The Thai Rubber Association said on Monday it will host an international rubber conference from June 23-24. The conference will be held in cooperation with international rubber groups at the southern Thai rubber trading city of Hat Yai, TRA officials said. ``The purpose of the conference is to brainstorm and exchange latest information among leading industry speakers worldwide in the field of production, consumption, technology and marketing,'' a TRA spokesman said. ``The conference will address the issue of short-term and long-term outlooks of natural rubber, the setbacks and potentials at this crucial time,'' he said.

Thailand and Malaysia, both major rubber producers, have already notified the producer-consumer International Natural Rubber Organisation (INRO) that they are withdrawing their membership from the group because they are dissatisfied with the body's ability to prop up prices. Their withdrawal will become effective next year.

Lanka teaprices seen rising

Sri Lanka's sagging tea prices are likely to get a boost from Iraq's decision to buy 6,000 tonnes of tea under the sixth phase of the UN oil-for-food programme, a senior Tea Board official said on Monday. ``It will definitely help us...it should lift the prices at the bottom end of the market,'' director of the Ceylon Tea Promotion Bureau, Hasitha de Alwis, told Reuters. He said although Iraq preferred slightly higher quality tea, the UN deal allowed it to purchase tea only at the bottom end of the market.

Under the agreement, finalised during Iraqi trade minister Mohammed Mehdi Saleh's visit to Sri Lanka last week, Baghdad will purchase 6,000 tonnes of Ceylon tea while Colombo will buy 120,000 tonnes of Basra light crude oil from Iraq. Prices of Sri Lankan tea have fallen drastically after its biggest buyer, the Commonwealth of Independent States, reduced purchases since August following the Russian rouble crisis.

NWE fuel oil seen strong

Northwest Europe fuel oil bargeprices held onto the high levels reached last week as prompt supplies remained extremely tight. High sulphur fuel oil barges were offered at $95 a tonne for prompt Rotterdam delivery, although traders said $93 a tonne appeared to be a more realistic figure. ``There is really just no product available now,'' one dealer said. Gas oil prices weakened in line with the early IPE drop, although differentials stood unchanged. Rotterdam heating oil barges were offered at about $1.50 under the IPE and diesel at $5.50 to $6.00 over. At 0900 GMT, IPE July gas oil was down $1.25 at $130.50 a tonne.

May world steel output down

World steel output totalled 65.2 million tonnes in May, 2.2 per cent down on the same month last year, but 3.9 per cent higher than in April, the International Iron and Steel Institute (IISI) said on Monday. Production in the 63 countries covered by the IISI totalled 309.7 million tonnes in the first five months of 1999, down 5.3 per cent on the same period in 1998.

The decline camedespite an upturn in production of 14.8 per cent in Russia to 4.2 million tonnes and of 2.1 per cent in Asia to 24.9 million tonnes, led by increased output in China. Production continued to decline in both the 15- member European Union and the United States. EU output fell by 6.5 per cent in May to 13.8 million tonnes, while US production dropped by 8.1 per cent to 7.9 million tonnes. Brussels-based IISI covers countries accounting for around 98 per cent of world crude steel production.

HK gold shade down at mid-day

Hong Kong spot gold was quoted a shade down at midday on Monday from the opening, while silver remained unchanged. Bullion was quoted at US$258.40/90 an ounce at midday, a shade down from its opening price of US$258.50/259.00. Spot silver ended at midday quoted at US$4.94/97 per ounce, unchanged from the opening. Tael gold at midday was at HK$2,390 per tael, down HK$2 from its opening at HK$2,392 per tael.

Nymex crude slips

Nymex light crude futures slipped on Mondaymorning on ACCESS, extending losses from New York, dealers said. July light crude futures on ACCESS last traded two cents per barrel down at $17.97 by 0425 GMT. The contract closed 20 cents lower at $17.99 in New York on supply concerns in the US. August Simex Brent was unquoted, after it closed 26 cents weaker at $16.50 on London's IPE on Friday.