The global output of natural rubber (NR) may decline 2.3 per cent during the current year, according to the International Rubber Study Group (IRSG). According to the group’s projections, the total global production this year will be 9.65 million tonnes as against 9.88 million tonnes in 2008. Last year, the production had risen 1.8 per cent from 9.71 million tonnes in 2007.
Parallel to the decline in production, consumption is estimated to be down by 5.1 per cent to 9.2 million tonnes. The slowdown in production and consumption is attributed mainly to the current global economic turmoil that also engulfed rubber-based industries such as tyre producers. In 2008, consumption had fallen 1.6 per cent to 9.73 million tonnes, from 9.89 million tonnes in 2007.
China recorded 0.4 per cent increase in consumption to 2.56 million tonnes, the highest in 2008, followed by the US with 1.04 million tonnes (2.3 per cent higher).
Consumption in India grew 3.5 per cent. The country consumed 881,000 tonnes natural rubber in 2008 as against 851,000 tonnes in 2007.
Japan registered a drop of 1 per cent in consumption to 878,000 tonnes while Korea recorded the sharpest decline of 5 per cent to 358,000 tonnes last year.
On the production front, India, Thailand, Vietnam and Sri Lanka recorded an increase while China, Indonesia and Malaysia reported a sharp decline.
Meanwhile, the steep rise in price of crude oil badly affected production of synthetic rubber (SR) in 2008. Total production was 12.82 million tonnes last year, down by 4.6 per cent, as against 13.44 million tonnes in 2007.
The global average price of RSS-3, the benchmark grade, increased to Rs 103.79 a kg last year while the domestic average price was Rs 101.1 a kg.
