DEMAND AND SUPPLY OF NATURAL RUBBER

Salvatore Pinizzotto

Abstract

The current world consumption of rubber, totalling around 27.5 million tonnes per year, consists of 46% natural rubber (NR) and remaining 54% by different types of synthetic rubber (SR). Demand for elastomers, both NR as well as SR is well secured and is continuously increasing. Natural rubber is unique in the sense that it is consumed as an industrial raw material but produced as an agricultural commodity, predominantly in South-East Asia and around 85% of the global production is being sourced from independent smallholders. On the other hand, 71% of NR and 48% of SR have been used by the tyre industry globally. Mr Pinizzotto’s paper will present current and future trends in the supply and demand of Natural Rubber which market is highly dependent on planting investment decisions, weather induced volatility and the market price. Furthermore eliminating inefficiencies in the supply chain through the improvement of productivity and quality of harvested raw material is vital for enhancing the sustainable income of the smallholders.

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