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2015 global rubber output fell
TIME :2015-11-23


       Rubber prices have been close to the six-year lows, and thus lead to Asian farmers reduce tapping, thus feeding the global rubber output in 2015 will be the second consecutive year. However, analysts believe that the decline in rubber production this year will help reduce inventory, and drive the price so far after falling more than 25 percent rally this year.

       The Secretary-General Association of Natural Rubber Producing Countries (ANRPC) Sheela Thomas said: "During the tapping season Jiaojia downturn adversely impact on the overall yield."
       Thomas said, ANRPC member rubber output this year is expected to be below last year's 10.952 million tons, due to Thailand, Indonesia, Malaysia and India rubber farmers tapping pause. But she did not indicate how much the yield decline.
       Rubber production ANRPC member countries account for about 92 percent of global rubber output. Earlier this year, ANRPC rubber output this year is expected to increase more than 5%, but weak pricing environment is expected to make this setback.
       Data show that, ANRPC in January - Rubber production in October of 900 million tons, compared with same period last year decreased by 0.9%. 2014 ANRPC rubber output reduction of 1.9% compared to the previous year.
       Asian rubber production in the fourth quarter is usually the peak season, when the weather is cool, tapping environmental suitability. In the first quarter, the weather is dry, the rubber tree leaves, this time the rubber production is usually reduced.
       Thailand's Chatchai Sarikulya agriculture minister, said: "This is by tapping reduce market impact when rubber prices fell, farmers select Pause tapping.." Thailand is the world's largest rubber producer. In addition, Thai rubber price has fallen 29% so far this year, in line with the international market.
        Thomas said Thai farmers respond to weak Jiaojia will help contain the global rubber output, but the policy of the Government recently introduced to support farmers may make limited yields decline.
        The Thai government has approved $ 13 billion baht ($ 365 million) support program to help suffering trauma prices fell to multi-year lows of rubber farmers.
        President of the Rubber Association of Indonesia (the Indonesian Rubber Association) in Moenardji Soedargo said Indonesia would lead to reduction of tapping the country's rubber production in 2015 by 10%. Indonesia is the world's second largest rubber producer.
        He said: "There are several factors that cause cuts First, El Nino and a female weather is not conducive to photosynthesis; secondly, rubber prices are too low to stimulate farmers and plantations continue to produce.." Some Indonesian rubber farmers have even cut down rubber trees change to other crops such as cassava.
        ANRPC expected, India's rubber production in 2015 will be reduced by 13.4%, to 61 million tonnes. The southern Indian state of Kerala rubber trader George Valy said many Indian households currently make ends meet, was forced to suspend tapping.
        But Thomas said that despite the economic slowdown, China's rubber imports is increasing, or that help support prices. China is the world's largest rubber consumer, the first 10 months this year, China imported 3.64 million tons of rubber, representing an increase of 8.6%.
        In addition, other ANRPC member countries, including Cambodia, China, Papua New Guinea, the Philippines, Singapore, Sri Lanka and Vietnam.