Rubber imports down by 34 per cent in India
The consumption of rubber during the period was 1.95 million tonne, or 78 per cent of the output.
KOCHI: The import of natural rubber to India declined sharply by 34.7 per cent in the first three months of 2017. According to preliminary data released by the Kuala Lumpur-based Association of Natural Rubber Producing Countries (ANRPC) on Friday, natural rubber import in January-March 2017 was 65,000 tonne as against 99,000 tonne in the same period a year ago. Improved domestic production and lower prices in the domestic market made imports less attractive, according to the Natural Rubber Trends and Statistics released by ANRPC.
“Improvement of rubber prices, intensive campaigns and focused extension services have created interest among rubber farmers,” it said. The ANRPC report has assumed stable price for natural rubber in the second quarter on account of improved demand from China and the prevailing balanced demand-supply situation. The outlook for demand from China, the world’s leading consumer, has improved following the withdrawal of US tariff on tyres of heavy commercial vehicles originating from China. The report mentioned that “improved economic outlook in the US and Europe suggests possibility of faster growth in demand for rubber from non-ANRPC regions”.
The expectation of firm trend in crude oil prices due to the OPEC countries planning an extension of the production cuts is also likely to help rubber prices to stay firm. In the first quarter of 2017 the member countries of ANRPC, accounting for 90 per cent of global rubber output, produced 2.49 million tonne, up 2 per cent from the same period a year ago. The consumption of rubber during the period was 1.95 million tonne, or 78 per cent of the output.