Viadrina Logo
Jura Logo
Foto Logo

Article Comparison - International Natural Rubber Agreement

Article 30
Operation of the Buffer Stock

1. If, in relation to the price range provided for in Article 29, or as subsequently revised in accordance with the provisions of Articles 31 and 39, the market indicator price provided for in Article 32 is:

(a) at or above the upper trigger action price, the Buffer Stock Manager shall defend the upper trigger action price by offering natural rubber for sale until the market indicator price falls below the upper trigger action price;

(b) above the upper intervention price, the Buffer Stock Manager may sell natural rubber in defence of the upper trigger action price;

(c) at the upper or lower intervention price, or between them, the Buffer Stock Manager shall neither buy nor sell natural rubber, except in order to carry out his responsibilities for rotation under Article 35;

(d) below the lower intervention price, the Buffer Stock Manager may buy natural rubber in defence of the lower trigger action price;

(e) at or below the lower trigger action price, the Buffer Stock Manager shall defend the lower trigger action price by offering to buy natural rubber until the market indicator price exceeds the lower trigger action price.

2. When sales or purchases for the Buffer Stock reach the 400 000-tonne level, the Council shall, by special vote, decide whether to bring the contingency Buffer Stock into operation at:

(a) the lower or upper trigger action price; or

(b) any price between the lower trigger action price and the lower indicative price, or the upper trigger action price and the upper indicative price.

3. Unless the Council, by special vote, decides otherwise under paragraph 2 of this Article, the Buffer Stock Manager shall use the contingency Buffer Stock to defend the lower indicative price by bringing the contingency Buffer Stock into operation when the market indicator price is at a level 2 Malaysian/Singapore cents per kilogramme above the lower indicative price, and to defend the upper indicative price by bringing the contingency Buffer Stock into operation when the market indicator price is at a level 2 Malaysian/Singapore cents per kilogramme below the upper indicative price.

4. The total facilities of the Buffer Stock, including the normal Buffer Stock and the contingency Buffer Stock, shall be fully utilized to ensure that the market indicator price does not fall below the lower indicative price or rise above the upper indicative price.

5. Sales and purchases by the Buffer Stock Manager shall be effected through established commercial markets at prevailing prices, and all his transactions shall be in physical rubber available for shipment not later than one month after the end of the first quoted month in the market concerned, or for delivery in a consuming market during the delivery month or months normally corresponding to such shipment months in that market. For the purpose of the efficient operation of the Buffer Stock, the Council may decide by consensus to allow the Buffer Stock Manager to purchase future contracts up to a maximum of two months forward on the strict and absolute condition that tenders are taken up on maturity.

6. To facilitate the operation of the Buffer Stock, the Council shall establish branch offices and such facilities of the Buffer Stock Manager's office, where necessary, in established rubber markets and approved warehouse locations.

7. The Buffer Stock Manager shall prepare a monthly report on Buffer Stock transactions and the Buffer Stock Account's financial position. Thirty days after the end of each month, the report for that month shall be made available to members.

8. The information on Buffer Stock transactions shall include quantities, prices, types, grades and markets of all Buffer Stock operations, including rotations effected. The information on the Buffer Stock Account's financial position shall also include interest rates on and terms and conditions of deposits, the currencies operated in and other relevant information on the items referred to in paragraph 2 of Article 21.