QINGDAO, China (March 21, 2011)—Indonesia expects to defend a minimum price level of $4/kg, according to an official statement from the International Rubber Consortium.
IRCo said, this goal follows Thai Deputy Prime Minister Suthep Thaugsuban's pledge to maintain local rubber prices at no less than $3.96/kg.
International Rubber Consortium acting Chief Executive Yium Tavarolit said last week the group's three member countries (Thailand, Indonesia and Malaysia) have agreed to work together on any potential price control measures, which could include export suspension below a certain price level.
Yium said the three countries would meet this week to discuss measures to stem falling prices, but that meeting is now on hold as prices have recovered somewhat and as the Thai authorities hold their own meeting first.
IRCo said it is also setting up a joint working group with the China Rubber Industry Association to counter price volatility. China is the world's largest consumer and importer of the commodity.
Tocom rubber prices hit a record high Feb. 18 before sliding sharply, as market sentiment was damped by geopolitical tensions in the Middle East, tightening fears in China and the earthquake and tsunami in Japan, despite the fact that major producing countries are in the low-production season.