By Jane Ho, Crain News Service
GUANGDONG, China (April 13, 2015) — The global rubber industry is facing a troubling rubber oversupply situation, for both natural (NR) and synthetic rubber (SR), according to Stephen Evans, secretary general of the International Rubber Study Group (IRSG).
Speaking at the 2015 China Rubber Conference in Guangzhou, Mr. Evans said the natural and synethetic rubber surpluses could reach 1 million and 3 million metric tons, respectively, by 2020.
Lack of economic growth is one reason for the underconsumption,” Mr. Evans said. “Recovery from the financial crisis has not fully happened.”
Global consumption of NR and SR, pegged at 12.3 million and 16.8 million tons respectively in 2015 — up 3.1 percent and 0.9 percent from 2014 — is projected to reach 15 million and 19.4 million tons in 2020, or 4.4- and 3.1-percent annual growth.
“If crude oil prices stayed down, it would add some stimulus,” he added, “increasing global rubber consumption by 500,000 tons in 2020.”