Rubber Production Indonesia Expected to Fall in 2016 on Haze & El Nino
Indonesia, the world's second-largest natural rubber producer, is expected to see slowing rubber output in 2016 on the back of the El Nino weather phenomenon as well as haze caused by forest fires on Sumatra and Kalimantan. Although the production decline may support rubber prices in the middle-long term, Indonesian rubber farmers are currently still plagued by rubber prices that have fallen to six-year lows due to reduced rubber demand from China, the world's largest rubber importer.