Rubber prices rise thanks to export restrictions: Trade Ministry
The Jakarta Post
Global natural rubber prices have increased by 5 percent in January thanks to reduced supply from exporting countries, according to the Trade Ministry.
On Dec. 22, 2017, the International Tripartite Rubber Council (ITRC), which consists of Indonesia, Thailand and Malaysia, decided to implement an agreed export tonnage scheme (AETS), the fifth such scheme from the council.
“The ITRC agreed to reduce the natural rubber export volume by 350,000 tons for three months, from January to March 2018,” Trade Ministry International Trade Director General Oke Nurwan said in a statement on Friday.
“The result is that the natural rubber price has increased by 5 percent.”
Oke said the average price for natural rubber, according to the International Rubber Conference Organization’s (IRCO) daily composite price (14-day moving average) increased from US$1.46 on Dec. 21 to $1.54 on Jan. 31. He added that the ITRC monitoring committee would continue to evaluate the results of the AETS every month.
“The AETS implementation in Indonesia has been supported by Trade Ministery Decree No. 67/20018,” he said. The decree designates members of the Indonesian Rubber Association (Gapkindo) as the implementers of the AETS and threatens those who violate the terms of the scheme with sanctions.
The value of Indonesia’s rubber exports has decreased by 20.7 percent since 2012, while export volumes have stayed relatively steady. According to data from the Central Statistics Agency, Indonesia exported 2.44 million tons of rubber worth $7.86 billion in 2012, while in 2017, Indonesia exported 2.77 million tons with a value of $4.77 billion. (kmt/bbn)
- Women accused of assassinating Kim Jong Nam face key court ruling
- Tourists cause human traffic jam at Mt. Fuji
- Venezuelan general, colonel arrested over 'attack' on Maduro
- Prosecutors demand 1.5 years for Buddhist woman on ‘azan’ blasphemy charge
- Indonesian academics can now access e-journal databases worth $1m for free
- Malaysia to alter 'hideous' tourism logo featuring ape in shades
- 'Monster Hunter' on hold as China hits pause on new video games
- Saudi state carrier hit by system failure ahead of haj
- Here are 10 of the most populated cities in the world
- Madonna celebrates turning 60 in Marrakech