Rubber is a natural product. It is in widespread usage in our routine daily life and almost is ubiquitous helping the world in countless activities. Rubber is waterproof, a bad conductor of electricity and is completely elastic in nature making it a usable commodity in various industries. With time, the simple form of rubber has been modified into many kinds, suiting different utilization. Some of the rubber types are resistant to selected chemicals, solvents and oils. Going by the usage factor, it is no surprise that the rubber industry is well spread and growing at a brisk swiftness worldwide.
Countries all around the world use and manufacture different rubber products making setting up a massive world market. However, the Asian belt is well known for its high volume producing capacities- countries like Thailand, India, Indonesia, Malaysia and Vietnam top the list of proud producers of natural rubber used all around the globe. Talking of the demand part, it is no different from the production as there is a steady demand from the Asian nationals but China tops the chart as it consumes a big portion of 48% of the total global demand for natural rubber. The major ground to this is because the country’s automobile market is the largest in the world. Production wise, Thailand takes the lead producing more than 29.6% of the total global production. This volume has gone up by a whopping 9.7% compared to the previous year. The production line is followed by Indonesia, Malaysia, India and Vietnam having a strong exporting edge that reaps handsome returns.
The numbers below are the country-wise percentage share of global production and their comparative hikes
Indonesia -27.3%, a hike of 12.93%
Malaysia-8.8%, a hike of 10.86%
India-7.9%, a hike of 3.40%
Vietnam-7%, a hike of 5.04%
The figures above surely indicate Vietnam to be a vigorous producer adding quick numbers to its production chats. Logically, it has also come up in the export race as it is the third largest exporter of natural rubber falling in after Thailand and Indonesia. Moreover, global experts from the industry see Vietnam as a super power in rubber production as it is expected to touch a surplus target mark by the end of 2015.
The world market however has a different take on the entire industry. The business was banged with a bit of a slowdown with the world economy behaving negatively. But the present trend is different and on the greener side thankfully, Professionals from the segment eye a minimum of 7 to 7.5% hikes in the Chinese market bringing in some good news to the rubber demand. The prices are predicted to go up with the Chinese demand coming back as the global demand will also result in a substantial increase.
The global rubber market is assumed to increase at a CAGR of 5.89% under the production segment and 0.36% under the consumption section forecasting a smoother further for the entire industry.