Global rubber glut seen tumbling in '15

[BANGKOK] The global surplus of natural rubber will shrink 46 per cent next year as demand expands and farmers reduce tapping because of decreasing prices, according to the International Rubber Study Group.

Production next year will outpace demand by 202,000 tonnes against 371,000 tonnes this year and 650,000 tonnes last year, the Singapore- based body said in an e-mail on Aug 13. The group said in May that the glut this year would exceed the 714,000 tonnes in 2013 after it increased output estimates for Thailand, the biggest shipper.

Futures plunged 28 per cent this year, declining to the lowest level in almost five years in June. Supply increased after record prices three years ago spurred output, while demand slowed as the pace of economic expansion decelerated in China, the biggest buyer.