Malaysia, Thailand, Indonesia consider cutting rubber exports

July 21, 2017

rubberMalaysia, Thailand and Indonesia are looking to reduce rubber exports soon in order to stabilise the 40% plummet in rubber prices, according to Malaysia’s Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong.

Since January until now, he noted Standard Malaysian Rubber (SMR 20) prices have plunged by 40% to RM6.27 per kg to RM9.57.

Speaking to reporters earlier this week, he said he is aware that Malaysia’s 450,000 rubber smallholders are not getting a fair price for their produce. The three countries will have an urgent meeting on September 15 in Bangkok to stabilise the current rubber price volatility, he said, adding Malaysia can further cut rubber exports from the current 10% to 15%.

Malaysia, Thailand and Indonesia currently produce about 60% of global rubber output of more 12.7 million tonnes.

Mah said members of the International Tripartite Rubber Council (ITRC) — Thailand, Malaysia and Indonesia — have agreed to adopt export restriction measures in the face of falling rubber prices.

“When ITRC meet in Bangkok, in a couple of months, we will finalise the implementation details of rubberised road projects, in our respective countries,” he said.

Mah acknowledged the cost of rubberised road is slightly higher in the beginning but in the long term, the maintenance cost works out to be cheaper.

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Rubber Prices
(Last Updated: 15 March 2019)

Monthly The prices shown above do not include VAT @4% on purchase and expenses towards packing, transportation, warehousing  and other incidentals

Source: Latex India
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