Veerasith Sinchareonkul, Sri Trang executive director, said demand for natural rubber in 2021 is likely to recover strongly as the Covid-19 pandemic recedes.
The price of block rubber in February 2021 rose to more than 160 US cents per kilogram, 22 per cent up on the 2020 average of 131 cents per kilo.
"Factors boosting the price of natural rubber are the overall economy and the automotive industry in China, which has returned to good growth. China is one of the world's largest rubber consumers,” Veerasith said.
Demand for tyre production and rubber gloves after the Covid-19 outbreak were driving up the price of rubber, he added.
STA expects to sell more than 1.2 million tonnes of natural rubber this year, or an average of 300,000 tonnes per quarter, up about 16 per cent from 1.03 million tons last year.
Meanwhile, the price of natural rubber in the first quarter this year remains strong. Average rubber prices are expected to rise by 5-10 per cent from 148 cents per kilo in the fourth quarter of 2020. STA expects to see demand rise steadily during the second quarter of this year.
Published : March 09, 2021
By : The Nation