Thailand, Indonesia, Malaysia to cut rubber output

Print this page Posted on : 10-30-2008 by recycleinme.com

Thailand, Indonesia and Malaysia, the world's three biggest rubber producers, agreed to cut production by 2.10 lakh tonnes next year by felling trees, said Mr Luckchai Kittipol, President of the Thai Rubber Association. The countries will also reduce tapping in a bid to curtail output and boost prices from three-year lows, he said in an interview after the meeting.

Rubber, used for car tyres, has plunged 51 per cent from a 28-year peak in June on concern the global lending crunch will push the world into recession, reducing demand for commodities. Representatives from the three countries that supply 70 per cent of world output met today in Bangkok. The agreement has to be endorsed by governments, said Mr Abdul Rasip Latiff, Chief Executive Officer of the International Rubber Consortium Ltd. Natural rubber for April delivery added 4.4 per cent to 173.9 yen a kg on the Tokyo Commodity Exchange today. Prices reached a three-year low of 154.6 yen yesterday.

Source : Business Line