Thailand's rubber product exports may accelerate the recovery in the next few months

According to foreign media reports on June 21, in April 2021, Thailand’s exports exceeded US$20 billion for the third consecutive month, an increase of 13.
09% year-on-year, the largest increase in 36 months
.
Except for gold, petroleum products and weapons, exports in April increased by 25.
7% year-on-year
.
The upward trend in exports is consistent with the global manufacturing PMI of 55.
8, the highest level in 11 years
.


Despite this, imports increased by 29.
8% year-on-year to US$21.
25 billion, resulting in a relatively small trade surplus of only US$18248 million-far lower than the surplus of more than US$2.
5 billion in April 2020
.
Perhaps, it’s worth noting that last year’s export performance was distorted by the global blockade and was therefore seriously underestimated
.


Automobiles, equipment and parts were the main drivers of Thailand’s strong export performance in April, accounting for approximately 5% of the export growth
.
The COVID-19 epidemic has dealt a blow to both the supply and demand sides of the automotive industry, making 2020 an unfavorable year for the development of the industry
.
On the demand side, the restrictions on the blockade and the instability of future income have reduced the demand for cars; on the supply side, many automakers temporarily closed their production lines last year to help fight the spread of COVID-19
.


  In contrast, major auto markets such as China, the United States and Europe rebounded sharply due to the economic restart, and the auto industry is expected to recover strongly this year
.
Thailand’s exports of automobiles, equipment and parts increased by 135.
86% year-on-year this month
.
However, in the next few quarters, a new wave of epidemic outbreaks and semiconductor (chip) shortages in Asia may put pressure on the automotive industry
.


  In addition, in response to the strong demand for “work from home” and COVID-19 protection products, the export recovery continued to be supported
.
(Products contributing to export growth and their proportions include: electronics accounted for 3.
1%, electrical appliances accounted for 3.
8%, and rubber products accounted for 2.
3%)
.
Since the last year, a new digital life>
.


  Similarly, the surge in demand for medical products such as rubber gloves is evidenced by the sharp increase in exports of rubber products (a year-on-year increase of 55.
5%)
.
Sri Trang Gloves Thailand (STGT), Thailand's largest glove manufacturer, expects rubber glove sales to increase by 20% this year
.


  The exports of most Asian countries in April continued to recover from their low base values ​​when the COVID-19 pandemic hit last year
.
Among the five ASEAN countries, Indonesia and Singapore’s exports increased by 51.
9% and 34.
9% year-on-year, respectively
.


  As demand for chips and cars remains strong, South Korea’s exports in the first 20 days of May increased by 59.
1%
.
According to Capital Economics, South Korean exports will remain high for a period of time as customers are eager to replenish inventory
.
Based on the strong correlation between the exports of the two countries, the Economic and Strategic Research Department of Bangkok Bank predicts that Thailand's exports in May will increase by more than 20% year-on-year
.