Malaysia: Rebound seen for rubber prices next week

A farmer taps a rubber tree to collect raw latex on a rubber plantation in Rayong province, Thailand.

The Malaysian rubber market is expected to rebound next week following the announcement of export curbs by the world’s top three producers.

Low stocks will also aid the move by Thailand, Indonesia and Malaysia to control offtake, said a dealer.

The top three rubber producers, under the International Tripartite Rubber Council, had agreed to reduce exports by 300,000 tonnes and to accelerate the replanting programme of 100,000 hectares, which will result in further reduction of export by 150,000 tonnes.

“With these two measures, a total of 450,000 tonnes of natural rubber will be withdrawn from the market,” said a dealer.

The latest development saw the market rebound on Friday after weeks of steady decline amid the gloomy global economic outlook that has trimmed demand, said another dealer.

On a week-to-week basis, the Malaysian Rubber Board’s sellers official physical price for tyre-grade SMR 20 lost 36.5 sen to 775.5 sen per kg while latex-in-bulk fell 26 sen to 536.5 sen per kg.

The unofficial sellers’ closing price for tyre-grade SMR 20 dropped 24 sen to 781 sen per kg and latex-in-bulk fell 13 sen to 543.5 sen per kg. — BERNAMA

Source: http://www.btimes.com.my/articles/20120818135547/Article

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