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Cambodian rubber prices soften as supply grows

PHNOM PENH: Cambodian rubber prices softened slightly this week as production in neighbouring Thailand and Malaysia picked up, the director of Cambodia's state rubber agency told Reuters on Wednesday.

Top-grade Cambodian sold at $630 per tonne this week, against $640 per tonne two weeks ago, director Ly Phalla said.

"The price is a little bit lower from $640 to $630 because there is a lot of rubber in stock in Malaysia and Thailand at the moment," he said.

Despite the slight drop, the price of rubber remains significantly higher than February levels of $590-600 per tonne. Ly Phalla was optimistic prices would increase going forward.

"We expect in the future the price of our rubber will increase because a lot of South Korean business people want to buy Cambodian rubber," he said, adding that Cambodian rubber sold at a 20-25 percent discount to Malaysian and Thai rubber.

A representative for South Korean-based Standard Venture Inc told Reuters two weeks ago it would soon would begin exporting Cambodian rubber to South Korea and eventually expects to buy some 5,000 tonnes annually. -Reuters