Production manager of a rubber processing company PT Dharma Kalimantan Jaya Masadi said here Tuesday that the tsunami caused a drastic drop in the price of rubber.
"The drop came unannounced and unpredicted from the Association of Indonesian Rubber Producers (Gapkindo)," he said.
Earlier during the crisis in the Middle East, Gapkindo issued a warning to the rubber producers on the possibility of a drop in the price of the commodity.
"But at that time the drop of the price of rubber had been gradual, not abrupt like what had happened now," he said.
The price of rubber dropped following the crisis in the Middle East which hampered distribution, but did not cause such a drastic drop.
He also said that the tsunami in Japan had directly affected overseas demand for local rubber.
"In Japan there are many automotive enterprises producing tires. Japan is one of the world`s biggest local tire importers," he said.
The current price of crumb rubber from the growers is only Rp3 thousand to Rp4 thousand per kg, while previously the price stood at Rp20 thousand to Rp24 thousand per kg, and reached a peak since the global financial crisis by the end of 2008.
It had been predicted that it would be difficult to restore the price of rubber to normal levels as it is still in abundance in the producing countries.(*)
H-NG/H-YH
Editor: Jafar M Sidik
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