[22 Dec] Malaysia Raises 09 Compound Rubber Export Projection 11%

Malaysia has increased its compound rubber export projection for 2009 by 11%, signifying a notable shift in the trading pattern to China.

Compound rubber export figures have increased in importance recently, as many exporters are blending natural rubber with miniscule amounts of synthetic rubber to be eligible for duty-free imports by China.

Exports of compound rubber for the year are now projected at a record 398,514 metric tons due to a surge in shipments to China, government data showed Monday.

Exports to China during the January-September period totaled 312,130 tons, according to the data, up from an estimate of 302,664 tons. Malaysia's total compound rubber exports during the period are now pegged at 325,407 tons.

The data are not part of Malaysia's monthly rubber statistics; they are now being fine-tuned in light of the shift in export shipments to China to compound rubber from natural rubber, said a senior Malaysian government official.

He said the data on natural rubber alone won't be able to give the complete picture of the demand-supply situation because even compound rubber contains 97%-99.5% natural rubber and such blending has shown a significant rise.

China is the largest buyer of Malaysia's rubber by volume. Due to the shift in trading pattern, its purchases of compound rubber exceed those of natural rubber in many months.

For example, Malaysia exported 12,612 tons of natural rubber to China in September and 29,790 tons in October, while average monthly exports of compound rubber to China this year are close to 35,000 tons.

Malaysia's compound rubber exports in 2009 are now expected to be 46% higher on year, despite an upward revision in the estimate of last year's shipments.

The estimate for 2008 has been raised to 272,174 tons, including 255,703 tons to China. Earlier, they were estimated at 242,401 tons, including 227,112 tons to China.

"The data has been revised to take into account exports of compound rubber made from imported natural rubber," said the government official.

(Source: irco.biz)