Rubber price rebounding fast after falling off cliff

“Global output has decreased due to floods in major producer-countries such as Vietnam and Indonesia, while Thailand’s output has fallen due to heavy rain in the South,” explained Nakorn Tangavirapat, deputy governor of the Rubber Authority of Thailand (RAOT).
“Demand for rubber will continue to climb into early next year thanks to expanding rubber glove and tyre industries. China, the biggest market for Thai rubber gloves, will seek to replenish stocks, which will drive the rubber price up as high as Bt80 per kilo.”

Nakorn added that rubber farmers should not be hit by the price fluctuation, as the second phase of the government’s price guarantee scheme had been approved by Cabinet.
“The RAOT estimates that the Bank of Agriculture and Agricultural Cooperatives could start disbursing [price-guarantee] money as soon as November 26,” he added.
About 1.8 million rubber farmers have registered for the scheme. Sheet rubber is guaranteed at Bt60 per kilo, while latex with 100 per cent dry rubber content (DRC) is guaranteed at Bt57 per kilo, and 50 per cent DRC cup lump rubber at Bt23 per kilo. The scheme will cost Bt10.04 billion.
The RAOT estimates that Thailand will produce 4.9 million tonnes of rubber this year, 4.18 million tonnes of which will be exported to fetch about US$11.2 billion.