The world demand for natural rubber (NR) is estimated to revive in the third quarter of 2020 after declining 14% year-on-year throughout the first seven months (January-July), the Association of Natural Rubber Producing Countries (ANRPC) mentioned on Thursday.
The inter-governmental organisation of 13 rubber producing international locations in its newest report mentioned the worldwide demand for NR is prone to fall by 2.9 % in Q3 of 2020, after it fell 15% in Q1 as a result of of China and 15.8% in Q2 as a result of contraction of demand in different international locations.
The ANRPC mentioned consumption of NR is predicted to make recovery throughout the third quarter (July-Sept 2020) on account of the US economic system recovering quick, the Chinese manufacturing sector rebounding and rebound in automobiles manufacturing and gross sales in China and India.
Preliminary estimate reveals that China consumed 456,000 tonne of NR in July, carefully matching with 464,000 tonne consumed throughout the identical month of the earlier yr, ANRPC sources mentioned. The outlook for the world consumption for the complete yr 2020 has been revised downwards in view of the lower-than-expected efficiency throughout April-June in the US and the EU at 12.544 million tonne, a fall of 8.9% from the earlier yr.
“The developments in the market in the short and medium term heavily depend on the global economic recovery and a revival of the automobile industry and the transport sector. The realisation of these depends on how early an effective vaccine against coronavirus is developed and its mass production is achieved,” RB Premadasa, secretary-general of ANRPC, mentioned. ANRPC estimates that world manufacturing of NR fell 8.9% year-on-year to six.721 million tonne throughout the first seven months of 2020.