Rubber up $100 a tonne in a week
25-09-2012 12:35:14+07:00
Rubber up $100 a tonne in a week
The price of rubber jumped to $2,500 per tonne last week after months of the commodity steadily dropping, industry analysts reported.
Ly Phalla, director general of the Rubber Department of the Ministry of Agriculture, Forestry and Fisheries, said the price of rubber has gone up, “but not so much as compared to 2011”.
He attributed the change in price to three things in particular: the economic recovery in the United States and China, the work of the International Tripartite Rubber Council (ITRC), and the rainy season.
“There are lots of factors affecting the price of rubber in Cambodia, such as the world price, recovery of the USA, EU and China and even the drop in petrol prices. Now that we are in the rainy season supplies will be affected too. The three countries Malaysia, Thailand and Indonesia have been affecting stocks.”
Soon Jin, an economist at the Association of Natural Rubber Producing Countries (ANRPC) which Cambodia is a member of, concurred in Ly.
“The jump in the rubber price could be caused by the signs of economic recovery from China and US, where investors are confident and react positively to the market,” she said in an email.
The ITRC played a role as well by intervening in the market, she added.
For example, last month the ITRC agreed to take steps to boost prices by cutting shipments and old trees and by buying up stock for national reserves, according to Bloomberg.
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