INRO to meet on liquidating stocks in Kuala Lumpur
INRO to meet on liquidating stocks in Kuala Lumpur
KUALA LUMPUR (Reuters): The world's producers and consumers of
rubber meet in the coming week to decide the fate of the
International Natural Rubber Organization's (INRO) 140,000 tons
of buffer stock following the body's dissolution.
INRO's governing council will also discuss the future of
natural rubber during its special session in Malaysia's capital.
The conference starts on Monday with talks between heads of
delegations followed by the council meeting. A working group, set
up to chart the future of international cooperation in natural
rubber, is scheduled to meet on Wednesday, INRO said.
The special session, scheduled to end on Friday, may conclude
earlier depending on the progress of discussions, INRO acting
executive director Gerard Loyen said.
"The main point of discussion will be disposal of the stocks,
to do it the best possible way," Loyen told Reuters.
"I'm quite confident debate will be smooth, discussions will
not be too difficult."
INRO's secretariat will present recommendations regarding an
orderly disposal of the buffer stock at the meeting.
INRO formally dissolved in October after leading producers
Thailand and Malaysia decided to quit the world's last producer-
consumer commodity pact with economic clout.
Thailand is the world's top rubber producer and exporter while
Malaysia ranks third after Indonesia.
INRO, headquartered in Kuala Lumpur, had been accused of not
doing enough to support prices.
The rubber accord was originally scheduled to run until
February 2001. Key consuming member states of INRO are the United
States, the European Union and Japan.
INRO has up to three years to liquidate the stocks, but some
traders said the stocks might be disposed in a year.
"They will not wait too long if the price is right, said a
trader in Kuala Lumpur.
"But on the other hand, I don't think they will be selling a
big amount at one time, so as not to disturb the market. The
disposal will be gradual."
Malaysia and Thailand announced last month they will form a
consortium to buy up INRO rubber stocks. Malaysian Primary
Industries Minister Lim Keng Yaik said details were expected to
be finalized by March.
Thailand and Malaysia agreed in September to cooperate in the
rubber trade, pricing and technology as an alternative
arrangement to INRO to prop up sagging prices. Second-largest
producer Indonesia has opted to stay out of the pact.
At the meeting, INRO's governing council would also discuss a
budget for 2000 and the appointment of a new executive director.
INRO comprises six producer and 17 consumer members. It was
set up in 1980 to stabilize volatile world prices and had
survived while similar commodity pacts have fallen.