BANGKOK, Dec 19 (Reuters) – Thailand’s 2009 rubber exports
are expected to fall 10 percent from this year due to weak demand
from the auto industry and a pledge by top producing countries to
cut sales, the head of its main industry body said on Friday.
“Next year, our rubber exports are likely to drop by 300,000
tonnes from the 2.7 million tonnes we expect to sell this year,”
Luckchai Kittipol, president of the Thai Rubber Association, told
Reuters.
“Our aim is to cut exports but the key factor is sluggish
demand next year,” he said.
Last month, the International Rubber Study Group cut its 2009
estimates for global rubber consumption, forecasting a drop of
3.3 percent in 2009 instead of a previous forecast of 4.2 percent
growth. [ID:nBKK372091]
The world’s top three rubber producers — Thailand, Indonesia
and Malaysia — agreed last week to cut exports by 915,000 tonnes
in 2009 to prop up prices.
Thailand, the world biggest rubber exporter, accounting for
around 33 percent of global rubber trade, sold 2.9 million tonnes
in 2007, slightly down from 3.0 million tonnes in 2006, according
to the Commerce Ministry.
Physical rubber prices were expected to rebound slightly in
2009 and were likely trade in the range of $1.35-$2.00 per kg,
Luckchai said, due to Indonesia’s decision not to sell rubber at
low prices and the promise by Thailand’s new government to
intervene in the domestic rubber market.
“These are the most realistic prices we expecte to see in
2009. It’s impossible for rubber prices to jump above $3.0 per kg
again,” he said.
The export-grade rubber sheet (RSS3) was quoted at $1.30 per
kg on Friday.
The Indonesia Rubber Association has asked its members and
other producing countries not to sell rubber below $1.35 per kg
in a bid to mop up supplies and shore up prices. [ID:nJAK247486]
New Thai Prime Minister Abhisit Vejjajiva said on Thursday
his government would intervene to prop up prices. [ID:nBKK390644]

Source:  Reuters

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