Thailand aims to buy 250,000 mt of natural rubber by March: reports
Singapore (Platts)--22Nov2012/435 am EST/935 GMT
Thailand plans to boost the natural rubber market by buying 250,000 mt
of the commodity by March, news reports said Thursday, citing deputy farm
minister Yuttapong Charasathien.
Since May to date, the Thai government has bought about 170,000 mt of
natural rubber from local farmers, Charasathien said.
The approximate total of 420,000 mt represents about 12% of the 3.57
million mt of natural rubber that Thailand produced in 2011.
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The country is the leading producer of natural rubber in the world.
The purchases will be funded by a Baht 30 billion ($967 million) plan
that was approved by the Thai government in mid-September to buy about
300,000 mt of natural rubber.
The September-approved plan follows a Baht 15 billion plan approved by
the Thai cabinet earlier this year to buy about 100,000 mt of natural rubber.
Since October 1, the International Tripartite Rubber Council, comprising
Thailand, Indonesia and Malaysia, have started a plan to cut exports by
300,000 mt until end-March 2013.
Indonesia and Malaysia rank behind Thailand among the top three global
producers of natural rubber.
The ITRC plan, labeled the Agreed Export Tonnage Scheme, or AETS, calls
for Thailand to cut exports by 150,000 mt, Indonesia by 100,000 mt and
Malaysia by 50,000 mt.
Over Q4, about 180,000 mt, or 60%, of the planned cuts will be shared
proportionately by the three countries. The 60% cut will be spread equally
over the quarter at 60,000 mt/month.
Under the AETS, the three countries will also implement a replanting
program for 100,000 hectares of rubber trees, which will result in a further
reduction of exports by 150,000 mt. In total, 450,000 mt of natural rubber
will be taken out of the supply chain from the three countries.
Thailand, Indonesia and Malaysia account for about 70% of the world's
natural rubber production.
--Clement Choo, email@example.com
--Edited by Martin O'Rourke, firstname.lastname@example.org