North Sumatra borders the province of Ache, where nearly all the deaths from the weekend's earthquake occurred. Indonesia, where the death toll has been estimated at as high as 40,000, is the world's second-largest rubber producer, after Thailand.
"Except for those in Ache, there are no ports which have been affected by the tsunami. And Ache hasn't produced rubber for such a long time," said Suharto Honggokusumo, executive director of the Indonesian Rubber Association in Jakarta.
A 9.0-magnitude undersea earthquake, the biggest in 40 years, off Sumatra Island, triggered the tsunami. Indonesian Vice President Jusuf Kalla estimated it would cost around $1 billion to rebuild tsunami-hit Sumatra.
"There are problems with supply but that's because of the rains," said Honggokusumo. Monsoon rains normally disrupt tapping and reduces the flow of latex. Indonesia faces a wet season from October to February.
In Median, the provincial capital of North Sumatra, dealers reported regular shipments to main buyers China and Europe from Begawan port. Tyre-grade SIR20 for February shipments were steady in the commodity-trading city at 53.75 US cents/lb, free on board (FOB).
"Nothing happened in Begawan and deliveries from plantations to Median are normal," one dealer said. In other trading cities on the island, SIR20 was also stable at 53.25 cents/lb FOB Padding in West Sumatra, and at 53.75 cents/lb, FOB Plumbing in South Sumatra.
"Shipments from Plumbing are quite regular.
There could be delays in North Sumatra because of the quake but I don't hear any problems so far," one Jakarta dealer said. "We still see some demand from China but we have to be careful with Chinese buyers because there have been problems with payment," he said.
A Singapore-based trader working for a large Chinese rubber importer said: "Our shipment is delayed because of the bridge problem in Sumatra.
That's all, otherwise everything is normal as far as rubber production is concerned." The Indonesian Rubber Association estimates natural rubber production will reach 1.87 million tonnes in 2004, up around 4 percent from last year. Exports are seen rising rise 4 four percent from 1.660 million tonnes last year.