KUALA LUMPUR: Malaysia, together with Thailand and Indonesia, is working on cutting rubber exports in the second half of this year (2H17) to curb declining prices, according to a report by the Bangkok Post yesterday.
In search for price-support measures, the three countries have agreed to move a meeting among the farm ministers of the three biggest natural rubber producers to an earlier date in September, from December this year, the Thai newspaper said.
Citing a Thai official, Bangkok Post said senior officials are deciding on the appropriate amount of export cuts, and that the measure is expected to be adopted soon.
“The International Tripartite Rubber Council is due to meet shortly as the Thai government seeks measures to support prices in the short term,” Rubber Authority of Thailand governor Titus Suksaard was quoted as saying.
Titus gave no details on the timeline and of the cut, but senior industry officials expect the cut to be the same as last year at around 300,000 tonnes, the Bangkok Post added.
The recent price has dipped largely due to an import halt from China — the largest rubber importer — over the past few months, amid a spike in stockpile to 250,000 tonnes from its normal rate of around 60,000 tonnes, according to rubber traders.
“Rubber fundamentals remain strong, with seasonal rains in the three countries disrupting tapping and reducing supply, which should support rubber prices over the next few months,” the Bangkok Post quoted Luckchai Kittipol, honorary president of the Thai Rubber Association, as saying.
Malaysia is the world’s third-biggest producer of natural rubber, with an annual output of around 720,000 tonnes, trailing Indonesia and Thailand at 3.1 million tonnes and 4.1 million tonnes, respectively.
Output from the three countries accounts for over 60% of global rubber output of about 12 million tonnes per year, according to the report.
