Worldwide decline

Driven down by the rapidly deteriorating state of the world economy, global rubber consumption reached 21.1 million tons in the year to March 2009, its lowest level since April 2006 - according to the latest report issued by IRSG (International Rubber Study Group). Year-on-year consumption growth plunged to -9.4%, compared to growth rates of -3.2% at the end of 2008 and (providing a stark illustration of how markets have evolved over the last twelve months) 6.9% in March 2008. Global natural rubber (NR) consumption declined by over 0.4 million tons between the end of 2008 and March 2009, with the rate of decline in consumption accelerating from -1.6% to -6.8% in year-on-year terms over the period; global synthetic rubber (SR) consumption fell by over 0.7 million tons over the same period, with consumption growth declining from -4.5 to -11.3%. Global rubber output fell from 22.7 million tons at the end of 2008 to 21.8 in March 2009, while the rate of decline in production in year-on-year terms accelerated from -2 to -6.5% over the same period.