Rubber plunged 43% in the past year and
reached the lowest in almost three years as growth slowed down. Demand in China
may drop 5% this year as declining truck sales cut tyre use, but China’s
imports are still growing.
The International Rubber Consortium Ltd. is
an arm of the International Tripartite Rubber Council, which represents growers
and exporters from the three countries. State agencies from the three countries
and an exporter representative from Thailand participated a one-day meeting in
Bangkok.
Thailand, Indonesia and Malaysia,
representing about 70% of global natural rubber supply, have agreed to cut
exports of natural rubber by 300,000 tonnes in an attempt to boost prices. Under
the agreement, Thailand will cut its rubber exports by 150,000 tonnes. The
remaining 150,000 tonnes will be shared by Indonesia and Malaysia. The steps will
have a positive outcome, moving prices higher.
Thailand may raise the budget to buy rubber
sheets from local farmers above market rates and increase locations for
purchases to cover all growing regions. The country announced in May plans to
buy more than 10,000 tons in Tokyo and Shanghai to boost prices. The plan will
be presented for cabinet approval on 21st August.
Read
lot more in Rubber4U – 1st September 2012 issue
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