COLOMBO, Sri Lanka—A leading rubber expert said that the natural rubber price decline “is likely to stop and perhaps stabilize at a lower level.”
Addressing the Global Rubber Conference in Colombo, Sri Lanka recently, Prachaya Jumpasut of the Rubber Economist said the relative low prices of the market and improvements in Asia/Pacific could help stimulate natural rubber demand. He expressed hope that the declining trend would stop.
Jumpasut noted that natural rubber production had slowed due to low prices and hangover stocks, saying that the stocks were expected to increase but not as high as previously expected.
Addressing the conference, the industry expert called for natural rubber producing countries to look for new areas of adding value to products to increase earning.
Also addressing the conference, John Baffes of the World Bank echoed similar concern for rubber industry, saying the market experienced a sharp decline in recent years.
He said that most agricultural prices declined as supply conditions improved and stocks returned to historical norms.
“For industrial agricultural commodities (notably cotton and natural rubber), the weakening in global economic conditions has taken a toll,” Baffes said.