RUBBER STOCK MANAGER SAYS QUALITY ACCEPTABLE
International Rubber Organisation
(INRO) buffer stock manager Aldo Hofmeister said tests had
shown the quality of rubber in stock was acceptable, but
acknowledged that some consumers were now wary of buying it.
    "We have said all along that the rubber is holding up well
from a condition and quality standpoint...Rubber stored in
proper conditions does not deteriorate," he told Reuters in a
telephone interview. The quality of buffer stock rubber sold
since he entered the market in September would be discussed at
an INRO Council meeting which opened here today, he said.
    Tokyo traders said on Friday they had little interest in
buying rubber from the INRO buffer stock because of possible
poor quality.
    Hofmeister began selling rubber when prices exceeded the
"may-sell' level of 232 cents per kg early last month. INRO's
five-day moving average was quoted at 237.3 cents on October
16. He said the quality of five to six-year old rubber in stock
was uppermost in consumers' minds.
    "We have received good interest for the rubber. I understand
the Japanese concern. Many consumers want to try the rubber
before they carry on buying," he said.
    Hofmeister said INRO rubber was stored in 28 different
locations in producing and consuming nations, adding all
warehouses used were suitable for long-term storage.
    Selling of buffer stock rubber had levelled off during the
past week to 10 days and this could reflect a "wait and see
attitude" by buyers, he said.
    "Consumers are holding back from buying additional amounts
until they test out the rubber. If their tests are positiive,
they are likely to buy more." Hofmeister said he could reduce
the offer price of buffer stock rubber to stimulate interest
but INRO did not want to depress prices artificially.
    Hofmeister declined to comment on Japanese trade estimates
that he had sold around 30,000 to 32,000 tonnes in Kuala Lumpur
and New York since September.
    But he said Japanese traders were in a position to have an
idea of the quantity he had sold, noting that traders overall
had put buffer stock sales at between 25,000 and 35,000 tonnes.
    The question of sales from the original 360,000 tonne
buffer stock is expected to be the main topic of the Council
meeting which is scheduled to end on Thursday.
    The current international rubber pact expires on October
22.
    The deadline for the new pact's start is January 1989 and
Hofmeister has been mandated to continue selling rubber during
the interim period.
 REUTER
