Global supply of natural rubber will remain “tight” at least during the next seven years as output gains among key growers fail to match rising demand from tire and glove makers, according to a producers’ group.
“Tightness in supply will continue until 2018 as production growth is marginal or moderate,” Jom Jacob, a senior economist at the Kuala Lumpur-based Association of Natural Rubber Producing Countries, said in an interview in Bangkok yesterday. The member countries of the group, also called ANRPC, represent 92 percent of global supply.
A large number of producing rubber trees, which were planted during 1980s, will have to be uprooted between 2012 and 2018, reducing total area of plantations worldwide, Jacob said. Farmers delayed cutting down trees to take advantages of high prices, he added.
December-delivery contract today gained as much as 3.2 percent to 390.9 yen a kilogram on the Tokyo Commodity Exchange.