Falling Prices a Focus at Rubber Organisation Meeting
Falling prices for natural rubber will be a key theme at the meeting of the Association of Natural Rubber Producing Countries (ANRPC) on November 26 to 28. Representatives from India, China, Indonesia, Malaysia, Papua New Guinea, Singapore, Sri Lanka, Thailand and Vietnam will discuss price trends and supply-side measures in detail, reports Sajen Peter, chairman of India’s Rubber Board.
In India, the fall in natural rubber prices has occurred together with the downward play of international prices of the commodity, said Peter in a press release. Even the rubber offtake of consuming countries such as China is waning, he added, signalling a major shrink in international demand this year. At the same time, crude oil prices have fallen dramatically, and as the price of synthetic rubber is dependent on crude oil prices, the likelihood of cheaper synthetic rubber being used as a substitute for natural rubber in tyre industry applications has increased. Such substitutions could further depress natural rubber prices.