• TIMBERFARM Ausblick
  • TIMBERFARM Ausblick

Outlook

In the trade, the motto is: finding a way to success under difficult conditions. The fact is that although latex glove production has increased significantly, the decline in rubber consumption in the tire and automotive industries cannot be offset as a result of the global factory shutdowns (some of which lasted several weeks). As a result, the global economic downturn is also affecting rubber and rubber trade. Both demand and supply have fallen. As a result, the number of possible transactions is automatically reduced, and so are trading opportunities. Travel restrictions make it difficult to establish new business relationships and interact with existing suppliers and customers. Nevertheless, GloReg has been able to take advantage of various international bottlenecks. For example, rubber production in Malaysia is down more than 50 percent year to date due to the fact that many harvesters and tappers are no longer allowed to work on plantations. This has left many rubber factories in Malaysia and the region struggling. GloReg took this opportunity to supply these factories with raw rubber from Africa. Lower rubber prices have created uncertainty and frustration between farmers and producers, resulting in too few competitive offers in the market, making it difficult to find new reliable suppliers in the growing regions. Despite these conditions, GloReg's trading department is still able to achieve satisfactory or even good transaction volumes and corresponding profits. This is mainly due to the reliable handling of all parts of the transaction process. During this period, market participants (in terms of buying and selling) appreciate and reward reliability and continuity.