ANRPC Nov-Dec rubber output seen down; to fuel rally

Monday, 29 November 2010 00:01 - - {{hitsCtrl.values.hits}}

MUMBAI (Reuters) - The Association of Natural Rubber Producing Countries (ANRPC) last week said heavy rains would see Nov-Dec output in its member countries fall by 4.5 percent to 1.755 million tonnes.

Heavy rainfall in key natural rubber producing countries like Thailand and India pushed prices to record highs earlier this month.

ANRPC countries produce 92 percent of the world’s natural rubber.

However, output of ANRPC countries in 2010 is estimated to rise 6.6 percent to 9.502 million tonnes after Indonesia revised upward its production figure, the association said in a statement.

“Assuming normal weather conditions, we are estimating the rise in production in 2011,” Jom Jacob, senior economist at the ANRPC, told Reuters from Kuala Lumpur. In 2011 it is likely to rise by 4.2 percent to 9.898 million tonnes.

The association cut 2010 output estimate for Thailand, the world’s biggest producer, to 3.12 million tonnes against the previous estimate of 3.25 million tonnnes.

China, the world’s biggest importer, is likely to remain an active buyer in 2011 and is likely to import 1.75 million tonnes, compared to 1.72 million tonnes in 2010, Jacob said.