Exploring strategies to help the natural rubber production sector get back to a sustained growth path, the Association of Natural Rubber Producing Countries (ANRPC) is organising its ninth annual rubber conference, in Guwahati, on October 17.
The conference, with the theme ‘Preparing for the paradigm shift’, will discuss strategies to bring the sector back to a sustained growth path. There will be special talks and panel discussions by renowned global experts, covering specific topics, including Emerging economic trends — Implications for the rubber industry in 2017 and beyond, the outlook for global supply and demand; expansion of rubber to sub-optimal agro-climatic regions, etc.
According to an ANRPC monthly report, the world has undergone a paradigm shift with developments in the crude oil industry in the last couple of years.
The era of low oil prices has serious implications for natural rubber prices. Growing uncertainty arising from low oil prices and resultant cheaper availability of synthetic rubber deters investments in rubber production.
Production by ANRPC members, which accounts for 90 per cent of global supply, has remained almost unchanged during the first seven months of this year. Total production up to July 2016 is estimated at 5.899 million tonnes, up 0.2 per cent.
However, in India, rainfall and other weather parameters have remained favourable for natural rubber production in June and July.
Referring to global natural rubber supply, the report said that production remains low regardless of mature area expansion every year. The total supply from ANRPC member countries grew only 0.2 per cent, during the first seven months. The natural rubber market has not been able to gain considerable strength from the near-zero growth in supply due to the weak demand outlook, low crude oil prices and weak currencies of major natural rubber exporting countries.