Rubber, latex prices fall suddenly in blow to farmers, factories

By THE NATION

 

 

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.

 

Source: https://www.nationthailand.com/news/30397315

 

-- © Copyright The Nation Thailand 2020-11-04

 

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I would have thought that a lockdown results in a higher usage of rubber products ...

17 hours ago, rebo said:

I would have thought that a lockdown results in a higher usage of rubber products ...

Like gloves?

1 hour ago, mikebell said:

Like gloves?

That's a sore subject... still under investigation.

Wait for the cries for a subsidy come back.

[quote]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.[/quote]

 

They speculated on higher prices and lost, i don't see them moaning when the price went up. They thought they could make a killing and were wrong. That is business. Sometimes your lucky other times your screwed.

The price of rubber should soon bounce back  

4 minutes ago, Grumpy one said:

The price of rubber should soon bounce back  

Yes the price is very flexible, not to stretch a point.

Less demand. The aircraft industry is a huge consumer of tires, people are traveling less. There are airlines with their entire fleet laid up.

I'd better put my rubbers on. It looks like rain.