ID :
52157
Wed, 03/25/2009 - 08:10
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https://www.oananews.org//node/52157
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PRICE OF INDONESIA'S RUBBER MAY REACH 1.5 US DOLLARS PER KG
Medan, Mar 24 (ANTARA) - The price of Indonesia's export rubber SIR 20 has been predicted to go up constantly reaching 1,5 to 1.7 US dollars per kg from the 1.38 US dollars per kg earlier this week.
"Since the past week, the price of Indonesia's SIR 20 continued to increase reaching 1.38 US dollars per kg, and predicted to increase further to 1.5 US dollars," North Sumatra rubber exporter Tjoe Min Fat said in Medan Tuesday.
He said the increase in the price of export rubber SIR 20 had been triggered by increase in demand for the commodity especially from the United States.
"According to information, the US economy has started to improve and if this upward trend continued the price of rubber would be restored because economic movements were also taking place in other countries," he said.
While the price went up as well as the export volume, he added, North Sumatra's total rubber exports this year has been estimated to still be lower than last year's, apparently not only because the export volume has been disrupted, it has been almost three months now that the province's rubber production was lower due to natural causes, like rains.
"To rapidly increase the price and export volume, the government needs to provide advance payment for the purchase of rubber from the growers and exporters at a time when prices were down,," he said.
This policy had actually already been approved by three main producers Indonesia, Malaysia and Thailand. But in practice, Indonesia did not do that," he said.
Earlier, executive secretary of the Association of Indonesian rubber producers (Gapkindo), North Sumatra chapter Eddy Irwansyah said in the Jan-Feb 2009 period, North Sumatra's coffee exports dropped by up to 31 percent to 62,978 tons compared to the 90,895 tons in the same period last year as demand continued to drop following the global crisis.
"The global crisis prompted several automotive industries to reduce their natural rubber consumption for tyre production, and demand for the commodity on the international market also automatically declined," he said.
The decline in the price of natural oil to 44.53 US dollars per barrel, he said, had prompted industries to use the cheaper synthetic rubber, so that demand for rubber declined.
"Demand which is still weakening eventually caused the price of rubber to remain low. The price of SIR20 on Monday afternoon (Mar 16) as at the stock exchange closed at 1.26 US dollars per kg," he said.
Consequently, Edy said, the price of processed rubber from the manufacturers was also still low standing only at Rp11,500 per kg.
"Since the past week, the price of Indonesia's SIR 20 continued to increase reaching 1.38 US dollars per kg, and predicted to increase further to 1.5 US dollars," North Sumatra rubber exporter Tjoe Min Fat said in Medan Tuesday.
He said the increase in the price of export rubber SIR 20 had been triggered by increase in demand for the commodity especially from the United States.
"According to information, the US economy has started to improve and if this upward trend continued the price of rubber would be restored because economic movements were also taking place in other countries," he said.
While the price went up as well as the export volume, he added, North Sumatra's total rubber exports this year has been estimated to still be lower than last year's, apparently not only because the export volume has been disrupted, it has been almost three months now that the province's rubber production was lower due to natural causes, like rains.
"To rapidly increase the price and export volume, the government needs to provide advance payment for the purchase of rubber from the growers and exporters at a time when prices were down,," he said.
This policy had actually already been approved by three main producers Indonesia, Malaysia and Thailand. But in practice, Indonesia did not do that," he said.
Earlier, executive secretary of the Association of Indonesian rubber producers (Gapkindo), North Sumatra chapter Eddy Irwansyah said in the Jan-Feb 2009 period, North Sumatra's coffee exports dropped by up to 31 percent to 62,978 tons compared to the 90,895 tons in the same period last year as demand continued to drop following the global crisis.
"The global crisis prompted several automotive industries to reduce their natural rubber consumption for tyre production, and demand for the commodity on the international market also automatically declined," he said.
The decline in the price of natural oil to 44.53 US dollars per barrel, he said, had prompted industries to use the cheaper synthetic rubber, so that demand for rubber declined.
"Demand which is still weakening eventually caused the price of rubber to remain low. The price of SIR20 on Monday afternoon (Mar 16) as at the stock exchange closed at 1.26 US dollars per kg," he said.
Consequently, Edy said, the price of processed rubber from the manufacturers was also still low standing only at Rp11,500 per kg.
