A Special Meeting of the International Tripartite Rubber Council (ITRC) was held in Bangkok, Thailand from 13 – 14 March 2014. This meeting was attended by officials from Thailand, Indonesia and Malaysia.
2. The meeting deliberated on the current market prices for natural rubber (NR). The three countries were of the view that the current negative market sentiments have been very much influenced by various reports of excessive global NR stocks. The high global NR stocks reported by various sources had been inconsistent, and/or might have been incorrectly reported. ITRC will collaborate with ANRPC to address the issue of statistical discrepancies.
3. IRCo is of the view that the current exceptional dry season, coupled with severe wintering that is expected to be prolonged will delay new tapping season. IRCo estimates that with the exceptional weather phenomenon, annual NR production in 2014 in ITRC countries will reduce by between 6 – 8%, taking into consideration the severe reduction in the current wintering period.
4. This is expected to be further aggravated by the high probability of El Nino phenomenon in 2014 reported by various meteorological agencies. These include reports by the Australian Meteorological Department, the National Oceanic and Atmospheric Administration (NOAA) of the United States and Japan Meteorological Agency.
5. ITRC has established the Demand Promotion Scheme Committee (DPSC). This committee will explore areas and strategies to increase domestic consumption of NR, as well as strengthen cooperation in developing new rubber based products globally.
6. ITRC has also initiated discussions with the other rubber producing countries, including Cambodia and Vietnam. This is aimed at further strengthening cooperation among NR producing countries in the region.
7. IRCo is of the view that the demand for NR is expected to increase in 2014, factoring in the positive economic growth projected in major importing markets. With the aggregation of these factors, NR price is expected to be strengthened in the coming months.
IRCo, 5.00 p.m.
