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January 05, 2018 01:00 AM

NR producing nations start three-month export cuts

Shahrzad Pourriahi, European Rubber Journal
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    BANGKOK — The governments of Thailand, Malaysia and Indonesia, members of the International Tripartite Council (ITRC), have started cutting exports of natural rubber in line with a previously agreed-to plan to bolster prices.

    The International Rubber Consortium (IRCo), the operational arm of the ITRC, said the trio would cut NR exports by 350,000 metric tons between Dec. 22 and March 31.

    Dubbed the "agreed export tonnage scheme" (AETS), the plan will be implemented through each country's respective domestic regulators. It will include addressing business commitments under existing forward contracts.

    The AETS move follows through on a decision to curb exports, which was a decision made on Nov. 29, following an ITRC meeting in Bangkok.

    According to the IRCo report, the meeting also studied cooperation among the three countries to increase NR consumption domestically.

    Proposed measures include using NR in various sectors such as transport, consumer goods and rubberised roads.

    The three countries have voiced their confidence that the new steps will help prices recover.

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