CHIANG MAI, Thailand — Major natural rubber producers Thailand, Indonesia and Malaysia have agreed to cut exports in a bid to address low natural rubber prices.
A meeting of senior officials of the International Tripartite Rubber Council (ITRC) member states in Chiang Mai on Nov. 29 decided that immediate measures should be taken to address low NR prices, according to a report by International Rubber Consortium (IRCo), the operational arm of the ITRC.
The measures include the implementation of the Agreed Export Tonnage Scheme (AETS) as of December, which will see the three states reduce their NR exports.
The council did not specify the size of the cut, but in a similar measure last year, the trio agreed to cut exports by 300,000 metric tons.
The ITRC meeting also took note on the current supply and demand situation of NR, stating that current prices were "not reflective of market fundamentals."
This is in view of the fact that the rainy season has started in major rubber producing areas, which can lead to shortages of supply and, hence, higher prices.
In addition, stocks of NR in major importing countries, including China, have shown a declining trend, ITRC noted.