ERJ staff report (BC)
Bangkok – Thailand, the world's biggest rubber producer and exporter, will not extend restrictions on exporting the commodity when the measure expires on 31 May, Reuters reports a government official as having said. The official added that the curbs had little impact on prices.
Thailand, Indonesia and Malaysia had originally agreed to cut exports by a total of 300 000 tonnes from October 2012. That scheme ended in March, but Thailand said it would continue the curbs for another two months to the end of May.
Amnuay Patise, an adviser to the Deputy Agriculture Minister, who oversees rubber matters, is quoted as saying: "There is no point in continuing with the measure as it has had very little impact on the rubber market and prices have already rebounded through the market mechanism."
Benchmark Thai smoked rubber sheet (RSS3) was offered at US$3.00 (€2.33) per kg on 23 May.
A trader at Thailand’s Hat Yai rubber market is reported as saying: "I think current prices are acceptable, and both buyers and sellers are happy with them. So it's good that the government is letting prices move freely."
Traders said physical rubber prices were expected to remain supported as supply remained low, although farmers had resumed tapping in late April, when the dry season ended.