Rubber prices on the global commodities market are expected to rise to $2,500 per ton due to the improved state of the world economy and efforts by four major rubber producing countries – Vietnam, Thailand, Indonesia and Malaysia – to cut back supply, according to a senior official in the Ministry of Agriculture.
“Because of that, global supply of natural rubber fell short by 300,000 tons causing prices to rise. We anticipate that the price of rubber will rise to between $2,000 per ton and $2,500 per ton next year,” said Mr. Sopha.
He also pointed out that both the US and other global economies were slowly recovering causing a rise in demand for natural rubber, which further pushed prices up.
Men Sopheak, secretary-general of the Association for Rubber Development in Cambodia, told Khmer Times that climatic factors were also responsible for the shortfall in global supplies.
“The weather in rubber producing countries has not been favorable lately, with rains preventing the tapping of rubber trees for latex to produce rubber bales for export,” said Mr. Sopheak.
“Many companies suspended production and this caused prices to rise,” he added.
“The price at present is about $1,860 per ton and if the four countries – Vietnam, Malaysia, Indonesia and Thailand – jointly continue to cut rubber exports by at least 15 percent, prices will be stable or even rise.”
But Mr. Sopheak warned that it was too early for Cambodian rubber producers to start rejoicing.
“The situation is still fluid. If the four countries resume normal production and increase their rubber exports, prices will come down again. It’s a simple case of demand and supply economics,” he said.
Lim Heng, chairman of Heng Mean Investment Co., who owns large rubber plantations in Kampong Cham province said Vietnam, Malaysia, Indonesia and Thailand jointly colluded to stabilize global rubber prices.
“It’s in their interest that prices remain stable, so I don’t think they will resume normal production to cause a price fall,” he said.
According to the Ministry of Agriculture’s figures as at September this year, Cambodia exported 82,825 tons of rubber – up almost 11
percent compared with the same period last year. The ministry’s figures also show that the number of rubber plantations continue to rise – mostly in the northeast provinces of Mondulkiri and Rattanakiri. According to the ministry, total rubber plantation areas reached 402,310 hectares in September, far ahead of the government’s target of 400,000 hectares by 2020.
