[26 Jan] Global 2009 Natural Rubber Supply Down 5.1%

Global supplies of natural rubber fell around 5.1% in 2009 due to lower yields and adverse weather, the Association of Natural Rubber Producing Countries said Monday, issuing provisional estimates.

All major producing countries except China and Vietnam showed a decline in production in 2009. However, production figures for Thailand in December and for Indonesia in November and December are yet to be finalized.

Production in Thailand was an estimated 4% lower on year during the January-November period is estimated down 4% from the same period of 2008. In Indonesia, production during the January to October period fell 5.9% from a year earlier.

Malaysia's production dropped 22% in 2009 and India's 7.3%, the ANRPC said.

Lower demand during the first half of 2009 due to the global economic recession also discouraged growers from producing more rubber. Indonesia's natural rubber exports fell 17% during January-October.

China's production rose 18% last year, rebounding from the drought of 2008, while Vietnam's increased by 9.7%. China's yielding or active area under rubber rose by 25,000 hectares and Vietnam's by 23,000 hectares.

The overall fall in global production was mainly due to lower yields, though active area under the crop expanded to 7.13 million hectares last year from 7.0 million hectares in 2008. The average yield was down at 1,219 kg/hectare from 1,304 kg/hectare.

In Thailand, production is provisionally estimated 6.1% lower in 2009, as annual yield fell to 1,576 kg/hectare from 1,698 kg/hectare. A 21,000 hectare expansion in active area under natural rubber could not fully offset the decline in yield.

In Indonesia, the average annual yield fell to 937 kg/hectare from 994 kg/hectare. Area expansion was marginal around 1,000 hectares.

Malaysia's natural rubber acreage shrank by 20,000 hectares in 2009. Yield declined to 1,128 kg/hectare from 1,411 kg/hectare in 2008.

India's average annual yield declined to 1,753 kg/hectare from 1,903 kg/hectare. The active area under rubber expanded a marginal 3,000 hectares.

(Source: irco.biz)