President's Message

Market Growth

Economic growth in Southeast Asia, especially Indonesia, economic growth in South Korea, Brazil, Russia, India and China is so promising, as well as the American and European markets as the main market although not yet fully recovered, have been making strong demand for commodities, especially rubber and palm oil which will remain strong to the future.

Based on the Company's research, the global consumption of rubber in 2013 reached 11.2 million tonnes and it is predicted to rise to 11.6 million tonnes in 2014, reflecting an increase of 3.2%. In 2020, the figure would be in the region of 16.5 million tonnes, 47.3% higher than 2013's production.

The world's total production of rubber from 2010 to 2013 has grown at CAGR (compound annual growth rate) index by 4.4%, consistent with the rising global demand for rubber-based goods. It has been predicted that global rubber production in 2014 will reach 11.9 million tonnes or increase by 3.4 % from 2013 production at 11.5 million tonnes.

The growth in global demand for natural rubber is particularly driven by the rise in tire consumption, in addition to other automobile spare parts which use rubber as their base material, such as flexible hubs, hoses and other accessories. In addition, as the world's population continues to grow, the demand for footwear especially sport or casual ones such as slippers and shoes, of which partly are made from rubber, will also be on the rise.

Other industries that require natural rubber in large quantities due to its unique characteristics are manufacturers of foam mattresses, gloves, medical equipment and automobile spareparts.

Meanwhile, the consumption of palm oil (CPO) in the world increased at CAGR of 4.5% per year from 2010 to 2013. Today, China and India are the largest palm oil consuming nations in the world.

Global CPO production from 2010 and 2013 has increased along with higher market demand, at CAGR of 5.2%. The increase was also due to the increasing number of plantations and increasing age of the plants at productive age.

 

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