South East Asia Rubber Market Study 2019
The rubber industry includes natural rubber which is obtained from the latex of various plants and synthetic rubber which is a man-made product made from petroleum. Asia accounts for 93% of the world natural rubber production with Thailand being the largest producer followed by Indonesia and Vietnam. Other large rubber producers in the region include India, China and Malaysia.
In 2019, the global natural rubber production stood at 13.804 million tonnes. It is expected that in 2020, the production will increase 2.7% to 14.177 million tonnes. The first two months of 2020 have recorded an annualized fall of 5.2% in global natural rubber production. The global synthetic rubber market is projected to grow at a CAGR of 5.1% in the period 2015-2023 and be worth USD 45,767.1 million.
Economic downturn being experienced by China which is globally the largest importer of rubber, is keeping rubber prices balanced in a scenario where supply outstrips demand. The oversupply situation persists even though the three largest producers of rubber, Malaysia, Indonesia, and Thailand are reducing output of the material used in manufacturing of a range of products from gloves to car tires. China is also the world’s largest consumer of natural rubber followed by India and the United States. The slowdown in the Chinese economy remains a concern for the global rubber industry. The Coronavirus global outbreak is expected to have long reaching hampering effects on the Chinese as well as the global economy.
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