China may buy Thai rubber at price above market value

[webfact]

THAI-CHINESE TIES
China may buy Thai rubber at price above market value
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- THAILAND hopes to finalise an agreement with China soon for the purchase of 200,000 tonnes of rubber at above-market prices to encourage price rises in the future and improve the incomes of Thai farmers.

After leading a mission of Thai officials to Kunming, China, for a second meeting on agricultural-product cooperation, Commerce Minister Chatchai Sarikulya said yesterday that Thailand would soon get good news about selling big lots of rubber and rice under closer cooperation between the two countries. China has already signed a memorandum of understanding for the purchase of 2 million tonnes of rice and 200,000 tonnes of rubber, but the details of the agreement have not been finalised.

Only about 300,000 tonnes of rice were shipped to China last year under the MoU.

China will soon sign a contract to buy 1 million tonnes of the new rice crop from Thailand.

Thailand has also asked China to purchase 200,000 tonnes of rubber for about 3-5 yuan (Bt16-Bt27) a kilogram above the market price. China has taken this request under consideration.

The two countries will finalise their agreement for rice and rubber purchases at the third meeting in Nakhon Ratchasima province in July. Thailand will also ask China to purchase other crops from Thailand at that meeting.

By the middle of next month, representatives of Sinochem, a Chinese state-owned conglomerate, will visit Thailand to negotiate a rubber-purchase contract.

The Thai Foreign Trade Department and China's COFCO Group, another state enterprise, will also negotiate on a rice contract.

Thailand has guaranteed delivery of good-quality rice from the latest harvest for China. The sale will be based on the free-on-board price, while China will nominate its own surveyors to inspect its quality.

Source: http://www.nationmultimedia.com/business/China-may-buy-Thai-rubber-at-price-above-market-va-30259844.html


-- The Nation 2015-05-12

[baboon]

What can possibly go wrong?

[chooka]

Good on you China, buying rubber at more than it is worth just to help out a friend. I am sure there are no strings attached.

[NongKhaiKid]

Good on you China, buying rubber at more than it is worth just to help out a friend. I am sure there are no strings attached.

Oh yes, the very business savvy Chinese are going to spend more than the going rate for a commodity ?

This is the Thai version so far, what do the Chinese have to say ?

[BSJ]

Friend helping friend, seems OK to me!

[tonbridgebrit]

How about America and the European Union doing something similar ?

And China buying rubber ? Any other raw materials they want ? These raw materials that the Chinese want. The raw materials are actually being used for manufacturing goods and exporting the stuff to Europe and America.

[Aussieroaming]

Sure China will pay above market rate to secure supply. Then they will process the rubber and sell it back to Thailand at twice the market value.

[Tatsujin]

< slaps forehead and sighs >

[LuckyLew]

The extra they pay will just be added to the bill for the construction of the high speed railway. There is no way China would do this unless they were getting pay back in one way or another.

[davehowden]

"China may buy Thai rubber at price above market value"

and there again, they may not?

[Thaddeus]

The writers of Star Trek were completely wrong when they named the money grabbers ''Ferengi''

Or they may have done that for satirical reasons.

[oneday]

One Chinese official to another: "Let's add a little more enticement to our eventual acquisition of Thailand. Let's do something stupid and pay more for rubber than we have to. We'll say it is to IMPROVE prices for the future and help Thai farmers. We will do this out of the kindness of our hearts (555) and eventually Thailand will owe us so much they can't refuse any request or demand we make."

reply: "Yeah, they should buy that. It's easy to pull the wool over their eyes now that they have a military government desperately looking for friends in the East, having lost favor with the West. We are the only game in town...well us and the Russians. In about 20 years we should be pulling them into our fold.".

reply: "Ok, great! How are the plans going for Laos, Cambodia, Viet Nam and Myanmar."

reply: "Well they aren't as easy to dupe so we will have to be even more subtle."

[BKKBrit]

So they follow the same tact as Pheu Thai with the 'impending' sales of rice to China?

[maidee]

so what do the chinese get in return for that market f up ?

[Just1Voice]

China is not exactly a gratuitous country, so if they are going to pay "above market price" for rubber, etc, you can bet it's their version of Ky Jelly so they can shove it in deeper.

[Srikcir]

Payment for the rubber may be made in yuans right after the Chinese inflate its unofficial international exchange rate coincidentally equal to or greater than the "premium" it will pay for rubber. Then it will use offshore trading houses to sell the excess rubber obtained by its inflated yuans for USD's and shop for US goods. End result is that China makes a profit and the Junta looks like it made a great deal.

[dru2]

More absurd, self-delusional claptrap.

[Praematura]

Similar topic of China helping out the Russians. Quote in the article is applicable that China doesn't do favors, it expects payment in some tangible way. Maybe the quid pro quo is buying two subs that they don't need.

https://news.vice.com/article/china-is-becoming-russias-economic-loan-shark

[harryfrompattaya]

How about America and the European Union doing something similar ?

And China buying rubber ? Any other raw materials they want ? These raw materials that the Chinese want. The raw materials are actually being used for manufacturing goods and exporting the stuff to Europe and America.

America and EU should offer to twice as much as China

Why stop their they should buy rice a 3 times the world market

that will show how wonderful America and the EU is

[ezzra]

Yes, but what Thailand will have to buy from them in above market prices? them Chinese don't give

you nothing for nothing, there will be a pound of flesh at the end...

[harryfrompattaya]

Yes, but what Thailand will have to buy from them in above market prices? them Chinese don't give

you nothing for nothing, there will be a pound of flesh at the end...

Have you done business in China

If you had you will understand how fair they are Just ask Walmart Costco GE and other large America Companys that love to deal with them

Remember a Company as well as Individuals can own a house and etc in their names

When the Chinese buy homes in Foreign Countries ie US and Canada they pay cash with top dollar

Even us poor Black know that and love to sell to them

Edited May 12, 2015 by harryfrompattaya

[sfokevin]

Me thinks the Commerce Minister has had a little too much of the Happiness Punch...

[fred Kubasa]

Someone must have been hitting Chinese buyers with a " dumb stick" if they are going to pay ABOVE market prices for rubber !

[lucky11]

Good on you China, buying rubber at more than it is worth just to help out a friend. I am sure there are no strings attached.

How much rubber and rice does the US buy from Thailand - let alone at above market places.

Great business acumen from the new commerce minister and a friendly gesture from Thailand's real friend!!!

[50baht]

I other news, China leases Air Force base in Chang Mai,A Sub Base in Sattahip,build worlds largest Munitions plant in Yala.

No word on a Partridge in a Pear tree.

[Nick167]

..........In return for whatt please? Can the officals please enlighten us.

[zydeco]

This ain't gonna happen.

[Time Traveller]

Good on you China, buying rubber at more than it is worth just to help out a friend. I am sure there are no strings attached.

How much rubber and rice does the US buy from Thailand - let alone at above market places.

Great business acumen from the new commerce minister and a friendly gesture from Thailand's real friend!!!

It's never a good idea to pay above market prices for anything. It just encourages producers to increase the supply glut.

Didn't these thais learn anything from the rice fiasco?

[Torrens54]

Can we also flog off some of YINGLICK's moldy old rice to them at higher than market price?

[billd766]

So they follow the same tact as Pheu Thai with the 'impending' sales of rice to China?

However unlike the Puea Thai if it doesn't come off they will say so.

PT on the other hand said the G2G deal was genuine when if fact it was just another lie.