Rubber-producing countries agree to cut exports in 2016

The Secretary of the Indonesian Rubber Producer Association (Gapkindo) for North Sumatra, Edy Irwansyah, in Medan on Thursday, said that the agreement was made during a meeting between leading rubber producer countries, namely Indonesia, Malaysia, Thailand and Vietnam, who has just become a new member.

"At the end of the ITRC meeting in January 2016, it was finally agreed to reduce exports by a total of 615,000 tons in 2016," he said.

However, he admitted not yet knowing the details on how much each country would cut down their exports.

"We will ask the central office for more details later. What is clear is that Gapkindo North Sumatra is ready to support the government program," he said.

Edy said that the implementation of the export cuts had changed from the previous schedule for February.

The ITRC had agreed to implement rubber export cuts in from March for the next six months or until August 2016.

"Rubber producer countries are hoping that this export cut triggers a price increase," he said.

Edy explained that this export cut agreement was the fourth such agreement, with the aim of preventing further declines in rubber prices.

The ITRC had last agreed on an export cut in October 2012, for a duration of six months until March 2013.

Since that agreement, rubber prices have increased to US$3.03 per kg from a previous low of US$2.6 per kg.

"We hope that in 2016 rubber prices will rise from the current level of around US$1.07 per kg for February 2016 shipments," he said.

The decline in rubber prices has been caused by weak demand from major importer countries, a result of the global crisis and declining crude oil prices.

Editor: B Kunto Wibisono

http://www.antaranews.com/berita/543795/negara-produsen-karet-sepakat-kurangi-ekspor-2016