IRCo proposes NR buffer stock

ERJ staff report (DS)

Kuala Lumpur -- IRCo, the International Rubber Consortium Ltd. has noted that NR prices are hitting highs around the world. In response, said, Yium Tavarolit, IRCo's chief secretary, "The rubber industry may need to reestablish an international buffer stock system to stabilise optimal prices for sustainability of the global rubber industry in the long-term."

Siwaporn Bumroongpan writes in her column on the IRCo site, that supply concern about current flooding in southern Thailand and the rain in northern Malaysia lent support for rubber prices on both rubber futures and physical markets to stay above 400 US cents/kg.

She said, "Heavy flooding has pushed up rubber prices to the highest level in the history of the rubber industry, and at least 50,000 rai (or around 23,000 acres) of rubber plantations in southern Thailand are underwater, said Mr. Luckchai Kittipol, President of the Thai Rubber Association."

The rubber industry may need to reestablish an international buffer stock system to stabilise optimal prices for sustainability of the global rubber industry in the long-term, said Yium Tavarolit, chief secretary of the International Rubber Consortium Limited (IRCo).

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Column from IRCo