Rubber consumption expanded 3.1% in Q1

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Tuesday, September 4, 2012
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* D% F6 `- y) c# }4 T0 |Singapore - The International Rubber Study Group reported that total global rubber consumption increased to 26 million metric tons on a moving annual total (MAT) basis in March 2012, increasing from 25.9 mmt in December 2011, expanding at 3.1 percent rate. The IRSG said total global natural rubber consumption has been stagnant, range-bound at 10.8 mmt to 11 mmt at a MAT basis since December 2011, while touching 10.9 mmt in March 2012 at a MAT basis. The global synthetic rubber consumption, on the other hand, increased robustly in the three months to March 2012, rising to 15.1 mmt on a MAT basis. Global total rubber supply continued to increase by 4.7 percent in March 2012 to 26.3 mmt in March 2012 at a MAT basis, while NR supply was 11 mmt and SR output was 154.2 mmt. The group said the relatively faster rate of growth of production resulted in a surplus for both the NR and SR markets, adding to their respective stocks. In March 2012, the NR stocks level was 1.7 mmt and the SR stocks level was 3.2 mmt. Global total NR exports expanded at a decelerating rate to 7.5 mmt in March 2012, while the SR exports increased by 5.6 percent to 8.7 mmt, respectively. The group reported that NR physical market prices were on a down trend through the second quarter on sluggish demand amid rising concerns over weak outlook of the global economy. The reported release of inventories in the bonded warehouses in China, as well as Thai market intervention for price control, had no impact on prices under the ‘bearish’ NR market situation.