Increase in rubber consumption
In World Rubber Industry Outlook (WRIO) released in July, the International Rubber Research Organization (IRSG) said that with the strong recovery of the global economy, the total rubber demand is expected to increase by 7.4% year-on-year (the same below) in 2021 and slow down to 4.7% in 2022.
Meanwhile, IRSG expects the world tire demand to rebound to an increase of 7.2% in 2021 from a decrease of 7.3% in 2020.
The non tire industry is expected to grow by 7.6% thanks to the continued surge in demand in the medical industry and mobile supply chain.
IRSG also predicts that the global demand for natural rubber (NR) will rebound by 7.1% this year, recovering to 12.71 million tons from a decline of 6.8% in 2020; World synthetic rubber (SR) demand rebounded by 7.6%, recovering to 14.36 million tons from a 5.3% decline in 2020, thanks to strong growth in emerging markets in the United States, Europe and Asia.
In addition, IRSG said that the lower total planting rate will have an impact on medium and long-term supply. It is expected that the total output of natural rubber will rebound by 6.5% to 13.86 million tons this year, exceeding the level before the epidemic in 2019, and the growth of natural rubber output will slow down to 3.5% in 2022.
