IRCo sets intervention price for NR, but isn't telling

ERJ staff report (DS)

Bangkok - The International Rubber Consortium (IRCo) has said it will intervene if the price of natural rubber falls through a pre-determined threshhold level. But it is not telling what the threshhold is.

A post on the IRCo website re-publishes a news item from Bloomberg, quoting IRCo's Chief Secretary, Yium Tavarolit saying that IRCo set the threshhold yesterday (Tue 27 September).

The intervention could take many forms, but is likely to involve restricying te volume of rubber reaching the markets, said the report.

In March, the Thai government mandated a minimum price of THB120 ($3.87) a kilogram for RSS3 raw material, while the Rubber Association of Indonesia, or Gapkindo, proposed a $4-a-kilogram "defend price."

IRCo is s quasi-governmental body representing the governments of Indonesia, Malaysia and Thailand. It was set up in 2002 to achieve a long-term price trend that is stabilised and sustainable and remunerative to farmers.

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News item from IRCo website