Demand-supply gap for rubber stretches

Demand-supply gap for rubber stretches........
Kochi :
The demand-supply gap for natural rubber in the country is set widen as production is expected to fall and demand set to rise above earlier estimates.The conditions in the global markets are no different. With the top seven rubber-producing countries, which account for 93 per cent of the global production, reporting lower output this year, the prices in the domestic and global markets are expected to remain firm.Rubber production for April-October period was 9.4 per cent lower at 4,35,125 tonnes against 4,80,230 tonnes last year. Consumption grewn three per cent to 5,36,100 tonnes (5,20,375 tonnes).The production-consumption mismatch resulted in a sharp rise in imports and a corresponding fall in exports. Imports increased 133 per cent to 1,26,472 tonnes (54,283 tonnes), while exports plunged 92 per cent to 3,859 tonnes (34,000 tonnes), sources in the Rubber Board said.The growth in consumption is likely to sustain given the spurt in economy and the surge in automobile sales. The demand for tyres has also been growing briskly with a large number of new tyre manufacturing units nearing completion and several of the existing ones increasing their capacity. (BL)http://www.thehindubusinessline.com/2009/11/19/stories/2009111951701800.htm