The global production of natural rubber is projected to register a CAGR of 4.3% during the forecast period (2021-2026)

The global production of natural rubber is projected to register ...

2021-09-15

RubberTech

RubberTech,RubberTech China

Global pandemic Covid-19 has influenced the natural rubber market in numerous ways. Due to lockdown restrictions, there are disruptions in the supply of raw materials. The delay in farming activities and latex collection further compounded the issue. The restrictions on imports and exports have resulted in shortages of major input. The changing global markets have further exhausted the industry perspective.

The increasing crude oil prices in India are the major factor driving the natural rubber market. Also, the increasing demand for natural rubber in China is augmenting the growth of the market studied.

Here has two Key Market Trends.

Increasing demand from Various Industries

The natural rubber demand is increasing due to its characteristic properties such as adhesion to metals and resistance to abrasion which are making it suitable for manufacturing seals, tyres, etc. The properties of natural rubber such as high tensile strength, vibration dampening, and tear resistance are making it ideal and more preferred than synthetic rubber for its application in the automobile industry and in large constructions. The natural rubber market is mainly influenced by the increase in demand for natural rubber from the automobile industry. The footwear industry is also contributing to the increasing demand for natural rubber. Natural rubber is used in footwear manufacturing due to its properties such as durability, slip resistance, tensile resistance, etc. The footwear industry uses natural rubber to produce different types of footwear including casual, formal protective footwear. Hence, the increased applications of natural rubber are increasing the demand for natural rubber leading to the growth of the natural rubber market.

China is the largest importer

Natural Rubber is a vital agricultural commodity, which is used for manufacturing in a wide range of industries such as automotive, manufacturing, and medical industries. China is the world’s largest importer and consumer of natural rubber, consuming around 40.0% of the total global output. China being one of the major three automobile manufacturers in the world, the increasing growth of the automobile industry has resulted in the increased demand for raw materials such as natural rubber. According to the FAO 2018, China produces 816,013 metric ton and consumes 4,680,000 metric ton of natural rubber. It implies that the production in China can only provide 17.4% of its requirement. Hence, China is depending on imports to meets its domestic consumption requirements. Thailand, Malaysia, Indonesia are some of the major exporters of natural rubber to China. According to ITC Tradmeap, China's imports of natural rubber were valued at USD 3,352,490 thousand in 2016, which has increased by 0.5% and was valued at USD 3,368,889 thousand in 2019.

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China United Rubber Corporation
Address: 12th Floor, Tower C, Yuanda Center, No.5 Huizhong Road, Chaoyang District, Beijing, 100101 P.R. China
Tel: +86-10-53779792
Fax: +86-10-53779608
Email: rubbertech@chrubber.com

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