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Global natural rubber

output will fall 2.2 percent to 8.9 million tonnes in 2009 as

Thailand, Indonesia and Malaysia produce less, the Association

of Natural Rubber Producing Countries said on Monday. The ANRPC accounts for 94 percent of global natural rubber

production. Other members are India, Vietnam, China and Sri

Lanka. "(In) Thailand, the largest natural rubber producing

country accounting for about 33 percent of the global supply,

production dropped by 13.9 percent during the first two months

of 2009 on a year-over-year basis," the ANRPC said in its March

report. In its March report, it pegged Thailand's output at 3.075

million tonnes in 2009, down from 3.090 million last year. The

group offered no estimates for this year's Thai production in

its February report issued last month, but revised down output

for Indonesia and India from that report. Thailand, Indonesia and Malaysia agreed in December to take

915,000 tonnes of rubber out of the market in 2009, or a sixth

of their 2007 combined exports of 5.5 million tonnes to support

prices as a global economic downturn cut demand for tyres. Cash rubber prices have more than halved from July's

56-year peak around $3.20 a kg. <RUB/AS>. Indonesia's was forecast to produce 2.586 million tonnes of

rubber in 2009, down from 2.751 million tonnes in 2008. ANRPC

had earlier put the country's production at 2.852 million

tonnes this year. "Being the second largest producing country accounting for

around 29 percent of the global supply, this 6 percent decline

would bring down the global supply by 165,000 tonnes," said the

ANRPC. Output in Malaysia, the world's third-largest producer, was

forecast at 1.023 million tonnes this year, down from 1.072

million last year. "Tapped area which came down by 173,000 hectares (427,310

acres) in 2008 is anticipated to come down further by 20,000

hectares in 2009," said the group. "India has scaled down the production forecasts for 2009 in

the backdrop of an unusually severe drought experienced during

the first quarter of the year in the country's major rubber

growing region."

ANRPC production trends ('000 tonnes)

                       2005   2006   2007   2008(1)  2009(2)
Thailand                  2937   3137   3056   3090     3075
Indonesia                 2271   2637   2755   2751     2586
Malaysia                  1126   1284   1200   1072     1023
India                      772    853    811    881      857
Vietnam                    482    555    602    663      650
China                      541    538    588    510      580
Sri Lanka                  104    109    118    129      126
Total                     8233   9113   9130   9096     8897
(1) Provisional (2) Anticipated based on information available
up to March 2009 Source: Reported by respective governments.
 (Reporting by Lewa Pardomuan; Editing by Michael Urquhart)
 (lewa.pardomuan@thomsonreuters.com; +65 6870 3834; Reuters
Messaging:lewa.pardomuan.reuters.com@reuters.net))

CMG International Trading Dalian Co,Ltd
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