The increasing rainfall intensity due to the La Nina phenomenon has reduced the production of rubber commodities in North Sumatra. Executive Secretary of the Rubber Association of Indonesia (GAPKINDO) for North Sumatra Edy Irwansyah said the decline in rubber production due to this natural phenomenon occurred since October 2020.
This caused the crumb rubber processing factory to experience difficulties in supplying raw materials so that the volume of rubber exports also plummeted. Edy noted, North Sumatra’s rubber exports in January and February 2021 decreased by 6.7% compared to the same period last year. The export volume from January to February 2021 decreased by 6.7% to 64,974 tonnes compared to the same period in 2020, he said, Sunday (14/3/2021). GAPKINDO noted, in February 2021, the volume of North Sumatra rubber exports also decreased by 3.1% to 31,975 tonnes compared to the previous month (mtm).
There are five leading export destination countries for North Sumatra. First, Japan, which contributed 25.9% to North Sumatra’s total rubber exports. Second, the United States contributed 20.6%. The third leading export destination country is Brazil, which accounts for 9.2% of North Sumatra’s total rubber export volume. Fourth, China with 7.7% and Turkey with 4.6%. When accumulated, shipments to these five countries account for 68% of North Sumatra’s total rubber export volume.
Meanwhile, the average TSR20 rubber price in February 2021 was 168.56 US cents per kilogram. As of Friday (12/3/2021), there was an increase in the price of US 7.07 US cents. According to Edy, the average price of TSR20 rubber in February 2021 was 168.56 US cents per kilogram, increasing 7.07 US cents compared to the average this month to March 12 of 175.63 US cents.
This price increase was triggered by a reduced supply of raw materials in Indonesia due to the impact of the La Nina phenomenon, which has occurred since October 2020. ***
Bisnis.com, 14/03/2021