Hainan to buy 208,000 tons of rubber from Thailand agency

SHANGHAI, China—Hainan Rubber Industry Group has agreed to buy 208,000 tons of rubber from Thailand’s state-run Rubber Estate Organization.

The purchases would be made at a “fair market price,” said a spokesperson for Hainan Rubber, though the individual gave no further details in a filing to the Shanghai Stock Exchange

The contract was signed between REO and Hainan Rubber Group (Singapore) Development Pte., a fully-owned subsidiary of Hainan Rubber, according to the Nov. 25 statement.

The contract marks the first transaction between the Hainan Rubber and REO, the Chinese group pointed out.

The Thai government is seeking to reduce stockpiles of natural rubber bought up by the previous administration in a bid to prop up prices and growers’ incomes.

 - credit www.rubbernews.com