Rubber, latex prices fall suddenly in blow to farmers, factories
The prices of latex and rubber products have plummeted following the announcement of a lockdown in Europe to prevent Covid-19 from spreading, Thai Latex Association president Chaiphot Reungwarunwattana said.
“The lockdown has resulted in car manufacturers postponing their import of latex as they fear they will not be able sell vehicles in the coming months,” he said. “The situation has taken an unusual turn, as just last month there had been concerns that there would be a shortage of rubber, which had driven up the price.”
The Rubber Authority of Thailand (RTA) reported on October 27 that the price of third-grade smoked rubber sheet was Bt77.72 per kg, about 30 per cent higher than the guaranteed price of Bt60, while the price of latex was Bt68.5 per kg, about 20 per cent higher than the guaranteed Bt57.
The RTA then estimated that rubber prices could soon reach Bt100 per kg, as many rubber producing nations were reeling under floods, which had disrupted supplies.
Thailand also reported around 10 per cent lower-than-normal rubber output due to frequent rains in the South, which have prevented farmers from harvesting latex.
Now, on Wednesday, Songkhla’s Central Rubber Market reported that latex was priced at Bt58 per kg, falling Bt6.30 from yesterday’s prices, while crude rubber sheets were priced at Bt67.25 per kg and third-grade smoked rubber sheets Bt68.35.
“The plummeting prices have put not only farmers but also processing factories in a difficult situation. These factories stocked up latex when the price was high and now face the risk of loss due to decreased demand,” Chaiphot added.