Tight supplies to keep rubber prices steady

July 29, 2010: The global prices of natural rubber will remain steady in the medium term on account of tight supplies and growing demand.

The secretary general, International Rubber Research and Development Board (IRRDB), Abdul Aziz, said the natural rubber situation is not likely to see any significant change in the medium term.

However, countries like Vietnam, China, Cambodia and Laos are increasing the area under rubber. By the second half of this decade, Vietnam could emerge as a major player surpassing both India and Malaysia, he said.

Aziz said production in the Asian countries has been affected by labour shortage and climatic changes. An increase in production is also limited by large-scale replanting in the leading producers.
An expert on natural rubber, Aziz was of the view that price stabilisation was not warranted as the current upsurge is shaped by the demand and supply factors.

Source: The Economic Times