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Monday, November 14, 2011

GAPKINDO Members Advised to Stop Export Rubber

Medan - Combined Rubber Company Indonesia has issued an appeal to its member companies do not export if rubber prices below 3 dollars per kg in order to anticipate the continued decline in commodity prices again.
"The letter contained an appeal does not sell rubber below 3 U.S. dollars per kg had been received and Gapkindo North Sumatra have also continued to its members today (Friday, 11/11)," said Executive Secretary Gapkindo North Sumatra, Edy Irwansyah, in Medan, Friday 11 November 2011.

Letter dated Gapkindo Center 463/SP/INT/XI/2011 No. 11 November 2011 was intended to prevent the prices are not depressed anymore than the price of November 10, who has lived 3.149 U.S. dollars per kg.

The decline in rubber prices was due to the actions allegedly took off speculators exploit its position of economic crisis in the United States and Europe.

"The actions withstand the decline in rubber prices were also made of rubber associations in Thailand and Malaysia," he said.

Gapkindo citing Center, Edy, affirmed, appeal letter was a verdict in the Emergency Meeting of Market Analysis Team Gapkindo approved by the Chairman of Gapkindo, Rubber SIR type 20 in the Singapore stock market at the opening of 11 November to December shipments fell eight cents per U.S. dollar kg of the price on 10 November 2011.

On 10 November, the price of SIR 20 is closed at 3.149 U.S. dollars per kg for shipment in December and 3.171 U.S. dollars per kg for January 2012.

The price was very cheap compared to the previous as on 28 September which was 4.151 U.S. dollars per kg Due to the increasing export prices plunged, though the price of rubber (bokar) in North Sumatra is also getting cheaper manufacturer or stay Rp24.000 - Rp26.000 per kg of Rp32 .000 - Rp34.000 per kg on September 28.

International Rubber Consortium Limited (IRCo) which is a joint venture formed of natural rubber producing countries the major Thailand, Malaysia, and Indonesia to cope with the price of natural rubber, previously also been suggested the need for restrictions on exports if prices fell below U.S. $ 4 per kg.

IRCo action that could raise the price of rubber is weakened, but eventually dropped again because of the crisis in the U.S. and Europe are still ongoing and the condition was finally utilized speculators.

Economic observers of North Sumatra, Jhon Tafbu Ritonga, said steps must be supported Gapkindo exporters.

Rubber prices should be maintained strengthened so that farmers are not difficult and the government's foreign exchange earnings from the commodity decreases.

Effect of Indonesia, Malaysia and Thailand are quite large because 70 percent of world natural rubber market is supplied by the three countries should be indicated.

"Producer countries should not always be inferior to any country they need pembeli. How ever they need  a natural rubber," he said. (Ant)/B-S

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