Fundamentals are favorable for natural rubber prices to stay bullish, Djoko Said Damardjati, secretary general of the Association of Natural Rubber Producing Countries, said Monday.
ANRPC member countries control around 94% of the world's natural rubber output.
Natural rubber futures rose to an 18-month high in January to around Y306 a kilogram on the Tokyo Commodity Exchange. The RSS3 grade natural rubber in the physical market was offered near record levels above $3.20/kg.
Djoko dismissed as baseless media reports earlier this month that major producing countries plan to release 300,000 metric tons of natural rubber in the market.
"None of the natural rubber producing countries hold any buffer stock of natural rubber," he said in the ANRPC's monthly report released worldwide Monday.
Djoko expressed concern that such misleading reports of non-existent buffer stocks were affecting prices.
Putting a curb on rubber prices wasn't on the policy agenda of any major exporting country, he said. Their policies are oriented towards ensuring the best price for natural rubber to enhance growers' income and improve export earnings, Djoko said.
He said the natural rubber industry was currently passing through a situation of tight supply caused by a progressive decline in production and a marked rebound in demand during the second half of 2009.
Earlier this month, Abdul Rasip Latiff, chief executive of International Rubber Consortium, told Dow Jones Newswires natural rubber prices may rise further during the first half of 2010 due to strong fundamentals.
(Source: irco.biz)
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