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HO CHI MINH CITY, Vietnam, Nov 3 (Reuters) – Global natural rubber consumption is forecast to rise 1.6 percent next year from 2009 to 9.71 million tonnes, according to a report from the International Rubber Study Group (IRSG).
The report from the Singapore-based IRSG obtained on Tuesday also revised its forecast for global natural rubber consumption this year to a drop of 5.2 percent to 9.56 million tonnes from a a drop of 5.5 percent.
Consumption would accelerate 4.9 percent to 10.19 million tonnes in 2011, the group said in the report prepared for an international rubber conference in Ho Chi Minh City, Vietnam, due to open on Wednesday.
In September the group estimated global natural rubber output in 2009 would fall 4.8 percent to 9.4 million tonnes, which dealers said was caused by erratic weather in producing countries. [ID:nSP439068]
In Vietnam, production this year would still reach 650,000 tonnes as projected, despite rainy weather, said Tran Thi Thuy Hoa, general secretary of the Vietnam Rubber Association.
“There is an increase in production from newly planted areas so our output target will still be attained,” Hoa told Reuters.
The IRSG report forecast demand for synthetic rubber next year would rise 2.2 percent to 12.12 million tonnes from the 11.86 million tonnes forecast for 2009, which would be a fall of 5.8 percent from the previous year.
About 70 percent of the world’s rubber output is used by the car industry, which has scaled back production, cut jobs and shut factories in the wake of the global financial crisis.
Source: Reuters