Thai government meets to establish NR exchange

Bangkok – The Thai Department of Agriculture is meeting today (16 Dec) to discuss the establishment of a natural rubber exchange market.

The International Rubber Consortium (IRCO), consisting of Thailand, Indonesia and Malaysia, met in Kuala Lumpur late November where they agreed on “managing” rubber prices as well as establishing a joint natural rubber market in order to stabilise the declining prices.

Rubber prices fell to a five-year-low last week, selling for 51 bhat (€1.2), according to Bangkok Rubber Research Centre.

The falling prices have been a result of high levels of stock and low demand, particularly by Asia’s biggest consumer China, which itself is experiencing slowed growth. Adding to the mix are the declining crude prices and the rise of shale gas, making synthetic rubber a more economic option for consumers.

Among other measures agreed amongst the top producers is to limit the expansion of rubber plantations for the next five years to reduce stockpiles.