Thailand Rubber Bureau: This year, the domestic rubber price is very stable and the trend is positive

According to a Thai media report on May 8, after the Thai Rubber Bureau cleared 100,000 tons of rubber stocks, the rubber export price rebounded to 70 baht/kg.
Private enterprises believe that it can help reduce the pressure of the new production season, and the global market is trending.
In response to the recovery, demand from China and India increased, prompting the value of Thailand's rubber exports in March 2021 to increase by 109%
.

According to the latest data from the Thai Ministry of Commerce, the country's rubber exports in March were 349,427 tons, an increase of 65.
50%, and valued at US$587 million, an increase of 109.

18%, prompting the first quarter of rubber exports to 870,000 tons, an increase of 10.
68.
%, valued at US$1.
441 billion, up 38.
14%
.
Especially in the Chinese market, demand ranks first, accounting for 32% of the export share, and the demand for rubber has increased by 17%
.
Followed by markets in Malaysia, Japan and the United States, demand has all increased
.
Most importantly, the Indian market demand increased by 127%, and not only the increase in rubber demand, but also rubber products, valued at 3.
932 billion US dollars, an increase of 32.
54%
.


Nakorn, Director of the Rubber Bureau of Thailand, said that although there is only one bidder at the auction of 100,000 tons of 9-year stock rubber, it may affect the market price in a short period of time, but in the long run, this trend will affect the market.
The price is favorable, because the lack of inventory will not put pressure on the newly launched rubber in late May.
Many parties predict that the overall export volume of rubber this year will expand to more than 3.
7 million tons
.
As for the export price, it has risen again to 70 baht per kilogram, while the price of fresh latex is 61.
50 baht, and the price of third-grade tobacco sheet glue is 66.
02 baht
.


Nagong pointed out that the price of rubber in Thailand this year is very stable and continues to adjust for the better.
At present, the price of smoked sheet rubber remains in the range of 60-65 baht per kilogram.
The main factor is the decrease in the amount of rubber entering the market due to bad weather.
, Coupled with the increase in demand for companies in order to deliver and expand productivity
.
Another important factor is that compared with last year, China’s auto production and sales have continued to grow this year.
As China’s epidemic has been brought under control, economic activities have returned to normal, including the Fed’s unadjusted interest rates, which eases entrepreneurs’ concerns about investment, thereby boosting the price of rubber in Thailand.
It has also risen
.


  According to the global demand for concentrated latex, the domestic consumption of concentrated latex will double again this year, and there will be a situation in which demand exceeds supply.

.
The current production of concentrated latex in Thailand is about 1 million tons, some of which will be shipped to China and Malaysia.
Only 100,000 tons are used domestically, but domestic demand will double this year
.
Therefore, it is expected that in the future, rubber glove factories will use a large amount of natural rubber as the production material, because it is cheaper than synthetic rubber, and the use of natural rubber has the opportunity to obtain more profits
.


  In any case, the government is still implementing the rubber farmers' income guarantee project (phase 2).
The final payment is the sixth payment in March 2021.
The payment will start on April 30, as follows: The average price of raw film is 61.
08 baht/kg, government guarantees 60 baht/kg; fresh latex 58.
91 baht/kg, government guarantees 57 baht/kg; cup glue (DRC 50%) 22.
63 baht/kg, government guarantees 23 baht/kg , This is the only type of rubber that subsidizes 0.
37 baht per kilogram, totaling 149.
79 million baht
.
In the past, 7.
279.
18 million baht has been paid in subsidies to 1.
377,000 people
.


  In addition, Utai, an expert member of the Natural Rubber Policy Committee and chairman of the Thai Rubber Planters’ Association, said that the new crown pneumonia pandemic and the high demand for latex gloves will continue until 2025, which will promote the continuous increase in the market for fresh latex.
Rubber throughout the year The price may reach 60 baht/kg or higher
.