BANGKOK: Thailand, Indonesia and Malaysia are considering curbs on natural rubber exports to stabilise prices.
Prices fall: A file picture showing a worker collecting latex at a plantation in Jember, Indonesia. Rubber futures in Tokyo dropped 19 this year and Thai prices fell 5.2 as concerns about a supply shortage due to floods in Thailand eased. – Reuters
Excessive speculation resulted in “unfair prices” for both producers and consumers and there’s concern about recent price volatility, the International Rubber Consortium said in a statement yesterday. The group is the operating arm of the International Tripartite Rubber Council, which represents governments and exporters from Thailand, Indonesia and Malaysia.
Rubber futures in Tokyo dropped 19% this year and Thai prices fell 5.2% as concerns about a supply shortage due to floods in Thailand eased. The three countries last year agreed to reduce exports by 700,000 tonnes to boost prices.
Together, they account for about 70% of global exports. “Prices are below fundamentals,” Titus Suksaard, governor of the Rubber Authority of Thailand, said at a joint media briefing in Bangkok. Production from top exporters is poised to decline this year, while demand remains strong with increasing car sales in China, Europe and Japan, he said.
