Rubber Price up 5% in Tocom dated 14 JUN 2017, Thai-Indo-Malay hold a meeting to cut export

The price of rubber climbed 5 percent on the Tokyo Commodity Exchange along with positive sentiment figures such as planned meeting between producer countries and a global supply-deficit report.

On Wednesday (14/6/2017) at 11:27 GMT on the Tokyo Stock Exchange, the contract price of November 2017 increased 9.3 points or 5.02 percent to 194.50 yen (US $ 1.76) per kg. Throughout the year, prices are still down 19.58%.

In its press release on Tuesday (13/6/2017), Nguyen Ngoc Bich, Secretary General of the Association of Natural Rubber Producing Countries (ANPRC) said the deficit of natural rubber supply in January 2017-May 2017 reached almost 600,000 tons. In fact, the trend may widen toward 700,000 tonnes by the end of June 2017.

By 2017, global supply is expected to reach 12.75 million tons, slightly lower than last month's estimate of 12.71 million tons. The decline in new supply projections is due to farmers anticipating the decline in rubber prices.

Meanwhile, as quoted by Bloomberg, Governor Rubber Authority of Thailand Titus Sukaard said representatives from Thailand, Indonesia and Malaysia will hold a meeting on 17-18 June 2017 to discuss measures to stabilize rubber prices.

The International Tripartite Rubber Council (ITRC), a group of rubber-producing countries consisting of the governments of Thailand, Malaysia and Indonesia agreed to cut export capacity (Agreed Export Tonnage Scheme (AETS) from March to December 2016. This sentiment has a positive impact on prices .

Under the AETS agreement, three countries that supply 60% of global rubber demand cut total exports by 700,000 tons. However, since 2017 the agreement has not been renewed.