BANGKOK—In the latest of several historical attempts to shore up low natural rubber prices, the three largest NR-producing countries have agreed to cut back rubber exports by 350,000 metric tons in the first three months of 2018.
The Royal Thai Embassy announced the agreement between Thailand, Indonesia and Malaysia in a Jan. 24 press release.
Thailand's actions under the agreement are governed under that nation's Rubber Control Act, according to the press release.
Indonesia's part of the agreement are co-implemented by the Ministry of Trade of Indonesia and GAPKINDO, the Indonesian rubber industry organization. Malaysia is administrating its portion through the Malaysian Rubber Board, under the Rubber Price Stabilization Act of 1975, the release said.
Each country was assessed cutbacks in relation to its NR production, according to the release. As the world's largest producer, Thailand was assessed the largest share, the embassy said—234,810 metric tons.
In addition to cutting back exports, all three countries are implementing plans to increase domestic NR consumption, the release said.
Thailand, for example, is appropriating an extra 200,000 metric tons for government use in such products as rubberized asphalt, sports field mats, pavement rubber blocks, pond liners, rubber pillows and rubber mattresses, it said.