ERJ staff report (DS)
Bali, Indonesia -- The ASEAN Rubber Business Council is to take action against rubber contract defaulters. Sharp falls in rubber prices in the last six months have left many futures contracts showing very large losses. The industry has become increasingly concerned that some traders are refusing to honour their contractual obligations.
The ABRC, whichh represents the Trade Associations of Singapore, Thailand, Indonesia, Malaysia, Vietnam and Cambodia has compiled and distributed a list of defaulters. Members will be advised to avoid trades with defaulters.
It also proposes mediation in cases where traders have defaulted, but advises against discounting in order to resolve conflicts, as this is likely to encourage further defaulting.
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Press release from ASEAN Rubber Business Council