BANGKOK, Thailand (Aug. 16, 2012)—The world's three largest natural rubber producers said they will cut 450,000 metric tons of NR exports to boost prices.
Thailand, Malaysia and Indonesia, members of the International Rubber Consortium, will withdraw 300,000 tons of NR exports, and accelerate a replanting program of 100,000 hectares, will take another 150,000 tons of rubber off the market.
NR prices have fallen as much as 15 percent in the first half, according to industry figures.
The IRC said demand for NR remains strong, and inventories low. “The drop in NR price was mainly contributed by negative market sentiment caused by various other factors including uncertainties in global economic growth,” the organization said in a press release.
The group said it expects its action to boost prices and help smallholders and other stakeholders in the NR trade.