Source Taiwan News
Thailand, Indonesia and Malaysia - the world's top three rubber producers - will meet in December to coordinate efforts to boost falling prices, a minister said yesterday.
"We will try to convene an informal discussion... in December," Malaysian Plantations Minister Peter Chin told reporters on the sidelines of an international rubber conference.
Chin said officials at the three-nation talks would discuss issues related to stockpiling and supply of rubber into the market amid a looming global slowdown.
"We will have talks with Indonesia and Thailand for proper stock management, supply management and export tonnage," he said.
"We have yet to see the full impact of the global financial crisis, but Malaysia is not insulated from all these factors," he added.
"We feel rubber is a very strong sector. But there will be less demand for (new) cars."
Chin also said the fall in oil prices to US$80 per barrel was making synthetic rubber prices more competitive, putting further pressure on natural rubber prices.
Falling world stock markets and fears of a global recession forced Asian rubber futures Friday in Tokyo to sink to their lowest levels in nearly two years.
The three Southeast Asian countries produce some 80 percent of the world's natural rubber output.
Abdul Aziz Kadir, secretary-general of the International Rubber Research and Development Board, said 85 percent of rubber production goes into making tyres.
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