RSG expected in the second half of this year, rubber prices will remain high in

International Rubber Study Group (IRSG) said PrachayaJumpasut officials, expected in the second half of this year, rubber prices will remain high, due to tight global supplies and strong demand overseas. The end of this year will be the world's rubber stocks increased slightly to be able to meet the needs of three and a half months, and earlier this year, slightly higher than 2005's 3.2 months, but still much lower than in 2056 before spending five months to meet the Volume. Even if the increase to about three and a half months or so, still is not large enough, supply remains very tight.

The main rubber producing countries of the tight supply is expected to make Jiaojia the end of this year remained at a high, but he did not give specific expectations. Tight supply situation in order Jiaojia in May hit a record high. Rubber prices make farmers very happy, they will be tapping non-stop, but may also trigger a re-planting will be delayed consequences. "Prachaya said. Why should we cut the rubber trees? This will obviously affect the future of the rubber production." Worldwide in 2006 and Synthetic rubber production is estimated at 21.7 million tons, higher than last year's 2,070 10,000 tons.

Traders said the Tokyo Commodity Exchange (TOCOM) rubber period of decline in a row, involvement in fund selling, reflecting the country's rubber production to increase supply. Funds continue to sell, prices are expected to slip further. Rubber prices fell in all markets, including the physical market, TOCOM and SICOM, and so on. Before the market rise some time ago. With the increase in the supply of raw materials, prices began to decline. Thailand, Malaysia and Indonesia in the spot light trading, despite lower prices, but buyers should not see fit hand, expectations of further price decline. A Thai exporters said: "All aspects of return to normal supply, increased supply. But there is no buyer, the physical trading was light."