Rubber production drops 20% in April

This causes the stocks of natural rubber to decline by 4.1% to 297,673 tonnes

NATURAL rubber production decreased by 20% in April 2022 from 22,498 tonnes compared to 28,106 tonnes in March 2022 due to wintering.

Year-on-year comparison also showed that the production of natural rubber decreased by 2.2% (April 2021: 23,013 tonnes), according to the Department of Statistics Malaysia.

Total stocks of natural rubber in April 2022 decreased by 4.1% to 297,673 tonnes compared to 310,433 tonnes in March 2022. 

Rubber processors factory contributed 92.5% of the stocks followed by rubber consumers factory (7.4%) and rubber estates (0.1%).

Exports of Malaysia’s natural rubber amounted to 58,755 tonnes in April 2022, increased 0.2% against March 2022 (53,328 tonnes). China remained as the main destination for natural rubber exports which accounted for 39.7% of total exports in April 2022 followed by the US (11.3%), Finland (4.5%), Egypt (3.2%) and Iran (2.5%).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the export performance was contributed by natural rubber-based products such as gloves, tyre, tube, rubber thread and condom.

“Gloves were the main exports of rubber-based products with a value of RM2.2 billion in April 2022, an increase of 8.6% compared to March 2022 (RM2 billion)”.

The bearish sentiments that hit the rubber market are contributed by losses in the regional rubber futures markets amid slowdown fears in China’s stringent Covid lockdowns, persistent Russia-Ukraine conflict, ongoing global chip shortage and inflationary pressure, based on the Malaysian Rubber Board Digest published April 2022.

Analysis of the average monthly price showed that latex concentrated recorded a decrease of 2.5% (April 2022: 666.47 sen per kg, March 2022: 683.57 sen per kg) while for type of scrap decreased by 0.7% (April 2022: 586.65 sen per kg, March 2022: 591.02 sen per kg). — TMR / pic BERNAMA