The International Rubber Consortium won't resume export controls during its meeting later this month, as prices are reasonable, said its chief executive, Abdul Rasip Latiff.
The reduction in exports this year has already exceeded the targeted volume.
"If prices continue to be around current levels, there's no need to impose export restrictions," Abdul Rasip recently told Dow Jones Newswires.
The benchmark natural rubber contract on the Tokyo Commodity Exchange rose to a one-year high of Y235.7 a kilogram Oct. 23
He said since it's profitable to sell natural rubber, the consortium favors more sales. It doesn't want to hold back rubber when demand is good.
IRCo comprises the world's three biggest natural rubber producers by volume--Thailand, Indonesia and Malaysia. The consortium is scheduled to meet later this month in the Malaysian resort of Langkawi.
It had been implementing a program to reduce natural rubber exports by around 700,000 metric tons in 2009 due to a drastic fall in global prices last year. The program was put on hold for the fourth quarter due to a recovery in prices.
Under the program called the Agreed Export Tonnage Scheme, quotas are allocated for exports to individual companies based on their shipments in the previous year.
Abdul Rasip said the reduction in exports from IRCo's member countries exceeded the AETS targets due to low demand and less production amid replanting of old trees during the first half of this year.
He said exports from IRCo member countries fell by 600,000 tons in the first half of 2009.
According to IRCo data, natural rubber exports fell 10% to 1.195 million tons in Thailand, by 13% to 1.065 million tons in Indonesia and 39% to 0.309 million tons in Malaysia during the first half of 2009.
Abdul Rasip said IRCo isn't looking at specific price levels as a threshold.
"We don't want to price levels up front. Our approach to prices is dynamic," he said.
He said IRCo has price-related guidelines to decide on intervention, but it's for internal use.
Abdul Rasip said IRCo's export reduction program this year worked successfully through lower production and replanting without creating any stockpiles with the governments of member countries.
"IRCo favors the natural process to balance demand and supply instead of creating artificial stockpiles," he said.
He said recent discussions with Vietnam to join the consortium have been positive.
The reduction in exports this year has already exceeded the targeted volume.
"If prices continue to be around current levels, there's no need to impose export restrictions," Abdul Rasip recently told Dow Jones Newswires.
The benchmark natural rubber contract on the Tokyo Commodity Exchange rose to a one-year high of Y235.7 a kilogram Oct. 23
He said since it's profitable to sell natural rubber, the consortium favors more sales. It doesn't want to hold back rubber when demand is good.
IRCo comprises the world's three biggest natural rubber producers by volume--Thailand, Indonesia and Malaysia. The consortium is scheduled to meet later this month in the Malaysian resort of Langkawi.
It had been implementing a program to reduce natural rubber exports by around 700,000 metric tons in 2009 due to a drastic fall in global prices last year. The program was put on hold for the fourth quarter due to a recovery in prices.
Under the program called the Agreed Export Tonnage Scheme, quotas are allocated for exports to individual companies based on their shipments in the previous year.
Abdul Rasip said the reduction in exports from IRCo's member countries exceeded the AETS targets due to low demand and less production amid replanting of old trees during the first half of this year.
He said exports from IRCo member countries fell by 600,000 tons in the first half of 2009.
According to IRCo data, natural rubber exports fell 10% to 1.195 million tons in Thailand, by 13% to 1.065 million tons in Indonesia and 39% to 0.309 million tons in Malaysia during the first half of 2009.
Abdul Rasip said IRCo isn't looking at specific price levels as a threshold.
"We don't want to price levels up front. Our approach to prices is dynamic," he said.
He said IRCo has price-related guidelines to decide on intervention, but it's for internal use.
Abdul Rasip said IRCo's export reduction program this year worked successfully through lower production and replanting without creating any stockpiles with the governments of member countries.
"IRCo favors the natural process to balance demand and supply instead of creating artificial stockpiles," he said.
He said recent discussions with Vietnam to join the consortium have been positive.
(Source: http://irco.biz)
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