SHANGHAI- The International Rubber Study Group (IRSG) expects global natural rubber consumption to increase by 7% in 2021, after declining 8.1% in 2020 because of the pandemic, secretary general Salvatore Pinizzotto said on Wednesday.

However, demand recovery this year could be slower than expected, despite growth in Asia, he said, predicting a 5.3% rise in global natural rubber consumption in 2022.

"Rubber consumption declined significantly in 2020, driven by demand shock in the face of the pandemic contagion, while natural rubber production intensity is declining despite an increase in mature areas," he said via video remarks at the 18th Shanghai Derivatives Market Forum.

The Association of Natural Rubber Producing Countries (ANRPC) had pegged global production of natural rubber at 13.13 million tonnes in 2020, and demand at 12.904 million tonnes. 

"If we look at the production and demand trend for this year, natural rubber demand is forecast to increase by 7%, and synthetic rubber demand is forecast to increase by 7.2%," Pinizzotto said.

"Natural rubber production will increase this year by 5% with any declines in Southeast Asian countries offset by an increase by other producing areas."

Pinizzotto also said that climate change was a longer term factor that would impact natural rubber production, with heavy rains, dryer weather and higher temperatures possibly affecting plantations.

(Reporting by Emily Chow; Writing by Shivani Singh; Editing by Louise Heavens and Barbara Lewis) ((ShivaniSingh2@thomsonreuters.com; +86 10 5669 2115;))