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November 05, 2010 02:00 AM

NR supplies to tighten worldwide in fourth quarter, according to ANRPC

Tire Business Staff
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    KUALA LUMPUR (Nov. 5, 2010) — Global supplies of natural rubber (NR), already tight throughout 2010, are expected to worsen in the fourth quarter, according to the latest forecast from the Association of Natural Rubber Producing Countries (ANRPC).

    Increases in crude oil prices and the strengthening of Southeast Asian currencies against the U.S. dollar will ensure high prices for NR in November and December, the ANRPC said in the October issue of its monthly publication, Natural Rubber Trends and Statistics.

    China's concerns over NR supply caused the Chinese economy to increase purchases sharply in October, and the country is expected to increase its NR purchases by 41.5 percent over the quarter, the ANRPC said. By the same token, the ANRPC expects its member nations to increase NR production by only 5.3 percent this year, and even that is optimistic because of unseasonal heavy rains in Malaysia and Thailand during October.

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