Rubber prices likely to remain higher, production to be lower than consumption

According to the latest estimates by the Association of Natural Rubber Producing Countries (ANRPC) for 2021, world production of rubber this year has been up by nearly 1.4 percent compared to the previous year but consumption has been much higher at 8.9 percent. So, production and consumption clearly show a mismatch for 2021. And, this may happen in the coming few years as well.

As per Rubber Market Intelligence Group data, in 2022, nearly a 5 percent gain in world consumption is expected. So, while production is expected at 14.5 million tonnes, consumption is expected at 14.7 million tonnes. That is the pattern of forecasts for 2023 and 2024.

Various global rubber agencies estimate the production numbers to be slightly lower than consumption numbers and therefore, the rubber prices are expected to continue to gain.