Private Indonesian dealers have defaulted on contracts to buy 40,000-50,000 tonnes of rice from Vietnam because of import restrictions and fluctuations of the rupiah, traders said. Two traders in Vietnam's Ho Chi Minh City said some Indonesian buyers had been told by Jakarta officials not to import any rice for an unspecified time because there were sufficient stocks in the country. They said the total contracted amount defaulted on had not been shipped, and that some of the Indonesian buyers were trying to get their deposits back from the various sales that made up the 40,000-50,000 tonnes.

"All scheduled shipments to Indonesia from August 20 have been halted. The total defaulted contracts were around 40,000-50,000 tonnes," one of the traders said. The traders gave no details on prices for the contracted amounts, but said Jakarta was keen to ensure Vietnamese low-grade grains were not being bought for less than domestic prices across Indonesia. Indonesia'srupiah fluctuated widely in the past couple of weeks, affecting rice deals with Vietnam.

Brazil to boost aluminium exports

Brazil is likely to increase its exports of primary aluminium by nearly 12 per cent this year to 7,73,000 tonnes, the Brazilian Aluminium Association (ABAL) said. Exports for the second half of 1999 were pegged at 3,65,800 tonnes, against 3,46,000 tonnes in the equivalent period last year and the 4,07,200 tonnes shipped in the first six months of this year, it said in a statement. Brazil's imports of primary aluminium were expected to fall sharply to 2,700 tonnes this year from the 5,800 tonnes reported in 1998. ABAL said Brazilian demand for processed aluminium products reached 3,17,400 tonnes in the first half of 1999, a fall of 6.3 per cent from the equivalent period of 1998.