Cut in export volume lifts prices of natural rubber
Acting governor of the Rubber Authority of Thailand (RAT) Chao Songarvut said natural rubber prices increased after the world’s three major rubber exporters
The price of natural rubber ribbed smoke No 3 at the Tokyo commodity market rose by Bt1.24 per kg; up by Bt1.09 a kg at the Shanghai commodity market; and up by Bt1.06 per kg at Singapore’s SICOM rubber futures market.
Meanwhile, the price of natural rubber in the domestic rubber market in Songkhla rose to Bt37.87 per kg, up by Bt0.81/kg, and the price of natural rubber ribbed smoke No 3 rose to Bt39.56/kg, up by Bt0.99/kg, which is a good sign, Chao added.
Since the price of rubber is also influenced by the oil price, rubber export level, the baht and yen currencies, as well as investors’ concerns over the sluggish global economy, it remains to be seen if rubber prices would increase in the near future as expected.
The International Tripartite Rubber Council (ITRC) resolved at a meeting in Jakarta to work with its joint-venture partner – the International Tripartite Rubber Company – in curbing the volume of rubber exports under the Agreed Export Tonnage Scheme.
Adverse impact
To alleviate the adverse impact of weak rubber prices on rubber growers, the world’s three major rubber exporters – Malaysia, Indonesia and Thailand agreed to cut rubber exports totalling 615,000 tonnes (Thailand 324,005 tonnes, Indonesia 238,736 tonnes, Malaysia 52,259 tonnes). The amount of rubber export reduction for each country is based on the proportion of rubber exports of each country in the past three years.
