Malaysia, Indonesia and Thailand, the world's top three natural rubber producers, are planning to reduce exports by 48,000 tonnes in the second quarter of the year to prop up falling prices.
The proposal need to be ratified by the International Tripartite Corporation (ITRC) which is scheduled to meet in Thailand on May 14 and 15, Bernama news agency quoted Chief Secretary of the International Rubber Consortium (IRCo) Yium Tavarolit as saying on Apr. 25.
The quantum could be increased or reduced depending on the market movement, the official said, adding that IRCo will monitor the market on a weekly and monthly basis.
The current price for the TSR20 rubber was 1,500 USD per tonne, which is much lower than the same period in 2008. The benchmark RSS3 rubber sheet currently is around 1.70 USD per kg, compared to as high as 3.25 USD per kg last July, the highest in 56 years.
Last December, the three countries agreed to cut 270,00 tonnes in the first quarter of 2009, according to Bernama./.