ANRPC rules out bullish trend in rubber market

KOCHI: The Kuala Lumpur-based Association of Natural Rubber Producing Countries (ANRPC), which accounts for 90 percent of global natural rubber production, sees bleak chances for an uptrend in prices in 2016 and the year ahead. “The weak demand is likely to hold back the anticipated slow growth from translating to a bullish market,” natural rubber trend and statistics it released said.

It identifies nearly zero-growth in supply, slackening demand due to global economic slowdown and weak crude oil prices as three key trends that would determine fortunes. In the context of prevailing global economic uncertainty and down-scaling of world economic outlook, the demand is likely to stay weak. The anticipated weak demand outlook is likely to offset the positive effect of low supply, the report said.

The report has also stated that “short-term energy outlook suggests that natural rubber market is unlikely to gain support from crude oil during this year”.   It, however, expressed optimism that the “near-zero growth in supply during this year and next year is expected to generate positive sentiments in the market”.