Bad weather is being blamed for a potential fall in 2009 rubber production across a number of key supplying countries in South East Asia.
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A Reuters report said 2009 output from Thailand, Indonesia and Malaysia was expected to fall over 6%, as heavy rains struck the region’s growing areas. It was highly likely the shortfall would see a rise in prices over last year’s peak. Tyres account for around 70% of global demand for natural rubber.
Cash prices are already up 10% in the last month.
The Association of Natural Rubber Producing Countries warned that climate change had become an issue of serious concern on the supply potential of natural rubber.
The association said: “Apart from a fall in yield, even the traditional rubber growing regions in major producing countries are gradually being rendered unsuitable for growing rubber.”
In October, it was predicted that the output from Thailand, Indonesia and Malaysia, which make up 70% of global output, would reach 6.62m tonnes.
However, estimates now put the figure nearer 6.45m tonnes for the year.
Reuters said that around 800,000 hectares (2m acres) of rubber land has been hit by rain and flooding, which has disrupted tapping and hampered transport.
Prices of rubber sheet have doubled from US$1.10 per kg in December 2008, the lowest in nearly seven years.
