The rubber industry in Indonesia will propose a review of the supply management that it, along with Thailand and Malaysia, implemented over the past six months to cut overseas supply.
The rubber industry in Indonesia will propose a review of the supply management that it – along with Thailand and Malaysia – implemented over the past six months to cut overseas supply, per the Jakarta Post.
In a deal reached in August, the three ITRC members – representing 70% of the world’s natural rubber output – pledged to curb supply to bolster prices through an agreed export tonnage scheme (AETS) and supply management scheme (SMS) after prices slumped to a record low of around $2.70 per kilogram.
Under AETS, producers in Indonesia, Thailand and Malaysia cut supply to the market by as much as 300,000 tons from October last year to March this year, while through the SMS they controlled production through a variety of measures, including replanting and removing aging trees. During October to November last year, Indonesia slashed as much as 111,000 tons from the market.
Last year, Indonesia exported 2.44 million tons of natural rubber, down by 4.15% from a year earlier. This year, Indonesia expects to see its rubber output rise slightly by 2.36% to 3.04 million tons, the association estimates.
Source: tirereview.com
