37 per cent this year.