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October 22, 2024
Producers, Processors, and Traders of GPSNR against the postponement of the implementation of the EUDR
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The consumption of natural rubber is linked to the development of the automotive industry and especially tires. This consumption is driven by growth in the emerging markets which include China and India.
Despite the slowing down of China and developing countries growth these past years, the total demand has however increased by an average of 4,6% per year from 2016 to 2018. It is however stable in 2019.
The offer had regularly risen until 2016 due to important plantings favored by top of cycle phase from 2005 to 2012. These plantings are now stabilized, but the rubber immaturity period of 7 years creates an inertia in the adaptation of supply to demand. However, production is stationary since 2017 and supply and demand are now balanced.
China's share in natural rubber global consumption increased from 25% in 2005 to 42% in 2018.
The global production of natural rubber totaled 13,6 million tons in 2019. Asia represents 90% of the this production.
With a growing share of 8% of the world’s production, West Africa offers an ideal development potential for the production of rubber with its favourable climatic conditions, large areas of available non forest land and farm workers.
African rubber, which stands at 1.1 million tons, is finding a natural outlet in the European market.
Natural rubber demonstrates characteristics that gives it a competitive advantage to synthetic rubber: a lower heat generation and a better ability to regain its original shape. Such qualities are essential for tires, an especially for heavy goods vehicles, agricultural vehicles, aircraft and civil engineering. The substitution between natural rubber and synthetic rubber therefore remains limited for such applications.
The share of natural rubber compared to synthetic rubber moved from less than 40% in the 2000s to more than 47% today.
Many industries have ambitious goals to reduce their carbon footprint and raise the renewable material quantities in their products, so the evolution of the proportion natural rubber/synthetic rubber is an opportunity.
SIPH is located in four countries with its subsidiaries SAPH (Côte d’Ivoire), GREL (Ghana), CRC (Liberia) and RENL (Nigeria).
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SIPH’s main activity is the production and marketing of natural rubber. SIPH’s rubber plantations are all in West Africa. Natural rubber remains indispensable for the tyre industry.
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Following the December GPSNR General Assembly and the first 2022 Executive Committee, SIPH, represented by Marc Génot, will chair the Executive Committee for the coming year. This nomination proves the Group’s determination to move towards a more sustainable natural rubber supply chain worldwide and particularly in Africa.