Indonesia and Some Countries' Rubber Output Fell, Rubber Price will Rise

Indonesia business newspaper reported on March 20, rubber price slightly increased. Due to drought in many parts of the world, Indonesia, Malaysia and Thailand’s rubber supply dropped. In April this year, The Tokyo Futures Exchange shows transporting rubber price is ＄2.33/kg; however the price in the end of February is about ＄2.1/kg.

Rubber output reduction was expected to push rubber price, Indonesian rubber Association (Gapkindo) consultant Asril Sutan Amir said. Currently, the rubber price remains volatile. He estimates that the rubber prices are expected to rise to ＄2.4/kg - ＄2.5/kg this year.

Rukman. Sakarya (Lukman Zakaria), Chairman of Indonesia Rubber farming Association (Apkarindo) said the International rubber price have no impact on Indonesia’s rubber price yet. At present, the Indonesian rubber price at the farmer’s level is around 7000 rupiah/kg to 8000 rupiah/kg. We hope rubber price increase to 10000 rupiah/kg at least. He said local rubber price go up only when rubber producer buy rubber from the farmers because of stock decreasing. Last 3 months’ drought has affected rubber production, but he was confident that the rubber production this year could be implemented better, which will increase from 3.1 million tons to 3.5 million.

——excerpted from Latex Industry April, 2014