Indonesia will export a third more rubber this year to China, which will become the top buyer from the world's second-largest producer, as demand from Chinese tyre makers rises, taking the place of the drop in Japan after the earthquake, the Indonesian Rubber Association said on Thursday.
China will replace the United States in 2011 as Indonesia's biggest rubber export market, with up to 800,000 tonnes heading to the world's second-largest economy, Asril Sutan Amir, chairman at the association, known as Gapkindo, told Reuters. "Indonesia's rubber export to China may reach (from) 600,000 tonnes (in 2010) to 800,000 tonnes in 2011 because of export shifting from Japan after the earthquake and tsunami," said Amir, who was speaking ahead of Chinese Premier Wen Jiabao's visit to Indonesia this week.
"Our (rubber) export to China is increasing significantly in 2011," he added. "It is obvious that China is now the biggest market for Indonesian rubber." Late last month, Gapkindo told Reuters that the Japanese earthquake and tsunami in March, which triggered a nuclear crisis, would have little impact on Indonesian rubber.
Japan accounts for around 7 percent of global demand for natural rubber. "In several years to come, the export volume may reach 1 million tonnes," he added. "That's because China now is the biggest tyre maker in the world." Global demand for rubber, both natural and synthetic, is forecast to rise to 26.1 million tonnes in 2011 from 24.4 million tonnes in 2010, the International Rubber Study Group said in March.
Dealers say this was in part due to a recovery in the automotive sector, though that had not factored in the plight of the Japanese automakers. Indonesia will produce an estimated 2.972 million tonnes of rubber this year, versus 2.736 million tonnes last year, Amir told reporters earlier this month. Indonesian rubber exports will be 2.45 million tonnes this year, up from 2.352 million tonnes in 2010, he added.
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