"The price has continued to fluctuate in the past month."Medan (ANTARA News) - The prices of Indonesian rubber in export market have continued to fluctuate below US$3 per kilogram despite scarcity in supply.
Supply declined as most tappers did not work full day ahead of the the Ramadhan, the Islamic fasting month.
The price of Indonesia`s SIR 20 in the Singaporean market was US$2.91 per kilogram yesterday for delivery in August.
The price was slightly lower than US$2.94 on the previous day, said Edy Irwansyah , the executive secretary of the Indonesian association of rubber companies (Gapkindo).
"The price has continued to fluctuate in the past month from US$2.91 for August delivery to US$2.92- US$2.93 per kilogram for delivery in December, Edy said here on Thursday.
Many exporters continue to "wait and see" hoping that the price will rise especially with the growing scarcity in supply from North Sumatra, he said.
North Sumatra is the largest rubber producing province in Indonesia, which is the world`s second largest producer of that commodity.
Gapkindo has announced plan to cut exports until the price rises to more than US$3 per kg , but has not fully implemented the plan.
Exporter Tjoe Min Fat said traders are not encouraged to export rubber with price fluctuating below US$3 per kilogram .
Traders favored the plan of Gapkindo to cut exports until the condition improves, Tjoe said.
(Uu.AS/H-ASG/A014)
Editor: Priyambodo RH
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