MALAYSIA: Rubber rubber prices will rise if producing countries cooperate, says Uggah -- K Trade Fair


MALAYSIA: Rubber rubber prices will rise if producing countries cooperate, says Uggah

He said the Association of Natural Rubber Producing Countries (ANRPC) should strengthen cooperation, particularly on the supply side of the commodity.

"If there is no major excess in supply, then definitely prices will rise,” he told a press conference on rubber production incentives in Kuala Lumpur on 17 Oct. 2014.

The ANRPC comprises 11 countries that produce about 95 % of the global natural rubber.

The price of SMR 20 is currently trading around RM4.85 per kg.

At a recent meeting, Uggah said ANRPC had agreed to uplift the status of the next meeting to a ministerial session to allow major issues to be discussed at the top level.

"I hope the association will come up with a policy to move the industry forward as well as maintain prices at sustainable levels,” he added.

He said the declining trend of rubber production in Malaysia and Thailand currently will lead to better prices in the long term.

"Malaysia is experiencing a 10 % drop in production, while a report from Thailand noted that it would produce about 3.7-3.8 million tonnes of natural rubber this year. This is less than the earlier forecast of 4.2 million,” he added.

In another development, Uggah said the International Tripartite Rubber Council which involves the world's three largest rubber producing countries, namely Thailand, Indonesia and Malaysia, will meet soon to work on a mechanism to support the industry.

"We will also invite Vietnam, Cambodia and Laos to join the meeting and do something to bring results for the industry,” he added.  

Source: Malaysia Mail Online, Kuala Lumpur; 17 Oct 2014
(Syed Rashid Ali, Karachi, Pakistan)