Rubber price rebounding fast after falling off cliff

[webfact]

Rubber price rebounding fast after falling off cliff

By THE NATION

 

 

The price of rubber latex bounced back to Bt48 per kilo on Thursday after plummeting from Bt70-71 to Bt41-Bt42 earlier this week.

 

“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.

 

Source: https://www.nationthailand.com/news/30397906

 

-- © Copyright The Nation Thailand 2020-11-13

 

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[ChrisY1]

Rubber bouncing back.....

[hotchilli]

3 hours ago, ChrisY1 said:

Rubber bouncing back.....

Who'd have thought?

[RubbaJohnny]

Wubbajohnnies use a highly technical term

 

[BlueT84]

Um, rubber has been in the price range of 18-21 baht for cup for the last 2 yrs. 21 baht for the last few months. 23 baht is a slight raise, but nothing spectacular.

[teacherclaire]

The price of rubber latex bounced back to Bt48 per kilo on Thursday after plummeting from Bt70-71 to Bt41-Bt42 earlier this week.

 

Time to buy condoms? 

 

The investment on rubber trees is high, then the labor and in the end, they rip them off.

 

Too many people reacted too fast after one SEA country had lost the whole harvest many moons ago and prices were up. 

Edited November 14, 2020 by teacherclaire