A meeting by the International Rubber Consortium to discuss measures supporting natural rubber prices is now on hold as prices have rebounded strongly in the last few days, IRCo acting chief executive Yium Tavarolit said Monday.
"Because natural rubber prices have breached the floor rate of THB120/kg (stipulated by the Thai government), that meeting is now not needed for the time being," said the Bangkok-based Yium after the Thai national rubber committee meeting held Monday afternoon.
Natural rubber prices fell sharply in the last few weeks on spillover effect from geopolitical tensions in the Middle East, tightening fears in China and the massive earthquake in Japan. The benchmark natural rubber futures on the Tokyo Commodity Exchange hit a record high on Feb. 18.
Prices started rebounding strongly from Wednesday due to supply fears, as major producers Thailand and Indonesia both set floor rates for natural rubber prices.
Yium said the Thai government and IRCo will continue to monitor natural rubber prices closely.
If prices fall below the floor rate, measures that have been mentioned last week, such as an export suspension, would be again considered.
Yium also said IRCo and the International Tripartite Rubber Council would be writing to the Tocom and the Shanghai Futures Exchange to ascertain the causes of price swings in the last few weeks, and to ask the exchanges to cooperate in reducing price volatility.
The IRCo's board meeting is scheduled for April. Issues to be discussed include price volatility in the rubber markets.
ITRC members will hold a meeting in May, said Yium.
(Source: http://www.irco.biz/BlogMoreDetial.php?id=2741&ShowContent=news)
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