IRCo to discuss volatile rubber prices<\/p>\n
Nitsara Srihanam, Dow Jones\/Bangkok<\/p>\n
The International Rubber Consortium Ltd. (IRCo) will meet this
\nweek in Bali to discuss ways to stabilize volatile rubber prices,
\nIRCo's chief of secretariat, Yium Tavarolit, said late Friday.<\/p>\n
IRCo's marketing committee will meet on Aug. 25 and Aug. 26 to
\nreview price movements and evaluate the market situation, Yium
\nsaid, adding that prices in both futures and physical markets
\nhave been fluctuating due to speculation.<\/p>\n
Rubber prices on the Tokyo Commodity Exchange, for example,
\nrose sharply in July but fell this month, he said.<\/p>\n
\"We feel uneasy with the prices, as they are volatile and make
\nit difficult for both rubber producers and consumers to manage
\n(their operations),\" Yium said.<\/p>\n
\"We want prices to move in line with actual demand-supply
\nfundamentals.\"<\/p>\n
One of measures that can be used to stabilize prices is a
\nsupply management mechanism, according to Yium.<\/p>\n
\"In the longer term, IRCo would come to buy and sell to
\nstabilize prices in any physical or futures rubber markets that
\nare too volatile, which would hurt rubber farmers,\" Yium said.<\/p>\n
However, it is not yet time for IRCo to conduct such activity,
\nas \"it's not yet critical,\" he said.<\/p>\n
The Bangkok-based IRCo was set up in 2003 to help stabilize
\nrubber prices. It is an offshoot of a rubber agreement signed in
\nBali in December 2001, whereby the world's three biggest rubber
\nexporters -- Thailand, Indonesia and Malaysia -- formed the
\nInternational Tripartite Rubber Organization (ITRO).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/irco-to-discuss-volatile-rubber-prices-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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