March 1 (Bloomberg) — Natural rubber output from key suppliers during the seasonal low-production period will improve this year, boosting exports, according to the Association of Natural Rubber Producing Countries.

Output in the so-called “wintering season” probably will surge in Vietnam, the world’s third-largest shipper, Malaysia and India, said the association, which represents countries accounting for 94 percent of global production.

Rubber futures traded in Japan have gained 8.4 percent this year, after doubling last year as production dropped and the global economic recovery and government stimulus measures in China and U.S. boosted demand for tires.

Supply declines from February to April every year as rubber trees shed leaves and latex output slows.

Vietnam’s wintering output probably will grow 14 percent compared with a year earlier to 20,600 metric tons, helping boost total production this year by 6.4 percent to 770,000 tons. Exports will rise 6.6 percent from last year, the group said in its monthly newsletter.

In Malaysia, the fourth-biggest exporter, low-season output will surge 43 percent to 243,000 tons, the group said. India’s output during the season may rise 4.1 percent to 154,000 tons, and total output this year will climb to 913,000 tons, compared with 853,000 tons forecast earlier, the group said.

The association’s forecast on production in Indonesia, the second-largest producer and exporter, was unchanged at 2.77 million tons. The country’s exports are estimated at 2.3 million tons.

The association represents Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Sri Lanka, Thailand and Vietnam.

Total supply from the association’s member countries declined 5.1 percent in 2009 to 8.7 million tons. Total plantation area expanded to 7.13 million hectares by the end of 2009, from 7.02 million hectares a year earlier, it said Jan. 26.

Source: Bloomberg

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