Medan: North Sumatra's Rubber Association of Indonesia (Gapkindo) has forecast natural rubber export prices to increase until the end of 2021 on account of the high demand for rubber materials in the international market.
"In August, the export price for SIR20 rubber has reached US$1.73 for one kilogram. We project the price to rise until the end of the year," North Sumatra Gapkindo Executive Secretary Edy Irwansyah stated in Medan, Tuesday.
He noted that the current price of natural rubber of US$1.73 had increased as compared to US$1.63 in July 2021.
Irwansyah attributed the price hike to the shortage of natural rubber following high demand for the commodity amid the COVID-19 pandemic, export restrictions due to the pandemic, and difficulties to secure container export slots.
"We are convinced that even if the price dropped, the decline would not go below US$1.70 for one kg," Irwansyah stated.
He forecast the export volume for natural rubber to increase in August after noting a similar situation while comparing export quantities for June and July 2021. The export volume for July was recorded at 31,148 tons, an increase of 5.3 percent from that in June.
Total exports of natural rubber produced in North Sumatra from January to July 2021 had reached 218,425 tons, an increase of 5.3 percent from the corresponding period in 2020, Irwansyah stated.
He explained that main export destinations for the natural rubber commodity produced in North Sumatra were Japan and the United States, respectively accounting for 23.73 percent and 21.68 percent of the total exports.
Other key export destinations were Brazil, constituting 9.59 percent of the exports, followed by Turkey, with 6.73 percent; and the People's Republic of China accounting for 5.75 percent of the exports.
"Praise be to God, our rubber price and export quantity continues to rise despite the COVID-19 pandemic," Irwansyah affirmed.