PUTRAJAYA, Malaysia Jan 20 (Reuters) – The top three rubber-producing countries are prepared to cut exports by an additional 430,000 tonnes if prices fall further, a Malaysian minister said on Tuesday.
Such a move would take to 1.345 million tonnes the total rubber stocks to be removed from global markets in 2009.
Thailand, Indonesia and Malaysia, which form the International Rubber Consortium (IRCo), will look at revising the floor price of the commodity at a meeting in February in the Malaysian capital, Commodities Minister Peter Chin said.
“IRCo is aggressive in getting the fundamentals right, it is not necessary to tell the whole world what it has done behind the scenes,” Chin told Reuters in an interview in the Malaysian administrative capital.
“We (IRco) will monitor the price trend closely for the next three quarters; if there is a need to continue with the Agreed Export Tonnage Scheme, another 430,000 tonnes of exports will be reduced.”
IRCo members said last year they would cut exports by 915,000 tonnes for 2009, and would not sell rubber at below $1.35 per kilogram. They exported 5.5 million tonnes in 2007, while total production was 7 million tonnes.
The deal will see first-quarter exports cut by 270,000 tonnes, officials have earlier said.

Source:  Reuters

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