BOGOR, Indonesia (Dec. 15, 2008)—The world's top three natural rubber producers, Thailand, Indonesia and Malaysia, have agreed to cut their combined rubber exports by about 15 percent in 2009 in an effort to boost the falling rubber price.
The three nations disclosed their policy decision at the recent International Tripartite Rubber Council Meeting in Bogor, where it also was disclosed that the world's major NR producing nations are urging individual producers not to sell rubber at below $1.35 per kilogram.
The NR producers agreed to manage their export plan under an AETS (Agreed Export Tonnage Scheme). To be implemented starting Jan. 1, the AETS will cut rubber exports from all three countries by 700,000 metric tons and reduce output by a further 215,000 tons due to accelerated replanting under a Supply Management Scheme, the ITRC said,
The ITRC said exports during the first quarter will be cut by 270,000 tons with the rest of the quota being cut in subsequent quarters.
The ITRC said traders who defaulted on rubber futures contracts had been a major contributor to the decline in prices in recent months. It urged both buyers and sellers “to resolve any non-fulfilled outstanding contracts urgently so that the international rubber trade can continue to operate orderly for long-term mutual benefit.”
The ITRC agreed that the three countries' governments would “approach the contractual parties' respective governments to help curb these unhealthy practices.”