South East Asia Rubber Futures Market By 2016

In an attempt to control rubber prices from too much fluctuations, three major world rubber producers from south East Asia, Malaysia, Indonesia and Thailand target to set up a regional rubber market within the next 18 months.

The regional rubber market would provide a platform for better price discovery and effective hedging functions for rubber producers, consumers and market players.The framework for the rubber futures market is completed but it still needs some fine-tuning.

Rubber prices witnessed sharp drops recently due to supply exceeding the demand from consumer countries like China, Japan, the United States and European countries.