Rubber prices could hit Bt100 a kg
The Rubber Authority of Thailand estimates that rubber prices could soon reach Bt100 per kg, significantly above the government’s guaranteed price, after many rubber producing nations reeled under floods while demand from China jumped due to the country's local governments promoting the use of small vehicles.
“As of October 27 the price of third-grade smoked rubber sheet in Nakhon Si Thammarat was Bt77.72 per kg, about 30 per cent higher than the guaranteed price of Bt60 per kg, while the price of latex was Bt68.5 per kg, about 20 per cent higher than the guaranteed Bt57,” said the authority’s governor Nakorn Tangavirapat.
“These prices are the highest in three years and eight months, and they could soon surpass the Bt80-per-kg milestone and reach Bt90-100,” he said.
“The reason behind rising rubber prices is reduced output due to floods, especially in southern China and Vietnam, that have affected several countries which produce rubber. 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.”
Furthermore, rubber demand in China has increased rapidly after local governments started promoting the use of small vehicles, prompting tyre manufacturers to increase production volumes by around three-fold,” Nakorn said.
“We estimate that this year’s rubber exports would be roughly the same as last year's at 4.1 million tonnes, but the price will be around 30 per cent higher than last year’s total export value of Bt187.12 billion,” he added.
