Kuala Lumpur – The global market for natural rubber (NR) is set to strengthen during the second half of 2022, both in terms of production and consumption, according to the Association of Natural Rubber Producing Countries (ANRPC).

During June, global NR production reached a total of 1,113 kilotons (kt), up 3.8% from the same period in 2021, ANRPC said its latest ‘Monthly NR Statistical Report’.

Global consumption recorded faster growth, at 5.8%, amounting to 1,206kt during the same reference period, the association also reported.

Despite such favorable market fundamentals NR futures prices have been in decline over recent weeks: ANRPC’s report putting this down to market sentiment linked to a range of negative factors.

These, it said, included: a resurgence of Covid-19 in China; rising raw materials and energy costs; a tightening of monetary policies by central banks; and uncertainty over the continuing impact of Russia’s war on Ukraine.