The countries working together to prevent falling rubber prices.

Artwork (Source: richardtullochwriter. Com) The three countries, accounts for 70% of global natural rubber, are researching whether the export restrictions, reducing the exploitation of rubber or purchase this item from farmers who can "turn" momentum of price or not. Representatives from the three Southeast Asian countries on scheduled to convene this month to attempt to find an agreement. Late last week, a preliminary meeting between the officials took place in Singapore. An agreement may motivate the producers of rubber as Sri Trang Agro-Industry (Thailand), but can also increase the cost of inputs for the tire maker Bridgestone rubber Corpcustomers are purchasing the leading rubber. Gu Jiong, analyst of Yutaka Shoji Co. In Tokyo, stated: "at this stage, I assume that only the country's rubber production to support prices of this commodity, they just need to get out of his commitment. The current situation in the market of rubber hell. " The three Southeast Asian countries were jointly established Côngxoócxium international rubber (IRCo) and agreed to reduce exports by about 300,000 metric tons, equivalent to 3% of the global rubber output in 2012. The rubber price, however, only temporary increase before decreasing again by fears the debt crisis in Europe could do "deflected" needs. Indonesia, the largest rubber producer in the world, given that the export cuts to move on is not the best solution in the current situation. Stockpiles in China increased output plus increased in Asia and operates in a rush on the trading floor of Tokyo are causing more pressure on the overall growth of the global automotive market, are forecast to rise to 5% this year. The manufacturer why su is ready to begin responding. India is not a member of IRCo, Kerala, the State of the country's main producer, has started to buy rubber at higher price than the market price from the farmers after the domestic prices dropped to low levels in the last four years. Indonesia also urged the country's farmers reduce extraction of LaTeX. While in Thailand, the largest rubber producer in the world, and Malaysia, the country stood in sixth place in terms of production, can select the export and production cuts. The Reuters news agency response, Herdrajat Natawijaya, an official of the Indonesian Ministry of agriculture said: "if we don't reduce output, then the momentum of the global rubber prices will continue to sink as deep as the global rubber reserves are high. We plan to cut about 10 percent of the rubber output this year (the equivalent of 300,000 tonnes) by reducing the extraction of latex often while waiting for better prices ". Type of rubber SIR20 of Indonesia, are cheap for the Southeast Asian market, which last week was sold at 82-85. 5 cents per pound for some customers, including tyre maker Bridgestone. Also during the last week the rubber contracts delivered in July 2014 on the Tokyo commodity exchange (TOCOM) has dropped to the lowest in the past 18 months due to concerns about demand from ChinaWhen the amount of rubber in storage at the repository by Department of commodity futures in Shanghai to manage at the highest level since 2004.