ERJ staff report (LMH)
Bangkok -- The International Rubber Consortium will advise member countries Thailand, Indonesia and Malaysia to slow natural rubber exports, Chief Secretary Yium Tavarolit said in a 21 Oct statement from the association.
"IRCo will [also] recommend members tell farmers that they should reduce raw rubber sales until prices are at a level reasonable to both sellers and buyers," Bangkok-based Yium said.
The group will keep natural rubber's floor price at $4 a kilogram, Yium said.
IRCo first issued the recommendation in August amid a selloff in the futures market. The reminder comes on the heels of sharp declines in natural rubber prices due to global macroeconomic concerns.
Market fundamentals are unchanged, particularly as global carryover stocks are low--about 1.2 million-1.3 million tonnes, compared with about 2 million tonnes in previous years. Demand is firm as global auto sales are healthy, he said.
IRCo said its member countries account for 70 percent of global natural rubber production.
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Press release from IRCo