Indonesia Sees Rubber Exports Up 7-8 Pct In 2011- Indonesia's Rubber Association

Indonesia's rubber association said on Thursday (December 16) it saw rubber exports rising 7-8 percent in 2011 from 2.4 million tonnes this year, in line with its forecast for production growth next year, though it said weather anomalies could hurt supply.

Indonesia revised up its forecast for 2010 rubber output to 2.8 million tonnes andassociation Gapkindo said earlier this week it also expected rubber production to grow 7-8 percent next year.

Higher supply from Indonesia, the world's second-largest producer, could easepressure on Asian rubber prices, which hit a record in Tokyo earlier this week.

Weather anomalies will still give an impact, negative or positive, and we hope for a positive impact, said Suharto Honggokusumo, executive director of Gapkindo.

The La Nina weather anomaly caused unusually heavy rains this year in Indonesia, including during the usual dry season, hitting output of many commodities.

The association also based its optimism on expectations that producers would seek to meet higher demand next year as tyre makers expand production. Car sales have hit a record high in Indonesia this year, though growth next year will slow.

Gapkindo said it had not got any reports of supply delays, after dealers said earlier this week limited supplies delayed the shipment of at least 10,000 tonnes of rubber for nearby delivery.

The most active rubber contract on the Tokyo Commodity Exchange bounced from lows on Thursday (December 16) on bargain hunting, but a lack of activity in the physical market could put pressure on prices.

(Source: http://www.indiainfoline.com/Markets/News/Indonesia-Sees-Rubber-Exports-Up-7-8-Pct-In-2011-Indonesias-Rubber-Association/3449838315)