Global rubber consumption reaches 3-year low.Driven down by the rapidly deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: state of the world economy, global rubber consumption reached 21.1 million metric tons in the year to March 2009, its lowest level since April 2006; year-on-year consumption growth plunged to -9.4%, compared to growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. of -3.2% at the end of 2008 and (providing a stark illustration of how markets have evolved over the last 12 months) 6.9% in March 2008, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a rubber industry report from the International Rubber Study Group. Global natural rubber (NR) consumption declined by over 0.4 million metric tons (mmt) between the end of 2008 and March 2009, with the rate of decline in consumption accelerating from -1.6% to -6.8% in year-on-year terms over the period; global synthetic rubber synthetic rubber: see rubber. (SR) consumption fell by over 0.7 mmt over the same period, with year-on-year consumption growth declining from -4.5% to -11.3%. Global rubber output fell from 22.7 mmt at the end of 2008 to 21.8 mmt in March 2009, while the rate of decline in production in year-on-year terms accelerated from -2.0% to -6.5% over the same period. The sharp reduction is mainly due to a steep decline in SR out put, which fell to 12.2 mmt in March 2009 compared to over 12.8 mmt in December December: see month. 2008; over the period, the rate of decline in SR production accelerated from -4.6% to -9.8%. Global NR production is also estimated to have fallen (albeit less markedly than for SR) from 9.9 mint at the end of 2008 to 9.6 mmt in March 2009; over the period, NR production growth slowed from 1.8% to -1.9%. Despite lower production, the more pronounced decline in consumption resulted in a widening of the global NR surplus from 150,000 metric tons at the end of 2008 to 290,000 metric tons in the year to March 2009. SR consumption is estimated to have plunged by -11.3% in the 12 months to March 2009, compared to a production decline of -4.6%; this follows contractions contractions Obstetrics Volleys of tightening and shortening of myometrium–uterine muscle, which occur during labor, cause dilatation and thinning of the cervix and aid in the descent of the infant in the birth canal. See Labor. Cf Decelerations. in both production and consumption of around -5% in 2008. Global stocks of both NR and SR are estimated to have risen steeply in relation to the level of consumption in early 2009. World NR exports fell back to 6.29 million metric tons in the year to March 2009, compared to 6.60 mmt at the end of 2008. A sharp fall in the exports of the major NR producers, except in the case of Vietnam Vietnam (vēĕt`näm), officially Socialist Republic of Vietnam, republic (v), 128,400 sq mi (332,642 sq km), Southeast Asia. Occupying the eastern coastline of the Southeast Asian peninsula, Vietnam is bounded by China on the north, by Laos , contributed to the overall trend. Among the five major NR importers, the decline in imports continued in the first quarter, reflecting the continuing slump Slump A temporary fall in performance, often describing consistently falling security prices for several weeks or months. in demand. The inexhaustible rise in SR exports seen between 2000 and 2007 was halted in 2008 as the bottom fell out of world demand; exports peaked in the year to April 2008 at 7.77 mmt, before crashing down to 7.12 mmt by the end of the year, and falling further to 6.55 mmt by March 2009. For the first three months of 2009, SR imports by the major importers, except China, have fallen, refleeting the sharp drop in demand as a result of the world recession and falling exports. NR prices increased by 57% at the end of May 2009 from their low of $1.10 per kg reached on December 9, 2008. The fundamental factors contributing to the upsurge in prices, amid low underlying global demand, included slow production after wintering (mainly due to heavy rains in Thailand, Malaysia and Vietnam), as well as buying demand from China and India; prices also advanced on market sentiment Market Sentiment The feeling or tone of a market (i.e. crowd psychology). It is shown by the activity and price movement of the securities. Notes: For example, rising prices would indicate a bullish market sentiment. over signs of an easing of the recession and improving oil prices. NR latex latex, emulsion of a polymer (e.g., rubber) in water (see colloid). Natural latexes are produced by a number of plants, are usually white in color, and often contain, in addition to rubber, various gums, oils, and waxes. prices broadly followed the same trend as solid NR prices. The price of light crude had been on an upward move again, rising from its lowest level in over five years of $31.41/ barrel in late December 2008 to the current price of $61.02/barrel in late May. With the customary time-lag, the upward movement of the oil price fed through to the monomer monomer (mŏn`əmər): see polymer. monomer Molecule of any of a class of mostly organic compounds that can react with other molecules of the same or other compounds to form very large molecules (polymers). prices, rising in February for styrene sty·rene n. A colorless oily liquid from which polystyrenes, plastics, and synthetic rubber are produced. Also called vinylbenzene. and later still in May for butadiene butadiene (by  t'ədī`ēn), colorless, gaseous hydrocarbon. There are two structural isomers of butadiene; they differ in the location of the two carbon-carbon double bonds in the . The latest series of synthetic rubber prices,
however, was more influenced by the movements of the respective
markets' butadiene prices, meaning that elastomer elastomer (ĭlăs`təmər), substance having to some extent the elastic properties of natural rubber. The term is sometimes used technically to distinguish synthetic rubbers and rubberlike plastics from natural rubber. prices did not
recover until April/May.
The latest data on export volumes of selected latex general rubber products (GRP GRP Group GRP Group (file name extension) GRP Glass Reinforced Plastic GRP Gastrin-Releasing Peptide (biology) GRP Gross Rating Point (advertising) ) from the four leading exporters suggest that the overall downward trend of the industry may have eased further still over the first quarter of 2009, led mainly by the against-the-grain performance of the leading exporters (China and Thailand in all cases) of each of the five sectors, expanding export volumes when others were contracting. The outlook for the production of passenger cars and commercial vehicles is bleak The bleak is a small pelagic fish of the Cyprinid family. Description The body of the bleak is elongated and flat. The head is pointed and the relatively small mouth is turned upwards. The anal fin is long and has 18 to 23 fin rays. The lateral line is complete. , with all regions forecast to see a substantial reduction in output levels in 2009; meanwhile, the world recovery in 2010 is expected to be slow, reflecting the tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. upturn in the economy. Sales of passenger car tires are expected to suffer from a greater rate of fall in 2009 and a slower rate of recovery in 2010 relative to the commercial vehicle tires sector. The outlook for total rubber consumption in 2009 is, not unexpectedly, bleak; the two leading contributors towards the demise Death. A conveyance of property, usually of an interest in land. Originally meant a posthumous grant but has come to be applied commonly to a conveyance that is made for a definitive term, such as an estate for a term of years. are North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe, where consumption is projected to fall by 15.2% and 13.7%, respectively. The subsequent recovery is expected to come from Asia, where demand is forecast to increase by 4% (or around 500,000 metric tons) in 2010. World NR consumption is projected to fall by around 500,000 metric tons in 2009, while the demand for SR is forecast to decline by 7.9%; the subsequent recovery will be slower for SR as compared to NR. World NR production is projected to fall by 2.3% (or 229,000 metric tons) in 2009, with the three major producers Thailand, Indonesia and Malaysia--all contributing to the forecast decline in supply. The IRSG IRSG - Internet Research Steering Group is the sole international body representing the global rubber industry.
Rubber prices and related indicators
2006 2007
Year Q1 Q2 Q3
Natural rubber prices
Europe, TSR20 [euro]/mt 1,646 1,612 1,614 1,559
Sicom, RSS3, S$/mt 3,344 3,400 3,560 3,249
New York, TSR20, $/mt 2,113 2,205 2,314 2,235
Synthetic rubber prices
USA SBR export values $/mt 1,710 1,969 1,873 2,256
Japan SBR export value 205 216 221 228
'000 yen/mt
France, SBR export value 1,382 1,464 1,486 1,468
[euro]/mt
Relative NR/SR price ratio
New York, TSR20/USA SBR 123.6 111.9 123.6 99.0
Related indicators
Crude oil, west Texas basis, 66.2 58.2 65.0 73.1
$ per barrel
Butadiene, U.S. cents per 51.2 53.7 57.3 56.0
pound (3)
2007 2008
Q4 Year Q1 Q2
Natural rubber prices
Europe, TSR20 [euro]/mt 1,690 1,619 1,830 1,944
Sicom, RSS3, S$/mt 3,568 3,444 3,889 4,187
New York, TSR20, $/mt 2,529 2,321 2,821 3,120
Synthetic rubber prices
USA SBR export values $/mt 1,948 2,012 2,018 2,374
Japan SBR export value 225 222 231 243
'000 yen/mt
France, SBR export value 1,513 1,483 1,493 1,566
[euro]/mt
Relative NR/SR price ratio
New York, TSR20/USA SBR 129.8 115.4 139.8 131.4
Related indicators
Crude oil, west Texas basis, 91.0 71.8 97.7 124.3
$ per barrel
Butadiene, U.S. cents per 56.0 55.8 61.3 77.3
pound (3)
2008 2009
Q3 Q4 Year Q1
Natural rubber prices
Europe, TSR20 [euro]/mt 2,044 1,272 1,772 1,072
Sicom, RSS3, S$/mt 4,228 2,434 3,685 2,238
New York, TSR20, $/mt 3,159 1,817 2,729 1,516
Synthetic rubber prices
USA SBR export values $/mt 2,879 2,774 2,511 1,996
Japan SBR export value 287 278 260 188
'000 yen/mt
France, SBR export value 1,798 1,951 1,702 1,571
[euro]/mt
Relative NR/SR price ratio
New York, TSR20/USA SBR 109.7 65.5 108.7 75.9
Related indicators
Crude oil, west Texas basis, 118.5 58.1 99.7 43.1
$ per barrel
Butadiene, U.S. cents per 108.7 89.7 84.3 28.7
pound (3)
Source: International Rubber Study Group
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