Monday, November 30, 2020

Rubber price could hit Bt67 per kg on rising demand

Oct 22. 2020
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By THE NATION

The Rubber Authority of Thailand (RAOT) estimates the price of rubber could rise to Bt67 per kg soon due to increased demand from China, while the supply of latex is decreasing due to frequent rains in the South and labour shortage amid the Covid-19 situation, RAOT governor Nakorn Tangavirapat said on Wednesday.

“As of October 21 the price of grade 3 smoked sheet rubber from Surat Thani and Nakhon Si Thammarat markets was Bt65; this will continue to rise,” he said.

“Meanwhile, raw rubber sheet is priced at Bt59.60 per kg, latex with 100 per cent DRC [dry rubber content] is sold at Bt59 per kg, and latex with 50 per cent DRC goes for Bt43 per kg. These prices are the highest in the past three years.”

Nakorn also said the rubber price could go up as China predicts its GDP expansion at 4.9 per cent and has a tendency to import more rubber from Thailand.

“Furthermore, some neighbouring countries which also produce rubber have been suffering from natural disasters in the past month, while Thailand’s southern region is also bearing the brunt of frequent rains and labour shortage in the Covid-19 situation, which will result in decreasing rubber output and increasing prices,” Nakorn said.

“The rubber price in future markets is also rising, either at Singapore’s Sicom or Japan’s Tocom. Soon the price will reach Bt67 per kg or go even higher,” he said.

The governor believed the government’s policy to support loans to rubber farmers will help them hire additional labourers to increase harvesting capability and rubber output.

“This project was implemented in May this year and will end in April 2022 under a budget of Bt20 billion,” he added. “The loans should eventually help stabilise the market rubber price.”

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