INRO ready to resume rubber market intervention<\/p>\n
LIVERPOOL, England (Reuter): The head of the International
\nNatural Rubber Organization (INRO) said the group is now set to
\nresume rubber market intervention to stabilize prices following
\nthe launch of a new global accord.<\/p>\n
INRO executive director Ahmad Zubeir Noordin told a industry
\ngathering here that all matters relating to the coming into force
\nof the new International Natural Rubber Agreement (INRA) had been
\nfinalized.<\/p>\n
\"INRO is now primed to resume its activities and play its role
\nfor the attainment of the objectives of INRA 3, both in relation
\nto price stabilization and commodity development aspects,\" he
\nsaid at the International Rubber Study Group (IRSG) meeting.<\/p>\n
Two cycles of the agreement -- INRA 1 and INRA 2 -- have been
\ncompleted. Both were also administered by the Kuala Lumpur- based
\nINRO.<\/p>\n
The new four-year INRA was negotiated in 1995 but did not come
\ninto force until February this year.<\/p>\n
Zubeir of Malaysia said the new accord comprised six exporting
\nnations, who account for 99 percent of world's output, and 16
\nconsumer states including the United States and the European
\nUnion.<\/p>\n
INRA is the world's only working commodity pact with a buffer
\nstock mechanism.<\/p>\n
Zubeir said INRO had revised its so-called reference price,
\nwhich guides buying and selling of rubber, to 214.95
\nMalaysia\/Singapore cents a kg on March 11 from 206.68 cents
\npreviously.<\/p>\n
Four grades of natural rubber have also been named for
\ninclusion in the buffer stock. They are RSS1, RSS3, TSR10 and
\nTSR20, he said.<\/p>\n
It has also decided to re-establish, on a retainer basis,
\noffices in London and New York, he added.<\/p>\n
INRO had disposed all of its stockpiled rubber under the last
\nagreement in a bid to cool soaring prices in 1995.<\/p>\n
World prices have since dropped to hit a 36-month-low in April
\nthis year but still not low enough to warrant intervention buying
\nby INRO.<\/p>\n
In Jakarta, Indonesian tire-grade SIR20 offer prices were
\ngenerally stable in noon trading yesterday following deals in
\nPalembang and Surabaya, traders said.<\/p>\n
They said Singapore dealers bought rubber at 47.00 U.S.
\ncents\/lb fob Palembang for August shipment while European dealers
\npurchased SIR20 at 47.125 fob Surabaya for July shipment.<\/p>\n
In Kuala Lumpur, dealing houses offered SMR 20 at 258-259
\ncents, SMR CV at 328, SMR L at 307, SMR 5 at 270 and latex rubber
\nat 224.<\/p>\n
At midday close, Malaysian Rubber Exchange and Licensing Board
\nquoted July RSS1 buyer at 282.50 cents ($1.12) a kg, unchanged
\nfrom Wednesday. July SMR 20 buyer eased half a cent to 259.50.<\/p>\n
A Malaysia-based shipping agent quoted freight rates for
\nrubber from Malaysia to Rotterdam at $800 per TEU (or 20-ft
\ncontainer), and $1,700 per two-TEU containers (or 40-ft
\ncontainer).<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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