ERJ staff report (DS)
Kuala Lumpur -- Natural Rubber producing countries have put on hold plans to support prices. Falling prices had prompted Thailand Indonesia and other countries to announce price support plans scheduled to take effect if prices fell to around $4/kg, but these have been put on hold, as prices have continues to rise in recent days. Today prices reached around $5.50/kg in Tokyo
Specifically, a meeting by the International Rubber Consortium to discuss measures supporting natural rubber prices is now on hold as prices have rebounded strongly in the last few days, IRCo acting chief executive Yium Tavarolit said Monday. "Because natural rubber prices have breached the floor rate of THB120/kg (stipulated by the Thai government), that meeting is now not needed for the time being," said the Bangkok-based Yium after the Thai national rubber committee meeting held Monday afternoon.
If prices fall below the floor rate, measures that have been mentioned last week, such as an export suspension, would be again considered.
Yium also said IRCo and the International Tripartite Rubber Council would be writing to the Tocom and the Shanghai Futures Exchange to ascertain the causes of price swings in the last few weeks, and to ask the exchanges to cooperate in reducing price volatility.
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