KUALA LUMPUR, Malaysia (March 10, 2017) — Production of natural rubber by member countries of the Association of Natural Rubber Producing Countries (ANRPC) fell 2.2 percent in the first two months of 2017 vs. 2016, according to the latest report by the association.
The drop, according to the ANRPC's March report, was mainly caused by floods in south Thailand and an "unusual early onset of leaf-shedding off-season" across producing countries.
According to the report, the fall in supply coincided with a 3.3-percent rise in demand from within the ANRPC region, creating "favorable" supply-and-demand fundamental.
"While the demand-supply fundamental is likely to stay favorable during period from March to May 2017, prices can swing on either side in response to developments in crude oil sector, variations in currencies and flow of speculative funds," the report said.
Also according to ANRPC figures, NR production is set to rise 4.2 percent this year, 0.2 percentage points higher than the figure announced earlier in the year.
The ANRPC said that supply is anticipated to rise in most of the countries in 2017 while Indonesia is expected to see a marginal fall.