Thai rubber output to see marginal increase while demand remains high
Output of rubber is expected to increase by 1.82 per cent in 2022 over the previous year, the Rubber Authority of Thailand (RAOT) said.
Farmers will produce approximately 4.9 million tons of rubber, the RAOT said.
The volume of rubber exports in 2022 is expected to be approximately 4.21 million tons, an increase of 2.03 per cent from the previous year.
In the first quarter, rubber exports are expected to be approximately 1.10 million tons, an increase of 4.29 per cent, while rubber stocks are likely to decline, which is in keeping with the trend of decreasing stock in Qingdao, China. It is one of the factors helping boost exports.
The Association of Natural Rubber Production Countries (ANRPC) estimates global rubber production at approximately 14.55 million tons and the consumption at 14.39 to 14.82 million tons. Rubber consumption is forecast to expand by 2-5 per cent, so production in 2022 could be less than the demand for rubber.
This year's rubber support factor include season and weather conditions and the Covid-19 epidemic, which led to more need for rubber gloves and PPE suits, the ANRPC forecast.
Meanwhile, challenges that may hurt the demand for rubber include the shortage of semiconductors, which affect the production and distribution of cars, container shortages, high transportation costs and slow clearances that affect the supply chain.