Kochi: Demand for natural rubber from India, the European Union, the US, and Japan anticipated to get a boost in the short term considering the hidden momentum produced from further appointment of restrictions related to Covid-19, the revival of transportation and other economic activities, said the latest report from the State Association Natural rubber producer (ANRPC).
“It was very surprising that the consumption of the World NR had posted abnormal growth in the years as soon as the historic disaster in the form of World War, Spanish flu, and severe depression.
The Consumption of the World NR posted a 33% increase in 1919 (soon after World War I), 45 The% surged in 1922 (following Spanish flu), 19% jumped in 1933 (following severe depression), and an increase of 121% in 1946 (immediately after World War II), “the report said.
“Although such abnormal growth is not expected in the current scenario, moderate short-term encouragement can be expected for life back to normal after almost two years of locking and restrictions.
Following a 6.9% decline in 2019, the world demand for NR is expected to increase by 8 , 3% to 14.0 million tons in 2021.
With the world supply this year it is estimated at 13.8 million tons, in 2021 it is likely to witness the global shortage of around 200,000 tons.
Although the shortcomings are not substantial relative to global demand, this can reflect on Physical markets in the last two months of this year, “the report added.
The NR economy over the past five years (starting in 2016 and so on) has been under the grip of excess production capacity caused by abnormal expansion of the area occupied by adult trees, anrpc reports highlighted.
“Even though global mature areas are expected to develop with almost 250,000 hectares in 2022, the production increase produced is likely to be absorbed by strong global demand,” he said.
According to ANRPC, India has produced 75,000 tons of rubber during 2021 September and according to the estimated Introduction, production will decrease to 55,000 tons in October 2021, but it will grow to 1 lakh tons in November and 1.05 lakh tons in December 2021.
Meanwhile, in the meantime, In India, the price of rubber is on the higher side.
RSS-4 Rubber Prices Reach Rs 183 per Kg in Kottayam on Thursday, the leading natural rubber market in the country.