BANGKOK (March 23, 2011)—The International Rubber Consortium has decided to postpone an emergency meeting intended to discuss methods of supporting natural rubber prices after NR prices rebounded strongly on world markets.
Indonesia, one of IRCo's three members along with Malaysia and Thailand, proposed March 16 that the organization develop a way to maintain a floor price of $4 per kilogram for NR. On that day, the price of Technically Specified Rubber 20, or tire-grade rubber, had fallen to $4 per kilo for June delivery from the March 2 price of $5.18 per kilo on the Singapore Commodity Exchange (SICOM). The same day, Rubber Smoked Sheets 3 stood at $4.39 per pound for June delivery, compared with $6 per kilo March 2.
The March 11 tsunami disaster in Japan, which helped drive concerns about NR demand, caused prices to plummet. Since then, however, prices have regained most or all of the ground they lost, because of continuing short supply as well as Thai and Indonesian government actions to set floor prices.
The March 22 price for TSR 20 on SICOM was $5.23 per kilo for June delivery, while RSS 3 stood at $5.58 per kilo.
IRCo still plans to hold its regularly scheduled board meeting in April.