Malaysia recorded a sharp double-digit decline in natural rubber (NR) production in September compared to the same month last year, according to data released by the Department of Statistics Malaysia (DOSM) on November 10.
Significant Drop in Production
Malaysia’s natural rubber output in September 2022 fell 13.9% year-on-year to 35,460 tons. On a quarterly basis, production decreased by 16.4% in the three months ending in September, totaling 110,969 tons.
The smallholder sector continued to dominate Malaysia’s NR production, contributing 87.9%, while estates (large plantations) accounted for 12.1%.
Declining Rubber Stocks and Exports
Malaysia’s total NR stocks in September dropped 5.7% to 198,659 tons, down from 210,768 tons in August.
Among the stockholders:
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Rubber processing factories: 90.7%
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Rubber consuming factories: 9.2%
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Estates: 0.1%
Exports followed the same downward trend. In September 2022, Malaysia exported 54,542 tons of natural rubber, marking a 9.4% decline from the previous month.
China remained Malaysia’s largest export market, absorbing 46.5% of total NR exports, followed by Germany (6.1%), Brazil (4.0%), Iran (3.8%), and the United States (3.1%).
Falling Rubber Prices
The average monthly price of centrifuged latex fell 7.4% from the previous month to 476.76 sen/kg, while the cup lump price dropped 12.6% to 465.86 sen/kg in September.
The decline in both production and prices reflects the ongoing challenges in Malaysia’s natural rubber industry, including labor shortages, lower demand, and global market uncertainty.