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Tag: rubber

  • Vietnam joins world`s largest rubber producers to cut exports

    Vietnam joins world`s largest rubber producers to cut exports

    Vietnam will join worlds largest natural rubber producers to cut exports in a bid to shore up the shrinking price of that commodity.

    Vietnam will follow Thailand, Indonesia and Malaysia to cut its imports of natural rubber by 15 percent starting March 1 until August 31, the Indonesian association of rubber companies (Gapkindo) said.

    Earlier the three member countries of the International Tripartite Rubber Organization (ITRO) which control 70 percent of the world supply of natural rubber agreed to cut exports by 615,000 tons from March to August.

    With Vietnam joining the cartel the price of natural rubber is expected to rise in international market, Executive Secretary of the North Sumatra branch of Gapkindo Edy Irwansyah said here on Monday.

    Under the arrangement, Thailand, the worlds largest producer is to reduce its exports of natural rubber by 324,005 tons, Indonesia, the second largest producer by 238,736 tons, and Malaysia, the third largest by 52,259 tons.

    North Sumatra, one of Indonesias largest natural rubber producing provinces, contributes to the scheme by cutting exports 38,000 tons.

    The decision of the four ASEAN countries would have impact on the rubber market, as they control more than 70 percent of the supply of natural rubber in the world, Edy said.

    Edy said rubber price has remained low but in March the price began to climb, adding, he was confident the price of that commodity would continue to increase .

    In January 2016, North Sumatras exports of natural rubber and rubber products fell again by 16.43 percent year-on-year in value.

    The province earned only US$78.083 million in January 2016 down from US$93.375 million in the same period last year, head of the regional office of the Central Bureau of Statistics (BPS) Wien Kusdiatmono said here last week.

    The production and price of rubber and rubber goods have continue to shrink, Wien said.

    According to Edy though rising, the price of natural rubber is still much below the level considered ideal of around US$1.90 per kg.

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  • Indonesia to Cut Rubber Export Volume

    Indonesia to Cut Rubber Export Volume

    The world’s three largest rubber producing countries Indonesia, Thailand, and Malaysia, have agreed to start reducing rubber exports. As members of the International Tripartite Rubber Council (ITRC), the three countries decided on this policy to boost rubber prices in the global market.

    The Indonesian Rubber Companies Association (Gapkindo), the government’s official partner in implementing the ITRC agreement, said that members have been reducing the number of product shipment overseas.

    “We have cut back on crumb rubber exports to comply with regulations,” Gapkindo executive director Suharto Honggokusumo Suharto said in Jakarta, yesterday.

    The agreement to cut rubber exports was made on February 4, 2016. The ITRC will cut export volume by 615,000 tons starting on March 1 until August 31, 2016. Thailand will lower its exports by 324,025 tons, Indonesia by 238,736 tons, and Malaysia by 52,249 tons.

    In Indonesia, the unexported volume will be reallocated to the domestic market, including for infrastructure projects. “The government has promised to seek price improvement to help improve the condition of the rubber farmers,” said Suharto.

    In 2015, Indonesia’s natural rubber exports reached 2.6 million tons. Trimming the volume of exports is expected to push up prices. In February, the price of natural rubber in the global market was US$1.04 to US$1.09 per kilogram. This price range is too low, because farmers can only profit if global prices are between US$2 and US$3 per kilogram.

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  • Indonesia cuts exports of natural rubber to prop up market

    Indonesia cuts exports of natural rubber to prop up market

    Indonesian rubber exporters agreed to cut their exports of that commodity in line with the Agreed Export Tonnage Scheme (AETS) starting March until August this year.

    “AETS scheme agreed upon by the three member countries of the International Tripartite Rubber Council (ITRC) is aimed at propping up the natural rubber market by cutting supply of that commodity to the world market,” Foreign Trade Director General Karyanto Suprih said in a statement here on Monday.

    The government has asked the business players to comply with the scheme, Karyanto pointed out.

    The commitment was declared at a Focus Group Discussion (FGD) with theme “Readiness of Indonesian Rubber Exporters to implement the AETS scheme in 2016 in line with the agreement reached on February 4, 2016 between the governments of Indonesia, Thailand, and Malaysia to cut supply of natural rubber to the world market.

    The export cut would be effective from March 1 to August 31 this year.

    Under the AETS scheme Thailand, the worlds largest producer is to reduce its exports of natural rubber by 324,005 tons, Indonesia, the second largest producer by 238,736 tons, and Malaysia, the third largest by 52,259 tons.

    Altogether ITRC member countries agreed to reduce exports of natural rubber by 615,000 tons during the March-August period.

    Indonesia, while cutting exports hopes to increase domestic consumption of natural rubber.

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  • Malaysia, Indonesia & Thailand to shore up rubber price

    Malaysia, Indonesia & Thailand to shore up rubber price

    Asia’s top rubber producers have agreed to cut exports by 615,000 tonnes for six months from March, moving to lift prices that have tumbled to their lowest since the global financial crisis amid excess supply.

    Benchmark rubber futures in Singapore and Japan rallied 2-3% on the news. The benchmarks sank in January to their lowest levels since end-2008 to early 2009.

    Thailand, Indonesia and Malaysia, which produce nearly 70% of the world’s natural rubber, said in a joint statement that the move was to address a decline in rubber prices which has had “a direct effect on the income of rubber smallholders in our three countries.”

    Thailand will cut exports by 324,000 tonnes, Indonesia by 238,740 tonnes and Malaysia by 52,260 tonnes, according to a statement from the International Tripartite Rubber Council (ITRC), which groups the three producers.

    The total cuts account for nearly 6% of global natural rubber output.

    “The three countries’ ministers believe that cutting exports and boosting domestic use of rubber will drive up prices and fix the price slump, making prices fair for rubber farmers,” Thailand’s agriculture ministry said in a statement.

    Previous efforts by major rubber producers to cut exports or output have only had a fleeting impact on prices amid a slowdown in top rubber importer China. In 2014, the ITRC members also agreed to cut exports to curb excess supply.

    Before that, they collectively cut shipments by 300,000 tonnes in 2012-13, or roughly 3% of 2012 global output. The intervention only briefly supported prices and Indonesia called for the pact to be discontinued.

    Besides cutting exports, the three countries today also agreed to increase domestic consumption of rubber – including for road and railway construction.

    “We are optimistic with joint implementation of these measures, rubber price will recover and continue to be fair and remunerative to all smallholders and other stakeholders in the natural rubber industry,” the ITRC said in the statement.

    Thailand, the world’s top rubber producer and exporter, will cut its rubber exports by 50% starting March, said the Rubber Authority of Thailand.

    “The three countries will cooperate in cutting exports by 615,000 tonnes from March to August,” said Chao Songarvut, acting director of the Rubber Authority of Thailand, adding that the move was to drive up prices.

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  • Indonesia’s rubber exporters hopeful on automotive recovery

    Indonesia’s rubber exporters hopeful on automotive recovery

    Indonesia’s rubber businesses are eyeing a boost in sales and exports next year as the global automotive industry, one of the sectors that the rubber industry relies on, has begun recovering after being hit hard by the global economic downturn.

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