Indonesia has a low domestic rubber production may limit the export of rubber

One industry official said Indonesia, Indonesia rubber industry may restrict the export of rubber, as lower-than-expected domestic rubber production, at the same time the global rubber prices.

Indonesian Rubber Association (Gapkindo) chief executive H.AwiAman15 said that if the global rubber prices continued to decline, domestic supply continued to decline, likely will be the implementation of export restrictions. In what price will be subject to export restrictions it has not been decided. Gapkindo executive director of the agency SuhartoHonggokusumo said IRCo meeting to be held next week will probably make a decision.

International Rubber Group (IRCo) Company 13, said that demand for rubber price stability, if prices fall further, Thailand, Malaysia and Indonesia may restrict exports gradually. IRCo company in the world on behalf of the three major rubber producing countries Thailand, Indonesia and Malaysia, the rate of small tenant farmers, to ensure that natural rubber prices will benefit millions of farmers in this. IRCo has made it clear that the agency had to implement plans to export the number of strategic agreements to reduce the world rubber market supply and price promotion.

In the past month, the spot rubber prices have dropped, Thailand and Malaysia's rubber supply has been restored to normal levels, the Tokyo Commodity Exchange (Tocom) rubber futures popularity is beginning to slacken. Tokyo Commodity Exchange rubber futures prices on the 15th down, RSS3 benchmark February contract fell 1.6 to 236 yen / kg. And in mid-August when the contract price is far more than 280 yen / kg or so, the psychological resistance level at 290 yen / kg, technical support at 287 yen / kg. TOCOM benchmark contract of the current psychological resistance at 240 yen / kg or so.

In 2006 before the 5 monthly production growth, Indonesia's natural rubber production has dropped. The non-seasonally hot weather and a number of plantations have led to a period of depression in the western region in August and 9 monthly production since 2006's average monthly output decline in the level of 30% - 40%. During the period of recession in the rubber tree leaves and latex output reduction of at least 1 / 3.

Honggokusumo said that the rest of the country in September and the monthly production of 10 may also be reduced by 20% -30%, as hot weather conditions as well as the Muslim holiday of Ramadan just around the corner. November and 12 production may return to the average monthly level in 2006, because depression is over, at the same time the temperature is expected to be more moderate. But in the last few months of the year-on-year production may decline, this trend will likely continue in the next year continued. During the Muslim holy month of Ramadan in Indonesia usually have a few days to a week's holiday, in 2006 the Muslim holy month of Ramadan will start on September 24.

Honggokusumo said that although the Indonesian rubber output in 2006 will likely continue to grow, but the growth rate may be lower than last year's level. Gapkindo output in 2006 is expected to grow by about 3.5 percent, while the 2005 production year-on-year growth of 10%. Gapkindo prior to the 2006 annual output is expected in 2005 would be more likely to increase the level of about 7.0 percent, in 2005 the output was 2,270,000 tons, in anticipation of more favorable weather conditions. However, the expectations have been repaired and is expected to yield the downturn is likely to result in 2007 Indonesia rubber export volume decline.