ITRC Will Meet on December 16

The International Tripartite Rubber Council (ITRC) Will Meet on December 16

A senior Indonesian trade official said on December 5, 2018, that the three major rubber producers, Thailand, Malaysia andIndonesia, will meet on December 16 to discuss how to support the sluggish NR prices, including potential restrictions on exports.

Iman Pambagyo, Director General of International Trade Negotiation at Indonesia's Trade Ministry, said that representatives of the three countries which comprise the International Tripartite Rubber Council (ITRC), will meet in Putrajaya, Malaysia. The meeting will focus on the low-priced NR.

Pambagyo said that ITRC will study two measures that may increase the NR prices, including reducing exports and planting area, and "this will automatically reduce supply."

The rubber futures benchmark price at the Tokyo Commodity Exchange hit a 27-month low last month due to concerns over global oversupply.

Pambagyo said: "The question is how all members will comply with this rule." At the last meeting, the Indonesian Trade Minister emphasized the need for countries to maintain discipline.

The Indonesian government said last month that it will launch a rubber replanting program in December, covering a total of 6,000 hectares of land in Sumatra. The government plans to replant 700,000 hectares of rubber plantations by 2025.

This meeting has also invited Vietnam to join the discussions, given the country's rising supply to the global rubber market.

ITRC will also consider using more rubber in road and high-rise projects to consume excess supply.

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