Thailand unwinds its rubber stockpiles

06 October 1998

Thailand unwinds its rubber stockpiles

THAILAND will dispose of its rubber stocks by the end of next month and will not stockpile supplies after that date.

Thailand, the worlds leading producer and exporter of natural rubber, has already reduced its stockpile from a peak of 160,000 tonnes to just 20,000 tonnes. Officials believe the depletion will help strengthen prices.

Thailands rubber mountain piled up when the Government intervened to support local prices. It does not plan to stockpile again although it intends to prop up local prices.

Thailand exported 1.09 million tonnes during the first seven months of 1998, a 5.3% increase over the previous year. The country is expected to produce 2.2m tonnes and export 1.9m tonnes this year, according to a senior agricultural ministry official.

• 
  Financial Times 06/10/98 page 36