Thailand, Indonesia and Malaysia to reduce rubber production

Thai Rubber Association, noted that in October this year, the agricultural futures markets as world oil prices and commodity prices have reduced sharply. In particular the decline in rubber prices more than 40%, from the international financial crisis led to the decline in auto sales, so that the world demand for rubber also lower. However, since the recent Organization of Petroleum Exporting Countries to reduce oil production, together with the Federal Reserve lowered interest rates 0.5 percent, the rubber market has tended to turn for the better. At present, the domestic rubber price of 60 baht / kg, rubber growers are still at an acceptable level.

Thai Rubber Association, oppose government intervention in the market price of rubber, because of the recognition that the Association will have an impact on the market mechanism, and stressed the Thai rubber industry is still solid growth. In addition, Thailand, Indonesia and Malaysia at the meeting of the three countries also agreed to reduce production of 215,000 tons of rubber, and the three countries cut off the old rubber trees Levin 1,056,250, of which 400,000 Levin Thailand, Indonesia and Malaysia, 343,750 Lai Lai 312,500 in order to reduce market access The number of rubber. As for next year's domestic rubber price trend will depend on the fluctuations in world oil prices, as petroleum-based synthetic rubber accounting for 60% of the market, while the remaining 40% is domestic production of natural rubber.

Thailand this year is expected to rubber exports to 2,750,000 tons, up 3.0%, 20% increase in exports, mainly to benefit from Prior to the rubber prices. As for the export of rubber in 2009 the trend is expected exports may be reduced to 2,600,000 tons.