Global Rubber production up half a million tons

Global rubber output is expected to climb to 12.9 million tons in 2017 up from last year’s 12.4 million tons, the International Rubber Study Group (IRSG) said.

Rubber was one of the best performing markets in 2016 and shot up again in January as flooding in Thailand created supply worries. Although, prices slid nearly 20 per cent in February on expectations of a recovery in Thai production.

Lekshmi Nair, IRSG’s head of economics and statistics, told reporters in Singapore that Thailand lost about 25 per cent of its output in the January floods.

Nair added: “But we are forecasting higher output this year as Thai production is expected to recover.”