RUBBER PRICE MAY BE HIGHER THAN 3 DOLLARS PER KG

Medan, Jan 7 (ANTARA) - The price of SIR 20 Indonesian rubber on the international market may continue rising above 3 US dollars per kg following increasingly tighter supply from Indonesia and Thailand.

"While on Wednesday (Jan 6) the price for February shipment was still appreciating, the price of crude oil was also increasing on the international market," President Director of PT.Abad & Co, Tjoe Min Fat, said in Medan Thursday.

Despite the fact, he said, that demand for rubber from various countries was still high.

However, although the export price was still increasing, the exporters, on the other hand, were still very careful in their transactions, including signing export contracts, apparently as the already too high rubber price may increase further.

"Imagine if the exporters made large purchases at a high price to the growers or collecting traders, but then the export price dropped. Or contracts with a price of less than 3 US dollars, but the price of rubber processing material is increasing on the local market," said Tjoe, who is also adviser of the Association of Indonesian Rubber Producers (Gapkindo).

According to rubber trader Medan M.Harahap, the price of rubber processing material from the farmers continued to increase and the traders started fighting each other for purchases as stocks became limited from the farmers.

In the meantime, he added, it was raining in a number of rubber producing centers in North Sumatra, like South Tapanuli, which caused the growers unable to tap the rubber trees.

"Although fighting each other for purchases, the traders also acted very swiftly handing the sap to the manufacturers for fear of price fluctuations which may cause them a loss.

In the meantime, North Sumatra Gapkindo secretary Edy Irwansyah said the price of rubber processing material at the factories in the province was still high at Rp23,000 to Rp 24,000.

The price of SIR 20 on the Singapore central bourse on January 6, Edy said, stood at 2,974 US dollars per kg (FOB Belawan) for February shipment and for March stood at 296.9 US dollars per kg, and in April reached 2,970 US dollars per kg.

The price at the bourse had increased from a day earlier.