Three countries join forces to limit rubber exports to 240,000 tons

[webfact]

Three countries join forces to limit rubber exports to 240,000 tons

 

   

BANGKOK, 17 April 2019 (NNT) - To solve the problem of low rubber prices, the three major rubber exporting countries are ready to continue measures to limit rubber exports to 240,000 tons.

 

The Board of Directors of the International Rubber Joint Venture Co., Ltd., which consists of representatives of Thailand, Indonesia and Malaysia, have convened a joint meeting in Bangkok to discuss many issues including the sixth initiative on export volume restrictions. 

 

The three member states have agreed to enforce export controls under the rules and regulations of each country for four months starting from April 1, 2019. The three countries will jointly limit the level of rubber exports to 240,000 tons in total.

 

The meeting also considered an analysis of the rubber statistics of the three member countries of the International Tripartite Rubber Council: ITRC, which found that rubber production data that has been collated from many sources in the past is not consistent. 

 

Therefore, the meeting has confirmed rubber production data for 2018 as follows:

Thailand produced 4.879 million tons of rubber, while Indonesia produced 3.63 million tons of rubber and Malaysia produced 603,000 tons of rubber.

 

-- © Copyright nnt 2019-04-17

[YetAnother]

1 hour ago, webfact said:

representatives of Thailand, Indonesia and Malaysia, have convened a joint meeting in Bangkok to discuss many issues including the sixth initiative on export volume restrictions. 

doubt whether any of those three countries could limit anything, much less together

[leeneeds]

1 hour ago, webfact said:

The three countries will jointly limit the level of rubber exports to 240,000 tons in total.

Large surplus of many millions of tons , more and more the rubber farmers need to change to an alternative crop, and subsidised help from their respective governments, 

in what form that is fair, and viable to pay back,

edible or medicinal crops, would be fanciful on many land holdings without soil conditions being up graded,

A  horticulture specialists and other rubber farmer growers  to view each farm on (ALL) its merits , evaluate and then terminate those that don't meet the grade set, but help those that do not meet the grade to change. 

 

 

 

[inThailand]

Let's see if these three can manipulate world market prices. 

In the short term of mass over supply, less exports mean lower prices. Will this strategy really improve prices over time because of their actions? 

[hotchilli]

5 hours ago, webfact said:

To solve the problem of low rubber prices, the three major rubber exporting countries are ready to continue measures to limit rubber exports to 240,000 tons.

Of course these three trustworthy countries will abide by all restrictions.

[rickudon]

Expect rubber 'exports' from Myanmar, Laos and Cambodia to rise sharply .....

[Srikcir]

6 hours ago, webfact said:

The three countries will jointly limit the level of rubber exports to 240,000 tons in total.

The International Tripartite Rubber Council has been attempting to restrict exports of natural rubber ever since Prayut became PM. In December 2017 the three countries agreed to restrict exports by 350,000 tons in the first three months of 2018. http://englishnews.thaipbs.or.th/thailand-cut-rubber-exports-next-month/

In 2018 farmers were encouraged farmers to cut down rubber trees earlier than the 25-year life cycle to reduce total annual output by 5% by the end of April, in a bid to support falling rubber prices. https://asia.nikkei.com/Politics-Economy/Policy-Politics/Thailand-to-rev-up-the-plan-to-cut-down-rubber-trees  

By the end of 2018 Thailand had an oversupply of rubber by 200,000 tons despite its Shop for the Nation campaign. https://www.thaivisa.com/forum/topic/1072225-rubber-producers-ask-govt-to-extend-%E2%80%9Cshop-for-the-nation%E2%80%9D-campaign/?utm_source=newsletter-20181208-1319&utm_medium=email&utm_campaign=news 

 

Recycling old policies, the recent ITRC agreement to limit current level of rubber exports to 240,000 tons is unlikely to significantly improve global prices.

[KKr]

Stimulating purchasers might work better than three exporters keeping their prices up / export volumes down to the benefit of other non-member exporters, while creating an oversupply, possibly subsidized, on the internal market.

Are there no smart applications for Rubber ?
Lightweight firmness auto-adjusting mattress ?
or next generation temperature and road condition adjusting tires ?

[mmushr00m]

The 3 countries produces a total of roughly 9 million tonnes of raw rubber but will now limit exports to only 240,000 tonnes in total.

Highly unlikely. Unless they meant 240,000 each.

.

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Just reread the article.."under the rules and regulations of each country for four months starting from April 1, 2019." So it's 240,000 tonnes every 4 months.