India's investment and credit rating agency ICRA recently predicted that natural rubber production in the country will decline by 18 to 20 percent this year, with negative effects on the tire industry.
The ICRA said that natural rubber production in kerala has fallen sharply due to unusually heavy rainfall, and is expected to fall by 130,000 to 140,000 tonnes (18% to 20%) in fiscal 2019.Natural rubber accounts for 32% and 35% of total tire input respectively in terms of quantity and value. Other key raw materials include synthetic rubber, carbon black, fabric and rubber auxiliaries.
India, the world's second-largest consumer of natural rubber after China, accounts for 8 per cent of global output and the supply gap is met by imports from neighbouring countries such as Indonesia, Thailand and Vietnam.India's imports of natural rubber have accounted for 40 per cent of total consumption over the past five years, rising to 50 per cent in fiscal 2019 as production declines.
The ICRA expects India's natural rubber imports to hit a record high of 530,000 to 550,000 tonnes in fiscal 2019.India's natural rubber prices rose more than 10 percent in the april-august period as domestic demand outpaced supply, while global prices fell 9 percent over the same period.
As a professional rubber manufacturer, Shenyang Sunnyjoint Chemicals Co., Ltd. will focus on India’s market.