INRO says all stock sold, about $75 million netted

INRO says all stock sold, about $75 million netted

KUALA LUMPUR (Reuters): The International Natural Rubber Organization (INRO) said on Friday it was getting ready to close shop after selling its entire buffer stock and netting an estimated $75 million.

"We're sold out. Everything done," INRO's buffer stock manager Arch Roberts said in an interview.

INRO's buffer stock of 138,000 tons had been an overhang on the rubber market since the organization decided to wind up last year after Malaysia and Thailand, two of the world's largest rubber producers, withdrew from its membership.

For years, INRO had been the world's only surviving commodity pact between consumers and producers where a buffer stock manager buys or sells rubber in the market to stabilize prices. It broke up after Thailand and Malaysia accused the organization of being biased towards consumers and not doing enough to support prices.

Roberts said with this week's sales in the United States, Europe and Thailand, INRO's buffer stock had been depleted, compared to 14 months ago when it had not sold a single ton.

"We've got deliveries stretched until end of June and we have our last council meeting in the second or third week of July," he said. "We then give the money we raised from the sales to member governments and go home."

Roberts said he had not yet tallied the revenue from the stock disposal. "But I guess that the income from the sales would be in the order of $75 million."

He said some of this week's sales were done through an Internet auction out of Thailand.

"It was a very interesting exercise, done on a really sophisticated program."

"We had it set up so you can bid on 22 lots simultaneously," he said, adding that 2,121.6 tons were sold through the process.

Another 9,804 tons were disposed in the United States, where offers for nearby months was higher than forwards.

"The response was getting better towards the end as traders there got wind there was only a small quantity left and came in to buy all," he said.

Europe was another region which saw the last batch of sales this week, consuming 210.4 tons.