Illustrative image (Photo: Association of Natural Rubber Producing Countries' website) 
 
Phnom Penh (VNA) – Cambodia is optimistic about the prospect of a rubber price recovery amid falling global prices, said a local official.

The price will recover soon when global supply decreases and China starts buying more rubber, said Pol Sopha, Director-General of the Rubber Directorate under the Cambodian Ministry of Agriculture.

He added that the World Bank (WB), the International Monetary Fund (IMF) and the UN Food and Agriculture Organisation (FAO) all predicted the rubber price would reach 2,200 USD per tonne. 

The price on the global market dropped to between 1,600-1,700 USD per tonne from 2,400 USD in January and February, according to Men Sopheak, General Secretary of the Association for Rubber Development of Cambodia.

The price fall was driven by a slowdown of the global and regional economy, especially the Chinese economy, global unrest, speculation from investors in the stock market and US dollar appreciation. 

Cambodia is currently home to 437,000 ha of rubber, 64 percent of which is controlled by rubber industry firms and the rest by family-run operations.

In the first quarter of the year, the Southeast Asian country shipped 50,000 tonnes of rubber overseas, mostly to Vietnam, Malaysia, Singapore and China. - VNA