Rubber prices likely to, remain firm next year<\/p>\n
KUALA LUMPUR (Reuter): World rubber prices, which bounced to
\nsix-year-highs in 1994, are likely to remain firm throughout 1995
\nas the global economy recovers, industry officials and traders
\nsay.<\/p>\n
\"Given the strong demand, the outlook for natural rubber is
\nvery good, particularly from the perspective of the producers,\"
\nJames Hegarty, buffer stock manager for the International Natural
\nRubber Organization (INRO) said on Thursday.<\/p>\n
Sucharit Promdej, secretary-general of the Association of
\nNatural Rubber Producing Countries (ANPRC) in Kuala Lumpur
\nagreed.<\/p>\n
\"As it is now, prices of natural rubber are sustaining at high
\nlevels,\" said Sucharit. \"Apart from interference from the rains
\nand the shortage of rubber tappers, the approaching onset of the
\nwintering season at the beginning of the year may lead to tighter
\nsupply\" and higher prices, he added.<\/p>\n
Malaysian RSS grade rubber was quoted at 386 Malaysian cents
\n(US$1.51) a kilogram (2.2lb) yesterday, compared with 209.50
\ncents ($0.82) one year ago.<\/p>\n
Traders said a decline in production from Thailand, Indonesia
\nand Malaysia, the top three producers who account for 80 percent
\nof the world's rubber output will also boost prices.<\/p>\n
\"Prices are expected to strengthen at least until the end of
\nMarch but rubber will continue to trade in the higher range for
\nthe whole year,\" said one senior dealer in Kuala Lumpur.<\/p>\n
Output<\/p>\n
The dealer said output is also declining as more rubber
\nplantation land is developed for commercial use, particularly in
\nMalaysia, as producers lose interest due to the low prices in
\nearly 1994.<\/p>\n
\"Prices became remunerative only in the second half of 1994
\nand it will take some time for producers to increase output,\" the
\ndealer said.<\/p>\n
World rubber prices soared in July 1994 when China entered the
\nmarket and bought the commodity in huge quantities for its
\nindustrial use.<\/p>\n
Although China stepped out of the market in early October,
\ndealers said prices continued to climb on increased demand from
\nthe United States and Europe.<\/p>\n
Hegarty said this was due to the rising world demand for
\nnatural rubber, particularly by European and U.S. tire producers.<\/p>\n
\"The United States economy is still recovering and this has
\nboosted automotive sales which in turn stimulates the tire
\nindustry,\" he told Reuters in Kuala Lumpur.<\/p>\n
The Kuala Lumpur-based INRO, which groups 27 producing and
\nconsuming countries, is the last of the global commodity pacts
\nwith economic teeth but it has failed to cool sizzling rubber
\nprices.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rubber-prices-likely-to-remain-firm-next-year-1447893297",
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