SRIB Press Release on Rubber Price

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SRIB Press Release on Rubber Price Posted: 10 Feb 2014 12:28 AM PST DATE: 10 FEBRUARY 2014 Sabah Rubber Industry Board (SRIB) in a statement released today, sympathizes with the Rubber Smallholders in the State as well as through out Malaysia for the low rubber prices today.  The SMR 20 rubber price, which is the bench mark price of international rubber price, has dropped from RM13,483 per metric tonnes in 2011 to RM9,525 per metric tonnes in 2012 and has further dropped to RM6,200 per metric tonnes today.  The main reason for the drop in rubber prices from November 2013 to today, is an overhanging rubber stock of 523,000 metric tonnes in the international market.  The world rubber production in 2013 was 11.518 million metric tonnes and the global consumption was only 10.995 million metric tonnes.  Because of this excessive stock in the international market, the rubber prices has plunged due to supply and demand. The statement said, the USA economy is in slow recovery, the European economics are at stand still and the Chinese manufacturing industries have lower growth.  This has caused lower demand for rubber with higher production in producing countries.  Of the 5 major rubber producers in 2013, Thailand produced 3.9 million metric tonnes of rubber followed by Indonesia at 2.8 million metric  tonnes.  India produced 888,000  metric tonnes followed by Vietnam at 854,000 metric tonnes.  Malaysia produced 845,000 metric tonnes being the fifth largest producer of natural rubber. On the raw rubber prices the statement said, The minimum prices paid for raw rubber to smallholders for cuplumps are Peninsular RM2.00 per/kg, Sarawak RM2.00 per/kg and Sabah RM2.10 per/kg on Monday, 10 February 2014.  The average latex price in Peninsular Malaysia was RM5.80 per/kg while the price in Sabah was RM6.10 per/kg. Under the current market conditions Sabah smallholders are encouraged to produce only clean cuplumps so that quality of rubber from Sabah will command competitive edge in the international market even in the depressed market.  On the question of when the rubber prices would move up, SRIB said that would depend on the recovery of the world economy and in the reduction of the overhanging stock in the world market, the statement concluded. Information in this page was last updated on 11 February, 2014.

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