Indonesian rubber exports to Japan are expected to drop significantly in coming months as the earthquake and tsunami there last month affected the country's auto industry, a trade ministry official said on Friday. The Indonesian Rubber Association said last week it had not heard of any cancellations or postponements of deliveries to Japan, which accounts for 7 percent of global demand for natural rubber.
But Deddy Saleh, director general of foreign trade at the trade ministry, said rubber consumption may drop significantly in the Japanese tyre production industries from April onwards, due to damage caused by the quake and the lack of power supply in the world's third largest economy. Indonesian natural rubber exports to Japan in March were 31,930 tonnes, up from 28,650 tonnes in February, according to the Indonesian Statistics Agency.
Indonesia, the world's second-largest rubber producer, produced about 2.8 million tonnes of rubber in 2010. 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 earlier this month. Deddy added that the Indonesian automotive industry, which has close ties with Japanese firms that make the major brands sold in Southeast Asia's biggest economy, may also experience a lack of automotive parts.
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