IRCO’s Daily Composite Price (DCP) averaged and stabilized around the 140.00 US cents/kg. level for the period under review. It broke the level on the first trading day of the year and remained above it until 17^th February before recovering again on 23^rd March. It opened on 5^th January at 142.64 US cents/kg. and recorded its highest for the period under review on 9^th January at 149.81 cents/kg. and closed on 31^st March at 145.14 US cents/kg.

The lowest level was recorded on 3^rd March at 132.63 US cents/kg. where the DCP had remained below the 135.00 US cents/kg. level for 10 trading days from 2^nd to 13^th March.

The continuing gloomy and uncertain global economic situation still loomed over the natural rubber market. Two major factors supported prices on the downside. Firstly, the deliberate concerted export curbs exercised by the ITRC countries of Thailand, Indonesia and Malaysia, totaling 270,000 tons for the first quarter of 2009. Secondly, the emergence of fresh buying from China after the Lunar Year celebrations in late January coupled with the Chinese government announcement to intervene in the market up to a total of 80,000 tons in an effort to support prices for their domestic natural rubber producers.

Other notable factors that influenced the physical rubber market and prices during the period under review include:

1.       The serious plunge of more than 30% in sales as reported by the major auto manufactures that will affect tyre production leading to lower NR consumption.

2.       Deferment of shipments and reduction of quantities in the long term contracts of major tyre manufacturers.

3.       Stabilizing of crude oil prices to around US $50 per barrel helped boost sentiments.

4.       The reluctance of exporters from the ITRC countries to offer below 135 US cents/kg. to some extent underpinned prices.

5.       Wintering in Thailand and Malaysia that set in February add on to the tightness in supply.

The following table shows the price movements in the major rubber markets during the period under review:-

Price Movements at Major Rubber Markets

1^st Quarter 2009