Rubber Prices Picking Up With Improvements In Us Economy, Says Minister

KUALA LUMPUR, April 5 (Bernama)-- Rubber prices are picking up with improvements in the United States' economy, said Plantation Industries and Commodities Minister Tan Sri Bernard Dompok today. "I just talked to some people in the industry. They're saying prices are within rangebound at the moment. I think they're picking up," he told reporters after launching the Malaysian Rubber Export Promotion Council Marketplace, here. Dompok said economists are expecting an improvement in the United States' economy and this would support rubber prices. He said commodities' prices, including rubber, are affected by the economic situation in consuming nations. "We are very hopeful that the Eurozone crisis will be solved. I think the prices now are looking good. I don’t want to forecast, but I don’t see anything drastic," he said. Dompok said rubber prices also depend on how the economy moves. "I attended a seminar on wood products in the United States. There were a lot of knowledgeable people such as economists analysing the economic situation and demand for commodities in the United States. They said demand for commodities is generally good," he said. Dompok said rubber prices would firm up when the economy is good as this would see more people buying vehicles and would lead to higher demand for tyres. "If this happens, there'll be a lot of demand for the product and rubber prices will go up," he said. He also said total value of rubber products exports from Malaysia last year increased by 10 per cent to US$4.63 billion (RM14.2 billion) compared with US$4.21 billion (RM12.9 billion) in 2010. To maintain this growth momentum, the minister urged local rubber manufacturers to explore and exploit every market opportunity that arises. Other than healthcare, Dompok said the demand for natural rubber products are also contributed by the growth in the automotive industry as well as electrical and electronics industry. "Given such a situation, it's pertinent for the Malaysian rubber industry to further diversify its product mix, focusing on niche and differentiated products," he said. Dompok also expressed satisfaction on crude palm oil (CPO) price, which is currently hovering at US$1,142 (RM3,500) a tonne. "At the moment, the price is very good. Some people are predicting at US$1,142 range and it is there,” he said. The Malaysian Rubber Export Promotion Council Marketplace is a major initiative by the council to promote made-in-Malaysia rubber products online and to facilitate interaction between potential buyers and Malaysian rubber product manufacturers. Malaysian manufacturers can upload and showcase their product catalogues, while prospective buyers can view the catalogues and initiate interaction directly via email. (US$1 = RM3.06) -- BERNAMA