ERJ staff report (DS)
Kuala Lumpur -- Reuters is quoting the secretary general of the ANRPC as saying rubber prices have gone high enough, and his members may soon take action to prevent further price increases.
ANRPC had not responded to ERJ requests for clarification as this story went to press.
Reuters quoted Prof. Dr. Djoko Said Damardjatii, secretary general of the Association of Natural Rubber Producing Countries (ANRPC) saying his members have agreed that a price level of around $2.60/kg is reasonable.
Prices currently stand around yen 300/kg ($3.26) on the Tokyo commodity exchange (Tocom). In Singapore Sicom prices are around $3.10 per kilo.
Prof. Damardjati reportedly said Thailand is likely to be the first to take action by releasing some of its stocks. He mentioned a minimum of 300 000 tonnes.
Prof. Damardjati reportedly said the current rise in prices is not justified by the market fundamentals and is being driven upwards by commodity speculators. Reuters reported that even strong action to sell stocks by the producing nations may not have much effect on international markets.
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